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Phillips steps down as Staunton football head coach
Published: May. 3, 2022 at 4:10 PM EDT|Updated: 1 hour ago
HARRISONBURG, Va. (WHSV) - Staunton High School is searching for a new head coach of the football program.
Staunton athletic director David Tibbs confirmed to WHSV via email Tuesday morning that Jake Phillips is stepping down as head coach of the football team.
Phillips took over the Storm prior to the 2019 season and guided the program for three campaigns, including the 2021 spring season which was played due to impacts of the COVID-19 pandemic. Staunton posted a 7-20 record during his time at the helm. WHSV had reached out to Phillips for comment but has not heard back as of Tuesday afternoon.
Copyright 2022 WHSV. All rights reserved. | https://www.whsv.com/2022/05/03/phillips-steps-down-staunton-football-head-coach/ | 2022-05-03T21:19:59Z |
Shenandoah Caverns celebrates 100 years
MOUNT JACKSON, Va. (WHSV) - On May 3, 1922, a full-service attraction opened for the Shenandoah Caverns, and now they are celebrating 100 years.
“The caverns has never been closed and that’s what I find really exciting to be able to say for 100 years we have been welcoming visitors from all around the world,” Joe Proctor, general manager at the Shenandoah Caverns said.
There are a handful of caves and caverns in the Valley, but Joe Proctor says the flowstone of the Shenandoah Caverns makes it unique and beautiful.
Shenandoah Caverns will hold a 100-year celebration on May 21.
“It’s kind of a celebration for the community to let everyone know this is a special time because this business has been a part of a lot of people’s lives for a long time,” Proctor said.
The activities will include historical items on display, touring the caverns, and a grand finale of fireworks to end the day.
”We’re gonna have a hand radio operator that will be here in the cavern, actually in the cave transmitting around the world via hand radio which is gonna be kind of interesting,” Proctor said.
One thing the Shenandoah Caverns prides itself on is the number of people that come back for return visits.
“I have seen generations of people return here,” Proctor said. “And that is another interesting part of being open for 100 years, a big part of that clientele has been coming here for many, many years.”
Shenandoah Caverns is a family affair. With only three owners in its 100-year span, these caverns have stayed in the family for generations.
”This really is a family-run business and when people bring their families to see it, it’s almost in a way like they’re coming home and I’m glad to see that,” Proctor said.
Copyright 2022 WHSV. All rights reserved. | https://www.whsv.com/2022/05/03/shenandoah-caverns-celebrates-100-years/ | 2022-05-03T21:20:05Z |
Tennessee governor won’t release records on execution error
NASHVILLE, Tenn. (AP) — Tennessee Gov. Bill Lee has refused to release records that could illuminate his decision to abruptly halt the execution of Oscar Smith last month, citing attorney-client privilege and the disputed “deliberative process privilege.”
In response to a records request by The Associated Press, the Republican governor’s office released emails containing Lee’s April 21 public statement granting Smith a reprieve. The office also released a series of emails from reporters asking for more details about the problems that led Lee to halt the execution. The reporters were referred to the public statement, which said only that there was an “oversight” in the preparation of the drugs.
On Monday, Lee finally elaborated in a new statement, saying the drugs to be used in Smith’s execution were tested for potency and sterility, but not endotoxins, as required by the state’s execution protocols. Lee placed a temporary moratorium on executions through the end of the year and appointed former U.S. Attorney Ed Stanton to review circumstances that led to the failure.
Lee has repeatedly cited deliberative process when declining to release documents. The exemption is not in state law but was described in a 2004 intermediate appeals court decision. In that ruling, the court determined certain documents could remain secret if officials deemed them part of their decision-making process.
Early in his administration, Lee’s office also cited “executive privilege” more than a dozen times as a reason for withholding records, though his team argued they were using the term interchangeably with deliberative process. Tennessee statutes, including the state’s open records laws, do not define executive privilege. The Tennessee Constitution does not mention it.
Lee initially promised to overhaul the state’s public records laws to provide more government transparency when he came into office, but he has yet to significantly change the statutes.
Smith, 72, was sentenced to death for fatally stabbing and shooting his estranged wife, Judith Smith, and her teenage sons, Jason and Chad Burnett, at their Nashville home on Oct. 1, 1989.
Smith’s execution was to be the first of five scheduled in 2022, the most of any state other than Texas, which also scheduled five executions, according to the Death Penalty Information Center. It was also to be Tennessee’s first execution since the pandemic halted executions in 2020.
___
Associated Press writer Kimberlee Kruesi contributed to this report.
Copyright 2022 The Associated Press. All rights reserved. | https://www.whsv.com/2022/05/03/tennessee-governor-wont-release-records-execution-error/ | 2022-05-03T21:20:11Z |
US sends canine body armor to Ukrainian service dogs
Published: May. 3, 2022 at 4:31 PM EDT|Updated: 48 minutes ago
(CNN) - Service dogs in Ukraine are getting some much-needed protection from the United States.
In a statement Tuesday, the Ukrainian Ministry of Interior said that U.S. police dog trainers are providing canine body armor for some of the Ukrainian dogs who work with police officers, combat engineers and border guards.
The ministry said now the four-legged assistants will be more protected in dangerous areas.
The vests do not interfere with movement, and protect dogs from debris, weapons and bullets.
Copyright 2022 CNN Newsource. All rights reserved. | https://www.whsv.com/2022/05/03/us-sends-canine-body-armor-ukrainian-service-dogs/ | 2022-05-03T21:20:17Z |
Waynesboro man dies in crash on Blue Ridge Parkway
MONTEBELLO, Va. (WDBJ) - A Waynesboro man was killed in a crash on the Blue Ridge Parkway Saturday night, according to parkway officials.
Park officials say the crash occurred near milepost one on the parkway.
Early investigation indicates the victim was a passenger in a car being driven northbound. The driver ran off the road in a curve, falling 10 feet down an embankment before hitting a tree on the passenger side door, according to park officials.
Bryan Antonio Garcia Navas, 23, was pronounced dead at the scene from injuries sustained in the crash.
The driver was taken to UVA Medical Center in Charlottesville for treatment of serious, but non-life-threatening injuries.
The crash remains under investigation. Virginia State Police and the Wintergreen Fire & Rescue Department assisted park personnel.
Copyright 2022 WDBJ. All rights reserved. | https://www.whsv.com/2022/05/03/waynesboro-man-dies-crash-blue-ridge-parkway/ | 2022-05-03T21:20:24Z |
What is Roe v. Wade, the landmark abortion access case?
(AP) - A leaked draft of a U.S. Supreme Court decision suggests the country’s highest court could be poised to overturn the constitutional right to abortion, allowing individual states to more heavily regulate or even ban the procedure.
WHAT DOES ‘ROE V. WADE’ REFER TO?
Roe v. Wade is the name of the lawsuit that led to the landmark 1973 U.S. Supreme Court decision establishing a constitutional right to abortion in the United States. The majority opinion found an absolute right to abortion during the first trimester of pregnancy.
WHO WERE ROE AND WADE?
Jane Roe was a pseudonym for Norma McCorvey, who was 22, unmarried, unemployed and pregnant for the third time in 1969 when she sought to have an abortion in Texas. By the time the U.S. Supreme Court ruled in her favor, McCorvey had given birth to a girl whom she placed for adoption.
Henry Wade was the district attorney of Dallas County, Texas. It was his job to enforce a state law prohibiting abortion except to save a woman’s life, so he was the person McCorvey sued when she sought the abortion.
After her death, biographer Joshua Prager said McCorvey made her living giving speeches and writing books on both sides of the abortion debate and was coached by both sides. She had conflicted feelings about each, he said, but was consistent on one point: supporting abortion through the first trimester.
WHAT DID THE COURT DECIDE IN 1973?
The plaintiff alleged that Texas law was unconstitutionally vague and violated her constitutionally protected right to personal privacy. The question before the U.S. Supreme Court was: Does the Constitution recognize a woman’s right to terminate her pregnancy by abortion?
Justice Harry Blackmun delivered the opinion for the 7-2 majority, finding that it did indeed — although that protection had to be balanced against the government’s interests in protecting women’s health and “the potentiality of human life.” The conservative-leaning court said a woman’s decision to have an abortion during the first three months of her pregnancy must be left to her and her doctor.
WHAT WAS THE PRE-ROE LANDSCAPE IN THE U.S.?
At the time of Roe, abortion was broadly legal in just four states and allowed under limited circumstances in 16 others. Constitutional rights trump state laws, so the court’s decision nullified the bans in the remaining 30 states. But it did allow states to impose certain regulations during the second trimester to protect the woman’s health and take steps to protect fetal life in the third trimester.
HOW HAVE LATER DECISIONS ALTERED ABORTION RIGHTS IN AMERICA?
Blackmun was still on the court in 1992, when it heard Planned Parenthood v. Casey, a challenge to Pennsylvania abortion laws that included a 24-hour waiting period. The conservative-leaning court unexpectedly upheld the right to abortion —while also making it easier for states to impose regulations.
Three conservative justices — Sandra Day O’Connor, Anthony M. Kennedy and David H. Souter — co-authored the court’s main opinion in the 5-4 decision, writing: “The woman’s right to terminate her pregnancy before viability is the most central principle of Roe vs. Wade. It is a rule of law and a component of liberty we cannot renounce.″
Neither side on the abortion issue was pleased with the ruling. Since then, conservative states have been chipping away at abortion rights with laws that have engendered many more court challenges, including a recent Texas law that bans most abortions after about six weeks.
WHAT IS THIS NEW CASE THAT’S POISED TO TOPPLE ROE?
Dobbs v. Jackson Women’s Health Organization. It challenges Mississippi’s ban on abortion after 15 weeks.
Upholding that ban would undermine both Roe and Casey, which allow states to regulate — but not ban — abortion up until the point of fetal viability, at roughly 24 weeks. The decision, per the draft, would likely result in a patchwork of abortion laws, with some states protecting abortion and others prohibiting it outright.
Copyright 2022 The Associated Press. All rights reserved. | https://www.whsv.com/2022/05/03/what-is-roe-v-wade-landmark-abortion-access-case/ | 2022-05-03T21:20:30Z |
‘Wow, that’s a big diamond!’: Visitor finds 2.38-carat brown diamond at state park
PIKE COUNTY, Ark. (Gray News) - A visitor found a 2.38-carat brown diamond on April 10 at Arkansas’s Crater of Diamonds State Park.
Park officials report the diamond was the largest found this year.
“It was right in the middle when I flipped my screen over,” Adam Hardin said. “When I saw it, I said, ‘Wow, that’s a big diamond!’”
After more than a decade of searching and hundreds of diamond finds at the park, Hardin found his first diamond weighing more than two carats.
Officials said Hardin was wet-sifting soil from the East Drain of the park’s 37.5-acre search area when he found the gem.
Park Interpreter Waymon Cox said visitors wet sift using a screen set to wash away soil and separate the gravel by size. Smaller gravel is then sorted by weight, sending heavier material to the bottom of the screen.
“When it’s flipped upside down, the heavier gravel, and sometimes a diamond, can be found on top of the pile,” Cox said.
Hardin carried his gem in a pill bottle to the park’s Diamond Discovery Center, where staff said they registered it as a 2.38-carat brown diamond.
“Mr. Hardin’s diamond is about the size of a pinto bean, with a coffee brown color and a rounded shape,” Cox said. “It has a metallic shine typical of all diamonds found at the park, with a few inclusions and crevices running all along the surface.”
Hardin, who first learned of Crater of Diamonds State Park more than a decade ago, said competition builds camaraderie among regular visitors.
“One of the other guys and I have been going back and forth, seeing who can find the biggest diamond,” Hardin said. “I found a big one, then he got a 1.79-carat, and we were joking about who would find the next big diamond and be ‘king of the mountain.’”
Officials said Hardin’s diamond was the largest found at the park since last September when a visitor from California discovered a 4.38-carat yellow gem on the surface of the diamond search area.
Hardin told park officials that he typically sells his diamonds locally and that he also plans to sell this one.
Currently, 260 diamonds have been registered at Crater of Diamonds State Park in 2022, weighing more than 44 carats. Officials said those numbers come out to be an average of one to two diamonds found by park visitors daily.
Officials report over 75,000 diamonds have been unearthed at the park since the first diamonds were discovered in 1906 by John Huddleston.
Diamonds come in all colors of the rainbow. According to park officials, the three most common colors found at Crater of Diamonds State Park are white, brown, and yellow.
Copyright 2022 Gray Media Group, Inc. All rights reserved. | https://www.whsv.com/2022/05/03/wow-thats-big-diamond-visitor-finds-238-carat-brown-diamond-state-park/ | 2022-05-03T21:20:37Z |
Agree Realty Corporation Reports First Quarter 2022 Results
Published: May. 3, 2022 at 4:05 PM EDT|Updated: 1 hour ago
Increases 2022 Acquisition Guidance to $1.4 Billion to $1.6 Billion
BLOOMFIELD HILLS, Mich., May 3, 2022 /PRNewswire/ -- Agree Realty Corporation (NYSE: ADC) (the "Company") today announced results for the quarter ended March 31, 2022. All per share amounts included herein are on a diluted per common share basis unless otherwise stated.
First Quarter 2022 Financial and Operating Highlights:
Invested approximately $430 million in 124 retail net lease properties
Commenced a record 15 development or Partner Capital Solutions ("PCS") projects representing total committed capital of approximately $44 million
Net Income per share attributable to common stockholders increased 0.4% to $0.48
Core Funds from Operations ("Core FFO") per share increased 15.5% to $0.97
Adjusted Funds from Operations ("AFFO") per share increased 16.4% to $0.97
Declared an April monthly dividend of $0.234 per share, a 7.8% year-over-year increase
Settled 3,791,964 shares of outstanding forward equity for net proceeds of approximately $251 million
Balance sheet positioned for growth at 4.3 times proforma net debt to recurring EBITDA; 5.0 times excluding unsettled forward equity
Financial Results
Net Income Attributable to Common Stockholders
Net Income for the three months ended March 31, 2022 increased 13.8% to $34.3 million, compared to $30.1 million for the comparable period in 2021. Net Income per share for the three months ended March 31, 2022 increased 0.4% to $0.48, compared to $0.48 per share for the comparable period in 2021.
Core FFO
Core FFO for the three months ended March 31, 2022 increased 30.8% to $69.7 million, compared to Core FFO of $53.3 million for the comparable period in 2021. Core FFO per share for the three months ended March 31, 2022 increased 15.5% to $0.97, compared to Core FFO per share of $0.84 for the comparable period in 2021.
AFFO
AFFO for the three months ended March 31, 2022 increased 31.8% to $69.2 million, compared to AFFO of $52.5 million for the comparable period in 2021. AFFO per share for the three months ended March 31, 2022 increased 16.4% to $0.97, compared to AFFO per share of $0.83 for the comparable period in 2021.
Dividend
In the first quarter, the Company declared monthly cash dividends of $0.227 per common share for each of the months, January, February and March 2022. The monthly dividends reflected an annualized dividend amount of $2.724 per common share, representing a 9.7% increase over the annualized dividend amount of $2.484 per common share from the first quarter of 2021. The dividends represent payout ratios of approximately 70% of Core FFO per share and 71% of AFFO per share, respectively.
Subsequent to quarter end, the Company declared a monthly cash dividend of $0.234 per common share for April 2022. The monthly dividend reflects an annualized dividend amount of $2.808 per common share, representing a 7.8% increase over the annualized dividend amount of $2.604 per common share from the second quarter of 2021. The April dividend is payable May 13, 2022 to stockholders of record at the close of business on April 29, 2022.
Additionally, subsequent to quarter end, the Company declared a monthly cash dividend for April on its 4.25% Series A Cumulative Redeemable Preferred Stock of $0.08854 per depositary share, which is equivalent to $1.0625 per annum. The April dividend was paid on May 2, 2022 to stockholders of record at the close of business on April 22, 2022.
CEO Comments
"We are extremely pleased with our strong start to 2022 as evidenced by the increase in our annual acquisition guidance to $1.4 billion to $1.6 billion," said Joey Agree, President and Chief Executive Officer. "While our acquisition platform continues to source a myriad of opportunities, we commenced a record number of projects through our development and partner capital solutions platforms during the quarter. All three platforms remain focused on leading omni-channel retailers as we maintain a fortress-like balance sheet with liquidity of nearly $1.0 billion."
Portfolio Update
As of March 31, 2022, the Company's portfolio consisted of 1,510 properties located in 47 states and contained approximately 31.0 million square feet of gross leasable area.
At quarter-end, the portfolio was 99.6% leased, had a weighted-average remaining lease term of approximately 9.1 years, and generated 67.8% of annualized base rents from investment grade retail tenants.
Ground Lease Portfolio
During the quarter, the Company acquired five ground leases for an aggregate purchase price of approximately $13.2 million, representing 3.1% of annualized base rents acquired.
As of March 31, 2022, the Company's ground lease portfolio consisted of 186 leases located in 32 states and totaled approximately 4.9 million square feet of gross leasable area. Properties ground leased to tenants represented approximately 13.5% of annualized base rents.
At quarter end, the ground lease portfolio was fully occupied, had a weighted-average remaining lease term of approximately 11.8 years, and generated 87.4% of annualized base rents from investment grade retail tenants.
Acquisitions
Total acquisition volume for the first quarter was approximately $407.2 million and included 106 properties net leased to leading retailers operating in sectors including farm and rural supply, dollar stores, home improvement, general merchandise, tire and auto service, and auto parts. The acquired properties are located in 32 states and leased to tenants operating in 20 sectors.
Notable acquisition activity during the quarter included a 55-property diversified net lease portfolio comprised of leading omni-channel retailers for a purchase price of approximately $180 million. The portfolio generated approximately 90% of annualized base rents from investment grade retailers and had a weighted-average lease term of nearly 10 years.
Acquisitions for the quarter were completed at a weighted-average capitalization rate of 6.0% and had a weighted-average remaining lease term of approximately 9.2 years. Approximately 74.2% of annualized base rents acquired were generated from investment grade retail tenants. Exclusive of the 55-property portfolio acquisition, the properties were acquired at a weighted-average capitalization rate of 6.2%.
The Company's outlook for acquisition volume for the full-year 2022 is being increased to a range of $1.4 billion to $1.6 billion of high-quality retail net lease properties, from a previous range of $1.1 billion to $1.3 billion.
Dispositions
During the three months ended March 31, 2022, the Company sold one property for gross proceeds of approximately $8.2 million. The disposition was completed at a capitalization rate of 4.2%.
The Company's disposition guidance for 2022 remains between $25 million and $75 million.
Development and PCS
During the first quarter, the Company commenced a record 15 development and PCS projects, with total anticipated costs of approximately $44.0 million. The projects consist of the Company's sixth Sunbelt Rentals in St. Louis, Missouri; the Company's fourth Burlington in Turnersville, New Jersey; and 13 geographically diverse Gerber Collision projects.
The Company completed its first development with 7-Eleven in Saginaw, Michigan, while construction continued on two Gerber Collision projects in Pooler, Georgia and New Port Richey, Florida.
For the three months ended March 31, 2022, the Company had 18 development or PCS projects completed or under construction. Anticipated total costs are approximately $53.0 million, including $29.4 million of costs incurred as of quarter end. The following table presents the Company's 18 development or PCS projects as of March 31, 2022:
Leasing Activity and Expirations
During the first quarter, the Company executed new leases, extensions or options on approximately 358,000 square feet of gross leasable area throughout the existing portfolio.
As of March 31, 2022, the Company's 2022 lease maturities represented 0.4% of annualized base rents. The following table presents contractual lease expirations within the Company's portfolio as of March 31, 2022, assuming no tenants exercise renewal options:
Top Tenants
The following table presents annualized base rents for all tenants that represent 1.5% or greater of the Company's total annualized base rent as of March 31, 2022:
Retail Sectors
The following table presents annualized base rents for all of the Company's retail sectors as of March 31, 2022:
Geographic Diversification
The following table presents annualized base rents for all states that represent 2.5% or greater of the Company's total annualized base rent as of March 31, 2022:
Capital Markets and Balance Sheet
Capital Markets
During the first quarter, the Company settled 3,791,964 shares under existing forward sale agreements and received net proceeds of approximately $250.8 million. At quarter end, the Company had 4,083,332 shares remaining to be settled under its December 2021 forward equity offering, which is anticipated to raise net proceeds of approximately $262.9 million after deducting fees and expenses and making certain other adjustments as provided in the equity distribution agreements.
The following table presents the Company's outstanding forward equity offerings as of March 31, 2022:
Balance Sheet
As of March 31, 2022, the Company's net debt to recurring EBITDA was 5.0 times. The Company's proforma net debt to recurring EBITDA was 4.3 times when deducting the $262.9 million of anticipated net proceeds from the outstanding forward equity offerings from the Company's net debt of $1.8 billion as of March 31, 2022. The Company's fixed charge coverage ratio was 5.2 times as of the end of the first quarter.
The Company's total debt to enterprise value was 26.5% as of March 31, 2022. Enterprise value is calculated as the sum of net debt, the liquidation value of the Company's preferred stock, and the market value of the Company's outstanding shares of common stock, assuming conversion of Agree Limited Partnership (the "Operating Partnership" or "OP") common units into common stock of the Company.
For the three months ended March 31, 2022, the Company's fully diluted weighted-average shares outstanding were 71.3 million. The basic weighted-average shares outstanding for the three months ended March 31, 2022 were 71.2 million.
For the three months ended March 31, 2022, the Company's fully diluted weighted-average shares and units outstanding were 71.7 million. The basic weighted-average shares and units outstanding for the three months ended March 31, 2022 were 71.6 million.
The Company's assets are held by, and its operations are conducted through, the Operating Partnership, of which the Company is the sole general partner. As of March 31, 2022, there were 347,619 Operating Partnership common units outstanding and the Company held a 99.5% common interest in the Operating Partnership.
Conference Call/Webcast
The Company will host its quarterly analyst and investor conference call on Wednesday, May 4, 2022 at 8:30 AM ET. To participate in the conference call, please dial (866) 363-3979 approximately ten minutes before the call begins.
Additionally, a webcast of the conference call will be available through the Company's website. To access the webcast, visit www.agreerealty.com ten minutes prior to the start time of the conference call and go to the Investors section of the website. A replay of the conference call webcast will be archived and available online through the Investors section of www.agreerealty.com.
About Agree Realty Corporation
Agree Realty Corporation is a publicly traded real estate investment trust that is RETHINKING RETAIL through the acquisition and development of properties net leased to industry-leading, omni-channel retail tenants. As of March 31, 2022, the Company owned and operated a portfolio of 1,510 properties, located in 47 states and containing approximately 31.0 million square feet of gross leasable area. The Company's common stock is listed on the New York Stock Exchange under the symbol "ADC". For additional information on the Company and RETHINKING RETAIL, please visit www.agreerealty.com.
Forward-Looking Statements
This press release contains forward-looking statements, including statements about projected financial and operating results, within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "seek," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," "forecast," "continue," "assume," "plan," "outlook" or other similar words or expressions. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections or other forward-looking information. Although these forward-looking statements are based on good faith beliefs, reasonable assumptions and the Company's best judgment reflecting current information, you should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company's control and which could materially affect the Company's results of operations, financial condition, cash flows, performance or future achievements or events. Currently, one of the most significant factors, however, is the potential adverse effect of the current pandemic of the novel coronavirus, or COVID-19, on the financial condition, results of operations, cash flows and performance of the Company and its tenants, the real estate market and the global economy and financial markets. The extent to which COVID-19 impacts the Company and its tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact and the direct and indirect economic effects of the pandemic and containment measures, among others. Moreover, investors are cautioned to interpret many of the risks identified in the risk factors discussed in the Company's Annual Report on Form 10-K and subsequent quarterly reports filed with the Securities and Exchange Commission (the "SEC"), as well as the risks set forth below, as being heightened as a result of the ongoing and numerous adverse impacts of COVID-19. Additional important factors, among others, that may cause the Company's actual results to vary include the general deterioration in national economic conditions, weakening of real estate markets, decreases in the availability of credit, increases in interest rates, adverse changes in the retail industry, the Company's continuing ability to qualify as a REIT and other factors discussed in the Company's reports filed with the SEC. The forward-looking statements included in this press release are made as of the date hereof. Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, changes in the Company's expectations or assumptions or otherwise.
For further information about the Company's business and financial results, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's SEC filings, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained at the Investor Relations section of the Company's website at www.agreerealty.com.
The Company defines the "weighted-average capitalization rate" for acquisitions and dispositions as the sum of contractual fixed annual rents computed on a straight-line basis over the primary lease terms and anticipated annual net tenant recoveries, divided by the purchase and sale prices.
References to "Core FFO" and "AFFO" in this press release are representative of Core FFO attributable to OP common unitholders and AFFO attributable to OP common unitholders. Detailed calculations for these measures are shown in the Reconciliation of Net Income to FFO, Core FFO and Adjusted FFO table as "Core Funds From Operations – OP Common Unitholders" and "Adjusted Funds from Operations – OP Common Unitholders".
The above press release was provided courtesy of PRNewswire. The views, opinions and statements in the press release are not endorsed by Gray Media Group nor do they necessarily state or reflect those of Gray Media Group, Inc. | https://www.whsv.com/prnewswire/2022/05/03/agree-realty-corporation-reports-first-quarter-2022-results/ | 2022-05-03T21:20:43Z |
CHARLOTTE, N.C., May 3, 2022 /PRNewswire/ -- The Board of Directors of Albemarle Corporation (NYSE: ALB) today announced that it has declared a quarterly dividend of $0.395 per share. The dividend, which has an annualized rate of $1.58, is payable July 1, 2022, to shareholders of record at the close of business as of June 10, 2022.
About Albemarle Corporation
Albemarle Corporation (NYSE: ALB) is a global specialty chemicals company with leading positions in lithium, bromine and catalysts. We think beyond business as usual to power the potential of companies in many of the world's largest and most critical industries, such as energy, electronics, and transportation. We actively pursue a sustainable approach to managing our diverse global footprint of world-class resources. In conjunction with our highly experienced and talented global teams, our deep-seated values, and our collaborative customer relationships, we create value-added and performance-based solutions that enable a safer and more sustainable future.
We regularly post information to www.albemarle.com, including notification of events, news, financial performance, investor presentations and webcasts, non-GAAP reconciliations, SEC filings and other information regarding our company, its businesses and the markets it serves.
Forward-Looking Statements
Some of the information presented in this press release, including, without limitation, information related to future dividends and results, and all other information relating to matters that are not historical facts may constitute forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from the views expressed. Factors that could cause actual results to differ materially from the outlook expressed or implied in any forward-looking statement include, without limitation: changes in economic and business conditions; adverse changes in liquidity or financial or operating performance; changes in the demand for our products or the end-user markets in which our products are sold and the other factors detailed from time to time in the reports we file with the SEC, including those described under "Risk Factors" in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. These forward-looking statements speak only as of the date of this press release. We assume no obligation to provide any revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.
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SOURCE Albemarle Corporation | https://www.whsv.com/prnewswire/2022/05/03/albemarle-corporation-announces-dividend/ | 2022-05-03T21:20:55Z |
NEW YORK, May 3, 2022 /PRNewswire/ -- ALM has released a new title, The Psychology of Financial Planning, developed in partnership with Certified Financial Planner Board of Standards, Inc. (CFP Board).
The Psychology of Financial Planning is the first title to cover the six Principal Knowledge Topics within the Psychology of Financial Planning domain and assessed in the CFP® exam. Written by subject matter experts under the guidance of the CFP Editorial Advisory Board, this new title is available in eBook, digital and print format. The Psychology of Financial Planning addresses the theoretical underpinnings for each of the six topics and provides practical guidance, including "In Practice" sections with practice tips and case studies that illustrate how the concepts play out in real life situations. This pioneering resource will not only serve aspiring CFP® professionals but assist financial planners in improving their competencies in this area.
This book is structured around the six Principal Knowledge Topics that make up CFP Board's Psychology of Financial Planning domain:
- Client and planner attitudes, values, and biases
- Behavioral finance
- Sources of money conflict
- Principles of counseling
- General principles of effective communication
- Crisis events with severe consequences
"We are excited to partner with such a well-respected organization as CFP Board and to be the first to cover this new Principal Knowledge Domain," says Molly Miller, ALM's Chief Content Officer. "The Psychology of Financial Planning joins our well-established series of financial planning titles that help students prepare for the CFP® exam as well as provide ongoing learning for financial planners."
The online and eBook versions are available for immediate access. Print copies are available for pre-order and will be shipped in June.
Use code POFP22 to receive $20 off your purchase of our online + eBook versions or off your pre-order of the print version. Bundle print + online + eBook for the greatest savings! *
Print: $199
eBook + Online: $169
Print + eBook + Online Bundle: $320
* Introductory rate savings of $20 is valid on The Psychology of Financial Planning only. Enter discount code POFP22 at checkout. Offer valid through May 27, 2022 at 11:59pm EDT.
About ALM Global
ALM Global, an information and intelligence media company, provides customers with critical news, data, analysis, marketing solutions and events to successfully manage the business of business. ALM serves a community of more than 7 million business professionals in the legal, finance, insurance and commercial real estate industries. Please visit www.alm.com for more information.
ALM Media Contact:
Amanda Beasley
abeasley@alm.com
ABOUT CFP BOARD
Certified Financial Planner Board of Standards, Inc. is a professional body for personal financial planners in the U.S. CFP Board sets standards for financial planning and administers the prestigious CFP® certification – one of the most respected certifications in financial services – so that the public has access to and benefits from competent and ethical financial planning. CFP Board, along with its Center for Financial Planning, is committed to increasing the public's awareness of CFP® certification and access to a diverse, ethical and competent financial planning workforce. Widely recognized by firms as the standard for financial planning, CFP® certification is held by more than 92,000 people in the United States. Visit CFP.net for more information.
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SOURCE ALM | https://www.whsv.com/prnewswire/2022/05/03/alm-announces-release-new-title-psychology-financial-planning-partnership-with-cfp-board/ | 2022-05-03T21:21:01Z |
A Web 3.0 union blending fashion and NFT culture for the Metaverse.
HONG KONG, May 3, 2022 /PRNewswire/ -- Recognized as the first Asian PFP NFT project to gain mainstream recognition, Monkey Kingdom continues the execution of its roadmap with the announcement of a partnership with the Tokyo-based fashion and lifestyle brand AMBUSH®, founded by YOON and VERBAL, who are one of the first fashion brands to successfully launch a series of NFTs traded on OpenSea, and create its own proprietary metaverse, the SILVER FCTRY.
The collaboration "AMBUSH® the Kingdom" will bridge digital and physical realities, bringing together communities from both Web 3.0 projects, with AMBUSH® having its own series of NFT projects – POW! ® REBOOT and GLOW IN THE DARK.
Both holders of Monkey Kingdom and AMBUSH® NFTs will have access to:
- "AMBUSH® The Kingdom" fashion merchandise starting with a collaborative t-shirt.
- A unique NFT collectible (to be launched at a later date) that allows holders of both NFTs to gain access to both digital outfits and unique physical goods, such as jewelry.
- With the upcoming reveal of the Gen 3 version of Monkey Kingdom – MONKEY LEGENDS – this new avatar will become inhabitants of The Kingdom metaverse and will have the option to be dressed in AMBUSH® gear.
MONKEY LEGENDS, revealing in early May 22, is a highly anticipated collection of 10,000 avatars that feature traits and powers based on Sun Wukong, the legendary mythical figure from traditional folklore. The Monkey Legends are designed to be Metaverse ready and are fully customizable. This evolution of Monkey Kingdom on the Ethereum blockchain will support whole new experiences and exclusive access into The Kingdom, an open-world Metaverse (currently in development) that will be populated by different brands, NFT projects and an enlarged community.
NFT holders will be able to socialize, play, and create in a cutting-edge digital playground AMBUSH® will have a permanent structure within the futuristic city of Miraijuku, including quests and P2E elements. This long-term partnership is among these first of its kind in the fashion world and NFT space, where a Web 3.0 brand like Monkey Kingdom and iconic fashion brand AMBUSH® intersect their roadmaps, and realize their vision on creating an immersive and inclusive Metaverse experience.
About Monkey Kingdom
Originally launched in December 2021, as the first Asian blue-chip NFT, Monkey Kingdom has already garnered the support of prominent global celebrities and cultural personalities of Asian descent, including Edison Chen (Entrepreneur and Designer), Steve Aoki (DJ and Producer), JJ Lin (Singer), Sunny Wang (Actor), Ian Chan (from Hong Kong-based boy band Mirror) and Dr. Woo (Tattoo artist), to name a few. Monkey Kingdom has built a strong community to bridge Web 3.0 technologies with culture, fashion and media.
About AMBUSH®
AMBUSH® began as an experimental line of jewelry – innovative pop art inspired designs capturing a distinct Tokyo aesthetic. The iconic trademarked POW!® motif in particular received media coverage around the world. With apparel created as a canvas to complete the story, AMBUSH® evolved into designing unisex collections.
The brand made its Paris debut in 2015 with YOON & VERBAL being listed as two of Business of Fashion's Top 500 people influencing the global fashion industry for 5 consecutive years from 2015, and HYPEBEAST 100 list for 8 consecutive years. In 2017 AMBUSH® was selected as one of the top 8 finalists for the LVMH PRIZE. AMBUSH®'s uniquely crafted parts form an idiosyncratic style that led to commissions and collaborations with an illustrious list that includes Louis Vuitton (Kim Jones), sacai, UNDERCOVER, Off - White, Moet, Bvlgari, Nike, CONVERSE, Rimowa, and GENTLE MONSTER.
In 2018 AMBUSH® presented the brand's first runway presentation as part of Amazon Fashion Week Tokyo. Kim Jones named YOON as jewelry designer for Dior Men, and the first creations for the house debuted with the SS 2019 collection in Paris. AMBUSH® opened its first flagship store on September 2nd 2016 in Tokyo, a space which encapsulates the brand's ethos in a creative environment under one roof with the design studio.
In 2022 AMBUSH® became one of the first fashion brands to successfully launch a series of NFTs and its own proprietary metaverse, the SILVER FCTRY.
Website
Discord
@monkeykingdom_
@ambush_official
@monkeykingdom_
@ambushdesign
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SOURCE Monkey Kingdom | https://www.whsv.com/prnewswire/2022/05/03/ambush-partners-with-kingdom/ | 2022-05-03T21:21:07Z |
March quarter net sales up 16%; Up 5% on a comparable constant currency basis
March quarter GAAP EPS up 3%; Adjusted EPS up 15% on a comparable constant currency basis
Highlights - Nine Months Ended March 31, 2022
- Net sales of $10,635 million, up 13%;
- GAAP Net Income of $696 million, up 2%; GAAP earnings per share (EPS) of 45.6 cents per share, up 4%;
- Adjusted EPS of 56.2 cents per share, up 11% on a comparable constant currency basis;
- Adjusted EBIT of $1,196 million, up 6% on a comparable constant currency basis;
- Increasing returns to shareholders: quarterly dividend increased to 12.0 cents per share; $600 million of share repurchases expected in fiscal 2022; RoAFE increased to 16%; and
- Fiscal 2022 outlook for adjusted EPS growth raised to 9.5-11% on a comparable constant currency basis (previously 7-11%). Adjusted Free Cash Flow of approximately $1.1 billion.
ZURICH, May 3, 2022 /PRNewswire/ -- Amcor CEO Ron Delia said: "Amcor has consistently demonstrated the ability to execute exceptionally well, remain focused on our strategic priorities and deliver for our customers. The business has delivered another strong result with March quarter net sales growth accelerating to 5%, contributing to 15% Adjusted EPS growth in the quarter and 11% on a year to date basis. As we carry this momentum into the final quarter of the year, we are also raising our guidance for fiscal 2022 adjusted EPS growth to 9.5-11%."
"Across our business we have continued to focus on sales mix management and to prioritize security of supply for customers. At the same time, our teams have acted quickly and decisively, implementing a range of pricing actions through the year to manage inflation and recover higher input costs. As a result, both the Flexibles and Rigid Packaging segments achieved their strongest earnings growth for the year in the March quarter."
"Amcor has a strong foundation for growth and we believe our investment case has never been stronger. We are capitalizing on a range of attractive opportunities and increasing investments in priority segments such as healthcare and protein and in our innovative, more sustainable product platforms, which are expected to drive stronger growth, margin expansion and long term value creation for all stakeholders."
Shareholder returns
Amcor generates significant and growing annual free cash flow well in excess of $1 billion, maintains strong balance sheet metrics and is committed to an investment grade credit rating. This annual free cash flow provides substantial capacity to simultaneously reinvest in the business, pursue acquisitions and regularly repurchase shares while also funding a compelling and growing dividend which currently yields approximately 4%.
Share repurchases
Amcor repurchased 36 million shares (2.3% of outstanding shares) during the nine months ended March 31, 2022 for a total cost of $423 million. The Company expects to allocate approximately $600 million of cash towards share repurchases in fiscal 2022.
Dividend
The Amcor Board of Directors today declared a quarterly cash dividend of 12.00 cents per share (compared with 11.75 cents per share in the same quarter last year). The dividend will be paid in US dollars to holders of Amcor's ordinary shares trading on the NYSE. Holders of CDIs trading on the ASX will receive an unfranked dividend of 16.68 Australian cents per share, which reflects the quarterly dividend of 12.00 cents per share converted at an AUD:USD average exchange rate of 0.7196 over the five trading days ended April 29, 2022.
The ex-dividend date will be May 24, 2022, the record date will be May 25, 2022 and the payment date will be June 14, 2022.
Financial results - Nine Months Ended March 31, 2022
Segment information
For the March quarter, net sales for the Amcor Group of $3,708 million increased by 16% on a reported basis and 5% on a comparable constant currency basis reflecting strong price/mix benefits. Adjusted EBIT for the March quarter of $427 million was 9% higher than the same quarter last year on a comparable constant currency basis.
Year to date net sales for the Amcor Group increased by 13% on a reported basis, which includes price increases of approximately $1,107 million (representing 12% growth) related to the pass through of higher raw material costs and a combined unfavorable impact of 2% related to items affecting comparability and currency.
Year to date net sales were 3% higher than the same period last year on a comparable constant currency basis. Overall year to date volumes for the Amcor Group were 1% higher than the same period last year and price/mix had a favorable impact on net sales of 2%.
Year to date adjusted EBIT of $1,196 million was 6% higher than last year on a comparable constant currency basis.
On a reported basis, net sales for the March quarter of $2,837 million were 14% higher than the same quarter last year and 5% higher on a comparable constant currency basis, reflecting favorable price/mix benefits. Adjusted EBIT was 10% higher than the same quarter last year on a comparable constant currency basis.
On a reported basis, year to date net sales of $8,184 million were 11% higher, which includes price increases of approximately $810 million (representing 11% growth) related to the pass through of higher raw material costs and a combined unfavorable impact of 2% related to items affecting comparability and currency. Year to date net sales were 3% higher than the prior period on a comparable constant currency basis reflecting favorable price/mix.
Amcor continues to successfully execute its long-term strategy of driving growth in priority high value segments which has driven strong mix benefits over several quarters. Supply chain disruptions had a dampening effect on volume growth in some categories through the last nine months, and in parts of the business actions were taken to direct constrained materials to their highest value use, which also had a favorable impact on mix. As a result, overall volumes for the March quarter and year to date were in line with the same period last year.
In North America, year to date net sales grew in the low single digit range driven by favorable mix and higher volumes. Volumes were higher in the medical, condiments, liquid beverage and confectionary end markets, partly offset by lower coffee and frozen food volumes.
In Europe, year to date net sales grew in the mid single digit range driven by strong mix. Higher volumes in pet food, healthcare, premium coffee, meat and confectionary end markets were more than offset by lower film and foil rollstock volumes.
Year to date net sales and volumes grew at mid single digit rates across the Asian emerging markets. In Latin America, while volumes were lower than the same period last year this was more than offset by strengthening price/mix.
Year to date adjusted EBIT of $1,069 million was 8% higher than in the prior period on a comparable constant currency basis reflecting growth in priority high value segments and strong cost performance.
Adjusted EBIT margins of 13.1% remained strong despite the time lag between the impact of higher raw material costs and related pricing actions.
On a reported basis, net sales for the March quarter of $871 million were 23% higher than the same quarter last year, and 5% higher on a comparable constant currency basis reflecting volume growth of 2% and a favorable price/mix benefit of 3%. In line with expectations adjusted EBIT was 4% higher than the March quarter last year on a comparable constant currency basis.
On a reported basis, year to date net sales of $2,451 million were 19% higher than the prior year, which includes price increases of approximately $297 million (representing 14% growth) related to the pass through of higher raw material costs. Year to date net sales were 5% higher than the prior period on a comparable constant currency basis reflecting volume growth of 3% and a favorable price/mix benefit of 2%.
In North America, year to date beverage volumes were 2% higher than the prior year. Year to date hot fill container volumes were up 2% (up 6% in the March quarter) against a strong prior year reflecting continued growth in key categories. Specialty container volumes improved sequentially in the March quarter but on a year to date basis were lower than the same period last year which benefited from a strong first half in the home and personal care category.
In Latin America, year to date volumes grew at a double digit rate with higher volumes in Argentina, Colombia, Mexico, and Peru.
On a year to date basis, adjusted EBIT of $194 million reflects lower earnings in North America, partly offset by higher earnings in Latin America. Through the first half of the year, the business in North America was adversely impacted by industry wide supply chain disruptions and shortages of key raw materials. Beverage demand remained elevated while the business operated at full capacity and with low levels of inventory resulting in inefficiencies and higher costs.
Operating conditions and financial performance in the North America business improved through the March quarter. We anticipate this improved performance will continue through the balance of the 2022 fiscal year and earnings in the June 2022 half year will be higher than the June 2021 half year.
Net interest and income tax expense
Net interest expense for the nine months ended March 31, 2022 was $100 million and was in line with the same period last year. Tax expense for the nine months ended March 31, 2022 (excluding amounts related to non-GAAP adjustments) was $232 million and was in line with the same period last year. Adjusted tax expense represents an effective tax rate of 21.2% in the current period (22.0% in the same period last year).
Free Cash Flow
Year to date adjusted free cash flow was $263 million and compares with $360 million last year. The reduction was mainly driven by the timing impact of higher raw material costs on working capital. Year to date capital expenditure increased by $38 million to $373 million as the Company increases investments in strategic organic growth opportunities.
Net debt was $6,172 million at March 31, 2022. Leverage, measured as net debt divided by adjusted trailing twelve month EBITDA, was 3.0 times, in line with Amcor's expectations at this time of year given the seasonality of cash flows.
Fiscal 2022 guidance
For the twelve month period ending June 30, 2022, the Company now expects:
- Adjusted EPS growth of approximately 9.5% to 11% (previously 7% to 11%) on a comparable constant currency basis, or approximately 79.5 to 81.0 cents per share (previously 79.0 to 81.0 cents per share) on a reported basis assuming current exchange rates prevail through fiscal 2022.
- Adjusted Free Cash Flow of approximately $1.1 billion.
- Approximately $600 million of cash to be allocated towards share repurchases in fiscal 2022.
Amcor's guidance contemplates a range of factors which create a higher degree of uncertainty and additional complexity when estimating future financial results. Further information can be found under 'Cautionary Statement Regarding Forward-Looking Statements' in this release.
Conference Call
Amcor is hosting a conference call with investors and analysts to discuss these results on Tuesday May 3, 2022 at 5:30pm US Eastern Daylight Time / Wednesday May 4, 2022 at 7:30am Australian Eastern Standard Time. Investors are invited to listen to a live webcast of the conference call at our website, www.amcor.com, in the "Investors" section.
Those wishing to access the call should use the following toll-free numbers, with the Conference ID 8080870:
- US & Canada – 888 440 4149
- Australia – 1800 953 093
- United Kingdom – 0800 358 0970
- Singapore – +65 3159 5133 (local number)
- Hong Kong – +852 3002 3410 (local number)
From all other countries, the call can be accessed by dialing +1 646 960 0661 (toll).
A replay of the webcast will also be available in the "Investors" section at www.amcor.com following the call.
About Amcor
Amcor is a global leader in developing and producing responsible packaging for food, beverage, pharmaceutical, medical, home and personal-care, and other products. Amcor works with leading companies around the world to protect their products and the people who rely on them, differentiate brands, and improve supply chains through a range of flexible and rigid packaging, specialty cartons, closures and services. The Company is focused on making packaging that is increasingly light-weighted, recyclable and reusable, and made using an increasing amount of recycled content. In fiscal 2021, around 46,000 Amcor people generated $13 billion in annual sales from operations that span about 225 locations in 40-plus countries. NYSE: AMCR; ASX: AMC
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Contact Information
Cautionary Statement Regarding Forward-Looking Statements
This document contains certain statements that are "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified with words like "believe," "expect," "target," "project," "may," "could," "would," "approximately," "possible," "will," "should," "intend," "plan," "anticipate," "commit," "estimate," "potential," "outlook," or "continue," the negative of these words, other terms of similar meaning or the use of future dates. Such statements are based on the current expectations of the management of Amcor and are qualified by the inherent risks and uncertainties surrounding future expectations generally. Actual results could differ materially from those currently anticipated due to a number of risks and uncertainties. None of Amcor or any of its respective directors, executive officers or advisors provide any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements will actually occur. Risks and uncertainties that could cause actual results to differ from expectations include, but are not limited to: changes in consumer demand patterns and customer requirements; the loss of key customers, a reduction in production requirements of key customers; significant competition in the industries and regions in which Amcor operates; failure by Amcor to expand its business; failure to successfully integrate acquisitions; challenges to or the loss of Amcor's intellectual property rights; adverse impacts from the ongoing COVID-19 pandemic; challenging future global economic conditions; impact of operating internationally, including negative impacts from the Russian invasion of Ukraine; price fluctuations or shortages in the availability of raw materials and other inputs; disruptions to production, supply and commercial risks; a failure in our information technology systems; an inability to attract and retain key personnel; costs and liabilities related to current and future environmental and health and safety laws and regulations; labor disputes; the possibility that the phase out of the London Interbank Offered Rate ("LIBOR") causes the interest expense to increase; foreign exchange rate risk; an increase in interest rates; a significant increase in indebtedness; failure to hedge effectively against adverse fluctuations in interest rates and foreign exchange rates; significant write-down of goodwill and/or other intangible assets; need to maintain an effective system of internal control over financial reporting; inability of the Company's insurance policies to provide adequate protections; litigation, including product liability claims; increasing scrutiny and changing expectations with respect to Amcor Environmental, Social and Governance policies resulting in increased costs; changing government regulations in environmental, health and safety matters; changes in tax laws or changes in our geographic mix of earnings; the Company's ability to develop and successfully introduce new products; and other risks and uncertainties identified from time to time in Amcor's filings with the U.S. Securities and Exchange Commission (the "SEC"), including without limitation, those described under Item 1A. "Risk Factors" of Amcor's annual report on Form 10-K for the fiscal year ended June 30, 2021 and any subsequent quarterly reports on Form 10-Q. You can obtain copies of Amcor's filings with the SEC for free at the SEC's website (www.sec.gov). Forward-looking statements included herein are made only as of the date hereof and Amcor does not undertake any obligation to update any forward-looking statements, or any other information in this communication, as a result of new information, future developments or otherwise, or to correct any inaccuracies or omissions in them which become apparent, except as expressly required by law. All forward-looking statements in this communication are qualified in their entirety by this cautionary statement.
Presentation of non-GAAP information
Included in this release are measures of financial performance that are not calculated in accordance with U.S. GAAP. These measures include adjusted EBIT (calculated as earnings before interest and tax), adjusted net income, adjusted earnings per share, adjusted free cash flow and net debt. In arriving at these non-GAAP measures, we exclude items that either have a non-recurring impact on the income statement or which, in the judgment of our management, are items that, either as a result of their nature or size, could, were they not singled out, potentially cause investors to extrapolate future performance from an improper base. While not all inclusive, examples of these items include:
- material restructuring programs, including associated costs such as employee severance, pension and related benefits, impairment of property and equipment and other assets, accelerated depreciation, termination payments for contracts and leases, contractual obligations, and any other qualifying costs related to the restructuring plan;
- material sales and earnings from disposed or ceased operations and any associated profit or loss on sale of businesses or subsidiaries;
- consummated and identifiable divestitures agreed to with certain regulatory agencies as a condition of approval for Amcor's acquisition of Bemis;
- impairments in goodwill and equity method investments;
- material acquisition compensation and transaction costs such as due diligence expenses, professional and legal fees, and integration costs;
- material purchase accounting adjustments for inventory;
- amortization of acquired intangible assets from business combination;
- significant property impairments, net of insurance recovery;
- payments or settlements related to legal claims; and
- impacts from hyperinflation accounting.
Amcor also evaluates performance on a comparable constant currency basis, which measures financial results assuming constant foreign currency exchange rates used for translation based on the average rates in effect for the comparable prior year period. In order to compute comparable constant currency results, we multiply or divide, as appropriate, current-year U.S. dollar results by the current year average foreign exchange rates and then multiply or divide, as appropriate, those amounts by the prior-year average foreign exchange rates. We then adjust for other items affecting comparability. While not all inclusive, examples of items affecting comparability include the difference between sales or earnings in the current period and the prior period related to acquired, disposed, or ceased operations. Comparable constant currency net sales performance also excludes the impact from passing through movements in raw material costs.
Management has used and uses these measures internally for planning, forecasting and evaluating the performance of the Company's reporting segments and certain of the measures are used as a component of Amcor's board of directors' measurement of Amcor's performance for incentive compensation purposes. Amcor believes that these non-GAAP measures are useful to enable investors to perform comparisons of current and historical performance of the Company. For each of these non-GAAP financial measures, a reconciliation to the most directly comparable U.S. GAAP financial measure has been provided herein. These non-GAAP financial measures should not be construed as an alternative to results determined in accordance with U.S. GAAP. The Company provides guidance on a non-GAAP basis as we are unable to predict with reasonable certainty the ultimate outcome and timing of certain significant forward-looking items without unreasonable effort. These items include but are not limited to the impact of foreign exchange translation, restructuring program costs, asset impairments, possible gains and losses on the sale of assets, and certain tax related events. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP earnings and cash flow measures for the guidance period.
Dividends
Amcor has received a waiver from the ASX's settlement operating rules, which will allow the Company to defer processing conversions between its ordinary share and CDI registers from May 24, 2022 to May 25, 2022, inclusive.
U.S. GAAP Condensed Consolidated Statements of Income (Unaudited)
U.S. GAAP Condensed Consolidated Statements of Cash Flows (Unaudited)
U.S. GAAP Condensed Consolidated Balance Sheets (Unaudited)
Reconciliation of Non-GAAP Measures
Reconciliation of adjusted Earnings before interest, tax, depreciation, and amortization (EBITDA), Earnings before interest and tax (EBIT), Net income, and Earnings per share (EPS)
Reconciliation of adjusted EBIT by reporting segment
Reconciliations of Adjusted Free Cash Flow
Reconciliation of net debt
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SOURCE Amcor | https://www.whsv.com/prnewswire/2022/05/03/amcor-reports-strong-financial-result-raises-fiscal-2022-eps-guidance/ | 2022-05-03T21:21:14Z |
CALABASAS, Calif., May 3, 2022 /PRNewswire/ -- American Homes 4 Rent (NYSE: AMH) (the "Company"), a leading provider of high-quality single-family homes for rent, today announced that the Board of Trustees declared a dividend of $0.18 per share on the Company's common shares for the second quarter of 2022. The distribution will be payable in cash on June 30, 2022 to shareholders of record on June 15, 2022.
The Board of Trustees also declared a per share quarterly distribution on the Company's cumulative redeemable perpetual preferred shares of $0.36719 per share on the 5.875% Series G shares and $0.39063 per share on the 6.250% Series H shares payable in cash on June 30, 2022 to shareholders of record on June 15, 2022.
About American Homes 4 Rent
American Homes 4 Rent (NYSE: AMH) is a leader in the single-family home rental industry and "American Homes 4 Rent" is a nationally recognized brand for rental homes, known for high-quality, good value and resident satisfaction. We are an internally managed Maryland real estate investment trust, or REIT, focused on acquiring, developing, renovating, leasing, and operating attractive, single-family homes as rental properties. As of December 31, 2021, we owned 57,024 single-family properties in selected submarkets in 22 states.
Additional information about American Homes 4 Rent is available on our website at www.americanhomes4rent.com.
Forward-Looking Statements
This press release contains "forward-looking statements" that relate to beliefs, expectations or intentions and similar statements concerning matters that are not of historical fact and are generally accompanied by words such as "believe," "expect," "will," "intend," "anticipate" or other words that convey the uncertainty of future events or outcomes. These forward-looking statements include the payment and anticipated timing of the payment of distributions of the Company's common and preferred shares. The Company has based these forward-looking statements on its current expectations and assumptions about future events. While the Company's management considers these expectations to be reasonable, they are inherently subject to risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control and could adversely affect our cash flows and ability to pay distributions. Additional information about these and other important factors that may cause our actual results to differ materially from anticipated results expressed or implied by these forward-looking statements is available in the Company's most recent Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement to conform to actual results or changes in expectations, except as required by applicable law.
Contacts:
American Homes 4 Rent
Investor Relations
Nicholas Fromm
Phone: (855) 794-2447
Email: investors@ah4r.com
American Homes 4 Rent
Media Relations
Megan Grabos
Phone: (805) 413-5088
Email: media@ah4r.com
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SOURCE American Homes 4 Rent | https://www.whsv.com/prnewswire/2022/05/03/american-homes-4-rent-announces-distributions/ | 2022-05-03T21:21:21Z |
LUXEMBOURG, May 3, 2022 /PRNewswire/ -- Globant (NYSE: GLOB), a digitally native company focused on reinventing business through innovative technology solutions, announced today the appointment of Andrea Mayumi Petroni Merhy to its Board of Directors. Ms. Petroni Merhy was elected to join the Board of Directors by Globant's shareholders at the company's annual general meeting, which took place on April 22. She comes to Globant with extensive experience leading global strategies to grow and scale international businesses.
"We are extremely thrilled to have Andrea Petroni Merhy join our Board of Directors. Her experience and advice will help us to improve our ability to leverage business opportunities and support our global portfolio of clients to reinvent themselves and their industries," said Martin Migoya, Chairman of Globant's Board of Directors and CEO & Co-founder of Globant.
Ms. Petroni Merhy is a Managing Director, Head of Business Advisory & Execution, and member of the Management Committee for the Investment and Corporate Banking in Asia Pacific at JPMorgan Chase. Previously, Ms. Petroni Merhy held a number of leadership roles within JPMorgan Chase including Head of Finance & Business Management for the Investment and Corporate Banking and Wholesale Payments in Asia Pacific, Senior Business Manager for China, Head of Human Resources for Latin America, and Head of Finance & Strategy for the Investment Banking in Latin America.
From 2015 to 2021, Ms. Petroni Merhy also served as a Board Member of the JPMorgan Chase Bank (China) Company Limited, joining the Nominating and Related Party Transactions committees. Earlier in her career, Ms. Petroni Merhy was an investment banker advising clients on mergers & acquisitions, capital raising, and strategic alternatives across all industries in Latin America. Ms. Petroni Merhy holds a bachelor's degree in business administration from Escola de Administração de Empresas Fundação Getúlio Vargas in Brazil.
Commenting on her appointment, Ms. Petroni Merhy said, "I am delighted to join Globant's Board of Directors. In today's world, organizations need to constantly evolve and reinvent themselves to remain competitive and relevant. Globant is at the forefront of digital reinvention, empowering businesses to innovate, accelerate, and transform. The leadership team, together with Globant's employees across sectors and geographies, have built a vibrant and world-class franchise that is ripe for growth. I am looking forward to helping Globant achieve its most ambitious goals."
With Ms. Petroni Merhy's appointment, Globant's Board of Directors will contain nine members. Ms. Petroni Merhy's knowledge and extensive experience regarding innovative companies, entrepreneurship, and financial expertise will be a key addition to Globant's leadership team as it continues to scale its business worldwide.
About Globant
We are a digitally native company that helps organizations reinvent themselves to create a way forward and unleash their potential. We are the place where innovation, design and engineering meet scale.
- We have more than 23,500 employees and we are present in 18 countries working for companies like Google, Electronic Arts and Santander, among others.
- We were named a Worldwide Leader in CX Improvement Services by IDC MarketScape report.
- We were also featured as a business case study at Harvard, MIT, and Stanford.
- We are a member of the Green Software Foundation (GSF) and the Cybersecurity Tech Accord.
Contact: pr@globant.com
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For more information, visit www.globant.com
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SOURCE Globant | https://www.whsv.com/prnewswire/2022/05/03/andrea-mayumi-petroni-merhy-joins-globants-board-directors/ | 2022-05-03T21:21:28Z |
DUBLIN, May 3, 2022 /PRNewswire/ -- Aptiv PLC (NYSE: APTV), a global technology company focused on making mobility safer, greener, and more connected, announced that Aptiv's Chief Financial Officer and Senior Vice President, Business Operations, Joseph Massaro, will present at the Goldman Sachs Industrials & Materials Conference, May 10 at 1:00 p.m. EDT.
A simultaneous webcast will be available on the Aptiv Investor Relations website at ir.aptiv.com. For additional information, please contact Aptiv Investor Relations at ir@aptiv.com, or Chris Tillett at +1.917.994.3925.
About Aptiv
Aptiv is a global technology company that develops safer, greener and more connected solutions enabling a more sustainable future of mobility. Visit aptiv.com.
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SOURCE Aptiv PLC | https://www.whsv.com/prnewswire/2022/05/03/aptiv-present-goldman-sachs-industrials-amp-materials-conference/ | 2022-05-03T21:21:37Z |
EDMONTON, AB, May 3, 2022 /PRNewswire/ - Aurora Cannabis Inc. (the "Company" or "Aurora") (NASDAQ: ACB) (TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, announced today that it has scheduled a conference call to discuss the results for its third quarter fiscal year 2022 on Thursday, May 12, 2022 at 5:00 p.m. Eastern Time | 3:00 p.m. Mountain Time. The Company will report its financial results for the third quarter fiscal year 2022 after the close of markets that same day.
Conference Call Details
Miguel Martin, Chief Executive Officer, and Glen Ibbott, Chief Financial Officer, will host the conference call and question and answer period. This weblink has also been posted to the Company's "Investor Info" link at https://investor.auroramj.com/ under "News & Events".
About Aurora
Aurora is a global leader in the cannabis industry, serving both the medical and consumer markets. Headquartered in Edmonton, Alberta, Aurora is a pioneer in global cannabis, dedicated to helping people improve their lives. The Company's adult-use brand portfolio includes Aurora Drift, San Rafael '71, Daily Special, and Whistler, as well as CBD brands, Reliva and KG7. Medical cannabis brands include MedReleaf, CanniMed, Aurora, Whistler Medical Marijuana Co, and Pedanios. Driven by science and innovation, and with a focus on high-quality cannabis products, Aurora's brands continue to break through as industry leaders in the medical, performance, wellness and adult recreational markets wherever they are launched. Learn more at www.auroramj.com and follow us on Twitter and LinkedIn.
Aurora's common shares trade on the NASDAQ and TSX under the symbol "ACB" and is a constituent of the S&P/TSX Composite Index.
Forward Looking Statements
This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"). Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements made in this news release include statements regarding timing of the release of the Company's financial statements for third quarter ended March 31, 2022 and scheduling of the conference call to discuss results.
These forward-looking statements are only predictions. Forward looking information or statements contained in this news release have been developed based on assumptions managements considers to be reasonable. Material factors or assumptions involved in developing forward-looking statements include, without limitation, publicly available information from governmental sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which the Company believes to be reasonable. Forward-looking statements are subject to a variety of risks, uncertainties and other factors that management believes to be relevant and reasonable in the circumstances could cause actual events, results, level of activity, performance, prospects, opportunities or achievements to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, the ability to retain key personnel, the ability to continue investing in infrastructure to support growth, the ability to obtain financing on acceptable terms, the continued quality of our products, customer experience and retention, the development of third party government and non-government consumer sales channels, management's estimates of consumer demand in Canada and in jurisdictions where the Company exports, expectations of future results and expenses, the risk of successful integration of acquired business and operations, management's estimation that SG&A will grow only in proportion of revenue growth, the ability to expand and maintain distribution capabilities, the impact of competition, the general impact of financial market conditions, the yield from cannabis growing operations, product demand, changes in prices of required commodities, competition, and the possibility for changes in laws, rules, and regulations in the industry, epidemics, pandemics or other public health crises, including the current outbreak of COVID-19, and other risks, uncertainties and factors set out under the heading "Risk Factors" in the Company's annual information form dated September 27, 2021 (the "AIF") and filed with Canadian securities regulators available on the Company's issuer profile on SEDAR at www.sedar.com and filed with and available on the SEC's website at www.sec.gov. The Company cautions that the list of risks, uncertainties and other factors described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
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SOURCE Aurora Cannabis Inc. | https://www.whsv.com/prnewswire/2022/05/03/aurora-cannabis-host-third-quarter-fiscal-year-2022-investor-conference-call/ | 2022-05-03T21:21:45Z |
Certification Based on J.D. Power U.S. Sales Satisfaction Index Study and Dealership Best Practices
FORT LAUDERDALE, Fla., May 3, 2022 /PRNewswire/ -- Demonstrating its commitment to exceeding Customer expectations, AutoNation Inc. (NYSE: AN), America's largest and most admired automotive retailer, today announced one-hundred and twenty-nine (129) AutoNation stores have been certified in the J.D. Power 2022 Dealer of Excellence Program,SM which recognizes a select number of vehicle dealerships throughout the United States that provide exceptional customer service. We're proud of our dealerships for this amazing recognition by demonstrating excellence.
"This certification sets us apart, especially coming from such an authority as J.D. Power," said Marc Cannon, Executive Vice President and Chief Customer Experience Officer. "In one way or another, everyone in our certified stores from coast-to-coast contributes to making our Customers happy, and every member of our team shares in this achievement."
Known for its "Voice of the Customer" research for more than 50 years, J.D. Power and, subsequently, its Dealer of Excellence Program help consumers identify leading retailers that will go the extra mile. The certified stores are:
- Audi Bellevue
- Audi Las Vegas
- Audi Peoria
- Audi Plano
- Audi Spokane
- Audi Westmont
- AutoNation Acura Gulf Freeway
- AutoNation Acura North Orlando
- AutoNation Acura South Bay
- AutoNation Acura Spokane Valley
- AutoNation Acura Stevens Creek
- AutoNation Chevrolet Amarillo
- AutoNation Chevrolet Arrowhead
- AutoNation Chevrolet Coral Gables
- AutoNation Chevrolet Doral
- AutoNation Chevrolet Gulf Freeway
- AutoNation Chevrolet West Amarillo
- AutoNation Ford Amherst
- AutoNation Ford Burleson
- AutoNation Ford Corpus Christi
- AutoNation Ford Katy
- AutoNation Ford Littleton
- AutoNation Ford Memphis
- AutoNation Ford Miami
- AutoNation Ford Mobile
- AutoNation Ford North Canton
- AutoNation Ford Sanford
- AutoNation Ford South Fort Worth
- AutoNation Ford Tustin
- AutoNation Ford Valencia
- AutoNation Ford Westlake
- AutoNation Honda 385
- AutoNation Honda Costa Mesa
- AutoNation Honda Covington Pike
- AutoNation Honda Fremont
- AutoNation Honda Hollywood
- AutoNation Honda Miami Lakes
- AutoNation Honda Renton
- AutoNation Honda Roseville
- AutoNation Honda Sanford
- AutoNation Honda South Corpus Christi
- AutoNation Honda Thornton Road
- AutoNation Honda Tucson Auto Mall
- AutoNation Honda Valencia
- AutoNation Subaru Roseville
- AutoNation Subaru Spokane Valley
- AutoNation Toyota Arapahoe
- AutoNation Toyota Cerritos
- AutoNation Toyota Fort Myers
- AutoNation Toyota Mall of Georgia
- AutoNation Toyota Spokane Valley
- AutoNation Toyota Tempe
- AutoNation Toyota Weston
- AutoNation Toyota Winter Park
- AutoNation Volkswagen Mall of Georgia
- AutoNation Volkswagen Spokane
- AutoNation Volvo Cars San Jose
- BMW Encinitas
- House of Imports
- Jaguar Fort Lauderdale
- Land Rover Fort Lauderdale
- Laurel BMW of Westmont
- Lexus of Cerritos
- Lexus of Clearwater
- Lexus of Palm Beach
- Mercedes-Benz of Fort Lauderdale
- Mercedes-Benz of Houston Greenway
- Mercedes-Benz of Houston North/smart center Houston North
- Mercedes-Benz of Miami
- Mercedes-Benz of Naperville
- Mercedes-Benz of North Orlando
- Mercedes-Benz of Pembroke Pines
- Mercedes-Benz of San Jose/smart Center San Jose
- Mercedes-Benz of Sarasota/smart Center Sarasota
- Mercedes-Benz of Stevens Creek
- Porsche Newport Beach
- Porsche Plano
- Valencia BMW
- Audi South Orlando
- AutoNation Buick GMC Park Meadows
- AutoNation Buick GMC West Sahara
- AutoNation Chevrolet Airport
- AutoNation Chevrolet Greenacres
- AutoNation Chevrolet South Clearwater
- AutoNation Chrysler Dodge Jeep Ram and FIAT Columbus
- AutoNation Chrysler Dodge Jeep Ram and FIAT Johnson City
- AutoNation Chrysler Dodge Jeep Ram and FIAT North Phoenix
- AutoNation Chrysler Dodge Jeep Ram Houston
- AutoNation Chrysler Dodge Jeep Ram Mobile
- AutoNation Chrysler Dodge Jeep Ram North Richland Hills
- AutoNation Chrysler Dodge Jeep Ram South Columbus
- AutoNation Chrysler Dodge Jeep Ram Southwest
- AutoNation Chrysler Dodge Jeep Ram Spring
- AutoNation Chrysler Dodge Jeep Ram Valencia
- AutoNation Dodge Ram Arapahoe
- AutoNation Ford Bradenton
- AutoNation Ford Brooksville
- AutoNation Ford East
- AutoNation Ford Frisco
- AutoNation Ford Margate
- AutoNation Ford Marietta
- AutoNation Ford Panama City
- AutoNation Ford Union City
- AutoNation Honda Spokane Valley
- AutoNation Hyundai Columbus
- AutoNation Hyundai Tempe
- AutoNation Lincoln Clearwater
- AutoNation Nissan Chandler
- AutoNation Nissan Miami
- AutoNation Nissan Tempe
- AutoNation Subaru Hunt Valley
- AutoNation Toyota Pinellas Park
- BMW of Bellevue
- BMW of Buena Park
- BMW of Dallas / MINI of Dallas
- BMW of Delray Beach
- BMW of Fremont
- BMW of Las Vegas
- BMW of Roseville
- BMW of Tucson
- Jaguar Land Rover Spokane
- Land Rover Mt. Kisco
- Lexus of Tampa Bay
- Mercedes-Benz of Pompano
- Mercedes-Benz of South Bay
- Mercedes-Benz of Wesley Chapel
- Mercedes-Benz of Westmont
- MINI of Las Vegas
- Porsche Orlando
According to J.D. Power, buying a vehicle is a significant financial transaction and can be stressful because there's so much information to digest. The Dealer of Excellence Program assists auto buyers who are looking for an exceptional dealership where they can confidently buy a vehicle. Certified dealers also benefit by leveraging the J.D. Power brand and promoting their dealership's commitment to an outstanding customer purchase experience.
Dealer of Excellence is an exclusive program and not all dealerships can qualify. Those that do must pass a three-step process:
As the first qualification criterion, J.D. Power limits the percentage of eligible dealerships by nameplate based on each brand's performance in the most recent J.D. Power U.S. Sales Satisfaction Index (SSI) Study.SM Thus, proportionally more dealerships from top-performing brands can become a J.D. Power Dealer of Excellence.
Second, dealerships must rank among their brand's top performers in key customer satisfaction areas consistent with measurements found in the SSI Study.
Finally, qualifying dealers must pass an audit to show they meet or exceed J.D. Power sales best practices. Those best practices include, but are not limited to, listing vehicle inventory and pricing on the dealership website; negotiating in an efficient and transparent manner; offering a fair trade-in value; and presenting a clear and easy-to-understand menu of finance and insurance products.
About AutoNation, Inc.
AutoNation, a provider of personalized transportation services, is driven by innovation and transformation. As one of America's most admired companies, AutoNation delivers a peerless Customer experience recognized by data-driven consumer insight leaders, Reputation and J.D. Power. Through its bold leadership and brand affinity, the AutoNation Brand is synonymous with "DRVPNK" and "What Drives You, Drives Us." AutoNation has a singular focus on personalized transportation services that are easy, transparent, and Customer-centric.
Please visit www.autonation.com, investors.autonation.com, and www.twitter.com/AutoNation, where AutoNation discloses additional information about the Company, its business, and its results of operations. Please also visit www.autonationdrive.com, AutoNation's automotive blog, for information regarding the AutoNation community, the automotive industry, and current automotive news and trends.
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SOURCE AutoNation, Inc. | https://www.whsv.com/prnewswire/2022/05/03/autonation-dealerships-certified-jd-power-2022-dealer-excellence-with-record-breaking-129-stores/ | 2022-05-03T21:21:51Z |
CLEVELAND, May 3, 2022 /PRNewswire/ -- Brown Gibbons Lang & Company (BGL) is pleased to announce the sale of Sprint Waste Services, LP (Sprint) to GFL Environmental Inc. (NYSE: GFL; TSX: GFL). BGL's Environmental & Industrial Services investment banking team served as the exclusive financial advisor to Sprint in the transaction. Specific terms of the transaction were not disclosed.
Headquartered in Sugar Land, Texas, Sprint is a premier, vertically integrated waste management solutions provider operating via a network of 16 sites, including two C&D landfills, across Texas and Louisiana. Sprint's comprehensive suite of specialized service solutions, supported by a fleet of more than 400 vehicles and 8,000 rental containers, coupled with an integrated facility network enables the company to deliver end-to-end waste and environmental solutions. Sprint's integrated service model, best-in-class safety performance, vast regional resources, and commitment to service excellence have helped to establish Sprint as a valued strategic partner to a diverse base of industrial and commercial customers.
GFL, headquartered in Vaughan, Ontario, is the fourth largest diversified environmental services company in North America, providing a comprehensive line of solid waste management, liquid waste management, and soil remediation services through its platform of facilities throughout Canada and more than half of the United States. This transaction allows GFL to acquire a vertically integrated, complementary asset base and further expand its solid waste footprint in the Southern United States.
Brown Gibbons Lang & Company (BGL) is a leading independent investment bank and financial advisory firm focused on the global middle market. The firm advises private and public corporations and private equity groups on mergers and acquisitions, capital markets, financial restructurings, business valuations and opinions, and other strategic matters. BGL has investment banking offices in Chicago, Cleveland, and Philadelphia, and real estate offices in Chicago, Cleveland, and San Antonio. The firm is also a founding member of Global M&A Partners, enabling BGL to service clients in more than 30 countries around the world. Securities transactions are conducted through Brown, Gibbons, Lang & Company Securities, LLC, an affiliate of Brown Gibbons Lang & Company LLC and a registered broker-dealer and member of FINRA and SIPC. For more information, please visit www.bglco.com.
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SOURCE Brown Gibbons Lang & Company | https://www.whsv.com/prnewswire/2022/05/03/bgl-announces-sale-sprint-waste-services-gfl-environmental/ | 2022-05-03T21:21:54Z |
First Quarter Total Revenue Increases 17.3% Year-Over-Year with Organic Recurring Revenue Growth of 6.6%; Blackbaud Reiterates Full Year 2022 Financial Guidance and Outlook
CHARLESTON, S.C., May 3, 2022 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the world's leading cloud software company powering social good, today announced financial results for its first quarter ended March 31, 2022.
"The first quarter was a stronger than expected start to the year," said Mike Gianoni, president and CEO, Blackbaud. "Just two months ago we gave our 2022 financial guidance that called for total revenue growth of approximately 17% at the midpoint of our guidance range, a significant acceleration in organic revenue growth to approximately 5%, and nearly 30% on a Rule of 40 at constant currency, which is roughly a 250-basis-point improvement year-over-year. We are pacing well against our plan, moving quickly to integrate EVERFI, and remain confident in our full-year outlook with solid visibility into the remainder of 2022 and beyond. By balancing sustainable mid-to-high single-digit organic revenue growth and meaningful margin expansion over the next few years, we believe we can create significant value for our customers, employees and shareholders."
First Quarter 2022 Results Compared to First Quarter 2021 Results:
- GAAP total revenue was $257.1 million, up 17.3%, with $244.7 million in GAAP recurring revenue, up 18.3%.
- Non-GAAP organic recurring revenue increased 6.6%.
- GAAP loss from operations was $6.0 million, with GAAP operating margin of (2.3)%, a decrease of 530 basis points.
- Non-GAAP income from operations was $43.4 million, with non-GAAP operating margin of 16.9%, a decrease of 460 basis points.
- GAAP net loss was $10.4 million, with GAAP diluted loss per share of $0.20, down $0.20 per share.
- Security Incident-related costs, net of insurance of $7.2 million.
- Non-GAAP net income was $29.5 million, with non-GAAP diluted earnings per share of $0.57, down $0.11 per share.
- Non-GAAP adjusted EBITDA was $57.2 million, unchanged from prior year, with non-GAAP adjusted EBITDA margin of 22.2%, a decrease of 120 basis points.
- GAAP net cash provided by operating activities was $24.5 million, a decrease of $5.6 million.
- Non-GAAP adjusted free cash flow was $8.4 million, a decrease of $10.4 million, with non-GAAP adjusted free cash flow margin of 3.3%, a decrease of 530 basis points.
"We started the year ahead of plan for both revenue growth and profitability," said Tony Boor, executive vice president and CFO, Blackbaud. "During the first quarter, we posted total revenue growth of 17.3% and organic recurring revenue growth was 6.6%, driven by elevated transactional volume and continued growth in contractual recurring revenue. As we discussed when we issued our guidance in February, our profitability to start the year reflects the addition of EVERFI and incremental spend in areas like innovation, security and go-to-market that was pushed from 2021 into 2022. Our overperformance versus plan in the first quarter gives us heightened confidence in our ability to achieve our full-year financial guidance, and we are executing well on our plan to achieve Rule of 40 as a company, which we ultimately expect to drive significant earnings and adjusted free cash flow growth over the next several years. Given our recent performance and our acquisition of EVERFI, we raised our Rule of 40 performance incentive targets for 2022 and 2023 to 29% and 33%, respectively, as we target our mid-term goal of roughly 35% on the Rule of 40 in the next few years."
An explanation of all non-GAAP financial measures referenced in this press release, including the Rule of 40, is included below under the heading "Non-GAAP Financial Measures." A reconciliation of the company's non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.
Recent Company Highlights
- In a significant step toward its ESG goals, Blackbaud announced that it has achieved carbon neutrality across its operations and data centers for 2021, and that the company will commit to new transparent sustainability reporting this year, including TCFD and CDP.
- Blackbaud has appointed two new leaders—Chief Product Officer Sudip Datta and Chief Information Security Officer Chuck Miller.
- The company recently shared how its customers have unleashed incredible generosity and raising millions for humanitarian relief to help the people of Ukraine.
- At the end of April, the company hosted its semi-annual Product Update Briefings, sharing the latest in product innovation.
- Blackbaud was named a Top Intern and Entry Level Employer by CollegeGrad.com and received two Stevie Awards for Sales and Customer Service—one for Ethics in Sales and one for Front-Line Customer Service Team of the Year.
- Through a new integration, the company has added PayPal and Venmo payment capability to Blackbaud Merchant Services, giving U.S. social good organizations more ways to raise money and create exceptional donor experiences.
- Blackbaud and donation technology provider Change are working together to give corporate customers an option to run charitable campaigns at point of sale, match customer donations and offer donation options in loyalty programs.
- The Blackbaud Institute published a free resource to enable all social good organizations to align their missions with the UN Sustainable Development Goals (SDGs), which will help grantseekers and grantmakers to better connect and demonstrate progress toward achieving the SDGs.
Visit www.blackbaud.com/newsroom for more information about Blackbaud's recent highlights.
Financial Outlook
Blackbaud today reiterated its 2022 full year financial guidance:
- Non-GAAP revenue of $1.075 billion to $1.095 billion
- Non-GAAP adjusted EBITDA margin of 24.0% to 24.5%
- Non-GAAP earnings per share of $2.63 to $2.82
- Non-GAAP adjusted free cash flow of $165.0 million to $175.0 million
Included in its 2022 full year financial guidance are the following assumptions:
- Non-GAAP annualized effective tax rate is expected to be 20%
- Interest expense for the year is expected to be approximately $30.0 million to $33.0 million
- Fully diluted shares for the year are expected to be in the range of 52.0 million to 53.5 million
- Capital expenditures for the year are expected to be in the range of $60.0 million to $70.0 million, including approximately $45.0 million to $55.0 million of capitalized software development costs
Blackbaud has not reconciled forward-looking full-year non-GAAP financial measures contained in this news release to their most directly comparable GAAP measures, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, including for example those related to compensation, acquisition transactions and integration, tax items or others that may arise during the year. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts.
In order to provide a meaningful basis for comparison, Blackbaud uses non-GAAP adjusted free cash flow in analyzing its operating performance. Non-GAAP adjusted free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software development, capital expenditures for property and equipment, plus cash outflows, net of insurance, related to the previously disclosed Security Incident discovered in May 2020 (the "Security Incident"). For full year 2022, Blackbaud currently expects net cash outlays of $25 million to $35 million for ongoing legal fees related to the Security Incident. In line with the Company's policy, all associated costs due to third-party service providers and consultants, including legal fees, are expensed as incurred. As of March 31, 2022, Blackbaud has not recorded a loss contingency related to the Security Incident as it is unable to reasonably estimate the possible amount or range of such loss. Please refer to the section below titled "Non-GAAP Financial Measures" for more information on Blackbaud's use of non-GAAP financial measures.
Conference Call Details
What: Blackbaud's 2022 First Quarter Conference Call
When: May 4, 2022
Time: 8:00 a.m. (Eastern Time)
Live Call: 1-877-407-3088 (US/Canada)
Webcast: Blackbaud's Investor Relations Webpage
About Blackbaud
Blackbaud (NASDAQ: BLKB) is the world's leading cloud software company powering social good. Serving the entire social good community—nonprofits, higher education institutions, K–12 schools, healthcare organizations, faith communities, arts and cultural organizations, foundations, companies and individual change agents—Blackbaud connects and empowers organizations to increase their impact through cloud software, services, expertise and data intelligence. The Blackbaud portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and CRM, marketing, advocacy, peer-to-peer fundraising, corporate social responsibility (CSR) and environmental, social and governance (ESG), school management, ticketing, grantmaking, financial management, payment processing and analytics. Serving the industry for more than four decades, Blackbaud is a remote-first company headquartered in Charleston, South Carolina, with operations in the United States, Australia, Canada, Costa Rica and the United Kingdom. For more information, visit www.blackbaud.com, or follow us on Twitter, LinkedIn, Instagram, and Facebook.
Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the predictability of our financial condition and results of operations. These statements involve a number of risks and uncertainties. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: management of integration of acquired companies; uncertainty regarding increased business and renewals from existing customers; a shifting revenue mix that may impact gross margin; continued success in sales growth; cybersecurity and data protection risks and related liabilities; uncertainty regarding the COVID-19 disruption; potential litigation involving us; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC's website at www.sec.gov or upon request from Blackbaud's investor relations department. Blackbaud assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
Trademarks
All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.
Non-GAAP Financial Measures
Blackbaud has provided in this release financial information that has not been prepared in accordance with GAAP. Blackbaud uses non-GAAP financial measures internally in analyzing its operational performance. Accordingly, Blackbaud believes these non-GAAP measures are useful to investors, as a supplement to GAAP measures, in evaluating its ongoing operational performance and trends and in comparing its financial results from period-to-period with other companies in Blackbaud's industry, many of which present similar non-GAAP financial measures to investors. However, these non-GAAP financial measures may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies.
The non-GAAP financial measures discussed above exclude the impact of certain transactions that Blackbaud believes are not directly related to its operating performance in any particular period, but are for its long-term benefit over multiple periods. Blackbaud believes these non-GAAP financial measures reflect its ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business.
While Blackbaud believes these non-GAAP measures provide useful supplemental information, non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures.
Non-GAAP free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software development, and capital expenditures for property and equipment. In addition, and in order to provide a meaningful basis for comparison, Blackbaud now uses non-GAAP adjusted free cash flow in analyzing its operating performance. Non-GAAP adjusted free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software development, and capital expenditures for property and equipment, plus cash outflows, net of insurance, related to the Security Incident. Blackbaud believes non-GAAP free cash flow and non-GAAP adjusted free cash flow provide useful measures of the company's operating performance. Non-GAAP adjusted free cash flow is not intended to represent and should not be viewed as the amount of residual cash flow available for discretionary expenditures.
In addition, Blackbaud uses non-GAAP organic revenue growth, non-GAAP organic revenue growth on a constant currency basis and non-GAAP organic recurring revenue growth, in analyzing its operating performance. Blackbaud believes that these non-GAAP measures are useful to investors, as a supplement to GAAP measures, for evaluating the periodic growth of its business on a consistent basis. Each of these measures excludes incremental acquisition-related revenue attributable to companies acquired in the current fiscal year. For companies acquired in the immediately preceding fiscal year, each of these measures reflects presentation of full-year incremental non-GAAP revenue derived from such companies as if they were combined throughout the prior period. In addition, each of these measures excludes prior period revenue associated with divested businesses. The exclusion of the prior period revenue is to present the results of the divested businesses within the results of the combined company for the same period of time in both the prior and current periods. Blackbaud believes this presentation provides a more comparable representation of its current business' organic revenue growth and revenue run-rate.
Rule of 40 is defined as non-GAAP organic revenue growth plus non-GAAP adjusted EBITDA margin. Non-GAAP adjusted EBITDA is defined as GAAP net income plus interest, net; income tax provision; depreciation; amortization of intangible assets from business combinations; amortization of software development costs; acquisition-related deferred revenue write-down; stock-based compensation; acquisition-related integration costs; acquisition-related expenses; employee severance; restructuring and other real estate activities; and costs, net of insurance, related to the Security Incident.
The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown above in the consolidated statements of cash flows:
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SOURCE Blackbaud, Inc. | https://www.whsv.com/prnewswire/2022/05/03/blackbaud-announces-2022-first-quarter-results/ | 2022-05-03T21:22:01Z |
MIAMI, May 3, 2022 /PRNewswire/ -- Cano Health, Inc. ("Cano Health" or the "Company") (NYSE: CANO), a leading value-based primary care provider and population health company, today announced its Chairman and CEO, Dr. Marlow Hernandez, will participate in the following upcoming investor conferences:
- BofA Securities 2022 Healthcare Conference in Las Vegas, NV on Thursday, May 12, 2022, at 11:20 AM PT / 2:20 PM ET
- UBS 2022 Global Healthcare Conference in New York, NY on Monday, May 23, 2022, at 3:30 PM ET
A live webcast of each presentation will be available on the day of the event on Cano Health's investor relations website at investors.canohealth.com. A replay of the webcast will be available under the "Events & Presentations" section of the Company's investor relations website following the completion of the event.
Cano Health (NYSE: CANO) is a high-touch, technology-powered healthcare company delivering personalized, value-based primary care to more than 250,000 members. With its headquarters in Miami, Florida, Cano Health is transforming healthcare by delivering primary care that measurably improves the health, wellness, and quality of life of its patients and the communities it serves. Founded in 2009, Cano Health has more than 4,000 employees, and operates primary care medical centers and supports affiliated providers in eight states and Puerto Rico. For more information, visit canohealth.com or investors.canohealth.com.
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SOURCE Cano Health, Inc. | https://www.whsv.com/prnewswire/2022/05/03/cano-health-participate-upcoming-investor-conferences/ | 2022-05-03T21:22:08Z |
The CARIN Alliance was honored for its CARIN Code of Conduct UX Guide, developed in collaboration with Arcweb Technologies and the CARIN community
WASHINGTON, May 3, 2022 /PRNewswire/ -- The CARIN Alliance, a public/private sector collaborative working to advance the consumer-directed exchange of health information, has been named an Honorable Mention in the Health category of Fast Company's 2022 World Changing Ideas Awards, an annual award that honors efforts to support the growth of positive social innovation around social inequality, climate change, and public health crises.
The honor was given to the CARIN Alliance in recognition of the CARIN UX Guide, an open and free resource developed in collaboration with Arcweb Technologies that helps third-party developers empower and inform patients and their authorized caregivers about how their health information is being used, allowing them to make informed decisions about which application to choose to store their health data.
The guide was created to help consumers and their authorized caregivers better understand the way their information is stored, used, and shared by consumer-facing personal health record applications. The availability of this information has rapidly expanded based on provisions of the 21st Century Cures Act, including the ONC 21st Century Cures and the CMS Interoperability and Patient Access federal regulations.
"The CARIN Code of Conduct has become the de facto standard for how consumer-facing applications use, share, and store an individual's clinical health and financial information," said Ryan Howells, Program Manager at the CARIN Alliance. "We are excited that CMS named the CARIN code of conduct in federal regulation as an industry best practice, and now our work has been awarded an honorable mention as a Fast Company World Changing Idea. We want to thank everyone who participated in this collaborative work, including the CARIN board, community, and our partners at Arcweb Technologies. We are humbled and incredibly grateful for this honor."
The CARIN Code of Conduct UX Guide provides an overview of CARIN's guiding principles and demonstrates to application developers how to communicate data use by personal health record applications through effective user experience (UX). It also includes a Voice and Style Guide that helps application developers transform lengthy and technical privacy policies into digestible and sleek UX so that users feel empowered when sharing their data.
Both the guide and an open-source example application were developed in collaboration with Arcweb Technologies, a premiere digital transformation partner that provides digital product design and development services.
"It's truly exciting to see the efforts of the CARIN Alliance recognized by Fast Company," said Chris Cera, CEO of Arcweb Technologies. "As CARIN members, Arcweb was honored to contribute our expertise to the development of the UX Guide and excited for the opportunity to advance the consumer-directed exchange of healthcare information, one of the most important challenges in digital health today."
Now in its sixth year, the World Changing Ideas Awards showcase 39 winners, 350 finalists, and more than 600 honorable mentions—with climate, social justice, and AI and data among the most popular categories. A panel of eminent Fast Company editors and reporters selected winners and finalists from a pool of more than 2,997 entries across transportation, education, food, politics, technology, health, social justice, and more. In addition, several new categories have been added this year including climate, nature, water, and workplace. The 2022 awards feature entries from across the globe, from Switzerland to Hong Kong to Australia.
"We are consistently inspired by the novelty and creativity that people are applying to solve some of our society's most pressing problems, from shelter to the climate crisis. Fast Company relishes its role in amplifying important, innovative work to address big challenges," says David Lidsky, interim editor-in-chief of Fast Company. "Our journalists have identified some of the most ingenious initiatives to launch since the start of 2021, which we hope will both have a meaningful impact and lead others to join in being part of the solution."
About
World Changing Ideas Awards: World Changing Ideas is one of Fast Company's major annual awards programs and is focused on social good, seeking to elevate finished products and brave concepts that make the world better. A panel of judges from across sectors choose winners, finalists, and honorable mentions based on feasibility and the potential for impact. With the goals of awarding ingenuity and fostering innovation, Fast Company draws attention to ideas with great potential and helps them expand their reach to inspire more people to start working on solving the problems that affect us all.
The CARIN Alliance is a multi-sector, public/private alliance run by Leavitt Partners and convened by David Blumenthal, David Brailer, former US CTO Aneesh Chopra, and former HHS Secretary Mike Leavitt, to unite industry leaders in advancing the adoption of consumer-directed exchange across the U.S. Working collaboratively with government leaders, the group seeks to rapidly advance the ability for consumers and their authorized caregivers to easily get, use, and share their digital health information when, where, and how they want to achieve their goals. For more information, please contact the Alliance at www.carinalliance.com, on Twitter, or on LinkedIn.
Arcweb Technologies is a premiere digital transformation partner that works with growth-focused leaders and innovators to build custom digital products that create business value. Through collaboration, we identify and create opportunities for business growth using our expertise and highly-skilled interdisciplinary teams. To learn how Arcweb can help you solve your toughest technology and digital experience challenges, visit us at https://arcwebtech.com
Related Links http://www.carinalliance.com
https://arcwebtech.com
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SOURCE CARIN Alliance | https://www.whsv.com/prnewswire/2022/05/03/carin-alliance-honored-health-category-fast-companys-2022-world-changing-ideas-awards/ | 2022-05-03T21:22:15Z |
- Earnings per share ("EPS")* was $2.08 for the first quarter of 2022, an increase of $0.12, or 6.1 percent, compared to $1.96 for the first quarter of 2021
- Quarter-over-quarter growth driven primarily by the acquisition of Diversified Energy, pipeline expansions, natural gas organic growth, regulatory initiatives and higher earnings in the Company's unregulated businesses
- Continued investment in low carbon energy sources including the successful testing of blended hydrogen with natural gas power at the Company's Combined Heat and Power ("CHP") plant and completion of our first compressed natural gas ("CNG") fueling station near the Port of Savannah, capable of distributing renewable natural gas ("RNG") for fleet vehicles
- Issued $50 million of 2.95 percent Senior Notes in support of the Company's long-term financing strategy
- Continued focus on organic growth and expansion projects as well as ESG initiatives, including renewable energy opportunities to further enhance sustainability in our local communities
DOVER, Del., May 3, 2022 /PRNewswire/ -- Chesapeake Utilities Corporation (NYSE: CPK) ("Chesapeake Utilities" or the "Company") today announced its financial results for the first quarter of 2022.
The Company's net income for the quarter ended March 31, 2022 was $36.9 million, a 7.2 percent increase over the $34.5 million reported in the same quarter of 2021. Diluted EPS in the quarter was $2.08, a 6.1 percent increase compared to $1.96 reported in the same prior-year period.
Higher first quarter earnings were driven by the 2021 acquisitions of Diversified Energy Company ("Diversified Energy") and the natural gas metering station located in Escambia County, Florida (the "Escambia Meter Station") natural gas distribution and transmission pipeline expansions, regulated infrastructure programs, organic growth in the Company's natural gas businesses, as well as improved profitability in the Company's propane distribution business. Partially offsetting growth was lower propane customer consumption in the first quarter of 2022 compared to the same period in 2021.
"Despite headwinds brought on by the current inflationary environment and inconsistent weather impacts across our footprint within the quarter, Chesapeake Utilities began the year with solid earnings growth," commented Jeff Householder, president and CEO. "Our team continues to deliver positive results through our business growth and transformation initiatives, which led to higher margins and earnings in the quarter.
"We remain focused on executing our mission and providing our customers with safe, affordable, reliable and sustainable energy delivery solutions. We continue to capitalize on our organic growth initiatives, which led to year-over-year customer growth of 5.3 percent and 4.0 percent in our Delmarva and Florida service territories, respectively. Supporting that customer growth, we continue to make prudent investments in our utility systems and other projects that drive shareholder value – exemplified by this quarter's contributions from Diversified Energy, which we acquired in late 2021. Finally, we remain on track with the expansion of our renewable energy investments, with successful completion in the first quarter of our first hydrogen test and CNG fueling station which is also capable of distributing RNG for fleet vehicles. These investments, the steps we have taken to further strengthen our financial position and the unrelenting dedication of our talented employees continue to firmly position Chesapeake Utilities for long-term, sustainable success," concluded Householder.
COVID-19 Update
In March 2020, the U.S. Centers for Disease Control and Prevention ("CDC") declared a national emergency due to the rapidly growing outbreak of COVID-19. In response to this declaration and the rapid spread of COVID-19 within the United States, federal, state and local governments throughout the country imposed varying degrees of restrictions on social and commercial activity to promote social distancing in an effort to slow the spread of the illness. These restrictions significantly impacted economic conditions in the United States beginning in 2020 and persisted, to a lesser extent throughout 2021. Chesapeake Utilities is considered an "essential business," which allowed the Company to continue operational activities and construction projects while social distancing restrictions were in place. Previously existing states of emergency in all of the Company's service territories expired during the second and third quarters of 2021 eliminating a majority of restrictions initially implemented to slow the spread of the virus. The expiration of the states of emergency along with the settlement of the Company's limited proceeding in Florida, has concluded its ability to defer incremental pandemic related costs for consideration through the applicable regulatory process. At this time, the Company has adjusted its operating practices accordingly to ensure the safety of its operations and will take the necessary actions to comply with the CDC, and the Occupational Safety and Health Administration, as new developments occur.
Capital Expenditures Forecast and Earnings Guidance Update
The Company reiterates its long-term capital expenditures and EPS guidance ranges. These include capital expenditures in the range of $750 million to $1 billion in 2021 through 2025 and an EPS guidance range of $6.05 to $6.25 for 2025. Additionally, the Company reiterates its capital expenditures guidance range of $175 million to $200 million for 2022. The Company continues to review its projections and remains supportive of this guidance.
*Unless otherwise noted, EPS information is presented on a diluted basis.
Non-GAAP Financial Measures
**This press release including the tables herein, include references to non-Generally Accepted Accounting Principles ("GAAP") financial measures, including adjusted gross margin. A "non-GAAP financial measure" is generally defined as a numerical measure of a company's historical or future performance that includes or excludes amounts, or that is subject to adjustments, so as to be different from the most directly comparable measure calculated or presented in accordance with GAAP. Our management believes certain non-GAAP financial measures, when considered together with GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period.
The Company calculates Adjusted Gross Margin by deducting the purchased cost of natural gas, propane and electricity and the cost of labor spent on direct revenue-producing activities from operating revenues. The costs included in Adjusted Gross Margin exclude depreciation and amortization and certain costs presented in operations and maintenance expenses in accordance with regulatory requirements. Adjusted Gross Margin should not be considered an alternative to Gross Margin under US GAAP which is defined as the excess of sales over cost of goods sold. The Company believes that Adjusted Gross Margin, although a non-GAAP measure, is useful and meaningful to investors as a basis for making investment decisions. It provides investors with information that demonstrates the profitability achieved by the Company under the Company's allowed rates for regulated energy operations and under the Company's competitive pricing structures for unregulated energy operations. The Company's management uses Adjusted Gross Margin as one of the financial measures in assessing a business unit's performance. Other companies may calculate Adjusted Gross Margin in a different manner.
Operating income during the first quarter of 2022 was $54.9 million, an increase of $3.3 million, or 6.3 percent, compared to the same period in 2021. Higher performance in the first quarter of 2022 was generated from propane and natural gas acquisitions completed in 2021, continued pipeline expansion projects, organic growth in our natural gas distribution businesses, incremental contributions associated with regulated infrastructure programs and increased propane margins per gallon and fees. The increase in operating income was partially offset by reduced propane consumption in the first quarter. The Company recorded higher depreciation, amortization and property taxes related to recent capital investments and operating expenses associated primarily with growth initiatives, including payroll, benefits and other employee-related expenses as well as increased vehicle expenses due to higher fuel costs.
Operating income for the Regulated Energy segment for the first quarter of 2022 was $34.7 million, an increase of $2.0 million, or 6.3 percent, over the same period in 2021. Higher operating income reflects continued pipeline expansions by Eastern Shore and Peninsula Pipeline, organic growth in the Company's natural gas distribution businesses, incremental contributions from regulated infrastructure programs, and operating results from the Escambia Meter Station acquisition completed in 2021. Operating expenses increased by $2.3 million compared to the prior year quarter primarily due to a higher level of depreciation, amortization and property taxes as well as a greater amount of costs related to payroll, benefits and other employee related expenses.
The key components of the increase in adjusted gross margin** are shown below:
The major components of the increase in other operating expenses are as follows:
Operating results for the Unregulated Energy segment for the first quarter of 2022 increased by $1.1 million, or 5.6 percent compared to the same period in 2021.
Higher operating results during the first quarter were driven by contributions from the Company's acquisition of Diversified Energy, increased propane margins including higher service fees and margin improvement from Aspire Energy of Ohio ("Aspire Energy"). These increases were partially offset by reduced consumption in our propane operations. Additionally, the Company experienced increased operating expenses associated with the acquisition of Diversified Energy as well as increased payroll, benefits and employee related expenses, depreciation, amortization and property taxes, and increased vehicle expenses due to rising fuel costs.
The major components contributing to the change in adjusted gross margin** are shown below:
The major components of the increase in other operating expenses are as follows:
Environmental, Social and Governance ("ESG") Initiatives
ESG initiatives are at the core of Chesapeake Utilities' well-established culture, guiding the Company's strategy and informing its ongoing business decisions. In February 2022, Chesapeake Utilities published its inaugural sustainability report. In the report, the Company outlines its ESG commitments:
- Chesapeake Utilities will be a leader in the transition to a lower carbon future.
- The Company will continue to promote a diverse and inclusive workplace and further the sustainability of the communities we serve.
- The Company's businesses will be operated with integrity and the highest ethical standards.
These commitments guide the Company's mission to deliver energy that makes life better for the people and communities it serves. They impact every aspect of the Company and the relationships it has with its stakeholders. The Company encourages its investors to review the report and welcomes feedback as it continues to enhance its ESG disclosures.
During the first quarter, some of the Company's most recent ESG advancements included:
Environmental:
- Successfully completed first test of hydrogen and natural gas blend to fuel the Company's Eight Flags CHP facility
- Opened the Company's first CNG fueling station near the Port of Savannah, capable of distributing RNG for fleet vehicles
Social:
- Named a 2022 Top Workplaces USA award recipient for mid-sized companies for the second consecutive year
- Initiated two new Employee Resource Groups within the Company
Governance:
- Increased transparency with the enhancement of our director skills matrix in the Proxy Statement distributed to shareholders in March 2022
- In April 2022, we joined governance leaders as a member of the Advisory Board for the John L. Weinberg Center for Corporate Governance
Additionally, the Company established its Environmental Sustainability Office ("ESO") and ESG Committee ("ESGC") during the first quarter of 2022. The ESO was established to identify and manage emission-reducing projects both internally, as well as and those that support the Company's customers' sustainability goals. The ESGC was established to bring together a cross-functional team of leaders across the organization to identify, assess, execute and advance the Company's strategic ESG initiatives. The Company looks forward to highlighting the progress of these initiatives in future sustainability reports.
Forward-Looking Statements
Matters included in this release may include forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements. Please refer to the Safe Harbor for Forward-Looking Statements in the Company's 2021 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the first quarter of 2022, for further information on the risks and uncertainties related to the Company's forward-looking statements.
Conference Call
Chesapeake Utilities will host a conference call on Wednesday, May 4, 2022 at 4:00 p.m. Eastern Time to discuss the Company's financial results for the three months ended March 31, 2022. To participate in this call, dial 877.224.1468 and reference Chesapeake Utilities' 2022 First Quarter Results Conference Call. To access the replay recording of this call, the accompanying transcript, and other pertinent quarterly information, use the link CPK - Conference Call Audio Replay, or visit the Investors/Events and Presentations section of the Company's website at www.chpk.com.
About Chesapeake Utilities Corporation
Chesapeake Utilities Corporation is a diversified energy delivery company, listed on the New York Stock Exchange. Chesapeake Utilities Corporation offer sustainable energy solutions through its natural gas transmission and distribution, electricity generation and distribution, propane gas distribution, mobile compressed natural gas utility services and solutions, and other businesses. For more information, visit www.chpk.com.
Please note that Chesapeake Utilities Corporation is not affiliated with Chesapeake Energy, an oil and natural gas exploration company headquartered in Oklahoma City, Oklahoma.
For more information, contact:
Beth W. Cooper
Executive Vice President, Chief Financial Officer, Treasurer and Assistant Corporate Secretary
302.734.6799
Michael Galtman
Senior Vice President and Chief Accounting Officer
302.217.7036
Alex Whitelam
Head of Investor Relations
215.872.2507
Recently Completed and Ongoing Major Projects and Initiatives
The Company constantly pursues and develops additional projects and initiatives to serve existing and new customers, and to further grow its businesses and earnings, with the intention to increase shareholder value. The following table includes the major projects/initiatives recently completed and currently underway. Major projects and initiatives that have generated consistent year-over-year margin contributions are removed from the table. In the future, the Company will add new projects and initiatives to this table once negotiations are substantially final and the associated earnings can be estimated.
Detailed Discussion of Major Projects and Initiatives
Pipeline Expansions
West Palm Beach County, Florida Expansion
Peninsula Pipeline is constructing four transmission lines to bring additional natural gas to our distribution system in West Palm Beach, Florida. The first phase of this project was placed into service in December 2018 with multiple phases placed into service leading up to the project's final completion in the fourth quarter of 2021. The project generated incremental adjusted gross margin of $0.1 million during the first quarter 2022 compared to the first quarter 2021. The Company estimates that the project will generate annual adjusted gross margin of $5.2 million in 2022 and beyond.
Del-Mar Energy Pathway
In December 2019, the Federal Energy Regulatory Commission ("FERC") issued an order approving the construction of the Del-Mar Energy Pathway project. The project was placed into service in the fourth quarter of 2021. The new facilities: (i) include an additional 14,300 Dts/d of firm service to four customers, (ii) provide additional natural gas transmission pipeline infrastructure in eastern Sussex County, Delaware, and (iii) represent the first extension of Eastern Shore's pipeline system into Somerset County, Maryland. Including interim services in advance of completion, the project generated additional adjusted gross margin of $0.8 million for the three months ended March 31, 2022. The estimated annual adjusted gross margin from this project, including natural gas distribution service in Somerset County, Maryland, is approximately $7.0 million in 2022 and growing each year thereafter, as the distribution system serving Somerset County further expands to meet demand.
Guernsey Power Station
The Company's subsidiary, Aspire Energy Express, LLC ("Aspire Energy Express") and unrelated party Guernsey Power Station, LLC ("Guernsey Power Station"), entered into a precedent agreement for firm transportation capacity whereby Guernsey Power Station will construct a power generation facility and Aspire Energy Express will provide firm natural gas transportation service to this facility. Guernsey Power Station commenced construction of the project in October 2019. Aspire Energy Express completed construction of the gas transmission facilities in the fourth quarter of 2021. This project added $0.2 million of adjusted gross margin in the first quarter and is expected to produce adjusted gross margin of approximately $1.4 million in 2022 and $1.5 million in 2023 and beyond.
Southern Expansion
Pending FERC authorization, Eastern Shore plans to install a new natural gas driven compressor skid unit at its existing Bridgeville, Delaware compressor station that will provide 7,300 Dts of incremental firm transportation pipeline capacity. The project is currently estimated to go into service in the fourth quarter of 2022. Eastern Shore expects the Southern Expansion project to generate annual adjusted gross margin of $0.4 million in 2022 and $2.3 million in 2023 and thereafter.
Winter Haven Expansion
In May 2021, Peninsula Pipeline filed a petition with the Florida PSC for approval of its Transportation Service Agreement with our Central Florida Gas Division ("CFG") for an incremental 6,800 Dts/d of firm service in the Winter Haven, Florida area. As part of this agreement, Peninsula Pipeline will construct a new interconnect with FGT and a new regulator station for CFG. The additional firm service will be used to support new incremental load due to growth in the area, including providing service, most immediately, to a new can manufacturing facility, as well as reliability and operational benefits to CFG's existing distribution system in the area. In connection with Peninsula Pipeline's new regulator station, CFG is also extending its distribution system to connect to the new station. The Company expects this expansion to generate additional adjusted gross margin of $0.4 million in 2022 and $1.0 million in 2023 and thereafter.
Beachside Pipeline Extension
In June 2021, Peninsula Pipeline and Florida City Gas entered into a Transportation Service Agreement for an incremental 10,176 Dts/d of firm service in Indian River County, Florida, to support Florida City Gas' growth along the Indian River's barrier island. As part of this agreement, Peninsula Pipeline will construct approximately 11.3 miles of pipeline from its existing pipeline in the Sebastian, Florida, area east under the Intercoastal Waterway and southward on the barrier island. The Company expects this extension to generate additional annual adjusted gross margin of $1.8 million in 2023 and $2.5 million thereafter.
North Ocean City Connector
Pending receipt of the remaining permits, the Company expects to begin construction in the second quarter of 2022 of an extension of service into North Ocean City, Maryland. The Company's Delaware Division and Sandpiper Energy plan to install approximately 5.7 miles of pipeline across southern Sussex County, Delaware to Fenwick Island, Delaware and Worcester County, Maryland. The project will produce additional capacity to serve new customers and reinforce our existing system in Ocean City, Maryland. The Company expects this expansion to generate additional annual adjusted gross margin of $0.4 million in 2023 and beyond.
Virtual Pipeline Solutions (CNG, RNG & LNG)
Marlin Gas Services provides CNG RNG and liquefied natural gas ("LNG") temporary hold services, contracted pipeline integrity services, emergency services for damaged pipelines and specialized gas services for customers who have unique requirements. For the quarter ended March 31, 2022, Marlin Gas Services generated additional adjusted gross margin of $0.1 million compared to the quarter ended March 31, 2021. The Company estimates that Marlin Gas Services will generate annual adjusted gross margin of approximately $8.5 million in 2022, and $9.5 million in 2023, with potential for additional growth in future years. Marlin Gas Services continues to actively expand the territories it serves, as well as leverage its patented technology to serve other markets, including pursuing liquefied natural gas transportation opportunities and renewable natural gas transportation opportunities from diverse supply sources to various pipeline interconnection points, as further outlined below.
RNG Infrastructure
Noble Road Landfill RNG Project
In October 2021, Aspire Energy completed construction of its Noble Road Landfill RNG pipeline project, a 33.1-mile pipeline, which transports RNG generated from the Noble Road landfill to Aspire Energy's pipeline system, displacing conventionally produced natural gas. In conjunction with this expansion, Aspire Energy also upgraded an existing compressor station and installed two new metering and regulation sites. The RNG volume is expected to represent nearly 10 percent of Aspire Energy's gas gathering volumes.
Bioenergy DevCo
In June 2020, the Company's Delmarva natural gas operations and Bioenergy DevCo ("BDC"), a developer of anaerobic digestion facilities that create renewable energy and healthy soil products from organic material, entered into an agreement related to a project to extract RNG from poultry production waste. BDC and the Company's affiliates are collaborating on this project in addition to several other project sites where organic waste can be converted into a carbon-negative energy source.
Marlin Gas Services will transport the RNG source created from the organic waste from the BDC facility to an Eastern Shore interconnection, where the sustainable fuel will be introduced into the Company's transmission system and ultimately distributed to its natural gas customers.
CleanBay Project
In July 2020, the Company and CleanBay Renewables Inc. ("CleanBay") announced a new partnership to bring RNG to the Company's Delmarva natural gas operations. As part of this partnership, the Company will transport the RNG produced at CleanBay's planned Westover, Maryland bio-refinery, to the Company's natural gas infrastructure in the Delmarva Peninsula region. Eastern Shore and Marlin Gas Services, will transport the RNG from CleanBay to the Company's Delmarva natural gas distribution system where it is ultimately delivered to the Delmarva natural gas distribution end use customers.
At the present time, the Company expects to generate adjusted gross margin of $1.0 million in 2022 and beyond from renewable natural gas transportation. As the Company continues to finalize contract terms associated with some of these projects, additional information will be provided regarding incremental margin at a future time.
Acquisitions
Diversified Energy
On December 15, 2021, the Company's subsidiary, Sharp Energy, Inc. ("Sharp Energy") acquired the propane operating assets of Diversified Energy for approximately $37.5 million net of cash acquired. There are multiple strategic benefits to this acquisition including it: (i) expands the Company's propane territory into North Carolina and South Carolina while also expanding our existing footprint in Pennsylvania and Virginia, and (ii) includes an established customer base with opportunities for future growth. Through this acquisition, the Company added approximately 19,000 residential, commercial and agricultural customers, along with distribution of approximately 10.0 million gallons of propane annually. For the three months ended March 31, 2022, Diversified Energy contributed $4.0 million in adjusted gross margin and is expected to generate $11.3 million of additional adjusted gross margin in 2022 and $12.0 million in 2023.
Escambia Meter Station
In June 2021, Peninsula Pipeline purchased the Escambia Meter Station from Florida Power and Light and entered into a Transportation Service Agreement with Gulf Power Company to provide up to 530,000 Dts/d of firm service from an interconnect with FGT to Florida Power & Light's Crist Lateral pipeline. The Florida Power & Light Crist Lateral provides gas supply to their natural gas fired power plant owned by Florida Power & Light in Pensacola, Florida. The Company generated $0.3 million in additional adjusted gross margin for the three months ended March 31, 2022 and estimates that this acquisition will generate adjusted gross margin of approximately $1.0 million in 2022 and beyond.
Regulatory Initiatives
Florida Gas Reliability Infrastructure Program ("GRIP")
Florida GRIP is a natural gas pipe replacement program approved by the Florida PSC that allows automatic recovery, through rates, of costs associated with the replacement of mains and services. Since the program's inception in August 2012, the Company has invested $189.5 million of capital expenditures to replace 348 miles of qualifying distribution mains, including $23.6 million of new pipes during 2021. GRIP generated additional gross margin of $0.8 million for the quarter ended March 31, 2022 compared to March 31, 2021. The Company is currently projecting to complete this program in 2022 and expects to generate adjusted gross margin of $18.8 million and $19.5 million in 2022 and 2023, respectively. The adjusted gross margin on GRIP investments will continue until the Company requests the remaining net GRIP investment, and the associated expenses, be included in its next base rate proceeding.
Capital Cost Surcharge Programs
In December 2019, the FERC approved Eastern Shore's capital cost surcharge to become effective January 1, 2020. The surcharge, an approved item in the settlement of Eastern Shore's last general rate case, allows Eastern Shore to recover capital costs associated with mandated highway or railroad relocation projects that required the replacement of existing Eastern Shore facilities. For the first quarter of 2022 there was $0.5 million of adjusted gross margin generated pursuant to the program. Eastern Shore expects to produce adjusted gross margin of approximately $2.0 million in 2022 and 2023 from relocation projects, which is ultimately dependent upon the timing of filings and the completion of construction.
Elkton Gas Strategic Infrastructure Development and Enhancement ("STRIDE") Plan
In June 2021, the Company reached a settlement with the Maryland PSC Staff and the Maryland Office of the Peoples Counsel regarding a five-year plan to replace Aldyl-A pipelines and recover the associated costs of those replacements through a fixed charge rider. The STRIDE plan went into service in September 2021 and is expected to generate $0.2 million of adjusted gross margin in 2022 and $0.4 million annually thereafter.
COVID-19 Regulatory Proceeding
In October 2020, the Florida PSC approved a joint petition of the Company's natural gas and electric distribution utilities in Florida to establish a regulatory asset to record incremental expenses incurred due to COVID-19. The regulatory asset will allow the Company to seek recovery of these costs in the next base rate proceedings. In November 2020, the Office of Public Counsel filed a protest to the order approving the establishment of this regulatory asset treatment, contending that the order should be reversed or modified and to request a hearing on the protest. The Company's Florida regulated business units reached a settlement with the Office of Public Counsel in June 2021. The settlement allowed the business units to establish a regulatory asset of $2.1 million. This amount includes COVID-19 related incremental expenses for bad debt write-offs, personnel protective equipment, cleaning and business information services for remote work. The Company's Florida regulated business units will amortize the amount over two years beginning January 1, 2022 and recover the regulatory asset through the Purchased Gas Adjustment and Swing Service mechanisms for the natural gas business units and through the Fuel Purchased Power Cost Recovery clause for the electric division. This results in annual additional adjusted gross margin of $1.0 million that will be offset by a corresponding amortization of regulatory asset expense for both 2022 and 2023.
Florida Natural Gas Base Rate Proceeding
On March 24, 2022, the Florida natural gas distribution business units of the Company, Florida Public Utilities Company, the Florida Division of Chesapeake Utilities Corporation, Florida Public Utilities Company – Indiantown Division, and Florida Public Utilities Company – Fort Meade (jointly, "the Florida Natural Gas Companies"), filed a joint notification with the Florida PSC, stating their intent to file a consolidated natural gas base rate proceeding and request consolidation of the Florida distribution operations under Florida Public Utilities Company for all Florida regulatory purposes. The Florida Natural Gas Companies anticipate filing the consolidated base rate case as soon as practicable after the expiration of the notification period, but not before May 24, 2022.
The Florida Natural Gas Companies estimate that an increase in the revenue requirement of $18 million to $21 million is necessary to produce sufficient revenues to allow the Florida Natural Gas Companies, once consolidated, to continue to provide the safe and reliable natural gas service the Company's customers deserve and have come to expect, while continuing to invest in the safety of the Company's employees, customers, and communities, as well as the natural gas distribution system itself. The Florida Natural Gas Companies' request will seek an effective date for new rates of January 1, 2023. The Florida Natural Gas Companies will also be requesting interim rate relief, subject to refund, in accordance with the applicable statute using the period January 1, 2021 through December 31, 2021, as the test period. The Company currently cannot estimate the ultimate outcome of the consolidated base rate proceeding.
Other major factors influencing adjusted gross margin
Weather Impact
For the three months ended March 31, 2022, weather conditions accounted for $0.4 million of decreased adjusted gross margin compared to the same period in 2021. Assuming normal temperatures, as detailed below, adjusted gross margin would have been higher by $0.9 million. The following table summarizes HDD and CDD variances from the 10-year average HDD/CDD ("Normal") for the three months ended March 31, 2022 and 2021.
Natural Gas Distribution Adjusted Margin Growth
Customer growth for the Company's natural gas distribution operations, as a result of the addition of new customers (excluding acquisitions) and the conversion of customers from alternative fuel sources to natural gas service, generated $1.2 million of additional adjusted gross margin for the three months ended March 31, 2022. The average number of residential customers served on the Delmarva Peninsula increased 5.3 percent for the three months ended March 31, 2022, while Florida customers increased by 4.0 percent, for the same period. A larger percentage of the adjusted gross margin growth was generated from residential growth given the expansion of natural gas into new housing communities and conversions to natural gas as the Company's distribution infrastructure continues to build out. The Company anticipates continued customer growth as new communities continue to build out due to population growth and infrastructure is added to support the growth, there is also increased load from new commercial and industrial customers. Details are provided in the following table:
Capital Investment Growth and Associated Financing Plans
The Company's capital expenditures were $25.6 million for the three months ended March 31, 2022. The following table shows a range of the forecasted 2022 capital expenditures by segment and by business line:
The capital expenditure projection is subject to continuous review and modification. Actual capital requirements may vary from the above estimates due to a number of factors, including changing economic conditions, capital delays that are greater than currently anticipated, customer growth in existing areas, regulation, new growth or acquisition opportunities and availability of capital. Historically, actual capital expenditures have typically lagged behind the forecasted amounts.
The Company's target ratio of equity to total capitalization, including short-term borrowings, is between 50 and 60 percent. The Company's equity to total capitalization ratio, including short-term borrowings, was 52 percent as of March 31, 2022.
The Company may utilize more temporary short-term debt, when the financing cost is attractive, as a bridge to permanent long-term financing, or if the equity markets are more volatile. The Company currently maintains a multi-tranche $400.0 million syndicated revolving line of credit (the "Revolver"), with multiple participating lenders to meet its short-term borrowing needs. The two tranches of the facility consist of a $200.0 million 364-day short-term debt tranche and a $200.0 million five-year tranche, both of which have three (3) one-year extension options which can be authorized by our Chief Financial Officer. The Company is eligible to establish the repayment term for individual borrowings under the five year tranche of the facility and to the extent that an individual loan under the revolver exceeded 12 months, the outstanding balance would be classified as a component of long-term debt.
The 364-day tranche of the Revolver expires in August 2022 and the five-year tranche expires in August 2026; both tranches are available to provide funds for the Company's short-term cash needs to meet seasonal working capital requirements and to temporarily fund portions of the Company's capital expenditures. As of March 31, 2022, the pricing under the 364-day tranche of the Revolver does not include an unused commitment fee and maintains an interest rate of 0.70 percent over LIBOR. As of March 31, 2022, the pricing under the five-year tranche of the Revolver included an unused commitment fee of 0.09 percent and an interest rate of 0.95 percent over LIBOR. The Company's total available credit under the Revolver at March 31, 2022 was $256.3 million.
The Company issued $50 million of 2.95 percent Senior Notes on March 15, 2022 under a private placement agreement with MetLife Investment Advisors. The Company used the proceeds received from the issuances of the Senior Notes to reduce short-term borrowings under its revolving credit facility and to fund capital expenditures. These Senior Notes have similar covenants and default provisions as the existing senior notes, and have an annual principal payment beginning in the eleventh year after the issuance.
In terms of equity capital, the Company maintains an effective shelf registration statement with the Securities and Exchange Commission for the issuance of shares under its Dividend Reinvestment and Direct Stock Purchase Plan (the "DRIP"). In June 2020, the Company also filed a shelf registration statement with the Securities and Exchange Commission, which provides for the issuance of shares of its common stock via a variety of offering types. In August 2020, the Company filed a prospectus supplement under the shelf registration statement for an At-the-Market ("ATM") program under which the Company may issue and sell shares of common stock up to an aggregate offering price of $75.0 million under which $62.5 million has been issued.
During the first quarter of 2022, the Company issued less than 0.1 million shares of common stock through its DRIP program and received net proceeds of approximately $3.2 million which were added to the Company's general funds.
Depending on the Company's capital needs and subject to market conditions, in addition to other debt and equity offerings, the Company may consider, as necessary in the future, issuing additional shares under the direct stock purchase component of the DRIP, the ATM program, or pursuant to its shelf registration statement. More information about financing activities is included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 and the Company's First Quarter 2022 Form 10-Q.
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SOURCE Chesapeake Utilities Corporation | https://www.whsv.com/prnewswire/2022/05/03/chesapeake-utilities-corporation-reports-first-quarter-2022-results/ | 2022-05-03T21:22:22Z |
FORT LAUDERDALE, Fla., May 3, 2022 /PRNewswire/ -- Convey Health Solutions Holdings, Inc. (NYSE: CNVY) ("Convey Health Solutions" or "Convey"), a leading healthcare technology and services company, announced today that it will issue a press release with first quarter 2022 financial results on Tuesday, May 10, 2022 after the market closes. In conjunction with the release, Convey will host a conference call to review these financial results at 4:30 p.m. (ET) on the same day.
First Quarter 2022 Conference Call Details
The conference call can be accessed by dialing (844) 200-6205 for U.S. participants, or +1 (929) 526-1599 for international participants, referencing access code 105506; or via a live audio webcast that will be available on Convey's Investor Relations website at https://ir.conveyhealthsolutions.com. The earnings release and related materials will also be available on this website.
A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.
About Convey Health Solutions
Convey Health Solutions is a specialized healthcare technology and services company that is committed to providing clients with healthcare-specific, compliant member support solutions utilizing technology, engagement, and analytics. Convey Health Solutions' administrative solutions for government-sponsored health plans help to optimize member interactions, ensure compliance, and support end-to-end Medicare processes. By combining its best-in-class, built-for-purpose technology platforms with dedicated and flexible business process solutions, Convey Health Solutions creates better business results and better healthcare consumer experiences on behalf of business customers and partners. Convey Health Solutions' clients include some of the nation's leading health insurance plans and pharmacy benefit management firms. Their healthcare-focused teams help several million Americans each year to navigate the complex Medicare Advantage and Part D landscape. To learn more about Convey Health Solutions, please visit www.ConveyHealthSolutions.com.
Investor Relations Contact
Gene Mannheimer
ICR Westwicke
ConveyHealthIR@westwicke.com
Media Contact
Tom Pelegrin
Senior Vice President & Chief Revenue Officer
mediarelations@conveyhs.com
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SOURCE Convey Health Solutions | https://www.whsv.com/prnewswire/2022/05/03/convey-health-solutions-announce-first-quarter-2022-financial-results-may-10-2022/ | 2022-05-03T21:22:29Z |
NASHVILLE, Tenn., May 3, 2022 /PRNewswire/ -- Cumberland Pharmaceuticals Inc. (NASDAQ: CPIX), a specialty pharmaceuticals company, announced today that it will release the first quarter 2022 financial results and provide a company update after the market closes on Tuesday, May 10, 2022.
A conference call and live internet webcast will be held on May 10 at 4:30 p.m. Eastern Time to discuss the results. To participate in the call, please dial (877) 303-1298 (for U.S. callers) or (253) 237-1032 (for international callers). A rebroadcast of the teleconference will be available for one week and can be accessed by dialing (855) 859-2056 (for U.S. callers) or (404) 537-3406 (for international callers). The Conference ID for the rebroadcast is 7574078. Both the live webcast and rebroadcast can be accessed via Cumberland's website at https://investor.cumberlandpharma.com/events-calendar.
Cumberland Pharmaceuticals is the largest biopharmaceutical company founded and headquartered in the Mid-South and is focused on the delivery of high-quality, prescription brands designed to improve patient care. The company develops, acquires, and commercializes products for the hospital acute care, gastroenterology and rheumatology market segments.
The company's portfolio of FDA-approved brands includes:
- Acetadote® (acetylcysteine) injection, for the treatment of acetaminophen poisoning;
- Caldolor® (ibuprofen) injection, for the treatment of pain and fever;
- Kristalose® (lactulose) for oral solution, a prescription laxative, for the treatment of constipation;
- Omeclamox®-Pak, (omeprazole, clarithromycin, amoxicillin) for the treatment of Helicobacter pylori (H. pylori) infection and related duodenal ulcer disease;
- RediTrex® (methotrexate) injection, for the treatment of active rheumatoid, juvenile idiopathic and severe psoriatic arthritis, as well as disabling psoriasis;
- Sancuso® (granisetron) transdermal system, for the prevention of nausea and vomiting in patients receiving certain types of chemotherapy treatment;
- Vaprisol® (conivaptan) injection, to raise serum sodium levels in hospitalized patients with euvolemic and hypervolemic hyponatremia; and
- Vibativ® (telavancin) injection, for the treatment of certain serious bacterial infections including hospital-acquired and ventilator-associated bacterial pneumonia, as well as complicated skin and skin structure infections.
The company also has a series of Phase II clinical programs underway evaluating its ifetroban product candidate in patients with cardiomyopathy associated with Duchenne Muscular Dystrophy ("DMD"), Systemic Sclerosis ("SSc") and Aspirin-Exacerbated Respiratory Disease ("AERD").
For more information on Cumberland's approved products, including full prescribing information, please visit links to the individual product websites, which can be found on the company's website at www.cumberlandpharma.com.
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Q1 2022 total revenue was $8.7 million, including product sales of $7.9 million. Core non-COVID-19 product sales were an estimated $7.6 million, and on a constant currency basis were comparable to core product sales a year ago. Product gross margins were 80%.
MONMOUTH JUNCTION, N.J., May 3, 2022 /PRNewswire/ -- CytoSorbents Corporation (NASDAQ: CTSO), a leader in the treatment of life-threatening conditions in the intensive care unit and cardiac surgery using blood purification via its proprietary polymer adsorption technology, today reported unaudited financial and operating results for the quarter ended March 31, 2022.
First Quarter 2022 Financial Results
- Total revenue, including product sales and grant income, for Q1 2022 was $8.7 million, a decrease of 18% compared to $10.6 million in Q1 2021.
- Q1 2022 product sales were $7.9 million (including an estimated $7.6 million core non-COVID-19 sales and $0.3 million COVID-19 related sales) versus $10.1 million ($8.3 million core and $1.8 million COVID-related) in Q1 2021, a decrease of 22%. This decrease was driven primarily by a reduction in German direct sales, which were hampered by the impact of unprecedented rates of new COVID-19 infection in the country that persisted throughout Q1 2022, and to a lesser extent a weaker Euro. Germany sales were $3.8 million in Q1 2022 versus $5.9 million a year ago, a decline of 36%. Q1 2022 product sales were also lower by $0.6 million due to the stronger dollar compared to the euro.
- On a constant currency basis, core product sales in Q1 2022 would have been $8.2 million, and were comparable to core product sales of $8.3 million a year ago.
- As expected, COVID-19 related sales during the quarter were low, reflecting the low severity of current COVID-19 illness resulting from high rates of vaccination and natural immunity.
- Product gross margins improved to approximately 80% in Q1 2022, versus 77% in Q1 2021.
- The Company continues to have a solid balance sheet with cash and cash equivalents of $44.7 million (which includes $1.7 million in restricted cash) at March 31, 2022, and no debt.
Recent Operating Highlights
- More than 170,000 cumulative CytoSorb devices have been utilized worldwide as of March 31, 2022, an increase of 30% compared to more than 131,000 devices utilized as of the end of the first quarter of 2021.
- CytoSorbents continues to make progress in its company-sponsored clinical trials, most importantly announcing that the first patient was enrolled in April 2022 in the U.S. STAR-D (Safe and Timely Antithrombotic Removal – Direct Oral Anticoagulants) pivotal trial evaluating the DrugSorb™-ATR Antithrombotic Removal System to remove apixaban and rivaroxaban during cardiothoracic surgery.
- The first patient was enrolled in February 2022 in the PROCYSS Multicenter randomized controlled trial evaluating CytoSorb® to restore hemodynamic stability in patients experiencing refractory septic shock.
- Buildout of the Company's new manufacturing facility in Princeton, New Jersey is approximately 95% complete. In April, the Company successfully completed its E.U. Notified Body audit of the manufacturing plant, with no major findings. Based on the positive audit, the Company is beginning the transition from its existing facility to the new manufacturing site. Management expects to receive full certification from its Notified Body in the coming months, which will allow device manufacturing and product shipments to begin from the new manufacturing facility.
- CytoSorbents recently appointed Jiny Kim, MBA to the Board of Directors. She brings an extensive background in the medical device industry, with significant experience in U.S. and international commercialization, sales, marketing and business development to support the Company's growth initiatives, in particular the eventual commercialization of DrugSorb™-ATR in the United States.
- The Company is establishing a direct sales presence in the UK, the sixth largest medical device market in the world, and Ireland, part of its strategy to expand more territories in which CytoSorb is sold directly to customers.
- Multiple recent scientific publications and presentations highlighting the use of CytoSorb in critical care and cardiac surgery (see "Clinical Studies and Data Publications Update" below). In particular, new data from an expanded analysis of the U.S. CTC (CytoSorb Therapy in COVID-19) Registry on 56 critically ill COVID-19 patients with acute respiratory distress syndrome on life support with ECMO and treated with CytoSorb under FDA Emergency Use Authorization, continue to demonstrate high survival and improved clinical benefits with early intervention. These data were presented in an abstract at the 41st International Symposium on Intensive Care and Emergency Medicine in Brussels, Belgium, and will be presented this week at the 10th EuroELSO Congress in London, UK, along with multiple presentations at the CytoSorbents Lunch Symposium.
Dr. Phillip Chan, Chief Executive Officer of CytoSorbents stated, "A key takeaway from our first quarter results is that our core non-COVID-19 product sales were stable, on par with Q3 and Q4 2021, and comparable with Q1 2021 product sales on a constant currency basis. We did this despite the many business challenges and uncertainties created by COVID-19, the Russian-Ukraine war, inflation, currency exchange volatility, and other factors out of our direct control. As anticipated, COVID-19 related sales were nominal for Q1 2022 due to the low severity of recent COVID-19 infections, and primarily accounted for the difference in product sales from a year ago."
"During Q1 2022, CytoSorb sales in Germany, the Company's largest market, lagged as the country experienced its highest rates of COVID infections since the pandemic began. When we provided our 2022 outlook in early March, the Omicron wave appeared to be peaking, but was supplanted by a massive wave of BA.2 variant infections that drove a new peak of more than a half million new COVID-19 infections a day by the end of Q1 2022 - seven times higher than in the prior quarter and 21 times the peak seen a year ago. We have previously discussed how these high rates of COVID-19 indirectly reduce CytoSorb sales by impacting hospital budgets, staffing, elective procedure volumes, ICU capacity, and sale representative access due to visitation restrictions and illness. Fortunately, COVID-19 infection rates have dropped rapidly in the past several weeks. However, the BA.2 surge, which still accounts for nearly 100,000 new infections a day in the country, will likely delay the expected recovery in Germany. We are seeing a carryover of Germany Q1 sales trends to the current quarter, and although this may change, it has prompted us to conservatively revise our 2022 guidance (see "Revision of 2022 Outlook Guidance" below). That said, we are focused on the more important big picture where current trends portend an end to the global pandemic this year as COVID-19 is expected to morph into a much less virulent disease like seasonal influenza. When this happens, we want to be well-positioned to capitalize on what we expect will be a steady improvement and return to growth in our core business."
Dr. Chan continued, "We remain confident that the slowdown in our growth is mainly driven by reversible COVID-related issues, and expect that these too shall pass. In the meantime, we have a solid balance sheet anchored by $44.7 million in cash and no debt at the end of Q1 2022 to weather the current turbulence. We are also managing our business proactively, continuing to invest in key areas such as our U.S. pivotal STAR-T and STAR-D trials, while instituting tighter cost controls to reduce our cash burn by an additional $2 million per quarter against budget. Our goal is to end this year with more than $30M in cash, which exceeds our projected cash need in 2023 and importantly, is expected to provide adequate funds through the anticipated enrollment completion of both the pivotal U.S. STAR-T and STAR-D trials. We also have the additional financial flexibility from our $15 million Bridge Bank term loan commitment to add debt if desired."
"Meanwhile, we are not just waiting for conditions to improve. Rather, we are focused on building this company and solidifying our leadership as the treatment pioneer of life-threatening conditions using blood purification. We are laser-focused on four essential objectives that we believe are the key to driving sustainable, long-term value for shareholders:
- Open the U.S. market by obtaining FDA Marketing approval for DrugSorb™-ATR to remove blood thinning drugs during cardiothoracic surgery (see "Clinical update" below)
- Restore growth of core CytoSorb sales, driven by numerous initiatives (see below).
- Transition CytoSorb production to our new manufacturing facility and headquarters in Princeton, New Jersey this year (See "Operational Update" above)
- Forge and expand new and existing strategic partnerships to maximize the synergy between our technology and those of our partners, while creating new global opportunities for growth.
To provide more color on our growth strategy, we highlight several examples of important initiatives that we have been executing upon during the pandemic that are expected to drive improved results as the pandemic abates, as well as future, longer-term growth.
Near-term growth drivers
- Resume in-person sales from a strong customer base: Our active customer base accounts for the majority of our direct sales and grew by 20-25% at the start of the pandemic and has remained stable since. We are in close contact with these accounts and have confirmed that COVID-19 related issues, including its effect on staffing and numbers of ICU patients, are the primary issue for volatility in ordering. We believe a return to in-person selling will reinvigorate growth.
- New therapeutic area divisions: We have established three distinct therapy divisions within our commercial operations including Critical Care, Cardiovascular, and Liver/Kidney/other to develop these markets internationally under the leadership of dedicated medical and commercial subject matter experts, who will work closely with our sales teams and best serve the needs and interests of our customers. We have already seen our efforts bear fruit with now more than 150 cardiac surgery centers internationally who have begun to use CytoSorb to remove antithrombotic drugs during cardiac surgery, for example. We believe this infrastructure will yield many more similar successes across a broad array of applications.
- New exclusive private hospital chain partnerships: We are now the preferred supplier of hemoadsorption technology to the three largest hospital chains in Germany, including, as announced yesterday, Asklepios Group. A number of these hospitals are already current customers and our agreements facilitate access and sales of CytoSorb to these and all other relevant institutions within these hospital networks.
- Rise of Existing and New Applications: Among the many applications, we highlight:
Shock: Many studies have highlighted the ability of CytoSorb to remove inflammatory mediators and help to stabilize shock, a potentially fatal drop in blood pressure, in a wide range of patients. A recent 2019 meta-analysis, found that approximately 10% of ICU patients have septic shock at admission and an additional 8% of patients admitted to the ICU develop septic shock at some point in their hospital stay, with a high mortality of 38%. CytoSorb is being used around the world as a treatment of shock and we are conducting the PROCYSS RCT to formally evaluate CytoSorb as a treatment of this common and major unmet medical need.
Liver disease: In the treatment of acute liver disease, CytoSorb outperforms the market leading MARS® platform (Baxter) in the in vitro removal of many liver toxins, but has the added benefit of removing cytokines and inflammatory mediators, while being much easier to use. In real-world practice, CytoSorb has replaced MARS at many accounts. One in 11 people worldwide have chronic liver disease that may deteriorate and require hospitalization and blood purification. Through our Liver/Kidney division, we aim to drive CytoSorb as a therapy of choice in these patients.
Lung injury: Our U.S. CTC registry highlights the high survival of critically ill COVID-19 patients with acute respiratory distress syndrome (ARDS) treated with CytoSorb and ECMO under FDA Emergency Use Authorization. We believe these data demonstrate a therapeutic strategy of "enhanced lung rest" using the combined therapies that can be extrapolated to the treatment of ARDS in non-COVID patients, a very large market.
Longer-term growth drivers
- Stand-alone blood pump business model: There are many applications where a simple-to-use, low-cost hemoperfusion pump is adequate to implement our CytoSorb blood purification technology. This approach enables our customers to deliver CytoSorb without the complexity of a full-scale dialysis or continuous renal replacement therapy (CRRT) machine, without the need for a dialysis technician, and in clinical situations where the patient has not developed kidney failure. By improving access to care and simplifying treatment with CytoSorb in the ICU, we are potentially enabling more frequent and earlier use on more patients while supporting new "hospital-wide" applications in the emergency room, surgery suites, and elsewhere. CytoSorbents has partnered with a major international dialysis company to distribute a high-quality hemoperfusion machine and accessories, and to provide field support to customers in Germany, Austria, and Luxembourg, and are currently in the midst of a pilot launch. While early, the initial results and feedback from this pilot have been promising. Pending continued success, we plan a broader rollout in these countries, and may pursue expansion of the program to more countries in the future. We believe this can be a potentially important supplementary business model going forward that can significantly expand our total addressable markets and contribute meaningfully to CytoSorb sales growth.
- Expansion of direct sales territories: Although opening new countries with a direct sales force requires time, cost, and resources, it also allows us to directly lead the effort, drive results, and benefit from more profitable sales. With the announcement of expansion of direct sales into the U.K. and Ireland, we now sell direct in two of the E.U.'s Big 5 Economies - Germany and the U.K. – and a total of 15 countries direct overall, while working with distributors or partners in the other three Big 5 Economies: France, Italy, and Spain.
- Investment in important clinical studies in shock, liver failure, cardiac surgery, ATR, etc: We are committed to funding Company-sponsored studies, such as the STAR-T, STAR-D, and PROCYSS RCTs, in key areas that we believe will drive international adoption and usage of our technologies, with the goal of becoming a standard of care for those applications (See "Clinical Studies and Data Publications Update" below).
Dr. Chan concluded, "We firmly believe we are a solidly financed company with a robust strategic and tactical plan that positions us well for both near-term and long-term success once the effects of the pandemic abate. Although we know it has been challenging, we thank you for your understanding and continued support."
Clinical Studies and Data Publications Update
Cardiac Surgery
- U.S. STAR-T pivotal RCT: Enrollment and site activation continues to progress. Barring the potential of another surge in U.S. COVID cases, we expect the study to reach its first scheduled milestone of 33% patient enrollment that will trigger the first Data Safety Monitoring Board (DSMB) meeting this summer, with overall study enrollment to be complete in the first quarter of 2023.
- U.S. STAR-D pivotal RCT: Site activation is ongoing with the first patient enrolled in April 2022. Pending the continuing uncertainty from the ongoing COVID-19 pandemic, we expect the study to complete enrollment in 12-18 months.
- International Safe and Timely Antithrombotic Removal (STAR) Registry continues to actively enroll patients in the U.K., Germany, and Austria, with expansion into additional EU countries before the end of 2022.
- Recent scientific publications highlight CytoSorb use in cardiac surgery for antithrombotic removal include in the Annals of Thoracic and Cardiovascular Surgery, Expert Review of Cardiovascular Therapy, Journal of Cardiothoracic and Vascular Anesthesia, and in endocarditis in the Journal of Cardiothoracic and Vascular Anesthesia.
Critical Care
- CytoSorb Therapy in COVID-19 (CTC) Registry: New data will be presented at the EuroELSO conference this week (see "Operational Highlights" above). The CTC Registry has completed enrollment at 100 patients and the final results will be presented at an upcoming international conference and submitted for publication.
- The German PROCYSS Refractory Septic Shock RCT: The study continues to actively enroll at multiple sites. The speed of enrollment remains uncertain due to COVID-19, however, we still expect to achieve the next important milestone of the interim analysis after 50% enrollment in 2023.
- The German Hep-On-Fire multicenter, single-arm trial in acute liver failure due to alcoholic hepatitis: We continue to expect that the first patient will be enrolled this quarter and that the study will complete enrollment in 2023.
- The International COSMOS Registry: Designed to capture ongoing, real-world outcomes using CytoSorb in critical care, the Registry is undergoing start-up activities and remains scheduled to begin enrollment this quarter with the goal of being active in multiple countries in 2023.
- Many peer-reviewed publications of new studies on sepsis in The International Journal of Artificial Organs and in sepsis-associated acute kidney injury in Blood Purification, as well as in acute pancreatitis in Artificial Organs, and wound healing following severe burn injury in Frontiers in Surgery. Finally, cytokine reduction using CytoSorb and the successful transplant of donated kidneys and livers from deceased donors was detailed in the International Journal of Artificial Organs.
Results of Operations for the quarter ended March 31, 2022 compared to the quarter ended March 31, 2021
Revenues
Total revenue, including product revenue and grant income, for the first quarter of 2022 was $8.7 million, down 18% from $10.6 million in the first quarter of 2021. Product sales in the first quarter of 2022 were $7.9 million, down 22% from $10.1 million in the first quarter of 2021 due to a decrease in direct sales, primarily from lower sales in Germany due to COVID-19 pandemic market conditions, as well as the impact of the decrease in the average exchange rate of the Euro to the U.S. dollar, which negatively impacted first quarter 2022 product sales by approximately $0.6 million. Due to a surge in COVID-19 case in the first quarter of 2022, many hospitals throughout Germany either maintained or reinstituted restrictions such as visitation rights to non-essential visitors. However, unlike prior waves in Germany, the rates of severe COVID-19 illness requiring ICU care, and death have been comparatively very low. This is being partly attributed to high rates of vaccinations that are associated with reduced severity of illness, reduced need for hospitalization, and risk of death. These factors led to a decrease in both COVID-19 and core non-COVID-19 CytoSorb sales in Germany. In aggregate, COVID-19 related sales in the first quarter of 2021 were estimated to be $0.3 million, compared to $1.8 million in the first quarter of 2021. Core, non-COVID-19 sales declined 9% from $8.3 million in the first quarter of 2021 to $7.6 million in the first quarter of 2022.
Cost of Revenues
Cost of revenue for the first quarter of 2022 was $2.3 million compared to $2.8 million for the first quarter of 2021. Product gross margins were approximately 80% for the first quarter of 2022, compared to approximately 77% for the first quarter of 2021, due mainly to the impact of non-recurring costs of approximately $0.7 million in the first quarter of 2021 related to prior year tariffs following an audit by the German Customs Authorities that did not recur in 2022.
Operating Expenses
Operating expenses for the first quarter of 2022 amounted to $14.2 million, a 33% increase from $10.7 million for the first quarter of 2021. Research and development expenses increased from $2.3 million in the first quarter of 2021 to $4.2 million in the first quarter of 2022 due primarily to an increase in clinical trial and related costs, rent expense on our new facility and other R&D costs. Selling, General & Administrative (SG&A) expenses increased 19% to $9.2 million in the first quarter of 2022 from $7.7 million in the prior year period due primarily to an increase in salaries, commissions, and related costs of $0.9 million, an increase in occupancy costs related to rent on our new facility in Princeton, NJ of $0.4 million, and an increase in sales and marketing costs, which include advertising and conference attendance of approximately $0.3 million, among other items. These SG&A expense increases were partially offset by lower non-cash restricted stock expense of $0.3 million, among other decreased expenses included within SG&A. Legal, financial, and other consulting expense increased from $0.7 million in the first quarter of 2021 to $0.8 million in the first quarter of 2022.
Liquidity and Capital Resources
Since inception, our operations have been primarily financed through the private and public placement of our debt and equity securities. At March 31, 2022, we had current assets of approximately $55.9 million including unrestricted cash on hand of approximately $43.0 million and had current liabilities of approximately $14.7 million. As of March 31, 2022, $25 million of our total shelf amount was allocated to our ATM facility, all of which is still available. In addition, we have $15 million of debt availability, providing financial flexibility, if needed. In April of 2022, we received approximately $740,000 in cash from the approved sale of our net operating losses and research and development credits from the State of New Jersey.
We believe that we have sufficient cash to fund the Company's operations beyond twelve months from issuance of the financial statements for the quarter ending March 31, 2022.
Revision of 2022 Outlook Guidance
The macro environment in which we operate remains difficult to predict given the complex drivers of our business, the global nature of our operations, and external factors such as the COVID-19 pandemic, the Russia-Ukraine war, inflation, currency exchange volatility, and other factors that are not in our direct control.
As evidence of this, since our prior guidance on March 8, 2022, where we anticipated growth of 20% or more in 2022 core product sales, Germany has since suffered a major surge in new COVID-19 cases, driven by the Omicron BA.2 variant. Although infection rates are now falling, we believe this has delayed the recovery of German hospitals and our German business. Given the importance of Germany to our financial results, and given that we see some Q1 sales trends carrying over to Q2 2022 (although this may change), we are revising our guidance to the following:
We expect COVID-19 cases and hospitalizations worldwide to continue to decline and expect to reach a more normalized operating environment as the year progresses. Because of this, we expect continued and progressive improvement in our underlying core non-COVID-19 business and expect growth in 2022 of core product sales on a constant currency basis. However, due to our limited visibility, we are removing specific growth targets with plans to revisit this later in the year. This expectation assumes:
- A gradual recovery of normalized hospital activity and sales access in Germany and other key countries
- No major economic slowdowns or major surges in COVID-19 infections caused by new COVID-19 variants
- Little to no contribution to sales from Russia and neighboring countries that might be impacted by the war. In 2021, sales from these geographies represented less than 4% of total product sales
- No escalation of the Russia-Ukraine war to other countries
- Limited COVID-19 related product sales in 2022 due to high rates of vaccination and natural immunity that have reduced the severity of COVID-19 illness and need for hospitalization and ICU care, and with it the use of CytoSorb in these patients.
For additional information, please see the Company's Form 10-Q for the period ended March 31, 2022, filed today with the SEC on http://www.sec.gov.
Conference Call
The company will conduct its first quarter 2022 results call today at 4:30 p.m. Eastern time.
Conference Call Details:
Toll free: 1-877-451-6152
International: 1-201-389-0879
Conference ID: 13728663
It is recommended that participants dial in approximately 10 minutes prior to the start of the call. There will be a simultaneous live webcast of the conference call that can be accessed through the following audio feed link: https://viavid.webcasts.com/starthere.jsp?ei=1541445&tp_key=979468cd12
An archived recording of the conference call will be available under the Investor Relations section of the Company's website at http://cytosorbents.com/investor-relations/financial-results/.
About CytoSorbents Corporation (NASDAQ: CTSO)
CytoSorbents Corporation is a leader in the treatment of life-threatening conditions in intensive care and cardiac surgery using blood purification. Its flagship product, CytoSorb®, is approved in the European Union with distribution in more than 70 countries around the world as an extracorporeal cytokine adsorber designed to reduce the "cytokine storm" or "cytokine release syndrome" seen in common critical illnesses that may result in massive inflammation, organ failure and patient death. These are conditions where the risk of death can be extremely high, yet few to no effective treatments exist. CytoSorb is also being used during and after cardiothoracic surgery to remove inflammatory mediators that can lead to post-operative complications, including multiple organ failure. More than 170,000 cumulative CytoSorb devices have been utilized as of March 31, 2022. CytoSorb was originally introduced into the European Union under CE-Mark as a first-in-kind cytokine adsorber. Additional CE-Mark label expansions were received for the removal of bilirubin and myoglobin in clinical conditions such as liver disease and trauma, respectively, and both ticagrelor and rivaroxaban during cardiothoracic surgery. CytoSorb has also received FDA Emergency Use Authorization in the United States for use in adult critically ill COVID-19 patients with imminent or confirmed respiratory failure. The DrugSorb™-ATR Antithrombotic Removal System, which is based on the same polymer technology as CytoSorb, has also been granted FDA Breakthrough Designation for the removal of ticagrelor, as well as FDA Breakthrough Designation for the removal of the direct oral anticoagulant (DOAC) drugs, apixaban and rivaroxaban, in a cardiopulmonary bypass circuit during urgent cardiothoracic surgery. The Company has initiated two FDA approved pivotal trials designed to support U.S. marketing approval of DrugSorb-ATR. The first is the 120-patient, 30 center STAR-T (Safe and Timely Antithrombotic Removal-Ticagrelor) randomized, controlled trial evaluating the ability of intraoperative DrugSorb-ATR use to reduce perioperative bleeding risk in patients on ticagrelor undergoing cardiothoracic surgery. The second is the 120-patient, 30 center STAR‑D (Safe and Timely Antithrombotic Removal-Direct Oral Anticoagulants) randomized, controlled trial, evaluating the intraoperative use of DrugSorb–ATR to reduce perioperative bleeding risk in patients undergoing cardiothoracic surgery on direct oral anticoagulants, including apixaban and rivaroxaban.
CytoSorbents' purification technologies are based on biocompatible, highly porous polymer beads that can actively remove toxic substances from blood and other bodily fluids by pore capture and surface adsorption. Its technologies have received non-dilutive grant, contract, and other funding of more than $39.5 million from DARPA, the U.S. Department of Health and Human Services (HHS), the National Institutes of Health (NIH), National Heart, Lung, and Blood Institute (NHLBI), the U.S. Army, the U.S. Air Force, U.S. Special Operations Command (SOCOM), Air Force Material Command (USAF/AFMC), and others. The Company has numerous marketed products and products under development based upon this unique blood purification technology protected by many issued U.S. and international patents and registered trademarks, and multiple patent applications pending, including ECOS-300CY®, CytoSorb-XL™, HemoDefend-RBC™, HemoDefend-BGA™, VetResQ®, K+ontrol™, DrugSorb™, DrugSorb™-ATR, ContrastSorb, and others. For more information, please visit the Company's websites at www.cytosorbents.com and www.cytosorb.com or follow us on Facebook and Twitter.
Forward-Looking Statements
This press release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, future targets and outlooks for our business, expectations regarding the future impacts of COVID-19 or the ongoing conflict between Russia and the Ukraine, representations and contentions and are not historical facts and typically are identified by use of terms such as "may," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue" and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements in this press release represent management's current judgment and expectations, but our actual results, events and performance could differ materially from those in the forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to, the risks discussed in our Annual Report on Form 10-K, filed with the SEC on March 10, 2022, as updated by the risks reported in our Quarterly Reports on Form 10-Q, and in the press releases and other communications to shareholders issued by us from time to time which attempt to advise interested parties of the risks and factors which may affect our business. We caution you not to place undue reliance upon any such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, other than as required under the Federal securities laws.
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Investor Relations Contact:
Terri Anne Powers
Vice President, Investor Relations
and Corporate Communications
(732) 482-9984
tpowers@cytosorbents.com
U.S. Public Relations Contact:
Eric Kim
Rubenstein Public Relations
212-805-3052
ekim@rubensteinpr.com
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SOURCE CytoSorbents Corporation | https://www.whsv.com/prnewswire/2022/05/03/cytosorbents-reports-first-quarter-2022-results-revises-2022-outlook/ | 2022-05-03T21:22:42Z |
DOWNERS GROVE, Ill., May 3, 2022 /PRNewswire/ -- Dover (NYSE: DOV) announced that its President and Chief Executive Officer, Richard J. Tobin, will speak at the Goldman Sachs Industrials and Materials Conference on Tuesday, May 10, 2022, at 8:50 am ET.
A link to the live audio webcast of the presentation will be available on dovercorporation.com, and the replay will be archived on the website for 90 days.
About Dover:
Dover is a diversified global manufacturer and solutions provider with annual revenue of approximately $8 billion. We deliver innovative equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services through five operating segments: Engineered Products, Clean Energy & Fueling, Imaging & Identification, Pumps & Process Solutions and Climate & Sustainability Technologies. Dover combines global scale with operational agility to lead the markets we serve. Recognized for our entrepreneurial approach for over 65 years, our team of over 25,000 employees takes an ownership mindset, collaborating with customers to redefine what's possible. Headquartered in Downers Grove, Illinois, Dover trades on the New York Stock Exchange under "DOV." Additional information is available at www.dovercorporation.com.
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SOURCE Dover | https://www.whsv.com/prnewswire/2022/05/03/dover-president-chief-executive-officer-speak-goldman-sachs-industrials-materials-conference/ | 2022-05-03T21:22:49Z |
SANTA CLARA, Calif., May 3, 2022 /PRNewswire/ -- eHealth, Inc. (Nasdaq: EHTH), a leading private online health insurance marketplace, today announced its financial results for the first quarter ended March 31, 2022. View the full press release in PDF.
The news release and earnings presentation can be accessed on the eHealth Investor Relations website at https://ir.ehealthinsurance.com.
Webcast and Conference Call Information
A webcast and conference call will be held today, Tuesday, May 3, 2022 at 5:00 p.m. Eastern / 2:00 p.m. Pacific Time. The live webcast and supporting presentation slides will be available on the Investor Relations section of eHealth's website at http://ir.ehealthinsurance.com. Individuals interested in listening to the conference call may do so by dialing (877) 930-8066 for domestic callers and (253) 336-8042 for international callers. The participant passcode is 3371197. A telephone replay will be available two hours following the conclusion of the call for a period of seven days and can be accessed by dialing (855) 859-2056 for domestic callers and (404) 537-3406 for international callers. The call ID for the replay is 3371197. The live and archived webcast of the call will also be available on eHealth's website at http://www.ehealthinsurance.com under the Investor Relations section.
About eHealth, Inc.
eHealth, Inc. (NASDAQ: EHTH) operates a leading health insurance marketplace at eHealth.com and eHealthMedicare.com with technology that provides consumers with health insurance enrollment solutions. Since 1997, we have connected more than 8 million members with quality, affordable health insurance, Medicare options, and ancillary plans. Our proprietary marketplace offers Medicare Advantage, Medicare Supplement, Medicare Part D prescription drug, individual, family, small business and other plans from approximately 200 health insurance carriers across fifty states and the District of Columbia.
Investor Relations Contact:
Kate Sidorovich, CFA
Senior Vice President, Investor Relations & Strategy
650-210-3111
Kate.sidorovich@ehealth.com
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SOURCE eHealth, Inc. | https://www.whsv.com/prnewswire/2022/05/03/ehealth-inc-announces-first-quarter-2022-results/ | 2022-05-03T21:22:57Z |
Digital report includes environmental, social, and governance progress, including on emissions reduction targets
DALLAS, May 3, 2022 /PRNewswire/ -- EnLink Midstream, LLC (NYSE: ENLC) (EnLink) today issued its 2021 Sustainability Report at http://sustainability.enlink.com. The digital report showcases EnLink's sustainability achievements during 2021, including progress on the company's 2024 and 2030 emissions intensity reduction goals.
"EnLink continues to focus on improving the ways in which we operate, while at the same time, positioning ourselves to deliver business solutions that are supportive of the energy transition," EnLink Chairman and CEO Barry E. Davis said. "Emissions reduction is a key principle of our sustainability program and supports our vision 'to become the future of midstream by leading in innovation and creating sustainable value.' I'm proud of the progress the team has made to integrate sustainability into all aspects of our business – from maintaining our financial strength to supporting our employees and communities to developing our GoalZERO safety program."
Accomplishing Emissions Reduction Goals with Minimal Capital
Through the first quarter of 2022, EnLink accomplished approximately 40% of its goal to reduce methane emissions intensity by 30% by 2024 with a capital investment of less than $800,000 and believes it can achieve the remainder with approximately $2 million.
EnLink also made progress on its goal to reduce CO2e emissions intensity by 30% by 2030 with projects such as the 15-year agreement with Continental Carbonic Products to purchase carbon dioxide (CO2) emitted from our Bridgeport plant in North Texas for use in food-grade products, which was announced in November 2021. This project, which requires only a modest investment but carries an attractive return, is expected to be in service in early 2024 and will result in meaningful progress toward our goal of a 30% reduction in total CO2e emissions intensity by 2030. EnLink will continue to focus on cost-effective ways to achieve its environmental goals.
Additional Sustainability Achievements
The 2021 Sustainability Report covers progress in environmental, social, and governance areas, including:
- Environmental and Safety Achievements:
- Social Achievements:
- Governance Achievements:
About EnLink Midstream
EnLink Midstream reliably operates a differentiated midstream platform that is built for long-term, sustainable value creation. EnLink's best-in-class services span the midstream value chain, providing natural gas, crude oil, condensate, NGL capabilities, and carbon capture, transportation, and sequestration. Our purposely built, integrated asset platforms are in premier production basins and core demand centers, including the Permian Basin, Oklahoma, North Texas, and the Gulf Coast. EnLink's strong financial foundation and commitment to execution excellence drive competitive returns and value for our employees, customers, and investors. Headquartered in Dallas, EnLink is publicly traded through EnLink Midstream, LLC (NYSE: ENLC). Visit www.EnLink.com to learn how EnLink connects energy to life.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Although these statements reflect the current views, assumptions and expectations of our management, the matters addressed herein involve certain assumptions, risks and uncertainties that could cause actual activities, performance, outcomes and results to differ materially from those indicated herein. Therefore, you should not rely on any of these forward-looking statements. All statements, other than statements of historical fact, included in this press release constitute forward-looking statements, including but not limited to statements identified by the words "forecast," "may," "believe," "will," "should," "plan," "predict," "anticipate," "intend," "estimate," and "expect" and similar expressions. Such forward-looking statements include, but are not limited to, statements about operational, environmental and climate change initiatives, future operational outcomes, objectives, strategies, expectations, and intentions, and other statements that are not historical facts. Factors that could result in such differences or otherwise materially affect these statements and our financial condition, results of operations, or cash flows include, without limitation (a) the impact of the ongoing coronavirus (COVID-19) pandemic, including the impact of the emergence of any new variants of the virus on our business, financial condition, and results of operations, (b) potential conflicts of interest of Global Infrastructure Partners ("GIP") with us and the potential for GIP to compete with us or favor GIP's own interests to the detriment of our other unitholders, (c) adverse developments in the midstream business that may reduce our ability to make distributions, (d) competition for crude oil, condensate, natural gas, and NGL supplies and any decrease in the availability of such commodities, (e) decreases in the volumes that we gather, process, fractionate, or transport, (i) our ability or our customers' ability to receive or renew required government or third party permits and other approvals, (j) increased federal, state, and local legislation, and regulatory initiatives, as well as government reviews relating to hydraulic fracturing resulting in increased costs and reductions or delays in natural gas production by our customers, (k) climate change legislation and regulatory initiatives resulting in increased operating costs and reduced demand for the natural gas and NGL services we provide, (l) changes in the availability and cost of capital, including as a result of a change in our credit rating, (m) volatile prices and market demand for crude oil, condensate, natural gas, and NGLs that are beyond our control, (n) our debt levels could limit our flexibility and adversely affect our financial health or limit our flexibility to obtain financing and to pursue other business opportunities, (o) operating hazards, natural disasters, weather-related issues or delays, casualty losses, and other matters beyond our control, (p) reductions in demand for NGL products by the petrochemical, refining, or other industries or by the fuel markets, (q) our dependence on significant customers for a substantial portion of the natural gas and crude that we gather, process, and transport, (r) construction risks in our major development projects, (s) challenges we may face in connection with our strategy to enter into new lines of business related to the energy transition, (t) impairments to goodwill, long-lived assets and equity method investments, and (u) the effects of existing and future laws and governmental regulations, and other uncertainties. These and other applicable uncertainties, factors, and risks are described more fully in EnLink Midstream, LLC's and EnLink Midstream Partners, LP's filings with the Securities and Exchange Commission, including EnLink Midstream, LLC's and EnLink Midstream Partners, LP's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Neither EnLink Midstream, LLC nor EnLink Midstream Partners, LP assumes any obligation to update any forward-looking statements.
Investor Relations: Brian Brungardt, Director of Investor Relations, 214-721-9353, brian.brungardt@enlink.com
Media Relations: Jill McMillan, Vice President of Strategic Relations & Public Affairs, 214-721-9271, jill.mcmillan@enlink.com
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SOURCE EnLink Midstream, LLC | https://www.whsv.com/prnewswire/2022/05/03/enlink-midstream-issues-fourth-annual-sustainability-report/ | 2022-05-03T21:23:04Z |
DALLAS, May 3, 2022 /PRNewswire/ -- EnLink Midstream Operating, LP (EnLink), a subsidiary of EnLink Midstream, LLC (NYSE: ENLC), and Oxy Low Carbon Ventures, LLC (OLCV), a subsidiary of Occidental (NYSE: OXY), today announced they have executed a letter of intent for a Transportation Services Agreement (TSA). Under the terms, EnLink would provide CO2 transportation services for OLCV along the Mississippi River corridor from Waggaman to Baton Rouge in Louisiana.
EnLink would utilize existing and new build pipelines and related infrastructure to transport CO2 from industrial emitters to OLCV's planned sequestration facility in Livingston Parish, Louisiana, where OLCV has secured a pore space lease of over 30,000 acres.
"We are pleased to be working with OLCV as we further EnLink's goal to build and operate a CO2 network connecting emitting facilities and sequestration sites across southern Louisiana," said Barry E. Davis, EnLink Chairman and Chief Executive Officer. "The Mississippi River corridor has one of the highest concentrations of industrial CO2 emissions in the U.S. and EnLink is uniquely positioned to serve customers in the region given our extensive pipeline infrastructure already in the ground."
OLCV, through its 1PointFive business unit, is developing sequestration hubs on the Gulf Coast and across the U.S., some of which are expected to be anchored by direct air capture (DAC) facilities. The hubs will provide access to high quality pore space and efficient transportation infrastructure, providing new carbon management solutions.
"We look forward to working with EnLink as we advance development of our sequestration hubs to provide industrial emitters with end-to-end solutions to capture, transport and permanently store CO2," said Richard Jackson, President, U.S. Onshore Resources and Carbon Management, Operations, Oxy. "This collaboration aligns with our strategy to accelerate the path to net zero not only for ourselves but for other organizations along the Mississippi River corridor looking to do the same."
About EnLink Midstream
EnLink Midstream reliably operates a differentiated midstream platform that is built for long-term, sustainable value creation. EnLink's best-in-class services span the midstream value chain, providing natural gas, crude oil, condensate, NGL capabilities, and carbon capture, transportation, and sequestration. Our purposely built, integrated asset platforms are in premier production basins and core demand centers, including the Permian Basin, Oklahoma, North Texas, and the Gulf Coast. EnLink's strong financial foundation and commitment to execution excellence drive competitive returns and value for our employees, customers, and investors. Headquartered in Dallas, EnLink is publicly traded through EnLink Midstream, LLC (NYSE: ENLC). Visit www.EnLink.com to learn how EnLink connects energy to life.
About Oxy Low Carbon Ventures
Oxy Low Carbon Ventures, LLC (OLCV) is a subsidiary of Occidental (Oxy), an international energy company with assets primarily in the United States, the Middle East and North Africa. OLCV is focused on advancing cutting-edge, low-carbon technologies and business solutions that enhance Oxy's business while reducing emissions. OLCV also invests in the development of low-carbon fuels and products, as well as sequestration services to support carbon capture projects globally. Visit Carbon Innovation on oxy.com for more information.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein that address activities, events, developments or transactions that EnLink Midstream and Oxy expect, believe or anticipate will or may occur in the future are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from expectations, including required approvals by regulatory agencies, the possibility that the anticipated benefits from such activities, events, developments or transactions cannot be fully realized, the possibility that costs or difficulties related thereto will be greater than expected, the impact of competition, and other risk factors included in EnLink Midstream's and Oxy's respective reports filed with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, EnLink Midstream and Oxy do not intend to update or revise their respective forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Relations: Brian Brungardt, Director of Investor Relations, 214-721-9353, brian.brungardt@enlink.com
Media Relations: Jill McMillan, Vice President of Strategic Relations & Public Affairs, 214-721-9271, jill.mcmillan@enlink.com
Investor Relations: Jeff Alvarez, Vice President, Investor Relations, 713-215-7864, jeff_alvarez@oxy.com
Media Relations: Eric Moses, Vice President, Corporate Affairs, 713-497-2017, eric_moses@oxy.com
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SOURCE EnLink Midstream Operating, LP | https://www.whsv.com/prnewswire/2022/05/03/enlink-midstream-oxy-low-carbon-ventures-sign-letter-intent-mississippi-river-co2-transportation-services-agreement/ | 2022-05-03T21:23:13Z |
DALLAS, May 3, 2022 /PRNewswire/ -- EnLink Midstream, LLC (NYSE: ENLC) (EnLink) reported financial results for the first quarter of 2022 and raised full-year 2022 guidance.
Highlights
- Reported net income of $66.0 million, net cash provided by operating activities of $307.7 million, and adjusted EBITDA, net to EnLink, of $304.3 million for the first quarter of 2022, driven by robust producer activity and strong commodity prices.
- Grew adjusted EBITDA 22% compared to the first quarter of 2021 and achieved the highest quarterly adjusted EBITDA result in EnLink's history.
- Delivered $104.9 million of free cash flow after distributions (FCFAD) for the first quarter of 2022, driven by strong operational results and timing of capital expenditures. On a trailing 12-month basis as of March 31, 2022, EnLink has generated nearly $325 million of FCFAD.
- Repurchased $23 million of common units during the first quarter of 2022[1].
- Exited the first quarter of 2022 with leverage at 3.8x.
- Subsequent to the quarter, received a Corporate Family Rating upgrade from Moody's Investor Service to Ba1. EnLink is now rated one notch below investment grade by Moody's, S&P Global Ratings, and Fitch Ratings Inc.
- Taking into account the record first quarter results, the improving volume outlook, and the supportive commodity price environment, EnLink is raising its full-year 2022 guidance. EnLink now expects to report full-year 2022 net income of $315 million to $375 million and adjusted EBITDA of $1.19 billion to $1.25 billion. The midpoint of the adjusted EBITDA guidance range represents an increase of 6% over the initial 2022 guidance midpoint and implies 16% growth over full-year 2021.
- Based on current producer activity and plans, EnLink expects a significant increase in volumes in 2023. As a result, EnLink expects to spend $325 million to $365 million on capital projects in 2022. These projects leverage existing infrastructure and have high expected returns and quick paybacks.
- Even with increased investment levels, EnLink is raising full-year 2022 FCFAD guidance to $320 million to $370 million. This result would represent the third consecutive year of FCFAD of over $300 million.
- As a result of the improved financial outlook, EnLink plans to continue to increase the return of capital to common unitholders from FCFAD in 2022.
- Subsequent to the quarter, EnLink announced that it had signed its first customer with the execution of a letter of intent to enter into a Transportation Services Agreement (TSA) with Oxy Low Carbon Ventures, LLC (OLCV, a subsidiary of Occidental (NYSE: OXY)). Under the TSA, EnLink would provide carbon dioxide (CO2) transportation services for OLCV along the Mississippi River corridor from Waggaman to Baton Rouge, Louisiana.
"EnLink achieved excellent financial results in the first quarter of 2022, driven by solid execution, increased producer activity, and strong commodity prices," said Barry E. Davis, EnLink Chairman and Chief Executive Officer. "The outlook for activity across our footprint continues to improve, and, as a result, we are increasing guidance for 2022 to a level that implies 16% growth over 2021, at the midpoint of the range. Looking beyond this year, we expect to see continued robust growth in the Permian and a return to significant volume growth in Oklahoma. The performance of our business and our team's relentless focus on execution have strengthened our financial position, allowing us to return significant capital to unitholders, while investing in our asset base to support our customers.
"We also continue to take steps to accomplish our vision of becoming the future of midstream by leading in innovation and creating sustainable value, which is most evident in our growing carbon capture, transportation, and sequestration (CCS) business. I'm excited to share a recent achievement by our Carbon Solutions Group: EnLink has entered into a letter of intent with Occidental to provide CO2 transportation for industrial-scale emitters in Louisiana. Along with our previous announcement with Talos Energy, these relationships support the growth of a substantial CCS business and further enable us to build upon EnLink's large-scale, cash-flow-generating platform. We are committed to driving value in 2022 and beyond, and our increased financial guidance and development of our CCS business are the latest wins on this effort."
Adjusted EBITDA, free cash flow after distributions, and segment cash flow used in this press release are non-GAAP measures and are explained in greater detail under "Non-GAAP Financial Information" below.
First Quarter 2022 Segment Updates
Permian Basin:
- Segment profit of $73.0 million for the first quarter of 2022 was 1% lower than the fourth quarter of 2021 and 71% higher than the first quarter of 2021. Segment profit included $8.9 million of operating expenses related to Project Phantom in the first quarter of 2022. Segment profit also included unrealized derivative gains/(losses) of $(5.9) million, $(4.7) million, and $(5.3) million for the first quarter of 2022, fourth quarter of 2021, and first quarter 2021, respectively. Excluding Phantom operating expenses and unrealized derivative activity, segment profit in the first quarter of 2022 grew approximately 12% sequentially and 62% over the prior year quarter.
- Segment cash flow totaled $38.8 million for the first quarter of 2022, marking the seventh consecutive quarter of positive segment cash flow.
- Average natural gas gathering volumes for the first quarter of 2022 were approximately 12% higher compared to the fourth quarter of 2021 and approximately 46% higher compared to the first quarter of 2021. Average natural gas processing volumes for the first quarter of 2022 increased approximately 10% compared to the prior quarter and 43% compared to the first quarter of 2021. EnLink continues to benefit from strong producer drilling activity and the start of operations of the War Horse and Tiger plants in the fourth quarter of 2021.
- Average crude gathering volumes were relatively flat for the first quarter of 2022 compared to the fourth quarter of 2021 and were 39% higher compared to the first quarter of 2021. Timing of producer completion activity drove the flat sequential volume result, while the year-over-year increase was driven by increased drilling activity.
- EnLink continues to meet growing customer needs through a capital-light approach. Project Phantom remains on schedule to come on line in the fourth quarter of 2022. Unlike a new-build project, the project carries no material sourcing or inflation risk.
- Segment profit for 2022 is expected to range from $320 million to $360 million, which implies nearly 48% growth over full-year 2021,excluding plant relocation operating expenses. Growth is expected to be driven primarily by strong producer activity in the Midland Basin. Excluding approximately $40 million of Project Phantom expenses, the Permian is expected to exit 2022 as the largest segment.
Louisiana:
- Segment profit of $90.5 million for the first quarter of 2022 was 19% lower than the fourth quarter of 2021 and approximately 10% higher than the first quarter of 2021. Segment profit included unrealized derivative gains/(losses) of $(5.6) million, $19.3 million, and $(0.4) million for the first quarter of 2022, fourth quarter of 2021, and first quarter 2021, respectively. Excluding unrealized derivative activity, segment profit in the first quarter of 2022 grew approximately 4% sequentially and 16% over the prior year period.
- Segment cash flow for the first quarter of 2022 was $84.8 million, and Louisiana is expected to continue generating strong segment cash flow for the remainder of 2022.
- Average natural gas transportation volumes for the first quarter of 2022 were approximately 7% higher compared to the fourth quarter of 2021 and approximately 16% higher compared to the first quarter of 2021.
- NGL fractionation volumes for the first quarter of 2022 were approximately 1% higher compared to the fourth quarter of 2021 and approximately 13% higher compared to the first quarter of 2021.
- Average crude volumes handled in EnLink's Ohio River Valley operations for the first quarter of 2022 were higher by approximately 6% compared to the first quarter of 2021 due to higher levels of activity in the region.
- Segment profit for 2022 is expected to range from $370 million to $380 million, which implies approximately 15% growth over full-year 2021, with the second and third quarter being seasonally weaker.
Oklahoma:
- Segment profit of $85.8 million for the first quarter of 2022 was 14% lower than the fourth quarter of 2021 and approximately 55% higher than the first quarter of 2021. Segment profit included $2.4 million of operating expenses related to plant relocation expenses in the first quarter of 2022. Segment profit also included unrealized derivative gains/(losses) of $(7.1) million, $9.4 million, and $(1.8) million for the first quarter of 2022, fourth quarter of 2021, and first quarter 2021, respectively. The first quarter of 2021 was adversely impacted by approximately $15 million due to Winter Storm Uri. Excluding plant relocation expenses, unrealized derivative activity and Winter Storm Uri impact, segment profit in the first quarter grew approximately 4% sequentially and 29% over the prior year period.
- Segment cash flow for the first quarter of 2022 was $70.4 million.
- Average natural gas gathering volumes for the first quarter of 2022 were approximately 2% lower compared to the fourth quarter of 2021, but 7% higher when compared to first quarter of 2021.
- Average natural gas processing volumes for the first quarter of 2022 decreased by approximately 1% when compared to the fourth quarter of 2021, but were 8% higher when compared to first quarter of 2021.
- Average crude gathering volumes during the first quarter of 2022 were approximately 23% higher compared to the fourth quarter of 2021.
- The Devon Energy Corp. and Dow Inc. joint venture's development plan continues to progress as expected, operating three rigs during the first quarter of 2022.
- Producer activity continues to support robust cash flow generation in full-year 2022. Based on producer plans, EnLink anticipates Oklahoma has reached a point of inflection with volume growth resuming in 2023.
- Segment profit for 2022 is expected to range from $350 million to $370 million, which implies modest growth over full-year 2021 after adjusting for Winter Storm Uri impact.
North Texas:
- Segment profit of $63.0 million for the first quarter of 2022 was 12% higher than the fourth quarter of 2021 and approximately 18% lower than the first quarter of 2021. Segment profit included unrealized derivative gains/(losses) of $3.5 million, $(3.5) million, and $(0.4) million for the first quarter of 2022, fourth quarter of 2021, and first quarter 2021, respectively. First quarter of 2021 was positively impacted by $15.0 million due to Winter Storm Uri. Excluding unrealized derivative activity and Winter Storm Uri impact, segment profit in the first quarter decreased approximately 4% over the prior year period.
- Segment cash flow for the first quarter of 2022 was $59.9 million.
- Average natural gas gathering and transportation volumes for the first quarter of 2022 were approximately 2% lower compared to the fourth quarter of 2021 and 1% higher than the first quarter of 2021.
- Average natural gas processing volumes for the first quarter of 2022 were 5% lower when compared to the fourth quarter of 2021 and 2% lower compared to the first quarter of 2021.
- Segment profit for 2022 is expected to range from $240 million to $250 million, which implies modest growth over full-year 2021 after adjusting for Winter Storm Uri impact. EnLink expects to benefit from new drilling activity in the basin by BKV Corp. and other customers.
Executed LOI with Oxy to Provide CO2 Transportation
EnLink and Oxy Low Carbon Ventures, a subsidiary of Occidental, executed a letter of intent to enter into a Transportation Service Agreement under which EnLink would provide CO2 transportation services for OLCV along the Mississippi River corridor from Waggaman to Baton Rouge, Louisiana.
EnLink would utilize existing and newbuild pipelines and related infrastructure to transport CO2 from industrial emitters to OLCV's planned sequestration facility in Livingston Parish, Louisiana where OLCV has secured a pore space lease of over 30,000 acres.
First Quarter 2022 Earnings Call Details
EnLink will hold a conference call to discuss first quarter 2022 results on May 4, 2022, at 8 a.m. Central time (9 a.m. Eastern time). The dial-in number for the call is 1-855-656-0924. Callers outside the United States should dial 1-412-542-4172. Participants can also preregister for the conference call by navigating to https://dpregister.com/sreg/10164645/f20209967a where they will receive dial-in information upon completion of preregistration. Interested parties can access an archived replay of the call on the Investors' page of EnLink's website at www.EnLink.com.
About the EnLink Midstream Companies
EnLink Midstream reliably operates a differentiated midstream platform that is built for long-term, sustainable value creation. EnLink's best-in-class services span the midstream value chain, providing natural gas, crude oil, condensate, NGL capabilities, and carbon capture, transportation, and sequestration. Our purposely built, integrated asset platforms are in premier production basins and core demand centers, including the Permian Basin, Oklahoma, North Texas, and the Gulf Coast. EnLink's strong financial foundation and commitment to execution excellence drive competitive returns and value for our employees, customers, and investors. Headquartered in Dallas, EnLink is publicly traded through EnLink Midstream, LLC (NYSE: ENLC). Visit www.EnLink.com to learn how EnLink connects energy to life.
Non-GAAP Financial InformationThis press release contains non-generally accepted accounting principles financial measures that we refer to as adjusted EBITDA, free cash flow after distributions (FCFAD), and segment cash flow.
We define adjusted EBITDA as net income (loss) plus (less) interest expense, net of interest income; depreciation and amortization; impairments; (income) loss from unconsolidated affiliate investments; distributions from unconsolidated affiliate investments; (gain) loss on disposition of assets; (gain) loss on extinguishment of debt; unit-based compensation; income tax expense (benefit); unrealized (gain) loss on commodity swaps; costs associated with the relocation of processing facilities; accretion expense associated with asset retirement obligations; transaction costs; (non-cash rent); and (non-controlling interest share of adjusted EBITDA from joint ventures).
We define free cash flow after distributions as adjusted EBITDA, net to ENLC, plus (less) (growth and maintenance capital expenditures, excluding capital expenditures that were contributed by other entities and relate to the non-controlling interest share of our consolidated entities); (interest expense, net of interest income); (distributions declared on common units); (accrued cash distributions on Series B Preferred Units and Series C Preferred Units paid or expected to be paid); (costs associated with the relocation of processing facilities); non-cash interest (income)/expense; (payments to terminate interest rate swaps); (current income taxes); and proceeds from the sale of equipment and land.
We define segment cash flow as segment profit less growth and maintenance capital expenditures, which are gross to EnLink prior to giving effect to the contributions by other entities related to the non-controlling interest share of our consolidated entities.
EnLink believes these measures are useful to investors because they may provide users of this financial information with meaningful comparisons between current results and previously-reported results and a meaningful measure of the company's cash flow after it has satisfied the capital and related requirements of its operations. In addition, adjusted EBITDA and free cash flow after distributions are both used as metrics in our short-term incentive program for compensating employees.
Adjusted EBITDA, free cash flow after distributions, and segment cash flow, as defined above, are not measures of financial performance or liquidity under GAAP. They should not be considered in isolation or as an indicator of EnLink's performance. Furthermore, they should not be seen as a substitute for metrics prepared in accordance with GAAP. Reconciliations of these measures to their most directly comparable GAAP measures are included in the following tables. See ENLC's filings with the Securities and Exchange Commission for more information.
Other definitions and explanations of terms used in this press release:
Segment profit (loss) is defined as revenues, less cost of sales (exclusive of operating expenses and depreciation and amortization), less operating expenses. Segment profit (loss) includes non-cash compensation expenses reflected in operating expenses. See "Item 8. Financial Statements and Supplementary Data - Note 15 - Segment Information" in ENLC's Annual Report on Form 10-K for the year ended December 31, 2021, and, when available, "Item 1. Financial Statements - Note 12—Segment Information" in ENLC's Quarterly Report on Form 10-Q for the three months ended March 31, 2022, for further information about segment profit (loss).
The Ascension JV is a joint venture between a subsidiary of EnLink and a subsidiary of Marathon Petroleum Corporation in which EnLink owns a 50% interest and Marathon Petroleum Corporation owns a 50% interest. The Ascension JV, which began operations in April 2017, owns an NGL pipeline that connects EnLink's Riverside fractionator to Marathon Petroleum Corporation's Garyville refinery.
The Delaware Basin JV is a joint venture between EnLink and an affiliate of NGP Natural Resources XI, L.P. ("NGP") in which EnLink owns a 50.1% interest and NGP owns a 49.9% interest. The Delaware Basin JV, which was formed in August 2016, owns the Lobo processing facilities and the Tiger processing plant located in the Delaware Basin in Texas.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Although these statements reflect the current views, assumptions and expectations of our management, the matters addressed herein involve certain assumptions, risks and uncertainties that could cause actual activities, performance, outcomes and results to differ materially from those indicated herein. Therefore, you should not rely on any of these forward-looking statements. All statements, other than statements of historical fact, included in this press release constitute forward-looking statements, including but not limited to statements identified by the words "forecast," "may," "believe," "will," "should," "plan," "predict," "anticipate," "intend," "estimate," "expect," "continue," and similar expressions. Such forward-looking statements include, but are not limited to, statements about guidance, projected or forecasted financial and operating results, expected financial and operations results associated with certain projects, acquisitions, or growth capital expenditures, future operational results of our customers, results in certain basins, future results or growth of our CCS business; future cost savings or operational, environmental and climate change initiatives, profitability, financial or leverage metrics, the impact of weather-related events such as Winter Storm Uri on us and our financial results and operations, the impact of any customer billing disputes and litigation arising out of Winter Storm Uri, future expectations regarding sustainability initiatives, our future capital structure and credit ratings, the impact of the COVID-19 pandemic or variants thereof on us and our financial results and operations, objectives, strategies, expectations, and intentions, and other statements that are not historical facts. Factors that could result in such differences or otherwise materially affect our financial condition, results of operations, or cash flows include, without limitation (a) the impact of the ongoing coronavirus (COVID-19) pandemic, including the impact of the emergence of any new variants of the virus on our business, financial condition, and results of operations, (b) potential conflicts of interest of Global Infrastructure Partners ("GIP") with us and the potential for GIP to compete with us or favor GIP's own interests to the detriment of our other unitholders, (c) adverse developments in the midstream business that may reduce our ability to make distributions, (d) competition for crude oil, condensate, natural gas, and NGL supplies and any decrease in the availability of such commodities, (e) decreases in the volumes that we gather, process, fractionate, or transport, (i) our ability or our customers' ability to receive or renew required government or third party permits and other approvals, (j) increased federal, state, and local legislation, and regulatory initiatives, as well as government reviews relating to hydraulic fracturing resulting in increased costs and reductions or delays in natural gas production by our customers, (k) climate change legislation and regulatory initiatives resulting in increased operating costs and reduced demand for the natural gas and NGL services we provide, (l) changes in the availability and cost of capital, including as a result of a change in our credit rating, (m) volatile prices and market demand for crude oil, condensate, natural gas, and NGLs that are beyond our control, (n) our debt levels could limit our flexibility and adversely affect our financial health or limit our flexibility to obtain financing and to pursue other business opportunities, (o) operating hazards, natural disasters, weather-related issues or delays, casualty losses, and other matters beyond our control, (p) reductions in demand for NGL products by the petrochemical, refining, or other industries or by the fuel markets, (q) our dependence on significant customers for a substantial portion of the natural gas and crude that we gather, process, and transport, (r) construction risks in our major development projects, (s) challenges we may face in connection with our strategy to enter into new lines of business related to the energy transition, (t) impairments to goodwill, long-lived assets and equity method investments, and (u) the effects of existing and future laws and governmental regulations, and other uncertainties. These and other applicable uncertainties, factors, and risks are described more fully in EnLink Midstream, LLC's and EnLink Midstream Partners, LP's filings with the Securities and Exchange Commission, including EnLink Midstream, LLC's and EnLink Midstream Partners, LP's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Neither EnLink Midstream, LLC nor EnLink Midstream Partners, LP assumes any obligation to update any forward-looking statements.
The EnLink management team based the forecasted financial information included herein on certain information and assumptions, including, among others, the producer budgets / forecasts to which EnLink has access as of the date of this press release and the projects / opportunities expected to require capital expenditures as of the date of this press release. The assumptions, information, and estimates underlying the forecasted financial information included in the guidance information in this press release are inherently uncertain and, though considered reasonable by the EnLink management team as of the date of its preparation, are subject to a wide variety of significant business, economic, and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the forecasted financial information. Accordingly, there can be no assurance that the forecasted results are indicative of EnLink's future performance or that actual results will not differ materially from those presented in the forecasted financial information. Inclusion of the forecasted financial information in this press release should not be regarded as a representation by any person that the results contained in the forecasted financial information will be achieved.
Investor Relations: Brian Brungardt, Director of Investor Relations, 214-721-9353, brian.brungardt@enlink.com
Media Relations: Jill McMillan, Vice President of Strategic Relations & Public Affairs, 214-721-9271, jill.mcmillan@enlink.com
EnLink does not provide a reconciliation of forward-looking net cash provided by operating activities to adjusted EBITDA because the Company is unable to predict with reasonable certainty changes in working capital, which may impact cash provided or used during the year. Working capital includes accounts receivable, accounts payable, and other current assets and liabilities. These items are uncertain and depend on various factors outside the Company's control.
EnLink does not provide a reconciliation of forward-looking net cash provided by operating activities to adjusted EBITDA because the Company is unable to predict with reasonable certainty changes in working capital, which may impact cash provided or used during the year. Working capital includes accounts receivable, accounts payable, and other current assets and liabilities. These items are uncertain and depend on various factors outside the Company's control.
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- Total revenue increased 6% sequentially in the first quarter of 2022 and 49% from the first quarter of 2021 to $386 million
- Strong first quarter profitability with diluted earnings per share of $1.50 and adjusted earnings per share of $1.67
- Total company originations totaled $1.0 billion, 2.7% lower sequentially due to normal seasonality and more than double originations during the first quarter of 2021
- Continued strong credit performance with consolidated portfolio net charge-offs as a percentage of average combined loan and finance receivables of 7.6% in the first quarter of 2022, compared to 4.2%, 16.8% and 15.4% for the first quarters of 2021, 2020 and 2019, respectively
- Acquired approximately 1.8 million shares during the first quarter under the company's share repurchase program
- At March 31, cash and marketable securities totaled $228 million and available capacity on committed facilities totaled $402 million
CHICAGO, May 3, 2022 /PRNewswire/ -- Enova International (NYSE: ENVA), a leading financial technology company powered by machine learning and artificial intelligence, today announced financial results for the first quarter ended March 31, 2022.
"We are pleased to report another quarter of strong growth and profitability driven by solid credit and stronger-than-expected demand in a typically slow seasonal quarter," said David Fisher, Enova's Chief Executive Officer. "Looking forward, despite the current choppiness in the US economy, we remain encouraged by the ongoing strength of our customer base given continued high levels of spending driven by record employment numbers and strong wage growth. We believe our long track record of quickly adapting to changes in the macro-environment, combined with our diversified product offerings, positions us well to continue to drive profitable growth while also effectively managing risk."
First Quarter 2022 Summary
- Total revenue of $386 million in the first quarter of 2022 increased 49% from $259 million in the first quarter of 2021.
- Net revenue margin of 70% in the first quarter of 2022 compared to 92% in the first quarter of 2021.
- Net income attributable to Enova International, Inc. of $52 million, or $1.50 per diluted share, in the first quarter of 2022 compared to $76 million, or $2.03 per diluted share, in the first quarter of 2021.
- First quarter 2022 adjusted EBITDA, a non-GAAP measure, of $106 million compared to $137 million in the first quarter of 2021.
- Adjusted earnings of $58 million, or $1.67 per diluted share, both non-GAAP measures, in the first quarter of 2022 compared to adjusted earnings of $82 million, or $2.20 per diluted share, in the first quarter of 2021.
"We delivered another solid quarter of top- and bottom-line financial performance as our effective marketing, diversified product offerings and machine-learning-powered credit risk management capabilities allowed us to meet customer demand with attractive unit economics," said Steve Cunningham, CFO of Enova. "We strengthened our balance sheet and liquidity with increases to our borrowing capacity during the quarter, allowing us to deliver on our commitment to deliver long-term shareholder value through both share repurchases and investments in our business to drive meaningful, sustainable, and profitable growth."
For information regarding the non-GAAP financial measures discussed in this release, please see "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Financial Measures" below.
Conference Call
Enova will host a conference call to discuss its first quarter 2022 results at 4 p.m. Central Time / 5 p.m. Eastern Time today, May 3rd. The live webcast of the call can be accessed at the Enova Investor Relations website at http://ir.enova.com, along with the company's earnings press release and supplemental financial information. The U.S. dial-in for the call is 1-855-560-2575 (1-412-542-4161 for non-U.S. callers). Please ask to join the Enova International call. A replay of the conference call will be available until May 10, 2022, at 10:59 p.m. Central Time / 11:59 p.m. Eastern Time, while an archived version of the webcast will be available on the Enova International Investor Relations website for 90 days. The U.S. dial-in for the conference call replay is 1-877-344-7529 (1-412-317-0088). The replay access code is 9886757.
About Enova
Enova International (NYSE: ENVA) is a leading financial technology company providing online financial services through its artificial intelligence and machine learning powered lending platform. Enova serves the needs of non-prime consumers and small businesses, who are frequently underserved by traditional banks. Enova has provided more than 7 million customers with over $40 billion in loans and financing with market leading products that provide a path for them to improve their financial health. You can learn more about the company and its brands at www.enova.com.
Cautionary Statement Concerning Forward Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the business, financial condition and prospects of Enova. These forward-looking statements give current expectations or forecasts of future events and reflect the views and assumptions of Enova's senior management with respect to the business, financial condition and prospects of Enova as of the date of this release and are not guarantees of future performance. The actual results of Enova could differ materially from those indicated by such forward-looking statements because of various risks and uncertainties applicable to Enova's business, including, without limitation, those risks and uncertainties indicated in Enova's filings with the Securities and Exchange Commission ("SEC"), including our annual report on Form 10-K, quarterly reports on Forms 10-Q and current reports on Forms 8-K. These risks and uncertainties are beyond the ability of Enova to control, and, in many cases, Enova cannot predict all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this release, the words "believes," "estimates," "plans," "expects," "anticipates" and similar expressions or variations as they relate to Enova or its management are intended to identify forward-looking statements. Enova cautions you not to put undue reliance on these statements. Enova disclaims any intention or obligation to update or revise any forward-looking statements after the date of this release.
Non-GAAP Financial Measures
In addition to the financial information prepared in conformity with generally accepted accounting principles, or GAAP, Enova provides historical non-GAAP financial information. Management believes that presentation of non-GAAP financial information is meaningful and useful in understanding the activities and business metrics of Enova's operations. Management believes that these non-GAAP financial measures reflect an additional way of viewing aspects of Enova's business that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.
Management provides non-GAAP financial information for informational purposes and to enhance understanding of Enova's GAAP consolidated financial statements. Readers should consider the information in addition to, but not instead of or superior to, Enova's financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.
Combined Loans and Finance Receivables
The combined loans and finance receivables measures are non-GAAP measures that include loans and finance receivables that Enova owns or has purchased and loans that Enova guarantees. Management believes these non-GAAP measures provide investors with important information needed to evaluate the magnitude of potential receivable losses and the opportunity for revenue performance of the loans and finance receivable portfolio on an aggregate basis. Management also believes that the comparison of the aggregate amounts from period to period is more meaningful than comparing only the amounts reflected on Enova's consolidated balance sheet since revenue is impacted by the aggregate amount of receivables owned by Enova and those guaranteed by Enova as reflected in its consolidated financial statements.
Adjusted Earnings Measures
In addition to reporting financial results in accordance with GAAP, Enova has provided adjusted earnings and adjusted earnings per share, or, collectively, the Adjusted Earnings Measures, which are non-GAAP measures. Management believes that the presentation of these measures provides investors with greater transparency and facilitates comparison of operating results across a broad spectrum of companies with varying capital structures, compensation strategies, derivative instruments and amortization methods, which provides a more complete understanding of Enova's financial performance, competitive position and prospects for the future. Management also believes that investors regularly rely on non-GAAP financial measures, such as the Adjusted Earnings Measures, to assess operating performance and that such measures may highlight trends in Enova's business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. In addition, management believes that the adjustments shown below are useful to investors in order to allow them to compare Enova's financial results during the periods shown without the effect of each of these expense items.
Adjusted EBITDA Measures
In addition to reporting financial results in accordance with GAAP, Enova has provided Adjusted EBITDA and Adjusted EBITDA margin, or, collectively, the Adjusted EBITDA measures, which are non-GAAP measures. Adjusted EBITDA is a non-GAAP measure that Enova defines as earnings excluding depreciation, amortization, interest, foreign currency transaction gains or losses, taxes and stock-based compensation. In addition, management believes that the adjustments for transaction-related costs, other nonoperating expenses and equity method investment income shown below are useful to investors in order to allow them to compare our financial results during the periods shown without the effect of the expense items. Adjusted EBITDA margin is a non-GAAP measure that Enova defines as Adjusted EBITDA as a percentage of total revenue. Management believes Adjusted EBITDA Measures are used by investors to analyze operating performance and evaluate Enova's ability to incur and service debt and Enova's capacity for making capital expenditures. Adjusted EBITDA Measures are also useful to investors to help assess Enova's estimated enterprise value.
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SALT LAKE CITY, May 3, 2022 /PRNewswire/ -- Extra Space Storage Inc. (NYSE: EXR) (the "Company"), a leading owner and operator of self-storage facilities in the United States and a member of the S&P 500, announced operating results for the three months ended March 31, 2022.
- Achieved net income attributable to common stockholders of $1.51 per diluted share, representing a 1.3% decrease compared to the same period in the prior year, which included a $63.9 million gain.
- Achieved funds from operations attributable to common stockholders and unit holders ("FFO") of $2.01 per diluted share. FFO, excluding adjustments ("Core FFO"), was also $2.01 per diluted share, representing a 34.0% increase compared to the same period in the prior year.
- Increased same-store revenue by 21.7% and same-store net operating income ("NOI") by 27.6% compared to the same period in the prior year.
- Reported same-store occupancy of 94.5% as of March 31, 2022, compared to 95.3% as of March 31, 2021.
- Acquired 11 operating stores and three stores at completion of construction (a "Certificate of Occupancy store" or "C of O store") for a total cost of approximately $225.0 million.
- In conjunction with joint venture partners, acquired two operating stores for a total cost of approximately $42.5 million, of which the Company invested $4.3 million.
- Originated $137.7 million in mortgage and mezzanine bridge loans and sold $41.0 million in mortgage bridge loans.
- Issued 0.2 million shares of common stock at a sales price of $219.34 per share, resulting in net proceeds of $41.0 million, in conjunction with the acquisition of two stores.
- Added 37 stores (gross) to the Company's third-party management platform. As of March 31, 2022, the Company managed 847 stores for third parties and 288 stores in joint ventures, for a total of 1,135 managed stores.
- Paid a quarterly dividend of $1.50 per share, a 20% increase over the previous quarter's dividend and a 50% increase over the first quarter 2021 dividend.
Joe Margolis, CEO of Extra Space Storage Inc., commented: "We are off to an exceptional start in 2022, driven by high occupancy and strong pricing power, resulting in same-store revenue growth of 21.7% and same-store NOI growth of 27.6%, both all-time highs for Extra Space Storage. We achieved FFO growth of 34.0%, allowing us to increase our dividend 20% in the first quarter. Our first quarter performance, together with continuing strong fundamentals, position us very well for another great leasing season."
The following table (unaudited) outlines the Company's FFO and Core FFO for the three months ended March 31, 2022 and 2021. The table also provides a reconciliation to GAAP net income attributable to common stockholders and earnings per diluted share for each period presented (amounts shown in thousands, except share and per share data):
The following table (unaudited) outlines the Company's same-store performance for the three months ended March 31, 2022 and 2021 (amounts shown in thousands, except store count data)1:
Same-store revenues for the three months ended March 31, 2022 increased compared to the same periods in 2021 due to higher average rates to new and existing customers and higher late fees partially offset by lower occupancy.
Same-store expenses increased for the three months ended March 31, 2022 compared to the same period in 2021 due to increases in payroll, credit card processing fees, repairs and maintenance (snow removal) and insurance, partially offset by lower marketing expense.
Details related to the same-store performance of stores by metropolitan statistical area ("MSA") for the three months ended March 31, 2022 are provided in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.
Investment and Property Management Activity:
The following table (unaudited) outlines the Company's acquisitions and developments that are closed, completed or under agreement (dollars in thousands):
The projected developments and acquisitions under agreement described above are subject to customary closing conditions and no assurance can be provided that these developments and acquisitions will be completed on the terms described, or at all.
During the three months ended March 31, 2022, the Company originated $137.7 million in bridge loans, and the Company has an additional $248.2 million closed or under agreement to close in 2022. During the three months ended March 31, 2022, the Company sold $41.0 million in bridge loans. The Company also sold a $103.0 million note to a junior mezzanine lender (previously disclosed) and recognized the unamortized balance of a loan discount of $1.5 million as interest income. Additional details related to the Company's loan activity and balances held are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.
The Company did not dispose of any properties during the three months ended March 31, 2022, and has two stores under agreement for sale for approximately $41.0 million. The sales are subject to customary closing conditions, and no assurance can be provided that they will be completed on the terms described, or at all.
As of March 31, 2022, the Company managed 847 stores for third-party owners and 288 stores owned in joint ventures, for a total of 1,135 stores under management. The Company is the largest self-storage management company in the United States.
During the three months ended March 31, 2022, the Company issued 0.2 million shares of common stock in a private placement at a sales price of $219.34 per share, resulting in net proceeds of $41.0 million, in conjunction with the acquisition of two stores.
During the three months ended March 31, 2022, the Company did not issue any shares on its ATM program, and it currently has $800.0 million available for issuance.
As of March 31, 2022, the Company's percentage of fixed-rate debt to total debt was 80.4%. The weighted average interest rates of the Company's fixed and variable-rate debt were 3.2% and 1.6%, respectively. The combined weighted average interest rate was 2.8% with a weighted average maturity of approximately 5.6 years.
On March 31, 2022, the Company paid a first quarter common stock dividend of $1.50 per share to stockholders of record at the close of business on March 15, 2022, an increase of 20% over the previous quarterly dividend and a 50% increase over the first quarter 2021 dividend.
The following table outlines the Company's current and initial FFO estimates and annual assumptions for the year ending December 31, 20221:
FFO estimates for the year are fully diluted for an estimated average number of shares and OP units outstanding during the year. The Company's estimates are forward-looking and based on management's view of current and future market conditions. The Company's actual results may differ materially from these estimates.
Supplemental unaudited financial information regarding the Company's performance can be found on the Company's website at www.extraspace.com. Under the "Company Info" navigation menu on the home page, click on "Investor Relations," then under the "Financials & Stock Information" navigation menu click on "Quarterly Earnings." This supplemental information provides additional detail on items that include store occupancy and financial performance by portfolio and market, debt maturity schedules and performance of lease-up assets.
The Company will host a conference call at 1:00 p.m. Eastern Time on Wednesday, May 4, 2022, to discuss its financial results. To participate in the conference call, please dial 855-791-2026 or 631-485-4899 for international participants; audience passcode: 2638769. The conference call will also be available on the Company's investor relations website at https://ir.extraspace.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. A replay of the call will be available for 30 days on the Company's website in the Investor Relations section.
A replay of the call will also be available by telephone from 4:00 p.m. Eastern Time on May 4, 2022, until 4:00 p.m. Eastern Time on May 11, 2022. The replay dial-in numbers are 855-859-2056 or 404-537-3406 for international callers; passcode: 2638769.
Certain information set forth in this release contains "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements include statements concerning the benefits of store acquisitions, developments, favorable market conditions, our outlook and estimates for the year and other statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, the competitive landscape, plans or intentions relating to acquisitions and developments and other information that is not historical information. In some cases, forward-looking statements can be identified by terminology such as "believes," "estimates," "expects," "may," "will," "should," "anticipates," or "intends," or the negative of such terms or other comparable terminology, or by discussions of strategy. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by us or on our behalf, are also expressly qualified by these cautionary statements. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this release. Any forward-looking statements should be considered in light of the risks referenced in the "Risk Factors" section included in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Such factors include, but are not limited to:
- adverse changes in general economic conditions, the real estate industry and the markets in which we operate;
- failure to close pending acquisitions and developments on expected terms, or at all;
- the effect of competition from new and existing stores or other storage alternatives, which could cause rents and occupancy rates to decline;
- potential liability for uninsured losses and environmental contamination;
- the impact of the regulatory environment as well as national, state and local laws and regulations, including, without limitation, those governing real estate investment trusts ("REITs"), tenant reinsurance and other aspects of our business, which could adversely affect our results;
- disruptions in credit and financial markets and resulting difficulties in raising capital or obtaining credit at reasonable rates or at all, which could impede our ability to grow;
- impacts from the COVID-19 pandemic or the future outbreak of other highly infectious or contagious diseases, including reduced demand for self-storage space and ancillary products and services such as tenant reinsurance, and potential decreases in occupancy and rental rates and staffing levels, which could adversely affect our results;
- our reliance on information technologies, which are vulnerable to, among other things, attack from computer viruses and malware, hacking, cyberattacks and other unauthorized access or misuse, any of which could adversely affect our business and results;
- increases in interest rates;
- reductions in asset valuations and related impairment charges;
- our lack of sole decision-making authority with respect to our joint venture investments;
- the effect of recent or future changes to U.S. tax laws;
- the failure to maintain our REIT status for U.S. federal income tax purposes; and
- economic uncertainty due to the impact of natural disasters, war or terrorism, which could adversely affect our business plan.
All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that management's expectations, beliefs and projections will result or be achieved. All forward-looking statements apply only as of the date made. We undertake no obligation to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.
FFO provides relevant and meaningful information about the Company's operating performance that is necessary, along with net income and cash flows, for an understanding of the Company's operating results. The Company believes FFO is a meaningful disclosure as a supplement to net income. Net income assumes that the values of real estate assets diminish predictably over time as reflected through depreciation and amortization expenses. The values of real estate assets fluctuate due to market conditions and the Company believes FFO more accurately reflects the value of the Company's real estate assets. FFO is defined by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") as net income computed in accordance with U.S. generally accepted accounting principles ("GAAP"), excluding gains or losses on sales of operating stores and impairment write downs of depreciable real estate assets, plus depreciation and amortization related to real estate and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. The Company believes that to further understand the Company's performance, FFO should be considered along with the reported net income and cash flows in accordance with GAAP, as presented in the Company's consolidated financial statements. FFO should not be considered a replacement of net income computed in accordance with GAAP.
For informational purposes, the Company also presents Core FFO. Core FFO excludes revenues and expenses not core to our operations and non-cash interest. Although the Company's calculation of Core FFO differs from NAREIT's definition of FFO and may not be comparable to that of other REITs and real estate companies, the Company believes it provides a meaningful supplemental measure of operating performance. The Company believes that by excluding revenues and expenses not core to our operations and non-cash interest charges, stockholders and potential investors are presented with an indicator of our operating performance that more closely achieves the objectives of the real estate industry in presenting FFO. Core FFO by the Company should not be considered a replacement of the NAREIT definition of FFO. The computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income as an indication of the Company's performance, as an alternative to net cash flow from operating activities as a measure of liquidity, or as an indicator of the Company's ability to make cash distributions.
The Company's same-store pool for the periods presented consists of 870 stores that are wholly-owned and operated and that were stabilized by the first day of the earliest calendar year presented. The Company considers a store to be stabilized once it has been open for three years or has sustained average square foot occupancy of 80.0% or more for one calendar year. The Company believes that by providing same-store results from a stabilized pool of stores, with accompanying operating metrics including, but not limited to occupancy, rental revenue (growth), operating expenses (growth), net operating income (growth), etc., stockholders and potential investors are able to evaluate operating performance without the effects of non-stabilized occupancy levels, rent levels, expense levels, acquisitions or completed developments. Same-store results should not be used as a basis for future same-store performance or for the performance of the Company's stores as a whole.
Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of March 31, 2022, the Company owned and/or operated 2,130 self-storage stores in 41 states and Washington, D.C. The Company's stores comprise approximately 1.5 million units and approximately 164.2 million square feet of rentable space. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. The Company is the second largest owner and/or operator of self-storage stores in the United States and is the largest self-storage management company in the United States.
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CALGARY, AB, May 3, 2022 /PRNewswire/ - Gibson Energy Inc. announced today the voting results for the election of directors at the Company's virtual annual general and special meeting of shareholders that was held on May 3, 2022.
Voting Results
For complete voting results, please see the Report of Voting Results available through SEDAR at www.sedar.com.
About Gibson
Gibson Energy Inc. ("Gibson" or the "Company") (TSX: GEI), is a Canadian-based liquids infrastructure company with its principal businesses consisting of the storage, optimization, processing, and gathering of liquids and refined products. Headquartered in Calgary, Alberta, the Company's operations are focused around its core terminal assets located at Hardisty and Edmonton, Alberta, and include the Moose Jaw Facility and an infrastructure position in the U.S.
Gibson shares trade under the symbol GEI and are listed on the Toronto Stock Exchange. For more information, visit www.gibsonenergy.com.
For further information, please contact:
Mark Chyc-Cies
Vice President, Strategy, Planning & Investor Relations
Phone: (403) 776-3146
Email: mark.chyc-cies@gibsonenergy.com
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First Quarter Highlights
- Operating income(1) of $117.7 million increased 91.6% from $61.4 million in the prior-year quarter
- Combined ratio of 93.4%; combined ratio, excluding catastrophes(2) of 89.8%
- Net premiums written increase of 9.7%*, with strong growth from each segment
- Rate increases(3) of 6.3% in Core Commercial, 8.4% in Specialty, and 2.7% in Personal Lines
- Renewal price change(3) up 9.7% in Core Commercial, 12.6% in Specialty and 4.3% in Personal Lines
- Catastrophe loss ratio of 3.6%, below the company's first quarter catastrophe assumption by 1.2 points
- Current accident year loss and loss adjustment expense ("LAE") ratio, excluding catastrophes(4), of 59.2%, as continued favorable loss frequency in personal auto and the earning-in of rate increases across commercial lines businesses were offset by the impact of higher property severity in Personal Lines
- Net investment income of $76.9 million, in line with the prior-year quarter, as both periods benefited from similar elevated levels of partnership income
- Book value per share of $79.58, down 10.2% from December 31, 2021, driven by a decrease in the fair value of fixed maturity investments resulting from higher interest rates. Book value per share, excluding net unrealized depreciation on fixed maturity investments, net of tax(5), increased 2.0% from December 31, 2021
WORCESTER, Mass., May 3, 2022 /PRNewswire/ -- The Hanover Insurance Group, Inc. (NYSE: THG) today reported net income of $104.8 million, or $2.90 per diluted share, in the first quarter of 2022, compared to $92.7 million, or $2.51 per diluted share, in the prior-year quarter. Operating income was $117.7 million, or $3.26 per diluted share, for the first quarter of 2022. This compared to operating income of $61.4 million, or $1.66 per diluted share, in the prior-year quarter.
"Our strong first quarter results are compelling evidence that our strategic initiatives are delivering across our business," said John C. Roche, president and chief executive officer at The Hanover. "We continued to build on our positive momentum, achieving operating return on equity(6) of 15.7% and record first quarter operating income per diluted share of $3.26. Our distinctive and winning agency strategy demonstrated its effectiveness, leading to profitable growth of 9.7%, with contributions from each of our business segments. We are laser focused on ensuring pricing adequacy across our business in light of heightened inflationary trends. This discipline is reflected in expanded renewal price increases in each of our business segments, with Core Commercial up 9.7%, Specialty up 12.6%, and Personal Lines up 4.3%, and we believe the market continues to react rationally. The Personal Lines market is firming rapidly and favoring carriers that have shown more pricing discipline in the recent past. As we look ahead, we remain on track with our long-term targets for underwriting returns and operating ROE, which will likely be augmented by stronger net investment income. We are focused on driving profitable growth across our portfolio, enabling us to continue to innovate and modernize our business, and create increased value for our shareholders, agents, customers, and other stakeholders."
"We delivered an ex-CAT combined ratio of 89.8%, the eighth sequential quarter of a sub-90s ratio, with broad-based profitability and contributions from all segments," said Jeffrey M. Farber, executive vice president and chief financial officer at The Hanover. "Our focus on driving additional operational efficiencies resulted in a 31.1% expense ratio(7), a 50-basis-point decrease compared to last year's first quarter and solidly in-line with our full year target. Our high-quality diversified investment portfolio generated significant pre-tax net investment income of $77 million, and we look forward to increased fixed income portfolio contributions in a rising interest rate environment. We're confident that our team's talent and commitment to excellence will further propel our robust, profitable growth and earnings improvement, as we execute on our differentiated agency- and customer-focused strategy."
First Quarter Operating Highlights
Core Commercial
Core Commercial operating income before taxes was $67.5 million in the first quarter of 2022, compared to an operating loss of $14.8 million in the first quarter of 2021. The Core Commercial combined ratio was 93.0%, compared to 111.7% in the prior-year quarter. Catastrophe losses in the first quarter of 2022 were $19.7 million, or 4.1 points of the combined ratio. This compares to catastrophe losses of $94.4 million, or 21.7 points, in the prior-year quarter.
First quarter 2022 results included $6.4 million, or 1.3 points, of net favorable prior-year reserve development, driven primarily by continued favorability in workers' compensation. This compared to net favorable prior-year reserve development of $2.7 million, or 0.6 points, in the first quarter of 2021.
Core Commercial current accident year combined ratio, excluding catastrophes, decreased 0.4 points to 90.2% in the first quarter of 2022, from 90.6% in the prior-year quarter. The current accident year loss and LAE ratio, excluding catastrophes, decreased by 0.2 points to 57.4%, as the earning-in of rate increases was partially offset by property large loss experience in commercial multiple peril.
The expense ratio decreased by 0.2 points to 32.8% in the first quarter of 2022, primarily attributable to fixed cost leverage from premium growth.
Net premiums written were $526.6 million in the quarter, up 9.6% from the prior-year quarter, primarily driven by strong growth of 10.3% in small commercial and growth of 8.7% in middle market. Core Commercial average rate increased 6.3% in the first quarter, while renewal price change averaged 9.7%.
The following table summarizes premiums and the components of the combined ratio for Core Commercial:
Specialty
Specialty operating income before taxes was $50.0 million in the first quarter of 2022, compared to $17.0 million in the first quarter of 2021. The Specialty combined ratio was 87.7%, compared to 98.8% in the prior-year quarter. Catastrophe losses in the first quarter of 2022 were $7.6 million, or 2.7 points of the combined ratio. This compares to catastrophe losses of $24.4 million, or 9.5 points, in the prior-year quarter.
First quarter 2022 results included $13.2 million, or 4.7 points, of net favorable prior-year reserve development, with contributions from multiple lines across multiple accident years. This compared to net favorable prior-year reserve development of $0.6 million, or 0.2 points, in the first quarter of 2021.
Specialty current accident year combined ratio, excluding catastrophes, increased 0.2 points to 89.7% in the first quarter of 2022, from 89.5% in the prior-year quarter. The current accident year loss and LAE ratio, excluding catastrophes, increased by 0.7 points to 54.3%, as the benefit from earning-in rate increases was offset by a few large property losses in the company's specialty property and casualty subsegment.
The expense ratio decreased 0.5 points to 35.4% in the first quarter of 2022, primarily attributable to fixed cost leverage from premium growth.
Net premiums written were $302.8 million in the quarter, up 9.4% from the prior-year quarter, driven primarily by rate and exposure increases. Specialty average rate increased 8.4% in the first quarter, while renewal price change averaged 12.6%.
The following table summarizes premiums and the components of the combined ratio for Specialty:
Personal Lines
Personal Lines operating income before taxes was $36.3 million in the first quarter of 2022, compared to $81.8 million in the first quarter of 2021. The Personal Lines combined ratio was 97.1%, compared to 87.0% in the prior-year quarter. Catastrophe losses in the first quarter of 2022 were $18.2 million, or 3.6 points of the combined ratio, compared to $14.5 million, or 3.1 points of the combined ratio, in the prior-year quarter.
First quarter 2022 results included net unfavorable prior-year reserve development of $13.6 million, or 2.7 points, driven by higher severity and longer cycle times in homeowners repair activity, primarily related to fourth quarter 2021 claims, which resulted in an increase of supplemental payments on closed claims. This compares to net favorable prior-year reserve development of $5.2 million, or 1.1 points, in the first quarter of 2021, driven by auto.
Personal Lines current accident year combined ratio, excluding catastrophe losses, increased 5.8 points to 90.8% in the first quarter of 2022, from 85.0% in the prior-year quarter. The current accident year loss and LAE ratio, excluding catastrophes, increased 6.6 points to 63.6%, attributable to increased property severity and, to a lesser extent, lower frequency benefit in auto due to the unusually suppressed level of claims in the first quarter of 2021. Loss frequency in auto remains below pre-pandemic levels. The increase in homeowners property severity in the first quarter of 2022 was partially offset by fewer large fire losses and more benign non-catastrophe weather losses in the quarter, compared to the first quarter of 2021.
The expense ratio decreased by 0.8 points to 27.2% in the first quarter of 2022, primarily attributable to fixed cost leverage from premium growth and lower performance-based agency compensation.
Net premiums written were $482.9 million in the quarter, up 10.1% from the prior-year quarter, driven by higher renewals and new business. Personal Lines renewal price change averaged 4.3% in the first quarter of 2022, while average rate increases were 2.7%.
The following table summarizes premiums and components of the combined ratio for Personal Lines:
Investments
Net investment income was $76.9 million for the first quarter of 2022, in line with the prior-year quarter of $76.8 million, with both periods including a similar level of elevated partnership income. Total pre-tax earned yield on the investment portfolio for the quarter ended March 31, 2022, was 3.52%, down from 3.74% in the prior-year quarter. The average pre-tax earned yield on fixed maturities was 2.95% and 3.11% for the quarters ended March 31, 2022, and 2021, respectively.
Net realized and unrealized investment losses recognized in earnings were $15.9 million in the first quarter of 2022, driven by the change in fair value of equity securities. This compares to net realized and unrealized investment gains recognized in earnings of $37.5 million in the first quarter of 2021.
The company held $9.0 billion in cash and invested assets on March 31, 2022. Fixed maturities and cash represented approximately 85% of the investment portfolio. Approximately 95% of the company's fixed maturity portfolio is rated investment grade. Net unrealized losses on the fixed maturity portfolio as of March 31, 2022, were $262.6 million before taxes, a decrease in fair value of $471.7 million since December 31, 2021, primarily due to higher interest rates. The majority of net unrealized losses on fixed maturities were within the company's higher quality and longer duration investments.
Shareholders' Equity and Capital Actions
On March 31, 2022, book value per share was $79.58, down 10.2% from December 31, 2021, driven by a decrease in the fair value of fixed maturity investments. Book value per share, excluding net unrealized depreciation on fixed maturity investments, net of tax, increased 2.0% from December 31, 2021.
During the quarter, the company repurchased approximately 119,000 shares of common stock in the open market for $16.3 million. Additionally, through May 2, the company repurchased approximately 22,000 shares of common stock in the open market for $3.3 million. The company has approximately $341 million of remaining capacity under its existing share repurchase program.
Earnings Conference Call
The company will host a conference call to discuss its first quarter results on Wednesday, May 4, at 10:00 a.m. E.T. A PowerPoint slide presentation will accompany the prepared remarks and has been posted on The Hanover's website. Interested investors and others can listen to the call and access the presentation through The Hanover's website, located at www.hanover.com in the "Investors" section. Investors may access the conference call by dialing 1-844-413-3975 in the U.S. and 1-412-317-5458 internationally. Webcast participants should go to the website 15 minutes early to register, download and install any necessary audio software. A re-broadcast of the conference call will be available on The Hanover's website approximately two hours after the call.
About The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agent partners, the company offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. For more information, please visit hanover.com.
Definition of Reported Segments
Continuing operations include four operating segments: Core Commercial, Specialty, Personal Lines and Other. The Core Commercial segment includes commercial multiple peril, commercial automobile, workers' compensation and other commercial lines coverages provided to small and mid-sized businesses. The Specialty segment includes four divisions of business: Professional and Executive Lines, Specialty P&C, Marine, and Surety and Other. Specialty P&C includes coverages such as program business (provides commercial insurance to markets with specialized coverage or risk management needs related to groups of similar businesses), specialty industrial and commercial property, and excess and surplus lines. The Personal Lines segment markets automobile, homeowners and ancillary coverages to individuals and families. The "Other" segment includes Opus Investment Management, Inc., which provides investment management services to institutions, pension funds and other organizations, the operations of the holding company, as well as a block of run-off voluntary property and casualty pools business in which the company has not actively participated since 1995.
Financial Supplement
The Hanover's first quarter news release and financial supplement are available in the "Investors" section of the company's website at hanover.com.
The following is a reconciliation from operating income to net income(8):
Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements
Certain statements in this document and comments made by management may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. Words such as, but not limited to, "believes," "anticipates," "expects," "may," "projects," "projections," "plan," "likely," "potential," "targeted," "forecasts," "should," "could," "continue," "outlook," "guidance," "modeling," "moving forward" and other similar expressions are intended to identify forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. The company cautions investors that any such forward-looking statements are estimates, beliefs, expectations and/or projections that involve significant judgment, and that historical results, trends and forward-looking statements are not guarantees and are not necessarily indicative of future performance. Actual results could differ materially from those anticipated.
These statements include, but are not limited to, the company's statements regarding:
- The company's outlook and its ability to achieve components or the sum of the respective period guidance on its future results of operations including: the combined ratio, excluding or including both prior-year reserve development and/or catastrophe losses; catastrophe losses; net investment income; growth of net premiums written and/or net premiums earned in total or by line of business; expense ratio; operating return on equity; and/or the effective tax rate;
- The continued impacts of the global pandemic ("Pandemic") and related economic conditions on the company's operating and financial results, including, but not limited to, the impact on the company's investment portfolio, changes in claims frequency as a result of fluctuations in economic activity, severity from higher cost of repairs due to, among other things, supply chain disruptions, inflation, declines in premium as a result of, among other things, credits or returns to the company's customers, lower submissions, changes in renewals and policy endorsements, public health guidance, and the impact of government orders and restrictions in the states and jurisdictions in which the company operates;
- Uses of capital for share repurchases, special or ordinary cash dividends, business investments or growth, or otherwise, and outstanding shares in future periods as a result of various share repurchase mechanisms, capital management framework, especially in the current environment, and overall comfort with liquidity and capital levels;
- Variability of catastrophe losses due to risk concentrations, changes in weather patterns including climate change, wildfires, severe storms, hurricanes, terrorism, civil unrest, riots or other events, as well as the complexity in estimating losses from large catastrophe events due to delayed reporting of the existence, nature or extent of losses or where "demand surge," regulatory assessments, litigation, coverage and technical complexities or other factors may significantly impact the ultimate amount of such losses;
- Current accident year losses and loss selections ("picks"), excluding catastrophes, and prior accident year loss reserve development patterns, particularly in complex "longer-tail" liability lines, as well as the inherent variability in short-tail property and non-catastrophe weather losses;
- Changes in frequency and loss severity trends;
- Ability to manage the impact of inflationary pressures, as a result of the Pandemic, global market disruptions, geopolitical events or otherwise, including, but not limited to, supply chain disruptions, labor shortages, and increases in cost of goods, services, and materials;
- The confidence or concern that the current level of reserves is adequate and/or sufficient for future claim payments, whether due to losses that have been incurred but not reported, circumstances that delay the reporting of losses, business complexity, adverse judgments or developments with respect to case reserves, the difficulties and uncertainties inherent in projecting future losses from historical data, changes in replacement and medical costs, as well as complexities related to the Pandemic, including legislative, regulatory or judicial actions that expand the intended scope of coverages, or other factors;
- Characterization of some business as being "more profitable" in light of inherent uncertainty of ultimate losses incurred, especially for "longer-tail" liability businesses;
- Efforts to manage expenses, including the company's long-term expense savings targets, while allocating capital to business investment, which is at management's discretion;
- Risks and uncertainties with respect to our ability to retain profitable policies in force and attract profitable policies and to increase rates commensurate with, or in excess of, loss trends;
- Mix improvement, underwriting initiatives, coverage restrictions and pricing segmentation actions, among others, to grow businesses believed to be more profitable or reduce premiums attributable to products or lines of business believed to be less profitable; balance rate actions and retention; offset long-term and/or short-term loss trends due to increased frequency; increased "social inflation" from a more litigious environment and higher average cost of resolution, increased property replacement costs, and/or social movements;
- The ability to generate growth in targeted segments through new agency appointments; rate increases (as a result of its market position, agency relationships or otherwise), retention improvements or new business; expansion into new geographies; new product introductions; or otherwise; and
- Investment returns and the effect of macro-economic interest rate trends and overall security yields, including the macro-economic impact of the Pandemic, inflationary pressures and corresponding governmental and/or central banking initiatives taken in response thereto, and geopolitical circumstances on new money yields and overall investment returns.
Additional Risks and Uncertainties
Investors are further cautioned and should consider the risks and uncertainties in the company's business that may affect such estimates and future performance that are discussed in the company's most recently filed reports on Form 10-K and Form 10-Q and other documents filed by The Hanover Insurance Group, Inc. with the Securities and Exchange Commission ("SEC") and that are also available at www.hanover.com under "Investors." These risks and uncertainties include, but are not limited to:
- The severity, duration and long-term impact related to the Pandemic, including, but not limited to, actual and possible government responses, legislative, regulatory and judicial actions, changes in frequency and severity of claims in Core Commercial, Specialty and/or Personal Lines, impacts to distributors (including agent partners), and the possibility of additional premium adjustments, including credits and returns, for the benefit of insureds;
- Changes in regulatory, legislative, economic, market and political conditions, particularly in response to COVID-19 and the Pandemic (such as legislative or regulatory actions that would retroactively require insurers to cover business interruption or other types of claims irrespective of terms, exclusions or other conditions included in the contractual terms of the policies that would otherwise preclude coverage, mandatory returns and other rate-related actions, as well as presumption legislation in regards to workers' compensation);
- Heightened volatility, fluctuations in interest rates (which have a significant impact on the market value of our investment portfolio and thus our book value), inflationary pressures, default rates and other factors that affect investment returns from the investment portfolio;
- Data security incidents, including, but not limited to, those resulting from a malicious cyber security attack on the company or its business partners and service providers, or intrusions into the company's systems or data sources;
- Adverse claims experience, including those driven by large or increased frequency of catastrophe events (including those related to terrorism, riots and civil unrest), and severe weather;
- The uncertainty in estimating weather-related losses or the long-term impacts of the Pandemic, and the limitations and assumptions used to model other property and casualty losses (particularly with respect to products with longer-tail liability lines, such as casualty and bodily injury claims, or involving emerging issues related to losses incurred as the result of new lines of business, such as cyber or financial institutions coverage, or reinsurance contracts and reinsurance recoverables), leading to potential adverse development of loss and loss adjustment expense reserves;
- Litigation and the possibility of adverse judicial decisions, including those which expand policy coverage beyond its intended scope and/or award "bad faith" or other non-contractual damages, and the impact of "social inflation" affecting judicial awards and settlements;
- The ability to increase or maintain insurance rates in line with anticipated loss costs and/or governmental action, including mandates by state departments of insurance to either raise or lower rates or provide credits or return premium to insureds;
- Investment impairments, which may be affected by, among other things, the company's ability and willingness to hold investment assets until they recover in value, as well as credit and interest rate risk, and general financial and economic conditions;
- Disruption of the independent agency channel, including the impact of competition and consolidation in the industry and among agents and brokers;
- Competition, particularly from competitors who have resource and capability advantages;
- The global macroeconomic environment, including actions taken in response to the Pandemic, inflation, global trade disputes, war, energy market disruptions, equity price risk, and interest rate fluctuations, which, among other things, could result in reductions in market values of fixed maturities and other investments;
- Adverse state and federal regulation, legislative and/or regulatory actions (including recent significant revisions to Michigan's automobile personal injury protection system and related litigation, and various regulations, orders and proposed legislation related to business interruption and workers' compensation coverages, premium grace periods and returns, and rate actions);
- Financial ratings actions, in particular, downgrades to the company's ratings;
- Operational and technology risks and evolving technological and product innovation, including risks created by remote work environments, and the risk of cyber-security attacks on or breaches of the company's systems and/or impacting our outsourcing relationships and third-party operations, or resulting in claim payments (including from products not intended to provide cyber coverage);
- Uncertainties in estimating indemnification liabilities recorded in conjunction with obligations undertaken in connection with the sale of various businesses and discontinued operations; and
- The ability to collect from reinsurers, reinsurance pricing, reinsurance terms and conditions, and the performance of the run-off voluntary property and casualty pools business (including those in the Other segment or in discontinued operations).
Investors should not place undue reliance on forward-looking statements, which speak only as of the date they are made, and should understand the risks and uncertainties inherent in or particular to the company's business. The company does not undertake the responsibility to update or revise such forward-looking statements.
Non-GAAP Financial Measures
As discussed on page 37 of the company's Annual Report on Form 10-K for the year ended December 31, 2021, the company uses non-GAAP financial measures as important measures of its operating performance, including operating income, operating income before interest expense and income taxes, operating income per share, and components of the combined ratio, both excluding and/or including, catastrophe losses, prior-year reserve development and the expense ratio. Management believes these non-GAAP financial measures are important indications of the company's operating performance. The definition of other non-GAAP financial measures and terms can be found in the 2021 Annual Report on pages 63-66.
Operating income and operating income per share are non-GAAP measures. They are defined as net income excluding the after-tax impact of net realized and unrealized investment gains (losses), gains and/or losses on the repayment of debt, other non-operating items, and results from discontinued operations. Net realized and unrealized investment gains (losses), which include changes in the fair value of equity securities still held, are excluded for purposes of presenting operating income, as they are, to a certain extent, determined by interest rates, financial markets and the timing of sales. Operating income also excludes net gains and losses from disposals of businesses, gains and losses related to the repayment of debt, costs to acquire businesses, restructuring costs, the cumulative effect of accounting changes, and certain other items. Operating income is the sum of the segment income from: Core Commercial, Specialty, Personal Lines, and Other, after interest expense and income taxes. In reference to one of the company's four segments, "operating income" is the segment income before both interest expense and income taxes. The company also uses "operating income per share" (which is after both interest expense and income taxes). It is calculated by dividing operating income by the weighted average number of diluted shares of common stock. The company believes that metrics of operating income and operating income in relation to its four segments provide investors with a valuable measure of the performance of the company's continuing businesses because they highlight the portion of net income attributable to the core operations of the business. Income from continuing operations is the most directly comparable GAAP measure for operating income (and operating income before income taxes) and measures of operating income that exclude the effects of catastrophe losses and/or reserve development should not be misconstrued as substitutes for income from continuing operations or net income determined in accordance with GAAP. A reconciliation of operating income (loss) to income from continuing operations and net income for the relevant periods is included on page 10 of this news release and in the Financial Supplement.
Operating return on equity ("ROE") is a non-GAAP measure. See end note (6) for a detailed explanation of how this measure is calculated. Operating ROE is based on non-GAAP operating income. In addition, the portion of shareholder equity attributed to unrealized appreciation (depreciation) on fixed maturity investments, net of tax, is excluded. The company believes this measure is helpful in that it provides insight to the capital used by, and results of, the continuing business exclusive of interest expense, income taxes, and other non-operating items. These measures should not be misconstrued as substitutes for GAAP ROE, which is based on net income and shareholders' equity of the entire company and without adjustments.
The company may also provide measures of operating income and combined ratios that exclude the impact of catastrophe losses (which in all respects include prior accident year catastrophe loss development). A catastrophe is a severe loss, resulting from natural or manmade events, including, but is not limited to, hurricanes, tornadoes, windstorms, earthquakes, hail, severe winter weather, freeze events, fire, explosions, civil unrest and terrorism. Due to the unique characteristics of each catastrophe loss, there is an inherent inability to reasonably estimate the timing or loss amount in advance. The company believes a separate discussion excluding the effects of catastrophe losses is meaningful to understand the underlying trends and variability of earnings, loss and combined ratio results, among others.
Prior accident year reserve development, which can either be favorable or unfavorable, represents changes in the company's estimate of costs related to claims from prior years. Calendar year loss and loss adjustment expense ("LAE") ratios determined in accordance with GAAP, excluding prior accident year reserve development, are sometimes referred to as "current accident year loss ratios." The company believes a discussion of loss and combined ratios, excluding prior accident year reserve development, is helpful since it provides insight into both estimates of current accident year results and the accuracy of prior-year estimates.
The loss and combined ratios in accordance with GAAP are the most directly comparable GAAP measures for the loss and combined ratios calculated excluding the effects of catastrophe losses and/or reserve development. The presentation of loss and combined ratios calculated excluding the effects of catastrophe losses and/or reserve development should not be misconstrued as substitutes for the loss and/or combined ratios determined in accordance with GAAP.
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DENVER, May 3, 2022 /PRNewswire/ -- Healthpeak Properties, Inc. (NYSE: PEAK) today announced results for the first quarter ended March 31, 2022.
FIRST QUARTER 2022 FINANCIAL PERFORMANCE AND RECENT HIGHLIGHTS
– Net income of $0.13 per share, Nareit FFO of $0.45 per share, FFO as Adjusted of $0.43 per share, and blended Total Same-Store Portfolio Cash (Adjusted) NOI growth of 5.6%
- Life Science and MOB Same-Store Portfolio Cash (Adjusted) NOI growth of 5.2% and 3.6%, respectively
- Total pro forma Same-Store Portfolio Cash (Adjusted) NOI growth of 3.2% excluding government grants received under the CARES Act at our CCRC properties
– Life science development:
- Placed 263,000 square feet of 100% leased Class A life science developments in service during the first quarter, representing $262 million of total investment
- Active life science developments 71% pre-leased as of March 31, 2022 with significant active tenant interest in remaining availability
– Placed in service three on-campus HCA medical office development projects representing 237,000 square feet and $68 million of investment at completion; the properties were 61% leased as of March 31, 2022
– Acquired two medical office buildings on the campus of an HCA hospital in the Houston MSA for $43 million
– Net debt to adjusted EBITDAre and liquidity were 5.1x and $2.1 billion, respectively, as of March 31, 2022
– Kathy Sandstrom appointed independent Vice Chair of the Board of Directors
– The Board of Directors declared a quarterly common stock cash dividend of $0.30 per share to be paid on May 20, 2022, to stockholders of record as of the close of business on May 9, 2022
– Recent ESG accomplishments include:
- Named to Fortune's inaugural Modern Board 25 list, recognizing the 25 most innovative boards of directors among S&P 500 companies based on corporate governance criteria such as director expertise, independence, diversity and tenure, as well as ESG scoring
- Received a Supplier Engagement Rating of "A-" from CDP for the third consecutive year for our leading performance in ESG governance, environmental targets, greenhouse gas emissions disclosure and supplier engagement
- Recognized by the Women's Leadership Foundation of Colorado for having a gender-balanced Board
FIRST QUARTER COMPARISON
Nareit FFO, FFO as Adjusted, AFFO, Same-Store Cash (Adjusted) NOI and Net Debt to Adjusted EBITDAre are supplemental non-GAAP financial measures that we believe are useful in evaluating the operating performance and financial position of real estate investment trusts (see the "Funds From Operations" and "Adjusted Funds From Operations" sections of this release for additional information). See "March 31, 2022 Discussion and Reconciliation of Non-GAAP Financial Measures" for definitions, discussions of their uses and inherent limitations, and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP in the Investor Relations section of our website at http://ir.healthpeak.com/quarterly-results.
SAME-STORE ("SS") OPERATING SUMMARY
The table below outlines the year-over-year three-month SS Cash (Adjusted) NOI growth on an actual and pro forma basis. The Pro Forma table reflects the results excluding government grants under the CARES Act for our CCRC portfolio.
ACQUISITIONS
HOUSTON ON-CAMPUS MEDICAL OFFICE PORTFOLIO
In March 2022, Healthpeak closed on two medical office buildings totaling 95,000 square feet, including a 43,000 square foot LEED Platinum certified building, for $43 million. The portfolio is 97% leased to a diverse mix of life science and clinical specialties with a weighted average remaining lease term of approximately 7.5 years. The properties are located in the Webster submarket of Houston on the campus of HCA's recently expanded 595-bed Clear Lake Hospital, the leading hospital in the submarket.
PREVIOUSLY DISCLOSED FIRST QUARTER 2022 ACQUISITIONS
VISTA SORRENTO ASSEMBLAGE, SORRENTO MESA
As previously announced, in January 2022, Healthpeak closed on a five acre parcel in an off-market acquisition in the Sorrento Mesa submarket of San Diego for $24 million.
Following near-term expirations of the in-place leases, Healthpeak intends to commence construction of a new Class A life science development. The Vista Sorrento assemblage is located in close proximity to two existing Healthpeak life science campuses.
CAMBRIDGE (ALEWIFE) UPDATE
In January 2022, Healthpeak closed on the previously announced acquisition of 67 Smith Place in the Alewife submarket of Cambridge for $72 million.
DEVELOPMENT UPDATES
THE BOARDWALK
During the first quarter, Healthpeak placed 118,000 square feet, representing $130 million of investment, in service at The Boardwalk, located in the Torrey Pines submarket of San Diego. The remaining 74,000 square feet that has not yet been placed in service is expected to commence in the second quarter of 2022. The $182 million Class A development is targeting LEED Gold certification and encompasses 192,000 square feet across 3 buildings and is 100% leased.
THE SHORE AT SIERRA POINT
During the first quarter, Healthpeak placed in service a combined 145,000 square feet, representing $132 million of investment, across Phases II and III of The Shore at Sierra Point located in Brisbane, California. The remaining 196,000 square feet in Phase II that has not yet been placed in service is 100% leased with a total expected development cost of $222 million.
HCA MOB DEVELOPMENT COMPLETIONS
During the first quarter, Healthpeak placed in service three on-campus HCA-anchored medical office development projects in the high-growth markets of Houston, Texas and Jacksonville and Miami, Florida. Combined, the three buildings encompass 237,000 square feet, represent a total investment at completion of $68 million and were 61% leased as of March 31, 2022.
BALANCE SHEET
Net debt to adjusted EBITDAre and liquidity were 5.1x and $2.1 billion, respectively, as of March 31, 2022, including net proceeds from the future settlement of shares sold under equity forward contracts during the third quarter of 2021.
BOARD LEADERSHIP UPDATES — KATHY SANDSTROM TO SERVE AS VICE CHAIR OF THE BOARD
In connection with the Board of Directors' annual review of its overall composition and leadership, Kathy Sandstrom was appointed as independent Vice Chair. The Board also appointed Ms. Sandstrom as Chair of the Nominating and Corporate Governance Committee.
In Ms. Sandstrom's new role as Vice Chair, she will lend her significant institutional real estate investment experience to Brian Cartwright, Tom Herzog and other directors to help guide Healthpeak in advancing its strategic growth initiatives and development platform. As Chair of the Nominating and Corporate Governance Committee, Ms. Sandstrom will assist the Board in planning for future Board leadership roles and succession, as well as refreshment in the ordinary course.
Brian Cartwright will continue to serve as independent Chairman of the Board.
ABOUT KATHY SANDSTROM
Ms. Sandstrom has more than 20 years of real estate finance and investment experience. She served as Senior Managing Director and global head of Heitman LLC's Public Real Estate Securities business from 2013 to 2018, and was a member of the firm's Global Management Committee, the Board of Managers and the Allocation Committee. Prior to joining Heitman in 1996, Ms. Sandstrom held several senior leadership positions across multiple facets of the institutional real estate investment industry. She has served on Healthpeak's Board since 2018, and is a member of the board of directors of EastGroup Properties, Inc., an NYSE-listed REIT. Ms. Sandstrom is also a certified public accountant.
DIVIDEND
On April 28, 2022, Healthpeak announced that its Board declared a quarterly common stock cash dividend of $0.30 per share to be paid on May 20, 2022, to stockholders of record as of the close of business on May 9, 2022.
2022 GUIDANCE
We are reaffirming the following guidance ranges for full year 2022:
- Diluted earnings per common share of $0.58 – $0.64
- Diluted Nareit FFO per share of $1.70 – $1.76
- Diluted FFO as Adjusted per share of $1.68 – $1.74
- Total Portfolio Same-Store Cash (Adjusted) NOI growth of 3.25% – 4.75%
These estimates do not reflect the potential impact from unannounced future transactions. These estimates are based on our view of existing market conditions, transaction timing and other assumptions for the year ending December 31, 2022. For additional details and assumptions underlying this guidance, please see page 35 in our corresponding Supplemental Report and the Discussion and Reconciliation of Non-GAAP Financial Measures, both of which are available in the Investor Relations section of our website at http://ir.healthpeak.com.
COMPANY INFORMATION
Healthpeak has scheduled a conference call and webcast for Wednesday, May 4, 2022, at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time) to review its financial and operating results for the first quarter ended March 31, 2022. The conference call is accessible by dialing (888) 317-6003 (U.S.) or (412) 317-6061 (international). The conference ID number is 10165073. You may also access the conference call via webcast in the Investor Relations section of our website at http://ir.healthpeak.com. An archive of the webcast will be available on Healthpeak's website through May 4, 2023, and a telephonic replay can be accessed through May 18, 2022, by dialing (877) 344-7529 (U.S.) or (412) 317-0088 (international) and entering conference ID number 4992902. Our Supplemental Report for the current period is also available, with this earnings release, in the Investor Relations section of our website.
ABOUT HEALTHPEAK
Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns and develops high-quality real estate in the three private-pay healthcare asset classes of Life Science, Medical Office and CCRC. At Healthpeak, we pair our deep understanding of the healthcare real estate market with a strong vision for long-term growth. For more information regarding Healthpeak, visit www.healthpeak.com.
FORWARD-LOOKING STATEMENTS
Statements contained in this release that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among other things, statements regarding our and our officers' intent, belief or expectation as identified by the use of words such as "may," "will," "project," "expect," "believe," "intend," "anticipate," "seek," "target," "forecast," "plan," "potential," "estimate," "could," "would," "should" and other comparable and derivative terms or the negatives thereof. Examples of forward-looking statements include, among other things: (i) statements regarding timing, outcomes and other details relating to current, pending or contemplated acquisitions, dispositions, transitions, developments, redevelopments, densifications, joint venture transactions, leasing activity and commitments, capital recycling plans, financing activities, or other transactions discussed in this release; (ii) the payment of a quarterly cash dividend; and (iii) the information presented under the heading "2022 Guidance." Pending acquisitions, dispositions, and leasing activity, including those subject to binding agreements, remain subject to closing conditions and may not be completed within the anticipated timeframes or at all. Forward-looking statements reflect our current expectations and views about future events and are subject to risks and uncertainties that could significantly affect our future financial condition and results of operations. While forward-looking statements reflect our good faith belief and assumptions we believe to be reasonable based upon current information, we can give no assurance that our expectations or forecasts will be attained. Further, we cannot guarantee the accuracy of any such forward-looking statement contained in this release, and such forward-looking statements are subject to known and unknown risks and uncertainties that are difficult to predict. These risks and uncertainties include, but are not limited to: the Covid pandemic and health and safety measures intended to reduce its spread, the availability, effectiveness and public usage and acceptance of vaccines, and how quickly and to what extent normal economic and operating conditions can resume within the markets in which we operate; the ability of our existing and future tenants, operators and borrowers to conduct their respective businesses in a manner sufficient to maintain or increase their revenues and manage their expenses in order to generate sufficient income to make rent and loan payments to us and our ability to recover investments made, if applicable, in their operations; increased competition, operating costs and market changes affecting our tenants, operators and borrowers; the financial condition of our tenants, operators and borrowers, including potential bankruptcies and downturns in their businesses, and their legal and regulatory proceedings; our concentration of real estate investments in the healthcare property sector, which makes us more vulnerable to a downturn in a specific sector than if we invested in multiple industries and exposes us to the risks inherent in illiquid investments; our ability to identify and secure replacement tenants and operators and the potential renovation costs and regulatory approvals associated therewith; our property development, redevelopment and tenant improvement activity risks, including project abandonments, project delays and lower profits than expected; changes within the life science industry; high levels of regulation, funding requirements, expense and uncertainty faced by our life science tenants; the ability of the hospitals on whose campuses our MOBs are located and their affiliated healthcare systems to remain competitive or financially viable; our ability to maintain or expand our hospital and health system client relationships; operational risks associated with third party management contracts, including the additional regulation and liabilities of our RIDEA lease structures; economic and other conditions that negatively affect geographic areas from which we recognize a greater percentage of our revenue; uninsured or underinsured losses, which could result in significant losses and/or performance declines by us or our tenants and operators; our investments in joint ventures and unconsolidated entities, including our lack of sole decision making authority and our reliance on our partners' financial condition and continued cooperation; our use of fixed rent escalators, contingent rent provisions and/or rent escalators based on the Consumer Price Index; competition for suitable healthcare properties to grow our investment portfolio; our ability to foreclose on collateral securing our real estate-related loans; our ability to make material acquisitions and successfully integrate them; the potential impact on us and our tenants, operators and borrowers from litigation matters, including rising liability and insurance costs; an increase in our borrowing costs, including due to higher interest rates; the availability of external capital on acceptable terms or at all, including due to rising interest rates, changes in our credit ratings and the value of our common stock, volatility or uncertainty in the capital markets, and other factors; cash available for distribution to stockholders and our ability to make dividend distributions at expected levels; our ability to manage our indebtedness level and covenants in and changes to the terms of such indebtedness; changes in global, national and local economic and other conditions; laws or regulations prohibiting eviction of our tenants; the failure of our tenants, operators and borrowers to comply with federal, state and local laws and regulations, including resident health and safety requirements, as well as licensure, certification and inspection requirements; required regulatory approvals to transfer our senior housing properties; compliance with the Americans with Disabilities Act and fire, safety and other regulations; the requirements of, or changes to, governmental reimbursement programs such as Medicare or Medicaid; legislation to address federal government operations and administration decisions affecting the Centers for Medicare and Medicaid Services; our participation in the CARES Act Provider Relief Fund and other Covid-related stimulus and relief programs; provisions of Maryland law and our charter that could prevent a transaction that may otherwise be in the interest of our stockholders; environmental compliance costs and liabilities associated with our real estate investments; our ability to maintain our qualification as a real estate investment trust ("REIT"); changes to U.S. federal income tax laws, and potential deferred and contingent tax liabilities from corporate acquisitions; calculating non-REIT tax earnings and profits distributions; ownership limits in our charter that restrict ownership in our stock; the loss or limited availability of our key personnel; our reliance on information technology systems and the potential impact of system failures, disruptions or breaches; and other risks and uncertainties described from time to time in our Securities and Exchange Commission filings. Except as required by law, we do not undertake, and hereby disclaim, any obligation to update any forward-looking statements, which speak only as of the date on which they are made.
CONTACT
Andrew Johns, CFA
Senior Vice President – Investor Relations
720-428-5400
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SOURCE Healthpeak Properties, Inc. | https://www.whsv.com/prnewswire/2022/05/03/healthpeak-properties-reports-first-quarter-2022-results/ | 2022-05-03T21:24:00Z |
SAN DIEGO, May 3, 2022 /PRNewswire/ -- Heron Therapeutics, Inc. (Nasdaq: HRTX), a commercial-stage biotechnology company focused on improving the lives of patients by developing best-in-class treatments to address some of the most important unmet patient needs, today announced that the company will host a conference call and live webcast on Monday, May 9, 2022 at 4:30 p.m. ET to report first quarter 2022 financial results and discuss recent business highlights.
The conference call can be accessed by dialing 1-844-825-9789 for domestic callers and 1-412-317-5180 for international callers. Please provide the operator with the passcode 10166891 to join the conference call. The conference call will also be available via webcast under the Investor Relations section of Heron's website at www.herontx.com. An archive of the teleconference and webcast will also be made available on Heron's website for 60 days following the call.
About Heron Therapeutics, Inc.
Heron Therapeutics, Inc. is a commercial-stage biotechnology company focused on improving the lives of patients by developing best-in-class treatments to address some of the most important unmet patient needs. Our advanced science, patented technologies, and innovative approach to drug discovery and development have allowed us to create and commercialize a portfolio of products that aim to advance the standard-of-care for acute care and oncology patients. For more information, visit www.herontx.com.
Forward-looking Statements
This news release contains "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Heron cautions readers that forward-looking statements are based on management's expectations and assumptions as of the date of this news release and are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, but are not limited to, risks and uncertainties identified in the Company's filings with the Securities and Exchange Commission. Forward-looking statements reflect our analysis only on their stated date, and Heron takes no obligation to update or revise these statements except as may be required by law.
Investor Relations and Media Contact:
David Szekeres
Executive Vice President, Chief Operating Officer
Heron Therapeutics, Inc.
dszekeres@herontx.com
858-251-4447
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SOURCE Heron Therapeutics, Inc. | https://www.whsv.com/prnewswire/2022/05/03/heron-therapeutics-report-first-quarter-2022-financial-results-monday-may-9-2022/ | 2022-05-03T21:24:07Z |
- Grew Portfolio Year over Year by 36% to Record $515 Million -
- Horizon Platform Ends Quarter with Record Committed Backlog of $172 Million, Including Record $151 Million in HRZN Commitments -
- First Quarter 2022 Net Investment Income per Share of $0.26; NAV per Share of $11.68 -
- Debt Portfolio Yield of 12.4% -
- Declares Regular Monthly Distributions Totaling $0.30 per Share -
FARMINGTON, Conn., May 3, 2022 /PRNewswire/ -- Horizon Technology Finance Corporation (NASDAQ: HRZN) ("HRZN", "Horizon" or the "Company"), a leading specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services, and sustainability industries, today announced its financial results for the first quarter ended March 31, 2022.
First Quarter 2022 Highlights
- Net investment income ("NII") of $5.7 million, or $0.26 per share, compared to $6.0 million, or $0.31 per share for the prior-year period
- Total investment portfolio of $515.0 million as of March 31, 2022
- Net asset value of $280.0 million, or $11.68 per share, as of March 31, 2022
- Annualized portfolio yield on debt investments of 12.4% for the quarter
- HRZN funded 16 loans totaling $73.2 million
- HRZN's investment adviser, Horizon Technology Finance Management LLC ("HTFM"), originated $131.9 million through its lending platform ("Horizon Platform"), inclusive of the HRZN loans
- Successfully raised $34.3 million in net proceeds in common stock offering
- Raised total net proceeds of approximately $3.9 million with "at-the-market" ("ATM") offering program
- Increased commitment of senior secured debt facility by $100 million to enable its wholly-owned subsidiary to issue up to $200 million of secured notes
- Experienced liquidity events from two portfolio companies
- Cash of $14.5 million and credit facility capacity of $187.8 million as of March 31, 2022
- Held portfolio of warrant and equity positions in 84 companies as of March 31, 2022
- Undistributed spillover income of $0.47 per share as of March 31, 2022
- Subsequent to quarter end, declared distributions of $0.10 per share payable in July, August and September 2022
"We had a solid first quarter performance, particularly with respect to growing our investment portfolio as we surpassed the $500 million milestone," said Robert D. Pomeroy, Jr., Chairman and Chief Executive Officer of Horizon. "For the quarter, we generated NII of $0.26 per share as prepayments during the quarter were seasonally light, but we still generated a strong debt portfolio yield of over 12%. We also continued to successfully utilize the power of the 'Horizon' brand to drive another quarter of significant loan originations, while our committed backlog and pipeline of venture debt opportunities are at record levels, which we believe sets the stage for sustainable and significant growth in future quarters."
"In addition, we finished the quarter maintaining HRZN's strong credit profile, with nearly 96% of its portfolio 3-rated or better," continued Mr. Pomeroy. "We also strengthened HRZN's balance sheet through a successful equity offering and the expansion of its lending capacity, which should ensure HRZN's ability to fund its committed backlog and the new transactions it is awarded from its large investment pipeline. In short, we believe HRZN remains well positioned to continue growing its portfolio and delivering compelling returns to its shareholders."
First Quarter 2022 Operating Results
Total investment income for the quarter ended March 31, 2022 grew 7.5% to $14.2 million, compared to $13.2 million for the quarter ended March 31, 2021, primarily due to growth in interest income on investments resulting from an increase in the average size of the debt investment portfolio.
The Company's dollar-weighted annualized yield on average debt investments for the quarter ended March 31, 2022 and 2021 was 12.4% and 15.2%, respectively. The Company calculates the dollar-weighted annualized yield on average debt investments for any period measured as (1) total investment income (excluding dividend income) during the period divided by (2) the average of the fair value of debt investments outstanding on (a) the last day of the calendar month immediately preceding the first day of the period and (b) the last day of each calendar month during the period. The dollar-weighted annualized yield on average debt investments is higher than what investors will realize because it does not reflect expenses or any sales load paid by investors.
Total expenses for the quarter ended March 31, 2022 were $8.4 million, compared to $7.2 million for the quarter ended March 31, 2021. The increase was primarily due to a $0.7 million increase in interest expense and a $0.5 million increase in the base management fee.
Net investment income for the quarter ended March 31, 2022 was $5.7 million, or $0.26 per share, compared to $6.0 million, or $0.31 per share, for the quarter ended March 31, 2021.
For the quarter ended March 31, 2022, there was a slight net realized gain on investments, compared to net realized loss on investments of $5.2 million, or $0.27 per share, for the quarter ended March 31, 2021.
For the quarter ended March 31, 2022, net unrealized depreciation on investments was $2.3 million, or $0.10 per share, compared to net unrealized appreciation on investments of $5.2 million, or $0.27 per share, for the prior-year period.
Portfolio Summary and Investment Activity
As of March 31, 2022, the Company's debt portfolio consisted of 50 secured loans with an aggregate fair value of $492.2 million. In addition, the Company's total warrant, equity and other investments in 86 portfolio companies had an aggregate fair value of $22.8 million. Total portfolio investment activity for the three months ended March 31, 2022 and 2021 was as follows:
Portfolio Asset Quality
The following table shows the classification of Horizon's loan portfolio at fair value by internal credit rating as of March 31, 2022 and December 31, 2021:
As of March 31, 2022 and December 31, 2021, Horizon's loan portfolio had a weighted average credit rating of 3.2, with 4 being the highest credit quality rating and 3 being the rating for a standard level of risk. A rating of 2 represents an increased level of risk and, while no loss is currently anticipated for a 2-rated loan, there is potential for future loss of principal. A rating of 1 represents deteriorating credit quality and high degree of risk of loss of principal.
As of March 31, 2022, there was one debt investment with an internal credit rating of 1, with a cost of $11.9 million and a fair value of $5.5 million. As of December 31, 2021, there was one debt investment with an internal credit rating of 1, with a cost of $11.5 million and a fair value of $6.9 million.
Liquidity and Capital Resources
As of March 31, 2022, the Company had $80.0 million in available liquidity, consisting of $14.5 million in cash and money market funds, and $65.5 million in funds available under existing credit facility commitments.
As of March 31, 2022, there was $43.5 million in outstanding principal balance under our $125.0 million revolving credit facility ("Key Facility"). The Key Facility allows for an increase in the total loan commitment up to an aggregate commitment of $150.0 million. There can be no assurance that any additional lenders will make any commitments under the Key Facility.
Additionally, as of March 31, 2022, there was $93.8 million in outstanding principal balance under our $200 million senior secured debt facility with a large U.S.-based insurance company at an interest rate of 4.68%.
Horizon Funding Trust 2019-1, a wholly-owned subsidiary of HRZN, previously issued $100.0 million of Asset-Backed Notes (the "Notes") rated A+(sf) by Morningstar Credit Ratings, LLC. The Notes bear interest at a fixed interest rate of 4.21% per annum and have a stated maturity date of September 15, 2027. The reinvestment period of the Notes ended July 15, 2021 and the maturity is September 15, 2027. As of March 31, 2022, the Notes had an outstanding principal balance of $58.2 million.
During the three months ended March 31, 2022, the Company sold 250,171 shares of common stock under its ATM offering program with Goldman Sachs & Co. LLC and B. Riley FBR, Inc. For the same period, the Company received total accumulated net proceeds of approximately $3.9 million, including $0.1 million of offering expenses, from these sales.
As of March 31, 2022, the Company's debt to equity leverage ratio was 90%, within the Company's 80-120% targeted leverage range. The asset coverage ratio for borrowed amounts was 211%.
Liquidity Events
During the quarter ended March 31, 2022, Horizon experienced liquidity events from two portfolio companies. Liquidity events for Horizon may consist of the sale of warrants or equity in portfolio companies, loan prepayments, sale of owned assets or receipt of success fees.
In February, LiquiGlide, Inc. prepaid its outstanding principal balance of $2.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. HRZN continues to hold warrants in the company.
In February, Quip NYC, Inc. prepaid its outstanding principal balance of $10.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. HRZN continues to hold warrants in the company.
Net Asset Value
At March 31, 2022, the Company's net assets were $280.0 million, or $11.68 per share, compared to $217.7 million, or $11.07 per share, as of March 31, 2021, and $245.3 million, or $11.56 per share, as of December 31, 2021.
For the quarter ended March 31, 2022, net increase in net assets resulting from operations was $3.5 million, or $0.16 per share, compared to a net increase in net assets resulting from operations of $6.0 million, or $0.31 per share, for the quarter ended March 31, 2021.
Stock Repurchase Program
On April 29, 2022, the Company's board of directors extended the Company's previously authorized stock repurchase program until the earlier of June 30, 2023 or the repurchase of $5.0 million of the Company's common stock. During the quarter ended March 31, 2022, the Company did not repurchase any shares of its common stock. From the inception of the stock repurchase program through March 31, 2022, the Company has repurchased 167,465 shares of its common stock at an average price of $11.22 on the open market at a total cost of $1.9 million.
Recent Developments
On April 4, 2022, the Company funded a $0.3 million debt investment to an existing portfolio company, MacuLogix, Inc.
On April 11, 2022, the Company funded a $5.0 million debt investment to an existing portfolio company, Emalex Biosciences, Inc.
On April 12, 2022, the Company funded a $7.5 million debt investment to a new portfolio company, Native Microbials, Inc.
On April 18, 2022, the Company funded a $5.0 million debt investment to an existing portfolio company, NextCar Holding Company, Inc.
On April 19, 2022, the Company funded a $0.2 million debt investment to an existing portfolio company, MacuLogix, Inc.
On April 19, 2022, the Company funded a $0.2 million equity investment to an existing portfolio company, Castle Creek Biosciences, Inc.
On April 26, 2022, the Company funded a $12.5 million debt investment to a new portfolio company, KSQ Therapeutics, Inc.
On April 29, 2022, the Company funded a $7.5 million debt investment to an existing portfolio company, Soli Organic, Inc.
On April 29, 2022, the Company made a new debt investment of $26.0 million to Castle Creek Biosciences, Inc., an existing portfolio company ("Castle Creek"), which used the proceeds to prepay the Company's $25.0 million debt investment in Castle Creek, as well as the end-of-term payment on the $25 million debt investment. After giving effect to the transactions, the Company holds a $26 million debt investment in Castle Creek, as well as warrants in Castle Creek.
Monthly Distributions Declared in Second Quarter 2022
On April 29, 2022, the Company's board of directors declared monthly distributions of $0.10 per share payable in each of July, August and September 2022. The following table shows these monthly distributions, which total $0.30 per share:
Monthly Distributions
After paying distributions of $0.30 per share and earning net investment income of $0.26 per share for the quarter, the Company's undistributed spillover income as of March 31, 2022 was $0.47 per share. Spillover income includes any ordinary income and net capital gains from the preceding tax years that were not distributed during such tax years.
When declaring distributions, the Horizon board of directors reviews estimates of taxable income available for distribution, which may differ from consolidated net income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of spillover income carried over from a given year for distribution in the following year. The final determination of taxable income for each tax year, as well as the tax attributes for distributions in such tax year, will be made after the close of the tax year.
Conference Call
The Company will host a conference call on Wednesday, May 4, 2022, at 9:00 a.m. ET to discuss its latest corporate developments and financial results. To participate in the call, please dial (877) 407-9716 (domestic) or (201) 493-6779 (international). The access code for all callers is 13728693. The Company recommends joining the call at least 10 minutes in advance. In addition, a live webcast will be available on the Company's website at www.horizontechfinance.com.
A webcast replay will be available on the Company's website for 30 days following the call.
About Horizon Technology Finance
Horizon Technology Finance Corporation (NASDAQ: HRZN) is a leading specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services, and sustainability industries. The investment objective of HRZN is to maximize its investment portfolio's return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon Technology Finance Management LLC is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located in Portland, Maine, Austin, Texas, and Reston, Virginia. To learn more, please visit www.horizontechfinance.com.
Forward-Looking Statements
Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in HRZN's filings with the Securities and Exchange Commission. HRZN undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Contacts:
Investor Relations:
ICR
Garrett Edson
ir@horizontechfinance.com
(860) 284-6450
Media Relations:
ICR
Chris Gillick
HorizonPR@icrinc.com
(646) 677-1819
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SOURCE Horizon Technology Finance Corporation | https://www.whsv.com/prnewswire/2022/05/03/horizon-technology-finance-announces-first-quarter-2022-financial-results/ | 2022-05-03T21:24:13Z |
FARMINGTON, Conn., May 3, 2022 /PRNewswire/ -- Horizon Technology Finance Corporation (NASDAQ: HRZN) ("Horizon") (the "Company"), a leading specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services, and sustainability industries, announced today that its board of directors has declared monthly cash distributions of $0.10 per share payable in each of July, August and September 2022. The following table shows these monthly distributions, payable as set forth in the tables below, total $0.30 per share. Since its 2010 initial public offering, Horizon has paid a total of $182 million in distributions to its shareholders.
Monthly Distributions Declared in Second Quarter 2022
When declaring distributions, the Horizon board of directors reviews estimates of taxable income available for distribution, which may differ from consolidated net income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of spillover income carried over from a given year for distribution in the following year. The final determination of taxable income for each tax year, as well as the tax attributes for distributions in such tax year, will be made after the close of the tax year.
Horizon maintains a "Dividend Reinvestment Plan" ("DRIP") that provides for the reinvestment of distributions on behalf of its stockholders, unless a stockholder has elected to receive distributions in cash. As a result, if Horizon declares a distribution, its stockholders who have not "opted out" of the DRIP by the distribution record date will have their distribution automatically reinvested into additional shares of Horizon's common stock. Horizon has the option to satisfy the share requirements of the DRIP through the issuance of new shares of common stock or through open market purchases of common stock by the DRIP plan administrator. Newly-issued shares will be valued based upon the final closing price of Horizon's common stock on a specified valuation date for each distribution as determined by Horizon's board of directors. Shares purchased in the open market to satisfy the DRIP requirements will be valued based upon the average price of the applicable shares purchased by the DRIP plan administrator, before any associated brokerage or other costs, which are borne by Horizon.
About Horizon Technology Finance
Horizon Technology Finance Corporation (NASDAQ: HRZN) is a leading specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services, and sustainability industries. The investment objective of HRZN is to maximize its investment portfolio's return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon Technology Finance Management LLC is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located in Portland, Maine, Austin, Texas, and Reston, Virginia. To learn more, please visit www.horizontechfinance.com.
Forward-Looking Statements
Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Horizon's filings with the Securities and Exchange Commission. Horizon undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Contacts:
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Garrett Edson
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Chris Gillick
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SOURCE Horizon Technology Finance Corporation | https://www.whsv.com/prnewswire/2022/05/03/horizon-technology-finance-announces-monthly-distributions-july-august-september-2022-totaling-030-per-share/ | 2022-05-03T21:24:20Z |
Highlights:
- Q1 2022 revenues increased 13.0% over Q1 2021 due to a 7.2% increase in consolidated shipments primarily as a result of an 18.7% increase in Americas lift truck shipments
- Comparable revenues, favorable sales mix and the reinstatement of tariff exclusions led to improved Q1 2022 gross margins compared with Q4 2021
- Q1 2022 results were better than expected in the Q4 2021 earnings release, but remained unprofitable with a consolidated operating loss of $18.3 million and a consolidated net loss of $25.0 million due to the following:
- Lift Truck market growth rates moderated from early 2021 levels yet remain strong
- Q1 2022 lift truck bookings continue to exceed shipments as production continued to be disrupted by component shortages due to supplier and logistics constraints despite a reduced number of individual supplier issues
- Although Q2 2022 Lift Truck segment consolidated operating and net losses are expected to be greater than Q1 2022 due to inflation in backlog costs and adverse product mix, in Q3 and Q4 2022, as the Lift Truck segment works through its low-margin backlog, margins are expected to improve in each successive quarter, which in turn is expected to lead to a significantly lower operating loss in the third quarter and strong operating profit in the fourth quarter of 2022, and in 2023. However, results for the remainder of 2022 are expected to be lower than expected in the Q4 2021 earnings release due to higher material inflation resulting from the Russia/Ukraine conflict
- For Q1 2022, Bolzoni reported a return to profitability and expects continued improvement in the remainder of 2022
- Nuvera 2022 operating results expected to improve due to the absence of impairment charges recognized in 2021 and expected lower production costs
CLEVELAND, May 3, 2022 /PRNewswire/ -- Hyster-Yale Materials Handling, Inc. (NYSE: HY) today announced consolidated revenues of $827.6 million, an operating loss of $18.3 million and a net loss of $25.0 million, or a loss of $1.48 per share, for the first quarter of 2022 compared with consolidated revenues of $732.2 million, operating profit of $3.1 million and net income of $5.6 million, or $0.33 per share, for the first quarter of 2021.
Segment Financial Results
Summary results for the Company's three business segments were as follows for the first quarter of 2022 and 2021:
Hyster-Yale Group Results
Hyster-Yale Group unit shipments, bookings and backlog were as follows:
Effective in the first quarter of 2022, third-party industry data historically used to report market changes is now being issued one quarter in arrears. As a result, actual industry data for the first quarter of 2022 will not be available until the Company reports its second quarter 2022 results. Comments in this release about the 2022 first quarter industry are based on the Company's understanding of what transpired in the market and are not based on reported third-party data, which could differ from the Company's estimates.
The global lift truck market appears to have remained relatively robust in the first quarter of 2022. As a result, bookings in the first quarter of 2022 were still at very robust levels, but the Company had fewer bookings than in the historically high prior-year first quarter. The Company is focused on keeping the pricing of new bookings close to target margins based on anticipated costs at the time of expected production. The average bookings sales price per unit increased compared with both the 2021 fourth quarter and the prior-year quarter because the Company continued to increase prices to offset material and freight cost inflation. These increased prices in turn translated into an increase in the current average sales price per unit of backlog in the 2022 first quarter over the respective prior periods as well.
First-quarter unit shipments increased compared with the prior-year first quarter since the Company has increased production rates and since component shortages caused by ongoing global supply chain and logistics constraints have had a moderately reduced impact. However, ongoing supply chain constraints of certain critical components resulted in fewer shipments than in the fourth quarter of 2021. With higher bookings and lower shipments than in the 2021 fourth quarter, the Company's already historically high backlog level continued to increase, which further extended delivery lead times.
In this context, Lift Truck segment revenues increased 12.8% in the first quarter of 2022 compared with the first quarter of 2021. The improvement in revenue was primarily due to the favorable effect of price increases put in place to mitigate the impact of material and freight cost inflation, as well as higher unit and parts volumes in the Americas and EMEA segments, mainly from a 2,300 unit increase in shipments due to higher sales of Class 2 and Class 3 electric warehouse trucks and lower-capacity Class 5 internal-combustion engine trucks. These improvements were partially offset by unfavorable currency movements of $14.0 million, due to a strengthening U.S. dollar, and lower unit and parts volumes in JAPIC.
Geographic Segment Results
Ongoing parts shortages and supply chain disruptions continued to constrain the Company's production of lift trucks in the first quarter, although the Company did generate higher revenues. Nevertheless, the Lift Truck business generated an operating loss of $10.7 million compared with operating profit of $12.2 million in the first quarter of 2021. The substantial decline in results was mainly attributable to a decrease in gross profit in all three geographic segments, most significantly in EMEA and JAPIC, as well as higher operating expenses in the Americas and EMEA. Gross profit declined primarily as a result of an $18.5 million increase in manufacturing costs over the 2021 first quarter as component shortages had a severe impact on the Company's ability to produce and ship products from the backlog. Additionally, cost increases of $50.1 million, net of price increases of $43.9 million, resulting from significant material cost and freight inflation for trucks already in the backlog, and a shift in sales mix to lower-margin lift trucks, as well as unfavorable currency movements of $7.8 million, also contributed to the reduction in gross profit. The realization of higher margins on parts sales and higher unit volumes only partly offset the significant increase in manufacturing, material and freight costs. The Company also recorded charges totaling $2.5 million in the Lift Truck segment to establish reserves for Russian inventory and receivables.
While all three of the geographic Lift Truck segments were affected by unfavorable increases in material and freight costs and supply chain constraints in the 2022 first quarter, the Americas segment was less affected than the EMEA segment. In the Americas, first-quarter 2022 revenues increased 21.3% over the prior-year quarter as a result of price increases implemented to offset material and freight cost inflation and higher unit and parts volumes, as well as a shift in sales to higher-priced products. Operating profit decreased to $4.4 million in the first quarter of 2022 from $14.6 million in the prior-year first quarter, but improved significantly over the 2021 fourth-quarter operating loss. Benefits from higher unit and parts volumes, as well as $3.5 million of favorable retroactive tariff exclusion adjustments for certain components imported from China, were more than offset by an increase in material and freight costs of $40.5 million, net of price increases of $40.8 million, higher manufacturing costs of $13.6 million resulting from inefficiencies associated with component shortages that constrained the Americas' ability to build products, a shift in sales mix to lower-margin lift trucks and modestly higher operating expenses.
First-quarter 2022 EMEA revenues were comparable to the 2021 first quarter as benefits from higher unit and parts volumes and price increases were offset by unfavorable foreign currency movements. EMEA reported an operating loss of $11.4 million compared with operating profit of $0.1 million in the first quarter of 2021. The lower results were primarily due to higher material and freight costs of $8.1 million, net of price increases of $1.6 million, higher manufacturing costs due to production delays of $3.6 million and an increase in operating expenses. The establishment of reserves totaling $2.5 million on Russian-related inventory and receivables also contributed to the lower EMEA results.
The JAPIC segment's operating loss increased to $3.7 million in the first quarter of 2022 from an operating loss of $2.5 million in the first quarter of 2021. The lower results were due to a decrease in gross profit resulting from lower unit and parts volumes, higher material and freight costs and additional manufacturing costs. Lower operating expenses partly offset the reduction in gross profit.
Overall, the Lift Truck segment's first quarter 2022 operating loss reflects the impact of the market forces discussed in the 2021 fourth-quarter outlook, but the results are substantially better than expected at that time. The net loss reflects the decision made in the second half of 2021 to record valuation allowances against certain losses.
Hyster-Yale Group Strategic Perspective
In the remainder of 2022, the Company expects the global lift truck market to continue to decline from the historical highs of 2021, in part due to the impact of the Russia/Ukraine conflict, but remain above pre-pandemic levels. As a result of this market outlook, the Lift Truck business is anticipating a substantial decrease in bookings during the remainder of 2022 compared with 2021, with the rate of decrease expected to moderate in the fourth quarter.
During 2021, the Company experienced production and shipment levels which were substantially lower than its objectives due to supply chain logistics constraints and component shortages. Some moderation in the number of suppliers with shortages occurred in the first quarter of 2022, but shortages are anticipated to continue throughout 2022, and possibly escalate again in light of the Russia/Ukraine conflict. Nevertheless, full-year shipments are currently expected to increase significantly in 2022 over 2021 given the Company's robust backlog and actions put in place to mitigate the impact of the supply chain constraints and shortages, but with the expectation that supplies of products or commodities are not constrained further as a result of the Russia/Ukraine conflict and recent COVID lockdowns in China.
Prior to the Russia/Ukraine conflict, there were signs that material costs had peaked. However, as a result of that conflict, significant additional material and freight cost inflation is expected to keep the cost of components higher in 2022 than in 2021 and not moderate as previously expected. In light of cost inflation in 2021 and what is now expected in 2022, the Lift Truck business implemented several price increases in 2021 and in the first quarter of 2022, but many of the orders in the backlog slotted for production in the second and third quarters of 2022 do not reflect the full effect of all these price increases. On the other hand, new bookings are being made at close to target margins based on expected future costs at the time of expected production. Further the renewal of tariff exclusions is expected to partly offset the anticipated higher material cost inflation in the backlog over the remainder of 2022. As a result, the Company expects to experience lower margins in the second quarter of 2022 compared with the first quarter of 2022 due to the lag between when unit price increases go into effect and when revenue is realized as the units are shipped. Margins are then expected to increase over the second half of 2022 with much stronger margins in the fourth quarter when the higher-margin, already-booked trucks, and trucks anticipated to be booked, are expected to be produced and shipped. In the meantime, the Company expects to continue to work aggressively to manage component availability in order to increase production rates, and continue to adjust prices as costs change. As a result of these factors, the Lift Truck business expects larger operating and net losses in the second quarter, moderated operating and net losses in the third quarter and substantial profit in the fourth quarter. Overall, the Russia/Ukraine conflict, on a net basis, has reduced prospects for the remaining quarters of 2022, particularly in the expectations for EMEA's second and third quarters, but has not changed the overall pattern of quarterly improvement expected in the second half of 2022.
From a broader perspective, Hyster-Yale Group has three core strategies that are expected to have a transformational impact on the Company's competitiveness, market position and economic performance as it emerges from the current period of mismatch of costs and pricing. The first is to provide the lowest cost of ownership while enhancing customer productivity. The primary focus of this strategic initiative is the new modular and scalable product projects, which are expected to lay the groundwork for enhanced market position by providing lower cost of ownership and enhanced productivity for the Company's customers, including low-intensity applications. Additional to this are key projects geared toward electrification of trucks for applications now dominated by internal combustion engine trucks, automation product options and providing telemetry and operator assist systems. The second core strategy is to be the leader in the delivery of industry- and customer-focused solutions. The primary focus for this strategic initiative is transforming the Company's sales approach by using an industry-focused approach to meet its customers' needs. The third core strategy is to be the leader in independent distribution. The main focus of this strategic initiative is on enhancing dealer and major account coverage, dealer excellence and ensuring outstanding dealer ownership globally.
As a result of these core strategies, the increased shipment volume potential of the current backlog and expected bookings in 2022, enhanced prices and the renewal of tariff exclusions, the Lift Truck business expects to move from the significant operating loss in the first quarter of 2022 to substantial operating profit in the fourth quarter, with the fourth-quarter profit expected to more than offset the losses in the first nine months of 2022. Over this period, the Company is projecting the stabilization of product and transportation costs and continued improvement in component and logistics availability, although this could change if the availability of commodities and/or components is seriously affected as a result of the ongoing Russia/Ukraine conflict and the recent lockdowns in China. The Company is also anticipating the continued introduction of additional modular and scalable product families and the continued implementation of cost-savings initiatives over this period and in the longer term. Overall, as the Company's strategic programs mature, as costs and prices come in line over 2022 and 2023, and as production volumes increase, the Lift Truck business is expected to have a strong operating profit and net income in the fourth quarter of 2022 and in 2023.
Bolzoni Results
Bolzoni's revenues for the 2022 first quarter increased 19.6% to $95.1 million from $79.5 million in the 2021 first quarter primarily as a result of higher sales volumes, price increases implemented to offset material and freight cost inflation and a shift in sales to higher-priced products.
Bolzoni's operating profit increased to $2.1 million in the first quarter of 2022 from $0.8 million in the first quarter of 2021 due to a 14.6% improvement in gross profit, partly offset by a moderate increase in operating expenses, as well as charges totaling $0.7 million for the establishment of reserves on Russian-related receivables and business closure. The gross profit improvement was the result of increased unit volumes of higher-margin products partially offset by higher material and freight costs, net of price increases.
Bolzoni Strategic Perspective
Bolzoni has a small operation in Russia which is in the process of closing. As a result of adjusting its operations for the Russia/Ukraine conflict and adapting to the additional material inflation caused by the conflict, Bolzoni expects operating profit and net income in the second quarter of 2022 to be lower than the 2022 first quarter, but significantly higher than the loss realized in the prior-year second quarter. Over the second half of 2022, Bolzoni expects component shortages to moderate and the timing of pricing actions to permit improving operating profit in the third and fourth quarters. As a result, Bolzoni expects sizeable, but moderately lower than previously anticipated, operating profit and net income in 2022 compared with operating and net losses in 2021.
Bolzoni continues to focus on implementing its "One Company - 3 Brands" organizational approach to help streamline corporate operations and strengthen its North America and JAPIC commercial operations. Bolzoni is working to increase its Americas business by strengthening its ability to serve key attachment industries and customers in the North America market through the introduction of a broader range of locally produced attachments with shorter lead times, while continuing to sell cylinders and various other components produced in its Sulligent, Alabama plant. Bolzoni is also increasing its sales, marketing and product support capabilities both in North America and Europe based on an industry-specific approach, with an immediate focus on the paper, beverage, appliance, third-party logistics and automotive industries.
Nuvera Results
Nuvera's revenues increased to $0.6 million in the first quarter of 2022 primarily as a result of sales of fuel cell engines. Nuvera continued to focus on increasing its sales pipeline for its 45kW and 60kW engines in all major geographic areas by implementing its commercial programs. Despite an accelerating demonstration pipeline, the COVID-19 pandemic and slow customer adoption of fuel cells have delayed bookings, manufacture and shipment of orders for Nuvera's larger engines.
Nuvera's first-quarter 2022 operating loss decreased to $8.1 million from $9.8 million in the first quarter of 2021. The lower operating loss was primarily due to improved margin from lower production costs in 2022. The net loss reflects the absence of a gain on sale of $4.6 million recognized in the prior year and the decision to record valuation allowances against certain losses as determined in the prior year.
Nuvera Strategic Perspective
Nuvera continues to focus on applying its 45kW and 60kW engines, which were both released for sale late in 2020, in niche, heavy-duty vehicle applications with expected near-term significant fuel cell adoption potential. As a result of these releases, Nuvera accelerated its 45kW and 60kW engine commercialization operations for the global market. In 2022, Nuvera expects to continue to focus on ramping up demonstrations, quotes and bookings of these products. In addition, Nuvera has initiated development of a new 125kW engine and continues to focus on applications in the forklift truck market. Excluding the impact of the inventory valuation and fixed asset impairment charges taken in 2021, the Company expects moderately reduced losses at Nuvera in 2022 as a result of enhanced fuel cell shipments.
Consolidated Outlook
Given the continued component shortages due to supply chain constraints, significant material and freight cost inflation, and, more recently, the impact of the Russia/Ukraine conflict, as well as continued losses at Nuvera and the lack of tax offsets against pre-tax losses for the Lift Truck business and Nuvera, the Company, on a consolidated basis, expects a larger net loss in the second quarter than in the 2022 first quarter, a lower but still substantial net loss in the third quarter and substantial net income in the fourth quarter of 2022. However, the fourth-quarter net income is not expected to offset the losses generated in the first nine months. Generally, results in the remaining three quarters of 2022 are expected to be lower than at the time of the 2021 fourth quarter earnings release, mainly due to the Russia/Ukraine conflict. These expectations are based on the expected reasonable resolution of component shortages and relative stabilization of material and freight costs.
The Company is managing 2022 capital expenditures, operating expenses and its production plans in a manner designed to protect liquidity. Capital expenditures are expected to be approximately $29 million in 2022. The Company has implemented a program of strict controls over operating expenses to reduce cash outflow, including delays in the timing of certain strategic program investments. While the Company expects over time to make these capital expenditures and investments in the business, maintaining liquidity will continue to be a priority. During 2021 and early 2022, the Company's ability to build and ship trucks was significantly constrained by parts shortages of certain critical components while the remaining components needed to build trucks were received and added to inventory, causing inventory levels to increase substantially. In this context, the Company expects to reduce inventory significantly by using current inventory to build trucks for which production has been significantly delayed due to critical parts shortages and receiving components as they are needed for production.
At March 31, 2022, the Company's cash on hand was $65.1 million and debt was $479.0 million compared with cash on hand of $65.5 million and debt of $518.5 million at December 31, 2021. During the first quarter of 2022, the Company implemented a dealer advance deposit program on orders, which contributed to the reduction in debt levels. As of March 31, 2022, the Company had unused borrowing capacity of approximately $218 million under the Company's revolving credit facilities compared with $165 million at December 31, 2021.
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Conference Call
In conjunction with this news release, the management of Hyster-Yale Materials Handling, Inc. will host a conference call on Wednesday, May 4, 2022 at 11:00 a.m. Eastern Time. To participate in the live call, please register more than 15 minutes in advance at http://www.directeventreg.com/registration/event/1990075 to obtain the dial-in information and conference call access codes. For those not planning to ask a question of management, the Company recommends listening to the call via the online webcast, which can be accessed through Hyster-Yale's website at https://www.hyster-yale.com/investors. Please allow 15 minutes to register, download and install any necessary audio software required to listen to the webcast. A replay of the conference call will be available shortly after the call ends through May 11, 2022. An archive of the webcast will also be available on the Company's website two hours after the live call ends. Further information regarding strategic initiatives can also be found in the Company's Q1 2022 Investor Deck that will be made available on the Company's website.
Non-GAAP and Other Measures
This release contains non-GAAP financial measures. Included in this release are reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). Adjusted EBITDA in this press release is provided solely as supplemental non-GAAP disclosures of operating results. Adjusted EBITDA does not represent operating profit (loss) or net income (loss), as defined by U.S. GAAP, and should not be considered as a substitute for operating profit (loss) or net income (loss). Hyster-Yale defines Adjusted EBITDA as income before goodwill and fixed asset impairment charges, income taxes and noncontrolling interest income (loss) plus net interest expense and depreciation and amortization expense. Adjusted EBITDA is not a measurement under U.S. GAAP and is not necessarily comparable with similarly titled measures of other companies. Management believes that Adjusted EBITDA assists investors in understanding the results of operations of the Company. In addition, management evaluates results using Adjusted EBITDA.
For purposes of this news release, discussions about net income (loss) refer to net income (loss) attributable to stockholders.
Forward-looking Statements Disclaimer
The statements contained in this news release that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Among the factors that could cause plans, actions and results to differ materially from current expectations are, without limitation: (1) delays in delivery and other supply chain disruptions, or increases in costs as a result of inflation or otherwise, including materials and transportation costs and shortages, the imposition of tariffs, or the renewal of tariff exclusions, on raw materials or sourced products, and labor, or changes in or unavailability of quality suppliers or transporters, including the impacts of the foregoing risks on the Company's liquidity, (2) the duration and severity of the COVID-19 pandemic, any preventive or protective actions taken by governmental authorities, and any unfavorable effects of the COVID-19 pandemic on either the Company's or its suppliers plants' capabilities to produce and ship products, (3) delays in manufacturing and delivery schedules, (4) customer acceptance of pricing, (5) unfavorable effects of geopolitical and legislative developments on global operations, including without limitation the entry into new trade agreements and the imposition of tariffs and/or economic sanctions, as well as armed conflicts, including the Russia/Ukraine conflict, and their regional effects, (6) the ability of Hyster-Yale and its dealers, suppliers and end-users to access credit in the current economic environment, or obtain financing at reasonable rates, or at all, as a result of current economic and market conditions, (7) impairment charges or charges due to valuation allowances, (8) reduction in demand for lift trucks, attachments and related aftermarket parts and service on a global basis, including any reduction in demand as a result of an economic recession, (9) exchange rate fluctuations, interest rate volatility and monetary policies and other changes in the regulatory climate in the countries in which the Company operates and/or sells products, (10) the effectiveness of the cost reduction programs implemented globally, including the successful implementation of procurement and sourcing initiatives, (11) the successful commercialization of Nuvera's technology, (12) the political and economic uncertainties in the countries where the Company does business, as well as the effects of any withdrawals from such countries, (13) bankruptcy of or loss of major dealers, retail customers or suppliers, (14) customer acceptance of, changes in the costs of, or delays in the development of new products, (15) introduction of new products by, or more favorable product pricing offered by, competitors, (16) product liability or other litigation, warranty claims or returns of products, and (17) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation.
About Hyster-Yale Materials Handling, Inc.
Hyster-Yale Materials Handling, Inc., headquartered in Cleveland, Ohio, offers a broad array of solutions to meet the specific materials handling needs of customers' applications. The Company's wholly owned operating subsidiary, Hyster-Yale Group, Inc., designs, engineers, manufactures, sells and services a comprehensive line of lift trucks, attachments and aftermarket parts marketed globally primarily under the Hyster® and Yale® brand names. Subsidiaries of Hyster-Yale include Bolzoni S.p.A., a leading worldwide producer of attachments, forks and lift tables marketed under the Bolzoni®, Auramo® and Meyer® brand names and Nuvera Fuel Cells, LLC, an alternative-power technology company focused on fuel cell stacks and engines. Hyster-Yale also has significant joint ventures in Japan (Sumitomo NACCO) and in China (Hyster-Yale Maximal). For more information about Hyster-Yale and its subsidiaries, visit the Company's website at www.hyster-yale.com.
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TORONTO, May 3, 2022 /PRNewswire/ - Integracare Inc. a leader in private home healthcare in Toronto and Mississauga has acquired Guardian Home Care ("Guardian").
Guardian Home Care provides high quality senior home care services in Toronto and surrounding area. Guardian's main Senior care services are personal care and in-home nursing, including overnight care. Guardian's private Senior care can be delivered at home, in a retirement home, in long term care, and at bedside in the hospital.
"We are excited for our Clients and our Caregivers to be joining the Integracare Group of Companies." said Jill Aiken, founder of Guardian Home Care. "Integracare's reputation for providing the highest quality care and strong 24/7 Nursing Care Management is what attracted us to Integracare."
"Guardian has a great reputation and has been led by a dedicated advocate for better care for people living with Dementia in Toronto. We share Jill's passion and we are excited to help enhance Ontarians ability to receive high quality Dementia Care and personal support in the comfort and safety of their own homes." Lee Grunberg, CEO of Integracare.
About Integracare: lntegracare provides a wide range of private nursing care and personal support services for individuals in their homes, hospitals, retirement residences and long-term care facilities. Its services, while encompassing all levels of nursing care, have always included a wide range of related services that address the needs of their clients while promoting joyful living and helping Integracare Clients maintain their independence and dignity.
For more information about lntegracare, contact us at 396 Moore Ave., Toronto, Ontario, M6C 3A8, (416) 421-4243, or visit https://integracare.on.ca
Related Links
https://integracare.on.ca
https://guardianhomecaretoronto.com/
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— Executing toward 2022 plan, generating near 20% revenue growth, with $885 million in ending cash*, an annualized burn reduction of greater than $100 million —
— Broad OPEX controls and portfolio optimization to decrease spend, extend runway through 2023—
— Company lays out path for continued industry-leading growth while achieving positive operating cash flow by end of 2025 —
— Technology Day investor forum to be held week of July 11, roadmap for the creation of a new category in healthcare —
— Conference call and webcast today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time —
SAN FRANCISCO, May 3, 2022 /PRNewswire/ -- Invitae (NYSE: NVTA), a leading medical genetics company, today announced financial and operating results for the first quarter ended March 31, 2022.
"The power of personal health information, enabled by a new breed of patient and clinician workflow tools, further combined with real world data, is an immense opportunity to shape the future of medicine. And while the proof points supporting our model of enabling a new era in healthcare continue to materialize, we are in an exceptionally volatile period in our economy, one that demands that we as a company accelerate our drive for operational efficiency and sustainable operating cash flows," said Sean George, Ph.D., co-founder and CEO of Invitae. "The Invitae team is resolute across the organization to execute and alter course where necessary. We communicated and exceeded our plan to reverse the cash burn trend in the business in the first quarter. Following that success, we are now taking more aggressive steps to accelerate our pathway to capital independence - continuing to drive revenue growth, stabilize operating expenses, optimize our portfolio, and invest in the most important strategic imperatives and near-term drivers of revenue and margin. We plan to substantially decrease our burn throughout this year and next, extending our cash runway through 2023. Invitae's broad portfolio and scalable model enables us to begin driving further operating leverage and we look forward to updating you on our progress along the way."
First Quarter 2022 Highlights
- Generated revenue of $123.7 million in the quarter, a 19.4% increase compared to $103.6 million in the first quarter of 2021. Q1 exit revenue trajectory tracking to annual revenue guidance.
- Cash, cash equivalents, restricted cash and marketable securities were $885 million as compared with $1.06 billion as of December 31, 2021. Cash burn was $169 million, achieving a $26 million reduction for the first quarter of 2022, or over $100 million on an annualized basis.
- Total active healthcare provider accounts in the first quarter of 2022 totaled 19,436, more than 31% growth over the first quarter of 2021.
- Active pharma and commercial partnerships grew to 206, an increase of approximately 72% over the first quarter of 2021, driving continued revenue growth from Invitae's data and data services platform to pharma, health system and software and services partners.
- Total patient population is more than 2.8 million with nearly 62% available for data sharing.
- Gross profit was $26.6 million, and non-GAAP gross profit was $45.2 million in the first quarter of this year.
Total operating expense, which excludes cost of revenue, for the first quarter of 2022 was $239.8 million compared to $140.5 million in the prior year period. Compared to the fourth quarter of 2021, operating expense in the first quarter of 2022 decreased by $4.8 million while non-GAAP operating expense decreased by $6.7 million. Non-GAAP operating expense was $209.0 million in the first quarter of 2022 compared to $155.4 million in the prior year period.
Net loss for this year's first quarter was $181.9 million, or a $0.80 net loss per share, compared to $109.5 million, or a $0.56 net loss per share, for the first quarter of 2021. Non-GAAP net loss for the first quarter of 2022 was $177.4 million, or a $0.78 non-GAAP net loss per share.
At March 31, 2022, cash, cash equivalents, restricted cash and marketable securities totaled $885 million as compared with $1.06 billion as of December 31, 2021. Cash burn in this year's first quarter, including cash paid for acquisition related activities, was $169.3 million, a decrease of $26.3 million, or 13.5% from the fourth quarter of 2021.
Accelerated burn reduction to extend cash runway
Invitae is committed to reaching positive operating cash flow by the end of 2025 while driving industry-leading growth along the way. Building off of progress made to this year's target of a $200+ million reduction in burn rate, the company will drive for additional reductions of $600 million over the next three years with continued OPEX controls, margin improvement, operating leverage and portfolio optimization. The result of these improvements is expected to push the current cash runway to the end of 2023 or beyond.
Webcast and Conference Call Details
Management will host a conference call and webcast today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time to discuss financial results and recent developments. To access the conference call, please register at the link below:
Upon registering, each participant will be provided with call details and a conference ID.
The live webcast of the call and slide deck may be accessed here or by visiting the investors section of the company's website at ir.invitae.com. A replay of the webcast will be available shortly after the conclusion of the call and will be archived on the company's website.
About Invitae
Invitae Corporation (NYSE: NVTA) is a leading medical genetics company whose mission is to bring comprehensive genetic information into mainstream medicine to improve healthcare for billions of people. Invitae's goal is to aggregate the world's genetic tests into a single service with higher quality, faster turnaround time, and lower prices. For more information, visit the company's website at invitae.com.
Safe Harbor Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the company's vision and business model; the company's future financial and operating results; the company's expectations regarding future growth, reduction in burn rate and cash runway; and the company's expectations regarding being operating cash flow positive, including steps to achieve the goal and the timing thereof. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to: the company's ability to successfully alter its course in response to events; the success of company's efforts to achieve operational efficiency and sustainable operating cash flows, and decrease cash burn; the impact of COVID-19 on the company, and the effectiveness of the efforts it has taken or may take in the future in response thereto; the impact of inflation; the company's ability to continue to grow its business, including internationally; the company's history of losses; the company's ability to compete; the company's failure to manage growth effectively; the company's need to scale its infrastructure in advance of demand for its tests and to increase demand for its tests; the risk that the company may not obtain or maintain sufficient levels of reimbursement for its tests; the ability of the company to obtain regulatory approval for its tests; the applicability of clinical results to actual outcomes; the company's failure to successfully integrate or fully realize the anticipated benefits of acquired businesses; risks associated with litigation; the company's ability to use rapidly changing genetic data to interpret test results accurately and consistently; security breaches, loss of data and other disruptions; laws and regulations applicable to the company's business; and the other risks set forth in the company's Annual Report on Form 10-K for the year ended December 31, 2021. These forward-looking statements speak only as of the date hereof, and Invitae Corporation disclaims any obligation to update these forward-looking statements.
Non-GAAP financial measures
To supplement Invitae's consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States (GAAP), the company is providing several non-GAAP measures, including non-GAAP gross profit, non-GAAP cost of revenue, non-GAAP operating expense, including non-GAAP research and development, non-GAAP selling and marketing, non-GAAP general and administrative and non-GAAP other income (expense), net, as well as non-GAAP net loss and non-GAAP net loss per share and non-GAAP cash burn. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies. Management believes these non-GAAP financial measures are useful to investors in evaluating the company's ongoing operating results and trends.
Management is excluding from some or all of its non-GAAP operating results (1) amortization of acquired intangible assets, (2) acquisition-related stock-based compensation, (3) post-combination expense related to the acceleration of equity grants or bonus payments in connection with the company's acquisitions, (4) adjustments to the fair value of acquisition-related assets and/or liabilities, including contingent consideration and (5) acquisition-related income tax benefits. These non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact on the company's reported financial results. Management accounts for this limitation by analyzing results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in the company's public disclosures.
Cash burn excludes changes in marketable securities. Management believes cash burn is a liquidity measure that provides useful information to management and investors about the amount of cash consumed by the operations of the business. A limitation of using this non-GAAP measure is that cash burn does not represent the total change in cash, cash equivalents, and restricted cash for the period because it excludes cash provided by or used for other operating, investing or financing activities. Management accounts for this limitation by providing information about the company's operating, investing and financing activities in the statements of cash flows in the consolidated financial statements in the company's most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K and by presenting net cash provided by (used in) operating, investing and financing activities as well as the net increase or decrease in cash, cash equivalents and restricted cash in its reconciliation of cash burn.
In addition, other companies, including companies in the same industry, may not use the same non-GAAP measures or may calculate these metrics in a different manner than management or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of these non-GAAP measures as comparative measures. Because of these limitations, the company's non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the non-GAAP reconciliations provided in the tables below.
Contact for Invitae:
Jack Finks
ir@invitae.com
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SOURCE Invitae Corporation | https://www.whsv.com/prnewswire/2022/05/03/invitae-reports-1237-million-revenue-first-quarter-2022-extends-cash-runway/ | 2022-05-03T21:24:40Z |
MONETT, Mo., May 3, 2022 /PRNewswire/ -- Jack Henry & Associates, Inc. (NASDAQ: JKHY), a leading provider of technology solutions and payment processing services primarily for the financial services industry, today announces results for the third quarter of fiscal 2022 and discusses its continued response to the novel coronavirus (COVID-19) pandemic (page 8 below).
- GAAP revenue increased 12% and operating income increased 23% for the nine months ended March 31, 2022 compared to the prior-year period.
- Non-GAAP adjusted revenue increased 9% and non-GAAP adjusted operating income increased 14% for the nine months ended March 31, 2022 compared to the prior-year period.1
- GAAP EPS was $3.84 per diluted share for the nine months ended March 31, 2022, compared to $3.08 per diluted share in the prior-year period.
- Cash at March 31, 2022 was $39.8 million and $70.1 million at March 31, 2021.
- Debt related to the revolving credit line was $225 million at March 31, 2022 and $200 million at March 31, 2021.
- GAAP revenue increased 10% and operating income increased 22% for the quarter compared to the prior-year quarter.
- Non-GAAP adjusted revenue increased 7% and non-GAAP adjusted operating income increased 11% for the quarter compared to the prior-year quarter.1
- GAAP EPS was $1.16 per diluted share for the quarter, compared to $0.95 per diluted share in the prior-year quarter.
- GAAP revenue $1,939 million to $1,942 million
- GAAP EPS $4.80 to $4.85
- Non-GAAP revenue $1,889 million to $1,892 million2
Revenue, operating expenses, operating income, and net income for the three and nine months ended March 31, 2022, as compared to the three and nine months ended March 31, 2021, were as follows:
- Services and support revenue increased for the third quarter, primarily driven by an increase in deconversion fee revenue of $13,064. Other increases were data processing and hosting fees and implementation revenue. Processing revenue increased for the third quarter, primarily driven by growth in card processing fee revenue of 6%. Other increases were in Jack Henry digital and remote capture and automated clearinghouse (ACH) revenues.
- Services and support revenue increased for the year-to-date period, primarily driven by growth in data processing and hosting fee revenue of 12%. Other increases were deconversion fee, implementation, and software usage fee revenues. Processing revenue increased for the year-to-date period, primarily driven by growth in card processing fee revenue of 10%. Other increases were in Jack Henry digital and remote capture and ACH revenues.
- For the third quarter, core segment revenue increased 12%, payments segment revenue increased 10%, complementary segment revenue increased 10%, and corporate and other segment revenue decreased 1%. Non-GAAP adjusted core segment revenue increased 7%, non-GAAP adjusted payments segment revenue increased 9%, non-GAAP adjusted complementary segment revenue increased 7%, and non-GAAP adjusted corporate and other segment revenue decreased 1% (see revenue lines of segment break-out tables on page 4 below).
- For the year-to-date period, core segment revenue increased 11%, payments segment revenue increased 12%, complementary segment revenue increased 12%, and corporate and other segment revenue increased 11%. Non-GAAP adjusted core segment revenue increased 8%, non-GAAP adjusted payments segment revenue increased 10%, non-GAAP adjusted complementary segment revenue increased 9%, and non-GAAP adjusted corporate and other segment revenue increased 11% (see revenue lines of segment break-out tables on page 5 below).
- Cost of revenue increased for the third quarter and year-to-date period, primarily due to higher costs associated with our card processing platform and personnel costs. Operating licenses and fees also contributed to the increase for the year-to-date period.
- Research and development expense increased for the third quarter and year-to-date period, primarily due to higher personnel costs (net of capitalized personnel costs).
- Selling, general, and administrative expense increased for the third quarter and year-to-date period, primarily due to higher personnel costs and travel expenses. A smaller gain on sale of assets, period-over-period, also contributed to the increase for the year-to-date period.
- Effective tax rates for the third quarter of fiscal years 2022 and 2021 were 23.6% and 21.5%, respectively. Effective tax rates for the year-to-date period of fiscal years 2022 and 2021 were 23.5% and 22.3%, respectively.
- The Company repurchased 1.25 million shares of common stock during fiscal year-to-date 2022 and 2.5 million shares of common stock during fiscal year-to-date 2021. Common stock repurchases during the trailing twelve months contributed $0.02 to diluted earnings per share for the third quarter and $0.05 for year-to-date fiscal 2022.
The table below is our revenue and operating income (in thousands) for the three and nine months ended March 31, 2022 compared to the three and nine months ended March 31, 2021, excluding the impacts of deconversion fees, acquisitions and divestitures, and gain/loss.
The tables below are the segment breakdown of revenue and cost of revenue for each period presented, as adjusted for the items above, and include a reconciliation to non-GAAP adjusted operating income presented above.
The table below is our GAAP to non-GAAP guidance for fiscal 2022. Non-GAAP guidance excludes the impacts of deconversion fee and acquisition and divestiture revenue (see Use of Non-GAAP Financial Information below).
- At March 31, 2022, cash and cash equivalents decreased to $39.8 million from $70.1 million at March 31, 2021.
- Trade receivables totaled $222.7 million at March 31, 2022 compared to $207.7 million at March 31, 2021.
- The Company had $225 million of borrowings at March 31, 2022 and $200 million borrowings at March 31, 2021.
- Total deferred revenue increased to $217.6 million at March 31, 2022, compared to $212.0 million a year ago.
- Stockholders' equity increased to $1,328.6 million at March 31, 2022, compared to $1,315.4 million a year ago.
The following table summarizes net cash from operating activities (Unaudited, in thousands):
The following table summarizes net cash from investing activities (Unaudited, in thousands):
The following table summarizes net cash from financing activities (Unaudited, in thousands):
Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting in the United States. GAAP include the standards, conventions, and rules accountants follow in recording and summarizing transactions in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, we have provided certain non-GAAP financial measures, including adjusted revenue, adjusted operating income, adjusted segment income, adjusted cost of revenue, adjusted operating expenses, non-GAAP earnings before interest, taxes, depreciation, and amortization (non-GAAP EBITDA), free cash flow, and return on invested capital (ROIC).
We believe non-GAAP financial measures help investors better understand the underlying fundamentals and true operations of our business. The non-GAAP financial measures adjusted revenue, adjusted operating income, adjusted segment income, adjusted cost of revenue, and adjusted operating expenses presented eliminate one-time deconversion fees, acquisitions and divestitures, and gain/loss, all of which management believes are not indicative of the Company's operating performance. Such adjustments give investors further insight into our performance. Non-GAAP EBITDA is defined as net income attributable to the Company before the effect of interest expense, taxes, depreciation, and amortization, adjusted for net income before the effect of interest expense, taxes, depreciation, and amortization attributable to eliminated one-time deconversion fees, acquisitions and divestitures, and gain/loss. Free cash flow is defined as net cash from operating activities, less capitalized expenditures, internal use software, and capitalized software, plus proceeds from the sale of assets. ROIC is defined as net income divided by average invested capital, which is the average of beginning and ending long-term debt and stockholders' equity for a given period. Management believes that non-GAAP EBITDA is an important measure of the Company's overall operating performance and excludes certain costs and other transactions that management deems one time or non-operational in nature; free cash flow is useful to measure the funds generated in a given period that are available for debt service requirements and strategic capital decisions; and ROIC is a measure of the Company's allocation efficiency and effectiveness of its invested capital. For these reasons, management also uses these non-GAAP financial measures in its assessment and management of the Company's performance.
Non-GAAP financial measures used by the Company may not be comparable to similarly titled non-GAAP measures used by other companies. Non-GAAP financial measures have no standardized meaning prescribed by GAAP and therefore, are unlikely to be comparable with calculations of similar measures for other companies.
Any non-GAAP financial measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP financial measures. Reconciliations of the non-GAAP financial measures to related GAAP financial measures are included.
Since its outbreak in early calendar 2020, COVID-19 has rapidly spread and continues to represent a public health concern. The health, safety, and well-being of our employees and customers is of paramount importance to us. In March 2020, we established an internal task force composed of executive officers and other members of management to frequently assess updates to the COVID-19 situation and recommend Company actions. We offered remote working as a recommended option to employees whose job duties allowed them to work off-site, and we suspended all non-essential business travel. This company-wide recommendation initially extended until July 1, 2021, at which point we began transition to a return to our facilities and normalization of travel activities. However, we reimplemented our company-wide recommendation for remote work on August 3, 2021, based on new virus variants and increased infection rates. As of April 29, 2022 the majority of our employees were continuing to work remotely either full time or in a hybrid capacity. We have announced that our official return-to-office date is September 6, 2022, though employees can voluntarily return to the office on May 2, 2022. Individual decisions on returning to the office will be manager-coordinated and based on conversations with specific teams and departments. A large number of our employees have requested to remain fully remote or participate in a hybrid approach where they would split their time between remote and in-person working. While our business travel has increased in recent months, we continue to encourage a cautious approach to business travel activities.
We work closely with our customers who are scheduled for on-site visits to ensure their needs are met while taking necessary safety precautions when our employees are required to be at a customer site. Delays of customer system installations due to COVID-19 have been limited, and we have developed processes to handle remote installations when available. We expect these processes to provide flexibility and value both during and after the COVID-19 pandemic. Even though a substantial portion of our workforce has worked remotely during the outbreak and business travel has been limited, we have not yet experienced significant disruption to our operations. We believe our technological capabilities are well positioned to allow our employees to work remotely without materially impacting our business.
Despite the changes and restrictions caused by COVID-19, the overall financial and operational impact on our business has been limited and our liquidity, balance sheet, and business trends remain strong. We experienced positive operating cash flows during fiscal 2021 and the first nine months of fiscal 2022, and we do not expect that to change in the near term. However, we are unable to accurately predict the future impact of COVID-19 due to a number of uncertainties, including further government actions; the duration, severity and recurrence of the outbreak, including the onset of variants of the virus; the effectiveness of vaccines against new variants; the development and effectiveness of treatments; the effect on the economy generally; the potential impact to our customers, vendors, and employees; and how the potential impact might affect future customer services, processing and installation-related revenue, and processes and efficiencies within the Company directly or indirectly impacting financial results. We will continue to monitor COVID-19 and its possible impact on the Company and to take steps necessary to protect the health and safety of our employees and customers.
Jack Henry (NASDAQ: JKHY) is a leading provider of technology solutions primarily for the financial services industry. We are an S&P 500 company that serves approximately 8,000 clients nationwide through three divisions: Jack Henry Banking® provides innovative solutions to community and regional banks; Symitar® provides industry-leading solutions to credit unions of all sizes; and ProfitStars® offers highly specialized solutions to financial institutions of every asset size, as well as diverse corporate entities outside of the financial services industry. With a heritage that has been dedicated to openness, partnership, and user centricity for more than 40 years, we are well-positioned as a driving market force in future-ready digital solutions and payment processing services. We empower our clients and consumers with the human-centered, tech-forward, and insights-driven solutions that will get them where they want to go. Are you future ready? Additional information is available at www.jackhenry.com.
Statements made in this news release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because forward-looking statements relate to the future, they are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, those discussed in the Company's Securities and Exchange Commission filings, including the Company's most recent reports on Form 10-K and Form 10-Q, particularly under the heading Risk Factors. Any forward-looking statement made in this news release speaks only as of the date of the news release, and the Company expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether because of new information, future events or otherwise.
The Company will hold a conference call on May 4, 2022; at 7:45 a.m. Central Time and investors are invited to listen at www.jackhenry.com. A webcast replay will be available approximately one hour after the event at ir.jackhenry.com/events-and-presentations and will remain available for one year.
To directly access the Company's press releases, go to ir.jackhenry.com/press-releases.
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SOURCE Jack Henry & Associates, Inc. | https://www.whsv.com/prnewswire/2022/05/03/jack-henry-amp-associates-inc-reports-third-quarter-fiscal-2022-results/ | 2022-05-03T21:24:47Z |
DUBLIN, May 3, 2022 /PRNewswire/ -- Jazz Pharmaceuticals plc (Nasdaq: JAZZ) today announced that the Company will participate in the BofA Securities 2022 Global Healthcare Conference on Tuesday, May 10, 2022, at 12:40 p.m. PT / 3:40 p.m. ET / 8:40 p.m. IST in Las Vegas.
An audio webcast of the presentation will be available via the Investors section of the Jazz Pharmaceuticals website at www.jazzpharmaceuticals.com. A replay of the webcast will be archived on the website for 30 days.
About Jazz Pharmaceuticals
Jazz Pharmaceuticals plc (NASDAQ: JAZZ) is a global biopharmaceutical company whose purpose is to innovate to transform the lives of patients and their families. We are dedicated to developing life-changing medicines for people with serious diseases – often with limited or no therapeutic options. We have a diverse portfolio of marketed medicines and novel product candidates, from early- to late-stage development, in neuroscience and oncology. Within these therapeutic areas, we are identifying new options for patients by actively exploring small molecules and biologics, and through innovative delivery technologies and cannabinoid science. Jazz is headquartered in Dublin, Ireland and has employees around the globe, serving patients in nearly 75 countries. For more information, please visit www.jazzpharmaceuticals.com and follow @JazzPharma on Twitter.
Contacts:
Investors:
Andrea N. Flynn, Ph.D.
Vice President, Head, Investor Relations
Jazz Pharmaceuticals plc
InvestorInfo@jazzpharma.com
Ireland +353 1 634 3211
U.S. +1 650 496 2717
Media:
Kristin Bhavnani
Head of Global Corporate Communications
Jazz Pharmaceuticals plc
CorporateAffairsMediaInfo@jazzpharma.com
Ireland +353 1 637 2141
U.S. +1 215 867 4948
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SOURCE Jazz Pharmaceuticals plc | https://www.whsv.com/prnewswire/2022/05/03/jazz-pharmaceuticals-participate-bofa-securities-2022-global-healthcare-conference/ | 2022-05-03T21:24:56Z |
- KAR expects to close the transaction selling its ADESA U.S. physical auction business to Carvana, with the proceeds expected to reduce debt
- KAR reported consistent revenue from continuing operations
- For the first quarter, gross profit per vehicle sold increased year-over-year to $255
- Continued growth in digital dealer-to-dealer volumes were driven by industry-leading platforms, BacklotCars and TradeRev
CARMEL, Ind., May 3, 2022 /PRNewswire/ -- KAR Auction Services, Inc. (NYSE: KAR) today reported its first quarter financial results for the period ended March 31, 2022.
"We expect to close the transaction selling our U.S. physical auction business to Carvana within the next week," said Peter Kelly, CEO of KAR Global. "Going forward KAR will be the premier digital marketplace for wholesale used vehicles, with a meaningful finance company enabling our customer base. Our business will become asset-light with an enhanced financial profile—including significantly less debt. We expect the new simplified KAR to generate $265 million of Adjusted EBITDA in 2022. And as I look beyond 2022, I see exciting opportunities for growth across all of our businesses."
First Quarter 2022 Financial Highlights
The company has classified the ADESA U.S. physical auction business as held-for-sale (discontinued operations) based on management's intention to sell the business. As such, the results discussed herein refer to the continuing operations of KAR and do not include the results of the ADESA U.S. physical auction business.
- Total revenue for the first quarter of 2022 was $369.4 million, a decrease of less than 1% compared with $369.8 million for the first quarter of 2021.
- Net loss from continuing operations for the first quarter of 2022 of $8.4 million, or $(0.16) per diluted share, compared with net income from continuing operations of $26.2 million, or $0.10 per diluted share, for the first quarter of 2021.
- Adjusted EBITDA from continuing operations for the quarter ended March 31, 2022 was $49.1 million, compared with $77.2 million for the quarter ended March 31, 2021.
- Operating adjusted net income (loss) from continuing operations per diluted share was $(0.02) for the quarter ended March 31, 2022, compared with $0.26 for the quarter ended March 31, 2021.
- Results for the quarter ended March 31, 2021 included $17.0 million in realized gains related to previous investments in early-stage automotive companies.
- Year-over-year increase in ADESA's digital dealer-to-dealer marketplaces of 31%, or 6% when including CARWAVE volumes in both years.
- ADESA gross profit per vehicle sold increased 3% to $255 for the quarter ended March 31, 2022, compared with $248 for the quarter ended March 31, 2021.
- AFC's strong first quarter performance was driven by increased revenue per loan transaction of 28%.
Share Repurchase Authorization
The board of directors authorized an increase in the size of the company's $300 million share repurchase program by an additional $200 million and an extension of the share repurchase program through December 31, 2023. With the increase, and giving effect to the company's previous repurchases, approximately $309 million remains available for repurchases under the share repurchase program.
Earnings Conference Call Information
KAR will be hosting an earnings conference call and webcast on Wednesday, May 4, 2022 at 8:30 a.m. EDT. The call will be hosted by KAR's Chief Executive Officer, Peter Kelly and Executive Vice President and Chief Financial Officer, Eric Loughmiller. The conference call may be accessed by calling 1-844-778-4145 and entering participant passcode 5886902, while the live web cast will be available at the investors section of www.karglobal.com. Supplemental financial information for KAR's first quarter 2022 results is available at the investors section of www.karglobal.com.
The archive of the webcast will also be available following the call and will be available at the investors section of www.karglobal.com for a limited time.
About KAR
KAR Auction Services, Inc. d/b/a KAR Global (NYSE: KAR), provides sellers and buyers across the global wholesale used vehicle industry with innovative, technology-driven remarketing solutions. KAR Global's unique end-to-end platform supports whole car, financing, logistics and other ancillary and related services, including the sale of nearly 2.6 million units valued at over $40 billion through our auctions in 2021. Our integrated physical, online and mobile marketplaces reduce risk, improve transparency and streamline transactions for customers in about 75 countries. Headquartered in Carmel, Indiana, KAR Global has employees across the United States, Canada, Europe, Mexico, Uruguay and the Philippines. For more information and the latest KAR Global news, go to www.karglobal.com and follow us on Twitter @KARSpeaks.
Forward-Looking Statements
Certain statements contained in this release include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and which are subject to certain risks, trends and uncertainties. In particular, statements made that are not historical facts may be forward-looking statements. Words such as "should," "may," "will," "can," "of the opinion," "confident," "is set," "is on track," "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "continues," "outlook," "initiatives," "goals," "opportunities," and similar expressions identify forward-looking statements. Such statements are based on management's current expectations, are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results projected, expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include those risks and uncertainties regarding (i) the impact of the COVID-19 pandemic on our business and the economy generally; (ii) the impact of the conflict between Russia and Ukraine; (iii) the company's proposed sale of the ADESA U.S. physical auction business to Carvana, including the company may be unable to complete the proposed transaction in a timely manner or at all, the ability of the company to execute on its strategy and achieve its goals and other expectations after the completion of the proposed transaction, the effect of the transaction or the pendency of the proposed transaction on the company's relationships with its customers and business, and the outcome of any legal proceedings to the extent initiated against the company or others related to the proposed transaction; and (iv) those other matters disclosed in the company's Securities and Exchange Commission filings. The company does not undertake any obligation to update any forward-looking statements.
KAR Auction Services, Inc.
Reconciliation of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, operating adjusted net income (loss) from continuing operations and operating adjusted net income (loss) from continuing operations per share as presented herein are supplemental measures of our performance that are not required by, or presented in accordance with, generally accepted accounting principles in the United States ("GAAP"). They are not measurements of our financial performance under GAAP and should not be considered as substitutes for net income (loss) or any other performance measures derived in accordance with GAAP. Management believes that these measures provide investors additional meaningful methods to evaluate certain aspects of the company's results period over period and for the other reasons set forth below.
EBITDA is defined as net income (loss), plus interest expense net of interest income, income tax provision (benefit), depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for the items of income and expense and expected incremental revenue and cost savings as described in our senior secured credit agreement covenant calculations. Management believes that the inclusion of supplementary adjustments to EBITDA applied in presenting Adjusted EBITDA is appropriate to provide additional information to investors about one of the principal measures of performance used by our creditors. In addition, management uses EBITDA and Adjusted EBITDA to evaluate our performance.
Depreciation expense for property and equipment and amortization expense of capitalized internally developed software costs relate to ongoing capital expenditures; however, amortization expense associated with acquired intangible assets, such as customer relationships, software, tradenames and noncompete agreements are not representative of ongoing capital expenditures, but have a continuing effect on our reported results. Non-GAAP financial measures of operating adjusted net income (loss) from continuing operations and operating adjusted net income (loss) from continuing operations per share, in the opinion of the company, provide comparability of the company's performance to other companies that may not have incurred these types of non-cash expenses or that report a similar measure. In addition, operating adjusted net income (loss) from continuing operations and operating adjusted net income (loss) from continuing operations per share may include adjustments for certain other charges.
EBITDA, Adjusted EBITDA, operating adjusted net income (loss) from continuing operations and operating adjusted net income (loss) from continuing operations per share have limitations as analytical tools, and should not be considered in isolation or as a substitute for analysis of the results as reported under GAAP. These measures may not be comparable to similarly titled measures reported by other companies.
The 2022 expectation for Adjusted EBITDA is a forward-looking non-GAAP financial measure. We have not reconciled this non-GAAP financial measure to its most directly comparable GAAP measure of net income (loss) due to the inherent difficulty and impracticability of predicting certain amounts required by GAAP with a reasonable degree of accuracy. Accordingly, a reconciliation is not available without unreasonable effort.
The following table reconciles EBITDA and Adjusted EBITDA to net income (loss) from continuing operations for the periods presented:
The following table reconciles operating adjusted net income (loss) from continuing operations and operating adjusted net income (loss) from continuing operations per diluted share to net income (loss) for the periods presented:
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SOURCE KAR Auction Services | https://www.whsv.com/prnewswire/2022/05/03/kar-auction-services-inc-reports-first-quarter-2022-financial-results/ | 2022-05-03T21:25:02Z |
Labelium's eighth acquisition reinforces the French-headquartered Group's global ambition and strengthens its position in the digital performance market
PARIS, May 3, 2022 /PRNewswire/ - Labelium Group ("Labelium" or "the Group"), a leading global digital marketing performance consulting agency with 700 skilled experts, working in 20 offices across 14 countries worldwide, has completed its eighth acquisition, the second this year, through a combination with 1000heads, a leading provider of social media-led data & insights, strategic consultancy and creative services.
Founded in the UK, 1000heads provides a fully integrated, end-to-end Social Transformation™ proposition to blue-chip clients such as Alphabet, Snap Inc, Diageo, and Bimbo; this offering includes data and analytics, strategy, and social activation. 1000heads has a global footprint, employing over 170 people across seven offices in London, New York, Los Angeles, Miami, Sydney, Melbourne, and Berlin.
This acquisition, the largest to date for Labelium, consolidates the Group's geographical footprint, particularly in the United States, Europe and Asia, and complements the technological solutions that have been integrated through other recent acquisitions.
This partnership aligns with Labelium's vision to become a global platform addressing the entire digital marketing value chain for its international clients. By combining their expertise and sharing their ambition, Labelium and 1000heads are now able to offer integrated and global solutions to clients in areas including social commerce, influencer marketing and the metaverse.
Above all, this partnership is a human adventure that will provide the Group's employees with unique and international career opportunities. Labelium estimates that, by the end of 2022, it will have more than 1000 employees worldwide.
Stéphane Levy, President, and founder of Labelium, commented: "1000heads and Labelium are a natural fit and this landmark acquisition will generate significant opportunities for both businesses. Our talented teams share the same principles of transparency, innovation, and respect. This alignment will prove crucial in the years to come, allowing us to collaborate closely in pursuit of our ambitious growth strategy, while remaining true to our values."
Sylvain Bonnevide, CEO of Labelium, said: "Welcoming 1000heads into the Labelium Group is fantastic news. The skills and expertise of the 1000heads team will enable us to provide our clients with high quality services and a unique value proposition combining digital and social strategy, high-performance media activation and cutting-edge data expertise. The acquisition also further consolidates our geographical presence, our service offering, and our formidable, industry-leading talent, We look forward to working with Mike and his team to realize the exciting opportunities this partnership will create."
Mike Davison, CEO of 1000heads added: "The combination of 1000heads and Labelium represents a step change for both of our businesses, creating a global industry leader offering cutting edge services and solutions. By joining the Labelium Group we will become part of a dynamic team with a bold vision, and we are excited to begin working together to develop an integrated proposition. Our companies share the same approach to delivering continuous innovation and providing exceptional customer service, and our team looks forward to sharing insights with our new colleagues and collaborating to deliver continued growth."
Founded in 2001, Labelium is an independent digital group with 20 offices in 14 countries and more than 700 digital marketing experts worldwide. It relies on a strong international network to help support the digital acceleration of companies. The agency manages and optimises digital performance (media, commerce, intelligence) for brands such as L'Oréal, Coty, LVMH, Club Med, Tommy Hilfiger, Lacoste, OVH, MSC, Michelin, Christie's, Lexmark…Growing rapidly while retaining a personal approach, Labelium cultivates expertise, entrepreneurship, innovation and business ethics. The Labelium Group brings together Labelium, Footsprint, NXTLVL, tigrz, Feed Manager, Arcane, Spinnn, Ando Factory, StratNXT, Kiliagon, Klickkonzept, Labelium Play, M13h, SmartKeyword acquired in 2022, joined now by 1000heads.
1000heads combines expertise in data & analytics, strategy, technology, and creativity to help the world's best businesses build Social Age brands. 1000heads provides a fully integrated, end-to-end Social Transformation™ proposition to blue-chip clients encompassing data & analytics, strategy, and implementation. 1000heads has a global footprint, employing over 170 people across seven offices in London, New York, Los Angeles, Miami, Sydney, Melbourne, and Berlin. 1000heads' clients include Alphabet, The North Face, Snap Inc, Bimbo, Amazon, Cisco, and Diageo.
Labelium
1000heads
M13h
Ikom
Tigrz
Feed manager
Arcane
StratNXT
Kiliagon
Klickoncept
Labelium Play
SmartKeyword
NXTLVL
Footsprint
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SOURCE Labelium | https://www.whsv.com/prnewswire/2022/05/03/labelium-announces-acquisition-1000heads-an-international-social-transformation-company/ | 2022-05-03T21:25:10Z |
MONTREAL, May 3, 2022 /PRNewswire/ - The Lion Electric Company (NYSE: LEV) (TSX: LEV) ("Lion" or the "Company"), a leading manufacturer of all-electric medium and heavy-duty urban vehicles, today announced its financial and operating results for the first quarter of fiscal year 2022, which ended on March 31, 2022. Lion reports its results in US dollars and in accordance with International Financial Reporting Standards ("IFRS").
- Delivery of 84 vehicles, an increase of 60 vehicles, as compared to the 24 delivered in the same period last year.
- Revenue of $22.6 million, up $16.4 million as compared to $6.2 million in Q1 2021.
- Gross loss of $0.9 million, as compared to a gross loss of $1.8 million in Q1 2021.
- Net earnings of $2.1 million, as compared to a net loss of $16.1 million in Q1 2021. Net earnings for Q1 2022 include a $21.5 million gain related to non-cash decrease in the fair value of share warrant obligations and a $3.8 million charge related to non-cash share-based compensation, compared to a $5.2 million charge related to non-cash share-based compensation in Q1 2021.
- Adjusted EBITDA1 of negative $11.3 million, as compared to negative $5.9 million in Q1 2021, after mainly adjusting for certain non-cash items such as change in fair value of share warrant obligations and share-based compensation.
- Capital expenditures, which included expenditures related to the Joliet Facility and the Lion Campus, amounted to $34.9 million, up $33.8 million, as compared to $1.1 million in Q1 2021.
- Acquisition of intangible assets, which mainly consist of R&D activities, amounted to $15.0 million, up $8.5 million, as compared to $6.5 million in Q1 2021.
- As of March 31, 2022, Lion had $155.5 million in cash, and access to a committed revolving credit facility in the maximum principal amount of $200 million, as well as available support from the Canadian federal and Quebec governments of up to approximately C$100 million (amounting to approximately C$50 million each) in connection with the Lion Campus.
- More than 600 vehicles on the road, with over 10 million miles driven.
- Vehicle order book2 of 2,422 all-electric medium- and heavy-duty urban vehicles as of May 3, 2022, consisting of 286 trucks and 2,136 buses, representing a combined total order value of approximately $600 million based on management's estimates.
- LionEnergy order book2 of 241 charging stations and related services as of May 3, 2022, representing a combined total order value of approximately $3.0 million.
- 12 Experience Centers in operation in the United States and Canada.
- Tenant improvement work as well as the installation of critical production and other equipment advancing at the new leased 900,000 sq-ft U.S. manufacturing facility in Joliet, Illinois (the "Joliet Facility"). Vehicle production expected to begin in the second half of 2022.
- Construction and development work for the battery manufacturing plant is advancing, including the installation of the prototype module production line at JR Automation's facilities in Troy, Michigan, the production of the first prototype pack, and the completion of the steel structure for the battery plant building in Mirabel. Production of battery packs and modules is expected to begin in the second half of 2022.
- Several new key partnerships announced with truck upfitters to provide new fully electrified refrigerated, dry freight and aluminum stake body options for the Lion6 zero-emission urban truck. The new partnerships include equipment upfit options from industry leaders Morgan Truck Body, Thermo King, Knapheide and CM Truck Beds.
- Launch of a new lightweight, aerodynamic, 100% electric heavy-duty truck on the Lion6 chassis, together with Transit Truck Bodies that is suited for last-mile urban delivery, that was developed under an upfitter partnership model.
- As of May 3, 2022, Lion had approximately 1,100 employees, of which over 300 were in its Engineering and R&D departments.
"We are pleased with our Q1 performance. Despite the ongoing challenges in the supply chain environment, we continued to experience improvements and achieved a record number of quarterly vehicle deliveries. We also sustained momentum in vehicle manufacturing and we expect that cadence of production, and therefore of deliveries, should gradually improve over the rest of the coming year," commented Marc Bedard, CEO – Founder of Lion. "As we celebrate our first year as a public company, we continue to build the foundations of our long-term growth and are excited to see that the movement towards electrification of transports continues to gain strong momentum, as demonstrated by unprecedented government funding packages announced in the U.S. and Canada over the past few months," concluded Marc Bedard.
Revenue
For the three months ended March 31, 2022, revenue amounted to $22.6 million, an increase of $16.4 million compared to three months ended March 31, 2021. The increase in revenue was primarily due to an increase in vehicle sales volume of 60 units, from 24 units (18 school buses and 6 trucks; 22 vehicles in Canada and 2 vehicles in the U.S.) for the three months ended March 31, 2021, to 84 units (72 school buses and 12 trucks; 80 vehicles in Canada and 4 vehicles in the U.S.) for the three months ended March 31, 2022. Revenues for the three months ended March 31, 2022 were impacted by continuing global supply chain challenges, which required the Company to delay the final assembly of certain vehicles and resulted in increased inventory levels. In addition, the school bus unit mix for the three months ended March 31, 2022, as well as discounted pricing on certain trucks that were sold in the context of new product launches, had a negative impact on average selling prices per unit. Revenues generated from sales of LionEnergy and aftermarket parts during the three months ended March 31, 2022 were also slightly lower than during the three months ended December 31, 2021.
Cost of Sales
For the three months ended March 31, 2022, cost of sales amounted to $23.6 million, representing an increase of $15.5 million, compared to the three months ended March 31, 2021. The increase was primarily due to increased sales volumes and higher production levels, increased fixed manufacturing costs related to the ramp-up of production capacity for future quarters, and the impact of continuing global supply chain challenges.
Gross Loss
For the three months ended March 31, 2022, gross loss decreased by $0.9 million to negative $0.9 million, compared to negative $1.8 million for the three months ended March 31, 2021. The decrease included the positive gross profit impact of increased sales volumes, mainly offset by the impact of increased fixed manufacturing costs related to the ramp-up of production capacity for future quarters and the impact of continuing global supply chain challenges.
Administrative Expenses
For the three months ended March 31, 2022, administrative expenses (which included $2.8 million of non-cash share-based compensation) increased by $4.7 million from $6.3 million for the three months ended March 31, 2021, to $11.0 million. The increase was mainly due to an increase in expenses reflecting Lion's status as a public company, and the expansion of Lion's head office capabilities in anticipation of an expected increase in business activities. Administrative expenses for the three months ended March 31, 2022, also includes an expense of $0.9 million relating to the procurement of director and officer ("D&O") insurance on terms reflecting the public-company status of Lion, which is materially higher than the expense incurred in prior periods when the Company was a private company.
Selling Expenses
For the three months ended March 31, 2022, selling expenses (which included $1.0 million of non-cash share-based compensation) increased by $1.0 million, from $4.4 million for the three months ended March 31, 2021, to $5.4 million. The increase was primarily due to Lion expanding its sales force in anticipation of the ramp-up of production capacity, and an increase in expenses as a result of the opening and operations of new Experience Centers.
Finance Costs
For the three months ended March 31, 2022, finance costs decreased by $2.7 million, from $3.9 million for the three months ended March 31, 2021, to $1.2 million. The decrease was driven primarily by lower interest expense on long term debts, the non-recurrence of interest expense on convertible debt instruments and accretion expense on retractable common shares which were repaid on May 6, 2021, partially offset by an increase in interest costs related to lease liabilities.
Foreign Exchange Loss (Gain)
Foreign exchange gains and losses relate primarily to the revaluation of net monetary assets denominated in foreign currencies to the functional currencies of the related Lion entities. Foreign exchange loss for the three months ended March 31, 2022, was $0.9 million compared to a gain of $0.2 million for the three months ended March 31, 2021, largely as a result of a strengthening of the Canadian dollar relative to the US dollar during the three months ended March 31, 2022, as compared to the three months ended March 31, 2021.
Change in fair value of share warrant obligations
Change in fair value of share warrant obligations resulted in a gain of $21.5 million for the three months ended March 31, 2022, compared to a gain of $0.1 million for the three months ended March 31, 2021, and was related to the warrants issued to a specified customer in July 2020 and the public and private warrants issued as part of the closing of the Business Combination on May 6, 2021. The gain for the three months ended March 31, 2022 results mainly from the decrease in the market price of Lion equity as compared to the previous valuations.
Net Earnings (Loss)
For the three months ended March 31, 2022, net earnings were $2.1 million, as compared to a net loss of $16.1 million for the three months ended March 31, 2021. The increase in net earnings (loss) for the three months ended March 31, 2022 compared to the three months ended March 31, 2021 was largely due to the gain related to the fair value of share warrant obligations, partially offset by higher administrative and selling expenses.
As of May 3, 2022, Lion had approximately 1,100 employees, of which over 300 were in its Engineering and R&D departments.
A conference call and webcast will be held on May 4, 2022, at 8:30 a.m. (Eastern Time) to discuss the results.
To participate in the conference call, dial (226) 828-7575 or (833) 950-0062 (toll free). An investor presentation and a live webcast of the conference call will also be available at www.thelionelectric.com under the "Events and Presentations" page of the "Investors" section. An archive of the event will be available for a period of time shortly after the conference call.
This release should be read together with our 2022 first quarter financial report, including the unaudited condensed interim consolidated financial statements of the Company as at and for the quarter ended March 31, 2022 and related management's discussion and analysis ("MD&A"), which will be filed by the Company with applicable Canadian securities regulatory authorities and with the U.S. Securities and Exchange Commission and which will be available on our website at www.thelionelectric.com.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As at March 31, 2022 and December 31, 2021
(Unaudited)
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) AND COMPREHENSIVE EARNINGS (LOSS)
For the three months ended March 31, 2022 and 2021
(Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended March 31, 2022 and 2021
(Unaudited)
This press release makes reference to Adjusted EBITDA, which is a non-IFRS financial measure, as well as other performance metrics, including the Company's order book, which are defined below. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS.
"Adjusted EBITDA" is defined as net earnings (loss) before finance costs, income tax expense or benefit, and depreciation and amortization, adjusted for share-based compensation, changes in fair value of share warrant obligations, foreign exchange (gain) loss and transaction and other non-recurring expenses. Adjusted EBITDA is intended as a supplemental measure of performance that is neither required by, nor presented in accordance with, IFRS. Lion believes that the use of Adjusted EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing Lion's financial measures with those of comparable companies, which may present similar non-IFRS financial measures to investors. However, readers should be aware that when evaluating Adjusted EBITDA, Lion may incur future expenses similar to those excluded when calculating Adjusted EBITDA. In addition, Lion's presentation of these measures should not be construed as an inference that Lion's future results will be unaffected by unusual or non-recurring items. Lion's computation of Adjusted EBITDA may not be comparable to other similarly entitled measures computed by other companies, because all companies may not calculate Adjusted EBITDA in the same fashion. Readers should review the reconciliation of net earnings (loss), the most directly comparable IFRS financial measure, to Adjusted EBITDA presented by the Company under section 13.0 of the Company's MD&A for the three months ended March 31, 2022 entitled "Results of Operations - Reconciliation of Adjusted EBITDA."
This press release also makes reference to the Company's "order book" with respect to vehicles and charging stations. The Company's order book, expressed as a number of units or the amount of sales expected to be recognized in the future in respect of such number of units, is determined by management based on purchase orders that have been signed, orders that have been formally confirmed by clients or products in respect of which formal joint applications for governmental subsidies or economic incentives have been made by the applicable clients and the Company. The Company's order book refers to products that have not yet been delivered but which are reasonably expected by management to be delivered within a time period that can be reasonably established and includes, in the case of charging stations, services that have not been completed but which are reasonably expected by management to be completed in connection with the delivery of the product. When the Company's order book is expressed as an amount of sales, such amount has been determined by management based on the current specifications or requirements of the applicable order, assumes no changes to such specifications or requirements and, in cases where the pricing of a product or service may vary in the future, represents management's reasonable estimate of the prospective pricing as of the time such estimate is reported. The order book is intended as a supplemental measure of performance that is neither required by, nor presented in accordance with, IFRS or any other applicable securities legislation, and is neither disclosed in nor derived from the financial statements of the Company. Lion believes that the disclosure of its order book provides an additional tool for investors to use in evaluating the Company's performance and trends. Lion's computation of its order book may not be comparable to other similarly entitled measures computed by other companies, because all companies may not calculate their order book, order backlog, or order intake in the same fashion. In addition, Lion's presentation of such measure should not be construed as a representation by Lion that all of the vehicles and charging stations included in its order book will translate into actual sales. A portion of the vehicles or charging stations included in the Company's order book may be cancellable in certain circumstances within a certain period. In addition, the conversion of the Company's order book into actual deliveries and sales is subject to a number of risks. For instance, a customer may default on a purchase order that has become binding, and the Company may not be able to convert orders included in its order books into sales. The conversion of the Company's order book into actual deliveries and sales may also be impacted by changes in government subsidies and economic incentives. For example, the conditional purchase order from Student Transportation of Canada ("STC"), a subsidiary of Student Transportation of America ("STA"), announced in October 2021 for 1,000 all-electric LionC school buses, which would represent the Company's largest single purchase order to date, is dependent upon the satisfactory grant of non-repayable contributions to STC under Infrastructure Canada's Zero-Emission Transit Fund ("ZETF"), in respect of which the formal application filed by STC constitutes the first application made by a customer of Lion under the ZETF program. As a result, the Company's realization of its order book could be affected by variables beyond its control and may not be entirely realized. See section 3.0 of the Company's MD&A for the three months ended March 31, 2022 entitled "Caution Regarding Forward-Looking Statements" and section 10.0 of the Company's MD&A for the three months ended March 31, 2022 entitled "Order Book."
Because of these limitations, Adjusted EBITDA and order book should not be considered in isolation or as a substitute for performance measures calculated in accordance with IFRS. Lion compensates for these limitations by relying primarily on Lion's IFRS results and using Adjusted EBITDA and order book on a supplemental basis. Readers should not rely on any single financial measure to evaluate Lion's business.
The following table reconciles net earnings (loss) to Adjusted EBITDA for the three months ended March 31, 2022 and 2021:
Lion will be holding its 2022 Annual Meeting of Shareholders (the "Meeting") as a completely virtual meeting via live webcast on May 6, 2022, at 11:00 a.m. (Eastern Time). The decision to hold a virtual meeting only was made in an effort to contain the spread of the coronavirus (COVID-19) and to prioritize and support the well-being of Lion's shareholders, employees and other Meeting attendees.
All shareholders, regardless of their geographic location, will have an equal opportunity to participate at the virtual Meeting at https://web.lumiagm.com/442208210. To access the online Meeting platform, participants will need an Internet-connected device, such as laptops, computers, tablets or cellphones.
The Company's management information circular and notice of annual meeting of shareholders relating to the Meeting are available on Lion's website at www.thelionelectric.com under the "Events and Presentations" page of the "Investors" section, and have been filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov.
Lion Electric is an innovative manufacturer of zero-emission vehicles. The company creates, designs and manufactures all-electric class 5 to class 8 commercial urban trucks and all-electric buses and minibuses for the school, paratransit and mass transit segments. Lion is a North American leader in electric transportation and designs, builds and assembles many of its vehicles' components, including chassis, battery packs, truck cabins and bus bodies.
Always actively seeking new and reliable technologies, Lion vehicles have unique features that are specifically adapted to its users and their everyday needs. Lion believes that transitioning to all-electric vehicles will lead to major improvements in our society, environment and overall quality of life. Lion shares are traded on the New York Stock Exchange and the Toronto Stock Exchange under the symbol LEV.
This press release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable securities laws. Any statements contained in this press release that are not statements of historical fact, including statements about Lion's beliefs and expectations, are forward-looking statements and should be evaluated as such.
Forward-looking statements may be identified by the use of words such as "believe," "may," "will," "continue," "anticipate," "intend," "expect," "should," "would," "could," "plan," "project," "potential," "seem," "seek," "future," "target" or other similar expressions and any other statements that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. These forward-looking statements include statements regarding the Company's order book and the Company's ability to convert it into actual sales, the Company's long-term strategy and future growth, the Company's battery plant and innovation center project in Quebec and its U.S. manufacturing facility, and the expected launch of new models of electric vehicles. Such forward-looking statements are based on a number of estimates and assumptions that Lion believes are reasonable when made, including that Lion will be able to retain and hire key personnel and maintain relationships with customers, suppliers and other business partners, that Lion will continue to operate its business in the normal course, that Lion will be able to implement its growth strategy, that Lion will be able to successfully and timely complete the construction of its U.S. manufacturing facility and its Quebec battery plant and innovation center, that Lion will not suffer any further supply chain challenges or any material disruption in the supply of raw materials on competitive terms, that Lion will be able to maintain its competitive position, that Lion will continue to improve its operational, financial and other internal controls and systems to manage its growth and size, that its results of operations and financial condition will not be adversely affected, that Lion will be able to benefit, either directly or indirectly (including through its clients), from government subsidies and economic incentives in the future and that Lion will be able to secure additional funding through equity or debt financing on terms acceptable to Lion when required in the future. Such estimates and assumptions are made by Lion in light of the experience of management and their perception of historical trends, current conditions and expected future developments, as well as other factors believed to be appropriate and reasonable in the circumstances. However, there can be no assurance that such estimates and assumptions will prove to be correct.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Lion believes that these risks and uncertainties include the following: any adverse changes in U.S. or Canadian general economic, business, market, financial, political or legal conditions, including as consequences of the global COVID-19 pandemic and the emergence of COVID-19 variants, as well as varying vaccination rates amongst different countries; any adverse effects of the Russia-Ukraine war, which is increasingly affecting economic and global financial markets and exacerbating ongoing economic challenges, including issues such as rising inflation and global supply-chain disruption; any inability to successfully and economically manufacture and distribute its vehicles at scale and meet its customers' business needs; any inability to ramp-up the production of Lion's products and meet project construction and other project timelines; any inability to reduce total cost of ownership of electric vehicles sold by Lion over time; the reliance on key management and any inability to attract and/or retain key personnel; any inability to execute the Company's growth strategy; any unfavorable fluctuations and volatility in the price and availability of raw materials included in key components used to manufacture Lion's products; the reliance on key suppliers and any inability to maintain an uninterrupted supply of raw materials; labor shortages which may in the form of employee turnover, departures, and demands for higher wages which result in the Company having to operate at reduced capacity, lower production and deliveries, delayed growth plans, and could pose additional challenges related to employee compensation; any inability by Lion to meet user expectations related to, or other difficulties in providing, charging solutions to its customers; any inability to maintain the Company's competitive position; any inability to reduce its costs of supply over time; any inability to maintain and enhance the Company's reputation and brand; any significant product repair and/or replacement due to product warranty claims or product recalls; any failure of information technology systems or any cybersecurity and data privacy breaches or incidents; any event or circumstance resulting in the Company's inability to convert its order book into actual sales, including the reduction, elimination or discriminatory application of government subsidies and economic incentives or the reduced need for such subsidies; any inability to secure adequate insurance coverage or a potential increase in insurance costs; natural disasters, epidemic or pandemic outbreaks, boycotts and geo-political events such as civil unrest and acts of terrorism, the current military conflict between Russia and Ukraine or similar disruptions; and the outcome of any legal proceedings that may be instituted against the Company from time to time.
These and other risks and uncertainties related to the businesses of Lion are described in greater detail in section 23.0 entitled "Risk Factors" of the Company's annual MD&A for the fiscal year 2021. Many of these risks are beyond Lion's management's ability to control or predict. All forward-looking statements included in this press release are expressly qualified in their entirety by the cautionary statements contained herein and the risk factors included in the Company's annual MD&A for the fiscal year 2021 and in other documents filed with the applicable Canadian regulatory securities authorities and the Securities and Exchange Commission.
Because of these risks, uncertainties and assumptions, readers should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the date they are made. Except as required under applicable securities laws, Lion undertakes no obligation, and expressly disclaims any duty, to update, revise or review any forward-looking information, whether as a result of new information, future events or otherwise.
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SOURCE Lion Electric | https://www.whsv.com/prnewswire/2022/05/03/lion-electric-announces-first-quarter-2022-results/ | 2022-05-03T21:25:20Z |
Published: May. 3, 2022 at 4:05 PM EDT|Updated: 1 hour ago
PHILADELPHIA, May 3, 2022 /PRNewswire/ --
-- Strong First Quarter Performance with Adjusted EBITDA Almost Double Q4 2021 -- -- Significantly Raises Full Year Guidance with 2022 Adjusted EBITDA Almost 5x 2021 -- -- Announces Multiple Additional Carbonate and Hydroxide Capacity Expansions -- -- Provides Details on Agreement to Double Ownership Stake in Nemaska to 50% --
Livent Corporation (NYSE: LTHM) today reported results for the first quarter of 2022.
Revenue was $143.5 million, up 17% from the fourth quarter of 2021 and 56% higher compared to the prior year. Reported GAAP net income was $53.2 million, 609% higher than the previous quarter, and 28 cents per diluted share. Adjusted EBITDA was $53.3 million, 94% higher than the previous quarter, and adjusted earnings per share were 21 cents per diluted share. Further improvement in lithium market conditions and strong customer demand in the first quarter supported higher realized prices than anticipated at the beginning of the year.
"Strong lithium demand growth has continued in 2022," said Paul Graves, president and chief executive officer of Livent. "Published lithium prices in all forms have increased rapidly amid very tight market conditions and Livent continues to achieve higher realized prices across its entire product portfolio."
Capacity Expansion Update
Livent remains on schedule to deliver all previously announced capacity expansions. The Company has also announced significant additional capacity expansions for both lithium carbonate and lithium hydroxide, as Livent continues to grow its production to meet future demand from its customers.
Lithium Carbonate
In its first expansion in Argentina, Livent is on track to add 10,000 metric tons of lithium carbonate capacity by the first quarter of 2023. Another 10,000 metric tons of lithium carbonate capacity is expected to be added in Argentina by the end of 2023, which will nearly double Livent's total available LCEs (1) from 2021 levels.
The Company also announced last quarter that it began engineering work on a second capacity expansion in Argentina. Following completion of a preliminary analysis, this expansion is now expected to add an additional 30,000 metric tons of lithium carbonate capacity by the end of 2025, or 10,000 metric tons more than previously announced. By re-engineering the use of fresh water, the second expansion will not require access to any additional fresh water. It also allows Livent to improve overall lithium yields and reduce water use intensity for current and future operations.
Livent has also begun evaluating a third expansion in Argentina that would add up to 30,000 metric tons of additional lithium carbonate capacity. This expansion would deploy a more conventional pond evaporation-based process and require significantly less capital versus prior expansions. Following the third expansion, Livent believes it can reach total capacity at its operations in Argentina of 100,000 metric tons by the end of 2030.
Lithium Hydroxide
The Company announces that it expects to add another 15,000 metric tons of lithium hydroxide capacity at a new location in China by the end of 2023. Additionally, Livent is evaluating building a new facility in either North America or Europe that would process lithium material from battery recycling processes into lithium hydroxide. The Company is exploring multiple opportunities for partnership and funding and believes the new facility could be in operation by the end of 2025, with production capacity of at least 10,000 metric tons.
Livent is also nearing completion of its 5,000 metric tons expansion of lithium hydroxide capacity in Bessemer City that will start commercial production in the second half of this year.
Following these expansions, Livent expects to have total lithium hydroxide capacity of at least 55,000 metric tons by the end of 2025 (excluding Nemaska), more than double its existing hydroxide capacity of 25,000 metric tons.
Nemaska
Yesterday, Livent announced that it has agreed to double its ownership interest in Nemaska Lithium Inc. ("Nemaska") to 50% by issuing 17,500,000 shares of Livent common stock. Nemaska is a fully integrated lithium hydroxide development project with 34,000 metric tons of nameplate capacity located in Québec, Canada. The closing of the transaction is subject to customary conditions, including, among other things, the expiration of certain notice periods required by applicable law. For more information regarding the transaction, please refer to the press release issued yesterday that can be found on livent.com.
Guidance and Outlook (2)
Livent has significantly increased its guidance for 2022 financial performance. With no projected change in volumes, this is driven by higher expected realized prices across all lithium products. For the full year, Livent now projects revenue to be in the range of $755 million to $835 million and Adjusted EBITDA to be in the range of $290 million to $350 million.
Supplemental Information
In this press release, Livent uses the financial measures Adjusted EBITDA and adjusted earnings per diluted share. These terms are not calculated in accordance with generally accepted accounting principles (GAAP). Definitions of these terms, as well as a reconciliation to the most directly comparable financial measure calculated and presented in accordance with GAAP, are provided on our website: ir.livent.com. Such reconciliations are also set forth in the financial tables that accompany this press release.
About Livent
For nearly eight decades, Livent has partnered with its customers to safely and sustainably use lithium to power the world. Livent is one of only a small number of companies with the capability, reputation, and know-how to produce high-quality finished lithium compounds that are helping meet the growing demand for lithium. The Company has one of the broadest product portfolios in the industry, powering demand for green energy, modern mobility, the mobile economy, and specialized innovations, including light alloys and lubricants. Livent has a combined workforce of approximately 1,100 full-time, part-time, temporary, and contract employees and operates manufacturing sites in the United States, England, India, China and Argentina. For more information, visit Livent.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this news release are forward-looking statements. In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "will continue to," "will likely result," "is on track," "should," "expect," "expects," "intends," "plans," "anticipates," "believe," "believes," "estimates," "predicts," "potential," "continue," "could," "forecast," "future," "is confident that," "plans," or "projects," the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about Livent, may include projections of Livent's future financial performance, Livent's anticipated growth strategies and anticipated trends in Livent's business, including without limitation, our capital expansion plans and development of the Nemaska project. These statements are only predictions based on Livent's current expectations and projections about future events. There are important factors that could cause Livent's actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Currently, one of the most significant factors is the continuing effects of the COVID-19 global pandemic. Additional factors that could cause Livent's actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements include a decline in the growth in demand for electric vehicles using high performance lithium compounds; increased supply chain disruptions in the electric vehicle manufacturing industry; volatility in the price for performance lithium compounds (as the principal driver of our higher guidance range is higher expected realized pricing); adverse global economic and weather conditions; competition; quarterly and annual fluctuations of our operating results; risks relating to Livent's planned production expansion and related capital expenditures, including any further suspension of our expansion efforts; the potential development and adoption of battery technologies that do not rely on performance lithium compounds as an input or that require a lesser amount of performance lithium compounds; liquidity and access to credit; the conditional conversion feature of the 2025 Notes; reduced customer demand, or delays in growth of customer demand, for higher performance lithium compounds; the success of Livent's research and development efforts; difficulty integrating future acquisitions; risks inherent in international operations and sales, including political, financial and operational risks specific to Argentina, China and other countries where Livent has active operations; the effects of war, such as the conflict in Ukraine; customer concentration and the delay or loss of, or significant reduction in orders from, large customers; failure to satisfy customer quality standards; increases in the price of energy and raw materials or broader global inflationary pressures; employee attraction and retention; union relations; cybersecurity breaches; our ability to protect our intellectual property rights; not having established proven or probable mineral reserves, as defined by the SEC; legal and regulatory proceedings; including any shareholder lawsuits; compliance with environmental, health and safety laws; changes in tax laws; risks related to ownership of our common stock, including price fluctuations and lack of dividends; ESG risks, including events outside our control that could prevent us from achieving our sustainability goals; as well as the other factors described under the caption entitled "Risk Factors" in Livent's 2021 Form 10-K filed with the Securities and Exchange Commission on February 28, 2022 and our subsequent Forms 10-Q filed with the Securities and Exchange Commission. Although Livent believes the expectations reflected in the forward-looking statements are reasonable, Livent cannot guarantee future results, level of activity, performance or achievements. Moreover, neither Livent nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Livent is under no duty to update any of these forward-looking statements after the date of this news release to conform its prior statements to actual results or revised expectations.
Lithium Carbonate Equivalents.
Although we provide a forecast for Adjusted EBITDA, we are not able to forecast the most directly comparable measure calculated and presented in accordance with GAAP. Certain elements of the composition of the GAAP amount are not predictable, making it impractical for us to forecast such GAAP measure or to reconcile corresponding non-GAAP financial measure to such GAAP measure without unreasonable efforts. For the same reason, we are unable to address the probable significance of the unavailable information. Such elements include, but are not limited to, restructuring, transaction related charges, and related cash activity. As a result, no GAAP outlook is provided for these metrics.
The above press release was provided courtesy of PRNewswire. The views, opinions and statements in the press release are not endorsed by Gray Media Group nor do they necessarily state or reflect those of Gray Media Group, Inc. | https://www.whsv.com/prnewswire/2022/05/03/livent-releases-first-quarter-2022-results/ | 2022-05-03T21:25:26Z |
The two science-backed brands are teaming up to bring consumers next-level results from their haircare routines
NEW YORK, May 3, 2022 /PRNewswire/ -- Living Proof, Inc, the high-performance, science-backed haircare company, has teamed up with P2 Science, an equally high-performance green chemistry ingredient company. Both rooted in academia and leading with innovation-first approaches, the duo has announced the establishment of a long-term strategic partnership.
Partnering was natural for both companies as they both come from rich academic backgrounds. Living Proof's origin story begins in 2005, when an unlikely combination of biotech scientists from MIT (Massachusetts Institute of Technology) and renowned hair stylists came together to create inventive technologies designed to solve real-world hair problems. P2 Science started in 2009 at the Center for Green Chemistry and Green Engineering at Yale University, with the vision to make green chemistry synonymous with performance by designing, developing, and bringing sustainable chemistry to leading value creators and innovators in their markets.
Today, both brands prioritize not just leading with science, but doing so with a forward-minded approach. "When we met with Living Proof who was seeking this sort of next level performance and with a holistic approach to ingredient incorporation, there was an obvious synergy there to make high purity, beautiful materials with innovative and elegant chemistry," says Dr. Patrick Foley, P2 Science's Founder and Chief Innovation Officer.
Similarly, Living Proof's mission is 'Science in Action'—meaning the brand is committed to remaining at the forefront of scientific discovery and improving existing technologies for best-in-class products with real-world results that you can see and feel.
"Living Proof is proud to partner with P2 Science," says Ron McLaughlin, Senior VP of R&D at Living Proof. "We will be collaborating with P2 Science to further leverage their technologies and outside-in approach to cosmetic chemistry in the coming months. We expect that the partnership will enable us to continue to lead the haircare industry with science-backed solutions that deliver proven performance."
"We're thrilled to be partnering with Living Proof," says Neil Burns, CEO of P2 Science. "Both companies value honoring the beauty of natural chemistry. We're looking forward to utilizing Living Proof's deep and unique knowledge of the high-performance haircare space to further grow our footprint."
Living Proof plans to introduce new products in early 2023 based on formulation technology engineered through the partnership with P2 Science.
About Living Proof
In 2005, an unlikely combination of biotech scientists and renowned hair stylists came together to pioneer a first-of-its-kind haircare philosophy based in science. Our mission was to create inventive solutions designed to solve real-world hair problems, not conceal them. 120 global patents, 450+ formulas, 44 products, 100+ awards, and 16 years later, we continue to put research at the forefront of our formulations. Today, Living Proof is Science in Action, utilizing in-house scientific discovery and invention to develop the latest innovations in haircare that deliver game-changing results for all hair types and textures. For more information, visit livingproof.com.
About P2 Science
P2 Science is a green chemistry company, co-founded by Professor Paul Anastas, head of the Yale Center for Green Chemistry and Green Engineering and Dr. Patrick Foley. P2 has developed and patented technologies for converting renewable feedstocks into high-value specialty products. Investors in P2 include BASF Venture Capital, Xeraya Capital, Elm Street Ventures, Connecticut Innovations, Ironwood Capital, HG Ventures, and Chanel. The company started up its first manufacturing plant in September of 2018 which produces novel renewable aroma chemicals and cosmetic ingredients. For more information, visit p2science.com.
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- Innovative new products will give customers fast and frictionless access to financing during all of life's critical moments
- Rising interest rates and high inflation make home equity lines of credit a smart source of capital for many homeowners
- Consumers will apply and get approved online in a matter of minutes and gain access to funds in as little as seven days
- Company's unrivaled mix of assets—including sophisticated top-of-funnel marketing engine, nearly 3,000 licensed loan officers, proprietary tech stack and national brand—position mello to efficiently fulfill customer demand
FOOTHILL RANCH, Calif., May 3, 2022 /PRNewswire/ -- loanDepot, Inc. ("LDI" or "Company") (NYSE: LDI), today announced its mello business unit will launch a series of innovative, digital-first, secured and unsecured lending products designed to help consumers easily and conveniently access their funds in as little as seven days. First out of the gate will be the game-changing mello HELOC, due to launch in the third quarter of 2022.
Double digit home value appreciation over the last two years has resulted in homeowners across the country gaining new wealth through record levels of home equity. According to the Federal Reserve, homeowners have amassed more than $26 trillion[1] in home equity that could be deployed to address a variety of financial needs. At the same time, rising interest rates coupled with high inflation make home equity lines of credit a smart and convenient way for consumers to leverage their equity. The all-digital mello HELOC will let customers tap into their most valuable asset with a speed and ease not currently available through standard HELOC products offered by traditional banks or lenders.
"Home equity is at an all-time high and many homeowners would benefit greatly from an easier and faster way to access that capital," said loanDepot, Inc. President and CEO Frank Martell. "At the same time, loanDepot's unrivaled mix of assets—including our diverse customer engagement channels, sophisticated performance marketing engine, nearly 3,000 licensed loan officers, proprietary tech stack and national brand—puts us in an outstanding position to help them. We will leverage the strength of our brand and our powerful top-of-funnel marketing prowess, with millions of annual top-of-funnel consumer leads and more than 1 million outbound customer calls per day, to efficiently fulfill it.
"Homeowners have certainly enjoyed the record-low interest rates of the last two years," continued Martell. "Now with our game-changing mello HELOC, we can give them a safe, fast and easy way to access their equity while preserving historically low interest rates. This is the financial tool America's homeowners need and we are the company that can deliver it."
The hallmarks of the mello HELOC will be digital simplicity and speed, with a timeframe from application to funding in as little as seven days. Consumers will get a no-hassle, online rate quote in less than five minutes and can pre-qualify with no adverse impact to their credit scores. The fully online application will make it fast and easy to get started. From there, sophisticated digital tools and automated processes will reduce the friction associated with a traditionally inefficient, paper-based loan approval and funding process. Customers will be able to manage their entire loan process online but will also have access to talented, licensed loan officers to guide them through the process if they so choose.
"mello is a Greek word meaning 'about to be,' which represents our innovation mindset," said mello President and COO Zeenat Sidi. "Our brand is about accelerating around the curve with fast, frictionless and fully digital customer experiences that deliver speed, ease and value from start to finish. Today's consumers are facing a trifecta of economic pressures: rising interest rates, high inflation and economic uncertainty. Whether they're consolidating their debt to lower their monthly payments, swapping higher-interest credit card debt for a lower interest rate, or embarking on a renovation to improve their quality of life, the mello HELOC will offer an easy, convenient and smart way for consumers to make their home equity work harder for them."
The mello HELOC further expands LDI's diversified origination model and underscores the Company's commitment and ability to design products that fit consumer demands and trends. While the loanDepot business unit will continue to focus on its industry-leading first-lien mortgage products, the mello business unit will focus on developing mortgage-adjacent lending products and services that deliver a fast, easy and seamless way for customers to fulfill a variety of financial needs.
About loanDepot, Inc.
loanDepot, Inc. (NYSE: LDI) is a digital commerce company committed to serving its customers throughout the home ownership journey. Since its launch in 2010, loanDepot has revolutionized the mortgage industry with a digital-first approach that makes it easier, faster, and less stressful to purchase or refinance a home. Today, as the nation's second largest retail mortgage lender, loanDepot enables customers to achieve the American dream of homeownership through a broad suite of lending and real estate services that simplify one of life's most complex transactions. With headquarters in Southern California and offices nationwide, loanDepot is committed to serving the communities in which its team lives and works through a variety of local, regional, and national philanthropic efforts.
Forward-Looking Statements
This press release may contain "forward-looking statements," which reflect loanDepot's current views with respect to, among other things, its operations and financial performance. You can identify these statements by the use of words such as "outlook," "potential," "continue," "may," "seek," "approximately," "predict," "believe," "expect," "plan," "intend," "estimate" or "anticipate" and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as "will," "should," "would" and "could." These forward-looking statements are based on current available operating, financial, economic and other information, and are not guarantees of future performance and are subject to risks, uncertainties and assumptions, including the risks in the "Risk Factors" section of loanDepot, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2021, which are difficult to predict. Therefore, current plans, anticipated actions, including, but not limited to, the launch date, timeframes and anticipated benefits of mello HELOC, financial results, as well as the anticipated development of the industry, may differ materially from what is expressed or forecasted in any forward-looking statement. loanDepot does not undertake any obligation to publicly update or revise any forward-looking statement to reflect future events or circumstances, except as required by applicable law.
Investor Relations Contact:
Gerhard Erdelji
Senior Vice President, Investor Relations
(949) 822-4074
gerdelji@loandepot.com
Media Contact:
Rebecca Anderson
Senior Vice President, Communications & Public Relations
(949) 822-4024
rebeccaanderson@loandepot.com
LDI-IR
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- Revenue of $104.1 million was down 5.7% sequentially and down 15.4% year-over-year (YoY). The decrease was mainly due to a 29.3% sequential decline in Display solutions revenue as a result of continued severe supply shortage of 28nm 12" OLED wafers, partially offset by record revenue in our Power solutions business, which was up 11.4% sequentially and 20.0% YoY on strong demand in premium products.
- Gross profit margin was 37.5%, up 250 basis points from Q4 and up over 960 basis points from Q1 a year ago. The YoY increase was primarily attributable to an improved product mix, combined with an increase in average selling price under a favorable pricing environment. Sequentially, Q1 benefited by approximately 200 basis points from the timing mismatch of lower cost 12" wafers purchased in a prior period and sold in Q1.
- GAAP diluted earnings per share (EPS) was $0.20.
- Non-GAAP diluted EPS was $0.28.
SEOUL, South Korea, May 3, 2022 /PRNewswire/ -- Magnachip Semiconductor Corporation (NYSE: MX) ("Magnachip" or the "Company") today announced financial results for the first quarter of 2022.
Commenting on the results for the first quarter of 2022, YJ Kim, Magnachip's chief executive officer stated, "In Q1, we reported revenue of $104.1 million and non-GAAP EPS of 28 cents, which was an increase of 27% year-over-year bolstered by a strong gross profit margin. As expected, OLED revenue remained severely impacted by the shortage of 28nm 12-inch wafer supply; however, this impact was somewhat offset by strength in our Power solutions business, which achieved yet another record quarterly revenue."
YJ Kim continued, "Looking forward, the ongoing lockdowns in China has added new challenges to an already stressed supply chain. Despite the current macro issues, which may limit our near-term growth, our recent design tractions with an existing OLED customer, broadening customer base, and new wafer capacity later this year give us confidence and optimism about our long-term growth."
Q2 2022 Financial Guidance
Our near-term outlook is still being challenged by persisting supply constraints, especially for 28nm 12" wafers. While actual results may vary, looking into the next quarter, Magnachip currently expects:
- Revenue to be in the range of $100 million to $105 million, including about $9.5 million of Transitional Fab 3 Foundry Services.
- Gross profit margin to be in the range of 33% to 35%.
Q1 2022 Earnings Conference Call
Magnachip will host a corresponding conference call at 2:00 p.m. PT / 5:00 p.m. ET on May 3, 2022 to discuss its financial results. The conference call will be webcast live and also is available by dialing toll-free at 1-844-536-5472 in US/Canada. International call-in participants can dial 1-614-999-9318. The conference ID number is 2619959. Participants are encouraged to initiate their calls at least 10 minutes in advance of the start time to ensure a timely connection. A live and archived webcast of the conference call and a copy of earnings release will be accessible from the 'Investors' section of the company's website at www.magnachip.com. A replay of the conference call will be available until 8:00 p.m. ET on May 10, 2022. The replay dial-in numbers are 1-404-537-3406 or toll-free at 1-855-859-2056. The conference ID number is 2619959.
Safe Harbor for Forward-Looking Statements
Information in this release regarding Magnachip's forecasts, business outlook, expectations and beliefs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include expectations about estimated historical or future operating results and financial performance, outlook and business plans, including second quarter 2022 revenue and gross profit margin expectations, and the impact of the COVID-19 pandemic or the emergence of various variants of the virus, escalated trade tensions and supply constraints on Magnachip's second quarter 2022 and future operating results. All forward-looking statements included in this release are based upon information available to Magnachip as of the date of this release, which may change, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to such differences include, among others: the impact of changes in macroeconomic and/or general economic conditions, including those caused by or related to the COVID-19 pandemic or the emergence of various variants of the virus and governmental lock-downs or other measures implemented in response thereto, other outbreaks of disease, the Russia-Ukraine crisis, recessions, economic instability or civil unrest; manufacturing capacity constraints or supply chain disruptions that may impact our ability to deliver our products or affect the price of components, which may lead to an increase in our costs, as well as impacting demand for our products from customers who are similarly affected by such capacity constraints or disruptions; the impact of competitive products and pricing; timely design acceptance by our customers; timely introduction of new products and technologies; ability to ramp new products into volume production; industry wide shifts in supply and demand for semiconductor products; industry and/or company overcapacity or supply constraints; effective and cost efficient utilization of manufacturing capacity; financial stability in foreign markets and the impact of foreign exchange rates; unanticipated costs and expenses or the inability to identify expenses which can be eliminated; compliance with U.S. and international trade and export laws and regulations by us, our customers and our distributors, including those related to the Russia-Ukraine crisis; change or ratification of local or international laws and regulations, including those related to environment, health and safety; public health issues, including the COVID-19 pandemic or the emergence of various variants of the virus; other business interruptions that could disrupt supply or delivery of, or demand for, Magnachip's products, including uncertainties regarding the impacts of the COVID-19 pandemic or the emergence of various variants of the virus that may result in factory closures, reduced workforces, scarcity of raw materials and goods produced in infected areas, as well as reduced consumer and business spending affecting demand for Magnachip's products due to government and private sector mandatory business closures, travel restrictions or the like to prevent the spread of disease; and other risks detailed from time to time in Magnachip's filings with the U.S. Securities and Exchange Commission (the "SEC"), including our Form 10-K filed on February 23, 2022 (including that the impact of the COVID-19 pandemic or the emergence of various variants of the virus, trade tensions and supply constraints may also exacerbate the risks discussed therein) and subsequent registration statements, amendments or other reports that we may file from time to time with the SEC and/or make available on our website. Magnachip assumes no obligation and does not intend to update the forward-looking statements provided, whether as a result of new information, future events or otherwise.
About Magnachip Semiconductor
Magnachip is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer, computing, industrial and automotive applications. The Company provides a broad range of standard products to customers worldwide. Magnachip, with more than 40 years of operating history, owns a portfolio of approximately 1,150 registered patents and pending applications, and has extensive engineering, design and manufacturing process expertise. For more information, please visit www.magnachip.com. Information on or accessible through Magnachip's website is not a part of, and is not incorporated into, this release.
CONTACTS:
Yujia Zhai
The Blueshirt Group
Tel. (860) 214-0809
Yujia@blueshirtgroup.com
We present Adjusted Operating Income as a supplemental measure of our performance. We define Adjusted Operating Income for the periods indicated as operating income (loss) adjusted to exclude (i) Equity-based compensation expense, (ii) Inventory reserve related to Huawei impact of downstream trade restrictions, (iii) Merger-related costs (income), net and (iv) Other charges, net.
For the three months ended December 31, 2021, we recorded in our consolidated statement of operations net gain of $49,369 thousand that represented income of $70,200 thousand from the recognition of a reverse termination fee, net of professional service fees and expenses of $20,831 thousand incurred in connection with the contemplated merger transaction of the Company that was terminated in December 2021. For the same period, we also recorded $1,419 thousand gain on sale of certain legacy equipment of the closed back-end line in our fabrication facility in Gumi (which was closed during the year ended December 31, 2018), partially offset by $70 thousand of non-recurring expenses incurred in connection with the regulatory requests.
For the three months ended March 31, 2021, we recorded $9,831 thousand non-recurring professional service fees and expenses incurred in connection with the contemplated merger transaction. For the same period, we also recorded $585 thousand non-recurring professional service fees and expenses incurred in connection with the regulatory requests.
We present Adjusted EBITDA and Adjusted Net Income as supplemental measures of our performance. We define Adjusted EBITDA for the periods indicated as EBITDA (as defined below), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net, (iv) Inventory reserve related to Huawei impact of downstream trade restrictions, (v) Merger-related costs (income), net and (vi) Other charges, net. EBITDA for the periods indicated is defined as net income (loss) before interest expense (income), net, income tax expense and depreciation and amortization.
We prepare Adjusted Net Income by adjusting net income (loss) to eliminate the impact of a number of non-cash expenses and other items that may be either one time or recurring that we do not consider to be indicative of our core ongoing operating performance. We believe that Adjusted Net Income is particularly useful because it reflects the impact of our asset base and capital structure on our operating performance. We define Adjusted Net Income for the periods as net income (loss), adjusted to exclude (i) Equity-based compensation expense, (ii) Foreign currency loss (gain), net, (iii) Derivative valuation loss (gain), net, (iv) Inventory reserve related to Huawei impact of downstream trade restrictions, (v) Merger-related costs (income), net, (vi) Other charges, net, (vii) GAAP and cash tax expense difference and (viii) Income tax effect on non-GAAP adjustments.
For the three months ended December 31, 2021, we recorded in our consolidated statement of operations net gain of $49,369 thousand that represented income of $70,200 thousand from the recognition of a reverse termination fee, net of professional service fees and expenses of $20,831 thousand incurred in connection with the contemplated merger transaction of the Company that was terminated in December 2021. For the same period, we also recorded $1,419 thousand gain on sale of certain legacy equipment of the closed back-end line in our fabrication facility in Gumi (which was closed during the year ended December 31, 2018), partially offset by $70 thousand of non-recurring expenses incurred in connection with the regulatory requests.
For the three months ended March 31, 2021, we recorded $9,831 thousand non-recurring professional service fees and expenses incurred in connection with the contemplated merger transaction. For the same period, we also recorded $585 thousand non-recurring professional service fees and expenses incurred in connection with the regulatory requests.
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SOURCE Magnachip Semiconductor Corporation | https://www.whsv.com/prnewswire/2022/05/03/magnachip-reports-results-first-quarter-2022/ | 2022-05-03T21:25:46Z |
HOUSTON, May 3, 2022 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that at its 2022 annual meeting of stockholders, it received approval from its stockholders to reduce its minimum asset coverage ratio to 150% from 200%. The change to Main Street's minimum asset coverage ratio is effective as of today. The reduction to Main Street's minimum asset coverage ratio is being made pursuant to Section 61(a)(2) of the Investment Company Act of 1940.
ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstcapital.com) is a principal investment firm that primarily provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies. Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides "one stop" financing alternatives within its lower middle market investment strategy. Main Street's lower middle market companies generally have annual revenues between $10 million and $150 million. Main Street's middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies.
Main Street, through its wholly owned portfolio company MSC Adviser I, LLC ("MSC Adviser"), also maintains an asset management business through which it manages investments for external parties. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940.
FORWARD-LOOKING STATEMENTS
This press release may contain certain forward-looking statements. Any such statements other than statements of historical fact are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under Main Street's control, and that Main Street may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual performance and results could vary materially from these estimates and projections of the future as a result of a number of factors, including those described from time to time in Main Street's filings with the Securities and Exchange Commission. Such statements speak only as of the time when made and are based on information available to Main Street as of the date hereof and are qualified in their entirety by this cautionary statement. Main Street assumes no obligation to revise or update any such statement now or in the future.
Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO, dhyzak@mainstcapital.com
Jesse E. Morris, CFO and COO, jmorris@mainstcapital.com
713-350-6000
Dennard Lascar Investor Relations
Ken Dennard | ken@dennardlascar.com
Zach Vaughan | zvaughan@dennardlascar.com
713-529-6600
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SOURCE Main Street Capital Corporation | https://www.whsv.com/prnewswire/2022/05/03/main-street-receives-stockholder-approval-reduce-asset-coverage-ratio-150/ | 2022-05-03T21:25:53Z |
NEW YORK, May 3, 2022 /PRNewswire/ -- Leading national accounting and advisory firms Marcum LLP ("Marcum") and Friedman LLP ("Friedman") today announced that they are in advanced discussions related to a proposed transaction in which Friedman will merge into Marcum, resulting in a national top-12 firm with approximately $1 billion in annual revenue and more than 3,400 associates.
The merger of Marcum (ranked No. 15 by Accounting Today) and Friedman (ranked No. 33) is anticipated to close in the summer of 2022. The transaction will combine two well-regarded national firms with a shared emphasis on superior service, outstanding talent, industry specialization, and a focus on meeting clients' needs in a rapidly evolving business landscape. The combination will:
- Deepen the firms' capabilities in key service areas, including public company audit and assurance, digital assets, cybersecurity, real estate, construction, and other advisory services. It will be one of the largest firms serving Chinese companies listed on the U.S. stock markets.
- Give Friedman clients access to expanded services, including strategic information technology consulting and wealth management.
- Combine the best of two employee-centric cultures with a continued commitment to diversity, equity and inclusion; learning and development; and work/life balance.
- Enable the Firm to enhance and scale investment in technology, talent, and innovation.
The combined firm will operate under the Marcum brand and continue to be headquartered in New York City, with offices throughout the continental United States, China, Ireland, and Grand Cayman.
"Marcum and Friedman share common roots in the New York area, extensive histories of exceptional client service, similar employee-oriented cultures, and a commitment to leading in emerging growth areas in our profession. We view this transaction as a very natural fit and are excited about our shared future together," said Jeffrey M. Weiner, chairman and chief executive officer of Marcum, who will maintain both leadership roles once the proposed transaction is completed.
"Friedman has experienced record growth, hiring, and revenues over the past two years, giving us a position of strength from which to consider our next strategic move. After extensive discussions, it became clear to us that combining our resources with Marcum would be in the best interests of our clients, partners, and employees," added Frederick R. Berk, co-managing partner of Friedman.
"Friedman has been fortunate during its history to grow through selective mergers, the addition and retention of great clients, and the thoughtful contributions of employees at every level of our firm. Joining with Marcum is the next logical step in that evolution. Our complementary practices and entrepreneurial mindsets form a powerful foundation for long-term strategic growth," said Harriet Greenberg, co-managing partner of Friedman.
About Marcum LLP
Marcum LLP is a top-ranked national accounting and advisory firm dedicated to helping entrepreneurial, middle-market companies and high net worth individuals achieve their goals. Marcum's industry-focused practices offer deep insight and specialized services to privately held and publicly registered companies, and nonprofit and social sector organizations. Through the Marcum Group, the Firm also provides a full complement of technology, wealth management, and executive search and staffing services. Headquartered in New York City, Marcum has offices in major business markets across the U.S. and select international locations. #AskMarcum. Visit www.marcumllp.com for more information about how Marcum can help.
About Friedman LLP
Friedman LLP has been serving the accounting, tax and business consulting needs of public and private companies since 1924. Our industry-focused practice features concentrated areas of expertise and a thorough understanding of the economic environment. We have the ability to be innovative in our approach, act quickly in our decision making and be flexible in our delivery of services. Our clients benefit from hands-on contact with our partners, cutting-edge technical expertise and our understanding of their industries and their businesses. As a mid-size firm, we combine the staff and resources of a large firm with a philosophy of personal responsibility for our clients. Friedman is headquartered in Manhattan and has locations throughout New Jersey and Long Island, as well as in Philadelphia, Los Angeles, Miami and China.
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DALLAS, May 3, 2022 /PRNewswire/ -- Match Group's Board of Directors (NASDAQ: MTCH) today announced that after 16 years in various roles across the organization, Shar Dubey will be resigning as an officer of Match Group, and Bernard Kim, the current President of Zynga, has been named Chief Executive Officer of the Company, effective May 31. Kim will assume day-to-day responsibilities for the organization and will be joining Match Group's Board of Directors. Dubey will continue to serve as a Director on Match Group's Board, and will serve as an advisor to the company, allowing her to focus on product strategy while playing an integral role in the transition.
Kim has served as President of Zynga from 2016, overseeing various functions including global marketing, user acquisition, revenue, consumer insights, data science, product management, mergers and acquisitions, and communications. Kim was instrumental in Zynga's explosive growth and was pivotal in the company's expansion to new markets such as blockchain and hyper-casual gaming, as well as new platforms like the Nintendo Switch, Snapchat, and smart home devices. This led to Zynga's record annual performance in 2021. Between 2016 and 2022, Kim helped quadruple Zynga's market cap, leading to its pending $12.7 billion acquisition by Take-Two, which was announced in January 2022. Prior to joining Zynga, Bernard spent nearly 10 years at Electronic Arts Inc. as the company's Senior Vice President of Mobile Publishing.
"Creative, dynamic executives that are able to lead an organization and promote a culture that produces innovative products, embraces new technologies, and attracts and retains the very best people are hard to find. We had it with Shar and it became apparent to us that Bernard's clear track record of success demonstrates the same unwavering commitment to people, products, and shareholder value," said Tom McInerney, Chairman of Match Group. "The Board is very grateful to Shar for her 16 years of outstanding service and accomplishments, and is at the same time fully energized by Bernard joining our very talented Match Group team and looks forward to continued future success."
"I'm honored to join Match Group's talented team at such a pivotal time, as the company continues to see powerful momentum, strong user engagement, and passionate employees who are driven to bring joy to millions of users from all walks of life," said Bernard Kim. "I have tremendous admiration for Shar Dubey's leadership and for Match Group's powerful mission to create meaningful connections for every single person worldwide today and in the future."
"I feel privileged that I am able to step down from a day-to-day operating role and have the time and headspace to focus on what is hopefully the 'give back' chapter of my life," said Shar Dubey. "As a Director and an advisor, I will have the flexibility to stay close to aspects of the business I love – product and strategy. I leave the company in great hands. With Bernard's energy, fresh thinking, and extensive mobile technology and consumer business experience, combined with the over 70 years of institutional knowledge and category experience of our brand CEOs and leaders at Match Group, I am ever so excited about this next phase of the company and the category."
The Board engaged a leading global search firm and conducted a robust and extensive search of a diverse slate of candidates for this process.
About Bernard Kim
As of May 31, 2022, Bernard Kim will be the Chief Executive Officer of Match Group. With over 20 years of leadership in the mobile, entertainment, and gaming industry, Bernard most recently served as Zynga's President.
At Zynga, Bernard oversaw how the company connected the world through games. He built and led a global team that was responsible for Zynga's global marketing, user acquisition, ad monetization, revenue, communications, consumer insights, data science, product management, business development, partnerships, mergers & acquisitions, and player network.
Bernard was instrumental in Zynga's turnaround and helped drive the company's player engagement and monetization strategies, which is the pinnacle of live services in mobile technology today. Bernard helped quadruple Zynga's market cap, navigating unprecedented market conditions while expanding to new platforms, markets, and audiences. Bernard led Zynga's groundbreaking acquisitions and was pivotal in the company's expansion to new markets such as blockchain gaming and hyper-casual, as well as new platforms like the Nintendo Switch, Snapchat and smart home devices. In 2020, he was honored as a 'Mobile Legend' at Pocket Gamer's Mobile Games Awards.
Prior to joining Zynga, Bernard spent nearly 10 years at Electronic Arts Inc. as the company's Senior Vice President of Mobile Publishing. In that role, he oversaw EA's mobile distribution, strategy, product management, analytics, network engagement, marketing, revenue demand planning, business development, third-party publishing, and mergers & acquisitions. During his tenure at EA, Bernard also led EA's games division in Asia and helped bring EA franchises to billions of players.
Before joining EA, Bernard served as Director of Sales and Channel Strategy at The Walt Disney Company, where he led sales and retail for Disney Mobile.
Bernard holds Bachelor of Arts degrees in both Economics and Communications from Boston College.
About Match Group
Match Group (NASDAQ: MTCH), through its portfolio companies, is a leading provider of digital technologies designed to help people make meaningful connections. Our global portfolio of brands includes Tinder®, Match®, Hinge®, Meetic®, OkCupid®, Pairs™, PlentyOfFish®, OurTime®, Azar®, Hakuna™ Live, and more, each built to increase our users' likelihood of connecting with others. Through our trusted brands, we provide tailored services to meet the varying preferences of our users. Our services are available in over 40 languages to our users all over the world.
Important Additional Information
This supplemental disclosure may be deemed to be solicitation material in respect of the solicitation of proxies from stockholders for the Match Group, Inc. 2022 Annual Meeting (the "2022 Annual Meeting"). Match Group has filed with the Securities and Exchange Commission (the "SEC") and made available to Match Group's stockholders of record on April 11, 2022 a Definitive Proxy Statement on Schedule 14A dated April 29, 2022 (the "Definitive Proxy Statement") containing important information about the matters to be considered by the Match Group's stockholders at its 2022 Annual Meeting. BEFORE MAKING ANY VOTING DECISION, MATCH GROUP, INC. STOCKHOLDERS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS AND SUPPLEMENTS THERETO) CAREFULLY AND IN ITS ENTIRETY, BECAUSE IT CONTAINS IMPORTANT INFORMATION ABOUT THE PROPOSALS REGARDING THE MATTERS TO BE CONSIDERED AT THE 2022 ANNUAL MEETING. Investors and stockholders can obtain a copy of the documents filed by Match Group with the SEC, including the Definitive Proxy Statement (and any amendments and supplements thereto), free of charge from the SEC's website, http://www.sec.gov or by directing a request by mail to Match Group at or from Match Group's investor relations website at http://ir.mtch.com.
Participants in the Solicitation
Match Group and its directors, nominees and executive officers may be deemed to be participants in the solicitation of proxies from Match Group's stockholders with respect to the matters to be considered at the 2022 Annual Meeting. Information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, are described in the Definitive Proxy Statement filed with the SEC on April 29, 2022 and other relevant materials to be filed with the SEC.
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DALLAS, May 3, 2022 /PRNewswire/ -- Match Group (NASDAQ: MTCH) posted its first quarter 2022 shareholder letter on the investor relations section of its website at https://ir.mtch.com. As announced previously, the Company will host a conference call tomorrow, Wednesday, May 4, 2022, at 8:30 a.m. Eastern Time (ET) to discuss the results. The live webcast and replay will be open to the public at https://ir.mtch.com.
About Match Group
Match Group (NASDAQ: MTCH), through its portfolio companies, is a leading provider of digital technologies designed to help people make meaningful connections. Our global portfolio of brands includes Tinder®, Match®, Hinge®, Meetic®, OkCupid®, Pairs™, PlentyOfFish®, OurTime®, Azar®, Hakuna Live™, and more, each built to increase our users' likelihood of connecting with others. Through our trusted brands, we provide tailored services to meet the varying preferences of our users. Our services are available in over 40 languages to our users all over the world.
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- 1Q22 EPS of $8.23
- 1Q22 Net Income and EBITDA of $339.2 million and $476.4 million, respectively
- Year-over-year increase in 1Q22 consolidated operating income driven primarily by China service strength
- Repurchased approximately 0.7 million shares in 1Q22
HONOLULU, May 3, 2022 /PRNewswire/ -- Matson, Inc. ("Matson" or the "Company") (NYSE: MATX), a leading U.S. carrier in the Pacific, today reported net income of $339.2 million, or $8.23 per diluted share, for the quarter ended March 31, 2022. Net income for the quarter ended March 31, 2021 was $87.2 million, or $1.99 per diluted share. Consolidated revenue for the first quarter 2022 was $1,165.5 million compared with $711.8 million for the first quarter 2021.
"Matson is off to a solid start in 2022 with higher year-over-year operating income in both Ocean Transportation and Logistics," said Chairman and Chief Executive Officer Matt Cox. "Within Ocean Transportation, our China service continued to see significant demand for its expedited ocean services as volume for e-commerce, garments and other goods remained elevated. The increase in consolidated operating income year-over-year was driven primarily by continued strength in the China service. Currently in the Transpacific tradelane, we are seeing supply chain challenges in China, primarily due to actions to mitigate the spread of COVID-19, as well as continued supply chain constraints and congestion on the U.S. West Coast, elevated consumption trends, and inventory restocking. Despite the near-term uncertainty presented by the supply chain challenges in China, we expect a combination of the current supply and demand factors to remain largely in place through at least the October peak season and continue to expect elevated demand for our China service for most of this year."
Mr. Cox added, "In our domestic ocean tradelanes, we continued to see steady demand with higher year-over-year volumes in Alaska and Guam, and demand in Hawaii comparable to the level achieved in the year ago period. In Logistics, operating income increased year-over-year with strength across all of the business lines as we continued to see elevated goods consumption, inventory restocking and favorable supply and demand fundamentals in our core markets."
First Quarter 2022 Discussion and Update on Business Conditions
Ocean Transportation: The Company's container volume in the Hawaii service in the first quarter 2022 was 0.6 percent lower year-over-year. The decrease was primarily due to lower eastbound volume. During the quarter, we continued to see elevated hospitality-related demand as a result of strong domestic tourist arrivals and modest improvement in international visitor traffic. In the near-term, we are cautiously optimistic on further economic recovery in Hawaii in 2022. The positive trends include further improvement in the unemployment rate and increasing tourism traffic, including meaningful international visitor traffic later in the year, but incremental waves of COVID-19 variants present the possibility of further economic slowdowns and the loss of federal stimulus coupled with inflation and higher interest rates may impact discretionary income.
In China, the Company's container volume in the first quarter 2022 increased 13.4 percent year-over-year. The increase was a result of five more eastbound voyages than the prior year. Volume demand in the quarter was driven by e‑commerce, garments and other goods. Matson continued to realize a significant rate premium over the Shanghai Containerized Freight Index in the first quarter 2022 and achieved average freight rates that were considerably higher than in the year ago period. Currently in the Transpacific tradelane, we are seeing supply chain challenges in China, primarily due to actions to mitigate the spread of COVID-19, as well as continued supply chain constraints and congestion on the U.S. West Coast, elevated consumption trends, and inventory restocking. Despite the near-term uncertainty presented by the supply chain challenges in China, we expect a combination of the current supply and demand factors to remain largely in place through at least the October peak season and continue to expect elevated demand for our China service for most of this year.
In Guam, the Company's container volume in the first quarter 2022 increased 10.0 percent year-over-year primarily due to higher retail-related demand. In the near-term, we are cautiously optimistic on further economic growth in Guam as tourism traffic improves as the year progresses.
In Alaska, the Company's container volume for the first quarter 2022 increased 20.2 percent year-over-year primarily due to (i) the increase in volume from the Alaska-Asia Express ("AAX"), (ii) higher northbound volume primarily due to higher retail-related demand and volume related to a competitor's dry-docking and (iii) higher southbound volume primarily due to higher seafood volume. In the near-term, we expect improving economic trends in Alaska, but the recovery's trajectory continues to remain uncertain.
The contribution in the first quarter 2022 from the Company's SSAT joint venture investment was $34.0 million, or $24.8 million higher than the first quarter 2021. The increase was primarily driven by higher other terminal revenue.
Logistics: In the first quarter 2022, operating income for the Company's Logistics segment was $16.4 million, or $10.3 million higher compared to the level achieved in the first quarter 2021. The increase was due primarily to higher contributions from all services as we continued to see elevated goods consumption, inventory restocking and favorable supply and demand fundamentals in our core markets.
Results By Segment
Ocean Transportation — Three months ended March 31, 2022 compared with 2021
Ocean Transportation revenue increased $383.4 million, or 68.4 percent, during the three months ended March 31, 2022, compared with the three months ended March 31, 2021. The increase was primarily due to higher revenue in China, higher fuel-related surcharge revenue, and higher revenue in Alaska. The higher revenue in China was primarily due to considerably higher average freight rates and higher volume. The higher revenue in Alaska was primarily the result of higher volume.
On a year-over-year FEU basis, Hawaii container volume decreased 0.6 percent primarily due to lower eastbound volume; Alaska volume increased 20.2 percent primarily due to (i) the increase in volume from AAX, (ii) higher northbound volume primarily due to higher retail-related demand and volume related to a competitor's dry-docking, and (iii) higher southbound volume primarily due to higher seafood volume; China volume was 13.4 percent higher as a result of five more eastbound voyages than the prior year; Guam volume was 10.0 percent higher primarily due to higher retail-related demand; and Other containers volume increased 32.5 percent primarily due to the addition of China-Auckland Express volume in the South Pacific.
Ocean Transportation operating income increased $302.1 million during the three months ended March 31, 2022, compared with the three months ended March 31, 2021. The increase was primarily due to considerably higher average freight rates and higher volume in China and a higher contribution from SSAT, partially offset by higher operating costs and expenses primarily due to the CCX and CLX+ services and the timing of fuel-related surcharge recovery.
The Company's SSAT terminal joint venture investment contributed $34.0 million during the three months ended March 31, 2022, compared to a contribution of $9.2 million during the three months ended March 31, 2021. The increase was primarily driven by higher other terminal revenue.
Logistics — Three months ended March 31, 2022 compared with 2021
Logistics revenue increased $70.3 million, or 46.5 percent, during the three months ended March 31, 2022, compared with the three months ended March 31, 2021. The increase was primarily due to higher transportation brokerage and supply chain management revenue.
Logistics operating income increased $10.3 million, or 168.9 percent, for the three months ended March 31, 2022, compared with the three months ended March 31, 2021. The increase was primarily due to higher contributions from all services.
Liquidity, Cash Flows and Capital Allocation
Matson's Cash and Cash Equivalents increased by $110.4 million from $282.4 million at December 31, 2021 to $392.8 million at March 31, 2022. Matson generated net cash from operating activities of $273.9 million during the three months ended March 31, 2022, compared to $122.9 million during the three months ended March 31, 2021. Capital expenditures totaled $37.4 million for the three months ended March 31, 2022, compared with $38.5 million for the three months ended March 31, 2021. Total debt decreased by $14.3 million during the three months to $614.7 million as of March 31, 2022, of which $549.7 million was classified as long-term debt. As of March 31, 2022 Matson had available borrowings under its revolving credit facility of $642.0 million.
During the first quarter 2022, Matson repurchased approximately 0.7 million shares for a total cost of $68.6 million. On January 27, 2022 the Company announced an increase of three million shares in its existing share repurchase program. As of the end of the first quarter 2022, there were approximately 2.8 million shares remaining in the share repurchase program.
As previously announced, Matson's Board of Directors declared a cash dividend of $0.30 per share payable on June 2, 2022 to all shareholders of record as of the close of business on May 12, 2022.
Teleconference and Webcast
A conference call is scheduled on May 3, 2022 at 4:30 p.m. ET when Matt Cox, Chairman and Chief Executive Officer, and Joel Wine, Executive Vice President and Chief Financial Officer, will discuss Matson's first quarter results.
The conference call will be broadcast live along with an additional slide presentation on the Company's website at www.matson.com, under Investors. A replay of the conference call will be available approximately two hours after the call through May 10, 2022 by dialing 1-855-859-2056 or 1-404-537-3406 and using the conference number 3729448. The slides and audio webcast of the conference call will be archived for one full quarter on the Company's website at www.matson.com, under Investors.
About the Company
Founded in 1882, Matson (NYSE: MATX) is a leading provider of ocean transportation and logistics services. Matson provides a vital lifeline to the domestic non-contiguous economies of Hawaii, Alaska, and Guam, and to other island economies in Micronesia. Matson also operates premium, expedited services from China to Long Beach, California, provides service to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Dutch Harbor to Asia. The Company's fleet of owned and chartered vessels includes containerships, combination container and roll-on/roll-off ships and custom-designed barges. Matson Logistics, established in 1987, extends the geographic reach of Matson's transportation network throughout North America. Its integrated, asset-light logistics services include rail intermodal, highway brokerage, warehousing, freight consolidation, Asia supply chain services, and forwarding to Alaska. Additional information about the Company is available at www.matson.com.
GAAP to Non-GAAP Reconciliation
This press release, the Form 8-K and the information to be discussed in the conference call include non-GAAP measures. While Matson reports financial results in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company also considers other non-GAAP measures to evaluate performance, make day-to-day operating decisions, help investors understand our ability to incur and service debt and to make capital expenditures, and to understand period-over-period operating results separate and apart from items that may, or could, have a disproportional positive or negative impact on results in any particular period. These non-GAAP measures include, but are not limited to, Earnings Before Interest, Income Taxes, Depreciation and Amortization ("EBITDA") and Net Debt.
Forward-Looking Statements
Statements in this news release that are not historical facts are "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation those statements regarding performance and financial results, supply chain challenges in China, actions to mitigate the spread of COVID-19, supply chain constraints and congestion on the U.S. West Coast, consumption trends and consumer spending levels, inventory restocking, duration of current supply and demand factors, demand for Matson's China service, demand for e-commerce, garments and other goods, duration of CCX service, tourism levels, unemployment rates, waves of COVID-19 variants, economic recovery and drivers in Hawaii, Alaska and Guam, import volume into U.S. West Coast, inflation, interest rates, discretionary income, refleeting initiatives, capital expenditures, the costs and timing of liquified natural gas installations on certain vessels, vessel deployments and operating efficiencies, vessel transit times, cargo availability times, labor shortages, labor contract renewals, and higher fuel costs. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement, including but not limited to risks and uncertainties relating to repeal, substantial amendment or waiver of the Jones Act or its application, or our failure to maintain our status as a United States citizen under the Jones Act; changes in economic conditions or governmental policies, including from the COVID-19 pandemic; our ability to offer a differentiated service in China for which customers are willing to pay a significant premium; new or increased competition or improvements in competitors' service levels; our relationship with customers, agents, vendors and partners and changes in related agreements; fuel prices, our ability to collect fuel related surcharges and/or the cost or limited availability of required fuels; evolving stakeholder expectations related to environmental, social and governance matters; timely or successful completion of fleet upgrade initiatives; the occurrence of poor weather, natural disasters, maritime accidents, spill events and other physical and operating risks, including those arising from climate change; transitional and other risks arising from climate change; the magnitude and timing of the impact of public health crises, including COVID-19; significant operating agreements and leases that may not be replaced on favorable terms; any unanticipated dry-dock or repair expenses; joint venture relationships; conducting business in a foreign shipping market, including the imposition of tariffs or a change in international trade policies; any delays or cost overruns related to the modernization of terminals; war, terrorist attacks or other acts of violence; consummating and integrating acquisitions; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; relations with our unions; satisfactory negotiation and renewal of expired collective bargaining agreements without significant disruption to Matson's operations; loss of key personnel or failure to adequately manage human capital; the use of our information technology and communication systems and cybersecurity attacks; changes in our credit profile and our future financial performance; our ability to obtain future debt financings; continuation of the Title XI and CCF programs; costs to comply with and liability related to numerous safety, environmental, and other laws and regulations; and disputes, legal and other proceedings and government inquiries or investigations. These forward-looking statements are not guarantees of future performance. This release should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021 and our other filings with the SEC through the date of this release, which identify important factors that could affect the forward-looking statements in this release. We do not undertake any obligation to update our forward-looking statements.
MATSON, INC. AND SUBSIDIARIES
Total Debt to Net Debt and Net Income to EBITDA Reconciliations
(Unaudited)
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Mercury General Corporation Announces First Quarter Results and Declares Quarterly Dividend
Published: May. 3, 2022 at 4:05 PM EDT|Updated: 1 hour ago
LOS ANGELES, May 3, 2022 /PRNewswire/ -- Mercury General Corporation (NYSE: MCY) reported today for the first quarter of 2022:
The Board of Directors declared a quarterly dividend of $0.6350 per share. The dividend will be paid on June 30, 2022 to shareholders of record on June 16, 2022.
Mercury General Corporation and its subsidiaries are a multiple line insurance organization offering predominantly personal automobile and homeowners insurance through a network of independent producers in many states. For more information, visit the Company's website at www.mercuryinsurance.com.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. Certain statements contained in this report are forward-looking statements based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors, including but not limited to the following risks and uncertainties: changes in the demand for the Company's insurance products, inflation and general economic conditions, including general market risks associated with the Company's investment portfolio; the accuracy and adequacy of the Company's pricing methodologies; catastrophes in the markets served by the Company; uncertainties related to estimates, assumptions and projections generally; the possibility that actual loss experience may vary adversely from the actuarial estimates made to determine the Company's loss reserves in general; the Company's ability to obtain and the timing of the approval of premium rate changes for insurance policies issued in the states where it operates; legislation adverse to the automobile insurance industry or business generally that may be enacted in the states where the Company operates; the Company's success in managing its business in non-California states; the presence of competitors with greater financial resources and the impact of competitive pricing and marketing efforts; the Company's ability to successfully manage its claims organization outside of California; the Company's ability to successfully allocate the resources used in the states with reduced or exited operations to its operations in other states; changes in driving patterns and loss trends; acts of war and terrorist activities; pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases; court decisions and trends in litigation and health care and auto repair costs; and legal, cybersecurity, regulatory and litigation risks. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise. For a more detailed discussion of some of the foregoing risks and uncertainties, see the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 15, 2022.
Information Regarding GAAP and Non-GAAP Measures
The Company has presented information within this document containing operating measures which in management's opinion provide investors with useful, industry specific information to help them evaluate, and perform meaningful comparisons of, the Company's performance, but that may not be presented in accordance with GAAP. These measures are not intended to replace, and should be read in conjunction with, the GAAP financial results.
Net income is the GAAP measure that is most directly comparable to operating income. Operating income is net income excluding realized investment gains and losses, net of tax. Operating income is used by management along with the other components of net income to assess the Company's performance. Management uses operating income as an important measure to evaluate the results of the Company's insurance business. Management believes that operating income provides investors with a valuable measure of the Company's ongoing performance as it reveals trends in the Company's insurance business that may be obscured by the effect of net realized investment gains and losses. Realized investment gains and losses may vary significantly between periods and are generally driven by external economic developments such as capital market conditions. Accordingly, operating income highlights the results from ongoing operations and the underlying profitability of the Company's core insurance business. Operating income, which is provided as supplemental information and should not be considered as a substitute for net income, does not reflect the overall profitability of the Company's business. It should be read in conjunction with the GAAP financial results. See "Supplemental Schedules" above for a reconciliation of net income to operating income.
Net premiums earned, the most directly comparable GAAP measure to net premiums written, represents the portion of premiums written that is recognized as revenue in the financial statements for the periods presented and earned on a pro-rata basis over the term of the policies. Net premiums written is a statutory financial measure which represents the premiums charged on policies issued during a fiscal period less any applicable reinsurance. Net premiums written is designed to determine production levels and is meant as supplemental information and not intended to replace net premiums earned. Such information should be read in conjunction with the GAAP financial results. See "Supplemental Schedules" above for a reconciliation of net premiums earned to net premiums written.
Incurred losses and loss adjustment expenses is the most directly comparable GAAP measure to paid losses and loss adjustment expenses. Paid losses and loss adjustment expenses excludes the effects of changes in the loss reserve accounts. Paid losses and loss adjustment expenses is provided as supplemental information and is not intended to replace incurred losses and loss adjustment expenses. It should be read in conjunction with the GAAP financial results. See "Supplemental Schedules" above for a reconciliation of incurred losses and loss adjustment expenses to paid losses and loss adjustment expenses.
Combined ratio is the most directly comparable measure to combined ratio-accident period basis. Combined ratio-accident period basis is computed as the difference between two GAAP operating ratios: the combined ratio and prior accident periods' loss development ratio. Management believes that combined ratio-accident period basis is useful to investors and it is used to reveal the trends in the Company's results of operations that may be obscured by development on prior accident periods' loss reserves. Combined ratio-accident period basis is meant as supplemental information and is not intended to replace the GAAP combined ratio. It should be read in conjunction with the GAAP financial results. See "Supplemental Schedules" above for a reconciliation of GAAP combined ratio to combined ratio-accident period basis.
The above press release was provided courtesy of PRNewswire. The views, opinions and statements in the press release are not endorsed by Gray Media Group nor do they necessarily state or reflect those of Gray Media Group, Inc. | https://www.whsv.com/prnewswire/2022/05/03/mercury-general-corporation-announces-first-quarter-results-declares-quarterly-dividend/ | 2022-05-03T21:26:28Z |
NEW YORK, May 3, 2022 /PRNewswire/ -- Morgan Brookshire is in the process of formulating a $500 million fund whose sole focus is on handling MCAs (Merchant Cash Advances) and Asset based lending to companies. Morgan Brookshire plans on disbursing these funds to small and mid scale businesses throughout the continental United States and Canada. The help that numerous business owners have been seeking in recent times can now be found at Morgan Brookshire.
Morgan Brookshire is a New York based consultancy company that helps small business owners achieve financial freedom and real growth with timed financings.
About Morgan Brookshire LLC
Morgan Brookshire LLC is a private investment consultancy firm based in New York City.
Please contact the back office for more information at email below.
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Director makes dramatic prediction this Parkinson's Awareness Month
PHOENIX, May 3, 2022 /PRNewswire/ -- As one of the world's most comprehensive and interdisciplinary centers for Parkinson's disease celebrates its 25th anniversary, doctors at the Muhammad Ali Parkinson Center in Phoenix are predicting dramatic changes for Parkinson's disease treatment in the next quarter century.
Parkinson's disease is a progressive neurological disorder with no definitive cause and no known cure that affects more than 1 million Americans. Led by renowned movement disorder neurologist, Holly Shill, MD, the Muhammad Ali Parkinson Center at Barrow Neurological Institute predicts changes are on the horizon. Dr. Shill has seen medical management and treatment options for Parkinson's disease come a long way in the last 25 years and is hopeful for the future.
"Our patients are living longer, higher quality lives after being diagnosed because we have better understandings about the medical, surgical and supportive interventions that are available today," says Dr. Shill, who she started her career at Barrow as a neurology resident in 1995, two years before the center was officially established.
"Research," she adds, "is still incredibly important. I truly believe that over the next 25 years research efforts – at the Muhammad Ali Parkinson Center and in the Parkinson's community around the world – will lead to groundbreaking discoveries that will help us stop Parkinson's progression in its tracks."
Some of the Center's research focuses on genetic investigations while other landmark clinical studies the Center is part of, like the Michael J. Fox Foundation's Parkinson's Progression Markers Initiative (PPMI) study, observe newly diagnosed patients to better understand Parkinson's onset and progression. The PPMI study in particular aims to help expedite the development of new and improved treatments, which are incredibly important tools in the ongoing battle that neurologists face.
Other exciting research initiatives at the Center involve infusions and brain mapping; light therapy for sleep problems; investigating potential environmental exposure links in mining and welding; using virtual reality style goggles to study eye movement patterns; the effects of Deep Brain Stimulation (DBS) on gait and falls; and using palliative care to examine outcome predictors and identify different ways to intervene to improve outcomes.
"I am very proud to of our team here at the Muhammad Ali Parkinson Center," said Dr. Shill. "We are at the forefront of finding answers. Our team is devoted to increasing access to care and research by educating future neurologists, offering virtual and telemedicine opportunities, and breaking language barriers with cultural sensitivity."
Founded at Barrow on March 18, 1997 thanks to philanthropists and a unique friendship between three-time world heavyweight boxing champion Muhammad Ali and his movement disorder neurologist, Abraham Lieberman, MD, the Muhammad Ali Parkinson Center has seen tremendous growth over the years. It is estimated that the Center treated more than 10,000 patients in the first ten years, and has provided care to more than 50,000 people since opening its doors.
The 26,450-square-foot facility is located on what is now officially named Muhammad Ali Way at Dignity Health St. Joseph's Hospital and Medical Center. It is a Parkinson's Foundation Center of Excellence and a world leader in deep brain stimulation (DBS) surgery for the treatment of movement disorders. In addition to world-class neurological and rehabilitation therapy care, the Center is also known for its cutting-edge research and robust outreach programs which include recreational therapies, educational workshops, support groups, and an acclaimed Hispanic Outreach Program that is also celebrating its 15th anniversary this spring.
The Muhammad Ali Parkinson Center has become a beacon of hope for Parkinson's patients from around the world by continuing to uphold the mission set forth by its late namesake and his wife, Lonnie Ali - to treat every patient and caregiver with the same level of outstanding care that Ali received after his 1984 diagnosis.
"When Muhammad was diagnosed with Parkinson's disease, I knew he would fight it with the same strength, courage, and determination that he brought with him every single time he stepped into the ring," says Lonnie. "From the outset, Muhammad and I had a shared vision of building the greatest Parkinson's center in the world, to help those in need of it most by providing a place where patients and caregivers have someone fighting for them in their corner. That is the lasting impact of Muhammad's legacy."
Lonnie believes the Center is an example of Muhammad's spirit, noting that there is nowhere like it in the world. She credits the team of physicians, nurses, therapist and support staff who are dedicated to providing all patients and caregivers with the best possible care and support, to help them to maintain their dignity, independence and quality of life while battling the disease.
"Muhammad was proud to lend his name to the Center when it opened, and I know he would be proud of where it is now and how far reaching it has become," she adds.
"Finding the right connections can make an incredible impact on your life after diagnosis," explains Julie Raymond, 65, who was recently diagnosed with Parkinson's disease in June 2021 after she noticed extreme fatigue, a tremor in her hand and stiffness in her arm. "I have learned so much since I started participating in the programs offered by the Muhammad Ali Parkinson Center."
A retired banker and proud grandmother, Raymond says she does what she can to stay positive and has made a number of lifestyle changes, like exercising and eating better.
She's also participated in many of the Center's offerings including a clinical trial, education classes, the PD SELF seminar for patients and caregivers, a support group for newly diagnosed patients and a Pilates class, as well as a number of other activities offed at the Valley of the Sun JCC for people with Parkinson's disease.
"Some days it still feels frustrating and, honestly, sometimes terrifying," admits Raymond who volunteers for the Glendale Police Victim Assistance Unit and likes to knit, craft and play piano – all skills that could one day be affected by the disease. "I try to stay hopeful and positive. I just take each day as it comes, knowing that while I don't always feel better, at least I don't feel worse and I know that I am doing everything I can to take care of myself. I wish that someday there will be a cure."
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SOURCE Barrow Neurological Institute | https://www.whsv.com/prnewswire/2022/05/03/muhammad-ali-parkinson-center-celebrates-25th-anniversary-with-hope-future-treatment/ | 2022-05-03T21:26:42Z |
OKOTOKS, AB, May 3, 2022 /PRNewswire/ - (TSX: MTL) The Board of Directors of Mullen Group Ltd. ("Mullen Group", "We", "Our" and/or the "Corporation") announced today that it has approved an increase to the Corporation's monthly dividend from $0.05 to $0.06 per Common Share. This represents a twenty percent increase from the prior dividend declared on April 19, 2022 and equates to an annualized dividend of $0.72 per Common Share. This increase will be effective as of the next regular dividend payment, which is expected to be payable on June 15, 2022, to shareholders of record on May 31, 2022.
"Today we announce a substantial increase in the monthly dividend, extending the tradition of rewarding long term shareholders with a portion of the free cash our business generates. In fact, since 2000 we have returned over $1.4 billion to investors, a good indication that the strategic initiatives we have implemented produce positive results. The Board's decision to increase the dividend was based upon the current outlook for the economy and our business, along with the view that redirecting a portion of the annual free cash from the approved NCIB program towards an increase in the dividend, would be in the best interests of shareholders at this time," commented Mr. Murray K. Mullen, Chair and CEO.
Mullen Group is one of North America's largest logistics providers. Our network of independently operated businesses provide a wide range of service offerings including less-than-truckload, truckload, warehousing, logistics, transload, oversized, third-party logistics and specialized hauling transportation. In addition, we provide a diverse set of specialized services related to the energy, mining, forestry and construction industries in western Canada, including water management, fluid hauling and environmental reclamation. The corporate office provides the capital and financial expertise, legal support, technology and systems support, shared services and strategic planning to its independent businesses.
Mullen Group is a publicly traded corporation listed on the Toronto Stock Exchange under the symbol "MTL". Additional information is available on our website at www.mullen-group.com or on the Corporation's issuer profile on SEDAR at www.sedar.com.
Contact Information
Mr. Murray K. Mullen - Chair, Chief Executive Officer and President
Mr. Richard J. Maloney - Senior Vice President
Mr. Carson P. Urlacher - Senior Accounting Officer
Ms. Joanna K. Scott - Corporate Secretary & Vice President, Corporate Services
121A - 31 Southridge Drive
Okotoks, Alberta, Canada T1S 2N3
Telephone: 403-995-5200
Fax: 403-995-5296
Disclaimer
This news release may contain forward-looking statements that are subject to risk factors associated with the overall economy and the oil and natural gas industry. Mullen Group believes that the expectations reflected in this news release are reasonable, but results may be affected by a variety of variables. The forward-looking information contained herein is made as of the date of this news release and Mullen Group disclaims any intent or obligation to update publicly any such forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable Canadian securities laws. Mullen Group relies on litigation protection for "forward-looking" statements.
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SOURCE Mullen Group Ltd. | https://www.whsv.com/prnewswire/2022/05/03/mullen-group-ltdannounces-200-percent-increase-dividend/ | 2022-05-03T21:26:51Z |
Company reports revenues of $176 million, operating income of $1.0 million, net income of $2.5 million, and EBITDA of $11.4 million; Completes U.S. bank facility amendment
THE WOODLANDS, Texas, May 3, 2022 /PRNewswire/ -- Newpark Resources, Inc. (NYSE: NR) ("Newpark" or the "Company") today announced results for its first quarter ended March 31, 2022. Total revenues for the first quarter of 2022 were $176.4 million compared to $179.6 million for the fourth quarter of 2021 and $141.2 million for the first quarter of 2021. Net income for the first quarter of 2022 was $2.5 million, or $0.03 per diluted share, compared to a net loss of $3.7 million, or ($0.04) per share, for the fourth quarter of 2021, and a net loss of $5.4 million, or ($0.06) per share, for the first quarter of 2021. The first quarter 2022 results include the impact of the following:
- As a result of the restructuring of certain subsidiary legal entities within Europe, the provision for income taxes includes an income tax benefit of $3.1 million as the undistributed earnings for an international subsidiary are no longer subject to certain taxes upon future distribution; and
- An operating loss of $0.9 million and EBITDA loss of $0.6 million for the Industrial Blending business. As previously announced, the Company shut down the Industrial Blending operations in March 2022 and is divesting of the assets, which is reported within the Industrial Solutions segment.
Combined, the above items provided a $0.03 net benefit to earnings per diluted share for the first quarter of 2022.
Matthew Lanigan, Newpark's President and Chief Executive Officer, stated, "We are very encouraged by our performance in the first quarter, which reflects improving market fundamentals across both of our business segments, as well as the impact from our continued execution on our key strategic priorities. Consolidated revenues decreased 2% sequentially to $176 million in the first quarter, reflecting the anticipated seasonal pullback in Industrial Solutions product sales, largely offset by strong growth in the Fluids Systems segment. Despite the modest pullback in revenues, the first quarter consolidated operating income and EBITDA represent our strongest quarterly result since the third quarter of 2019.
"The Industrial Solutions segment revenues declined 31% sequentially to $35 million in the first quarter, reflecting an $18 million sequential decline from the anticipated seasonal pullback in product sales following the year-end strength in the utilities sector, which was further impacted by the shipment of some Q1 orders shifting into April. The decline from product sales was somewhat offset by an 8% sequential improvement in rental and service revenues, including 17% sequential growth from the targeted utilities and industrial end-markets, which benefitted from our previously announced fourth quarter acquisition in the Northeast and the start-up of large-scale projects in the South. The Industrial Solutions segment delivered $5.5 million of operating income and $11.2 million of EBITDA in the first quarter, which includes a $0.9 million operating loss and $0.6 million EBITDA loss associated with the Industrial Blending operation."
Lanigan continued, "The Fluids Systems segment revenues improved 10% sequentially, driven by broad-based growth across several key markets. In North America, revenues improved by 13% sequentially to $93 million, including 10% growth from U.S. land and 34% from Canada. These improvements were partially offset by a modest revenue decline in the Gulf of Mexico, driven by further project delays. International revenues improved 6% sequentially to $48 million in the first quarter, driven primarily by higher activity in Europe and Africa. Despite absorbing an increasing headwind from raw material cost inflation on certain long-term international contracts for which customer pricing is fixed, the Fluids Systems segment operating income improved to $3.4 million, delivering $7.4 million of EBITDA, reflecting the impact of the stronger revenues along with pricing and cost actions in North America. Corporate office expenses also declined by $1.5 million sequentially to $7.9 million in the first quarter, though the first quarter included $0.7 million of legal and professional expenses associated with shareholder, acquisition and divestiture matters.
"Regarding cash flows, operating activities provided cash of $3 million in the first quarter, including $5 million of cash used to fund an increase in net working capital. Although receivable DSO's improved sequentially, activity-driven increases in inventories used $15 million of cash, including international Fluids Systems purchases in preparation for projects scheduled to begin in the second quarter, as well as the delayed timing of Industrial Solutions product sales. Inventories were further impacted by cost inflation and elevated contingency stocks being carried in response to the ongoing supply chain uncertainty," added Lanigan. "Looking ahead, we expect positive net income generation in the second quarter, benefitting primarily from sequential growth in Industrial Solutions revenues and profitability, combined with lower corporate office expenses. We expect the improving market outlook across all facets of the energy sector, along with our ongoing portfolio actions to strengthen our Fluids Systems business, will provide a foundation for sustainable free cash flow generation going forward."
U.S. Asset-Based Loan Facility Amendment
The Company recently completed an amendment to its outstanding U.S. asset-based revolving credit agreement that was scheduled to mature in March 2024. The amended and restated $175 million asset-based loan facility (the "Amended ABL Facility") has a five-year term, expiring May 2027, and includes the following changes to the previous ABL facility:
- Expands facility borrowing capacity associated with the Industrial Solutions rental mat fleet;
- Replaces LIBOR-based pricing grid with a BSBY-based pricing grid set at BSBY, plus 150 to 200 basis points; and
- Incorporates a sustainability-linked framework, with targets to be established based on agreed-upon sustainability metrics.
The total availability under the Amended ABL Facility is currently $133.5 million. The bank group includes Bank of America, N.A. (Administrative Agent, Joint Lead Arranger, Joint Book Manager, and Syndication Agent), JPMorganChase Bank, N.A. (Joint Lead Arranger, Joint Book Manager, and Documentation Agent), and First Horizon Bank.
Segment Results
The Industrial Solutions segment generated revenues of $35.4 million for the first quarter of 2022 compared to $51.7 million for the fourth quarter of 2021 and $53.3 million for the first quarter of 2021. Segment operating income was $5.5 million for the first quarter of 2022 compared to operating income of $8.4 million for the fourth quarter of 2021 and $13.1 million for the first quarter of 2021. Industrial Solutions operating income for the first quarter of 2022 includes a loss of $0.9 million for the Industrial Blending business that we shut down in March 2022. Industrial Solutions operating income for the fourth quarter of 2021 included $0.9 million of incremental pre-tax expenses related to a multi-year sales tax audit and insurance reserves.
The Fluids Systems segment generated revenues of $141.0 million for the first quarter of 2022 compared to $127.9 million for the fourth quarter of 2021 and $87.8 million for the first quarter of 2021. Segment operating income was $3.4 million for the first quarter of 2022 compared to operating income of $0.9 million for the fourth quarter of 2021 and an operating loss of $6.8 million for the first quarter of 2021. Fluids Systems operating income for the fourth quarter of 2021 included $0.9 million of charges primarily related to facility exit and severance costs.
Conference Call
Newpark has scheduled a conference call to discuss first quarter of 2022 results and its near-term operational outlook, which will be broadcast live over the Internet, on Wednesday, May 4, 2022 at 10:00 a.m. Eastern Time / 9:00 a.m. Central Time. To participate in the call, dial 412-902-0030 and ask for the Newpark Resources call at least 10 minutes prior to the start time, or access it live over the Internet at www.newpark.com. For those who cannot listen to the live call, a replay will be available through May 18, 2022 and may be accessed by dialing 201-612-7415 and using pass code 13728615#. Also, an archive of the webcast will be available shortly after the call at www.newpark.com for 90 days.
Newpark Resources, Inc. is a geographically diversified supplier providing environmentally-sensitive products, as well as rentals and services to a variety of industries, including oil and gas exploration, electrical transmission & distribution, pipeline, renewable energy, petrochemical, construction, and other industries. For more information, visit our website at www.newpark.com.
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of historical facts are forward-looking statements. Words such as "will," "may," "could," "would," "should," "anticipates," "believes," "estimates," "expects," "plans," "intends," and similar expressions are intended to identify these forward-looking statements but are not the exclusive means of identifying them. These statements are not guarantees that our expectations will prove to be correct and involve a number of risks, uncertainties, and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by Newpark, particularly its Annual Report on Form 10-K for the year ended December 31, 2021, as well as others, could cause actual plans or results to differ materially from those expressed in, or implied by, these statements. These risk factors include, but are not limited to, risks related to the COVID-19 pandemic; the worldwide oil and natural gas industry; our customer concentration and reliance on the U.S. exploration and production market; our international operations; operating hazards present in the oil and natural gas industry and substantial liability claims, including catastrophic well incidents; our contracts that can be terminated or downsized by our customers without penalty; our product offering expansion; our ability to attract, retain and develop qualified leaders, key employees and skilled personnel; the price and availability of raw materials; business acquisitions and capital investments; our market competition; technological developments and intellectual property in our industry; severe weather, natural disasters, and seasonality; our cost and continued availability of borrowed funds, including noncompliance with debt covenants; environmental laws and regulations; our legal compliance; the inherent limitations of insurance coverage; income taxes; cybersecurity breaches or business system disruptions; our restructuring activities; activist stockholders that may attempt to effect changes at our Company or acquire control over our Company; our ability to maintain compliance with the New York Stock Exchange's continued listing requirements; and our amended and restated bylaws, which could limit our stockholders' ability to obtain what such stockholders believe to be a favorable judicial forum for disputes with us or our directors, officers or other employees. We assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities laws. Newpark's filings with the Securities and Exchange Commission can be obtained at no charge at www.sec.gov, as well as through our website at www.newpark.com.
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SOURCE Newpark Resources, Inc. | https://www.whsv.com/prnewswire/2022/05/03/newpark-resources-reports-first-quarter-2022-results/ | 2022-05-03T21:26:57Z |
CLEVELAND, May 3, 2022 /PRNewswire/ -- A new Freedonia Group analysis forecasts demand for ceiling products in the US to increase 3.1% annually to $2.4 billion in 2026. Office buildings will remain the leading outlet for ceiling products in the US and see some of the fastest growth rates among building types, boosted by increasing renovations attributable to telecommuting workers transitioning back to the office on part- or full-time bases.
Rising improvement spending on retail buildings, the second largest ceiling market, will also be a significant driver of gains. Additionally, strong growth in the construction of healthcare buildings – the need for which spiked during the pandemic and will continue to grow going forward due to the aging US population – will boost gains in that market.
Ceiling tiles and the suspension systems typically required for their installation together accounted for 85% of US ceiling product demand in 2021, and they are expected to continue driving demand gains through 2026. However, market growth in value terms will be boosted by rising demand for specialty ceiling products. Above average growth for these higher value products will be fueled by their expanding usage in commercial buildings where both acoustics and aesthetics are a priority, including in open plenum designs where ceiling tiles do not compete.
Ceilings provides historical data for 2011, 2016, and 2021, and forecasts for 2026 and 2031 for ceiling product demand by product, market, and US region.
Ceiling demand is segmented into the following product types:
- ceiling tiles (mineral fiber; fiberglass; metal; and wood, gypsum, and other materials including vinyl and polystyrene)
- suspension systems (steel and aluminum and other materials, including vinyl)
- specialty ceilings (clouds; baffles; stretch ceilings and other specialty ceiling products)
Ceiling tile demand is also segmented by performance grade (standard, good, better, and best). Ceiling tile pricing per square foot at the manufacturers' level is provided for the major material types.
The major ceiling markets analyzed are:
- new commercial buildings
- commercial building improvement and repairs
- new residential buildings
- residential building improvement and repairs
About the Freedonia Group - The Freedonia Group, a division of MarketResearch.com, is the premier international industrial research company, providing our clients with product analyses, market forecasts, industry trends, and market share information. From one-person consulting firms to global conglomerates, our analysts provide companies with unbiased, reliable industry market research and analysis to help them make important business decisions. With over 100 studies published annually, we support over 90% of the industrial Fortune 500 companies. Find off-the-shelf studies at https://www.freedoniagroup.com/ or contact us for custom research: +1 440.842.2400.
Press Contact:
Corinne Gangloff
+1 440.842.2400
cgangloff@freedoniagroup.com
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SOURCE The Freedonia Group | https://www.whsv.com/prnewswire/2022/05/03/office-amp-retail-buildings-fuel-ceiling-market-growth-through-2026/ | 2022-05-03T21:27:05Z |
NEW YORK, May 3, 2022 /PRNewswire/ -- The Board of Directors of Omnicom Group Inc. (NYSE: OMC) declared a quarterly dividend of 70 cents per outstanding share of the corporation's common stock. The dividend is payable on July 8, 2022 to Omnicom Group common shareholders of record at the close of business on June 10, 2022.
About Omnicom Group Inc.
Omnicom Group (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom's branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 70 countries.
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SOURCE Omnicom Group Inc. | https://www.whsv.com/prnewswire/2022/05/03/omnicom-group-inc-declares-dividend/ | 2022-05-03T21:27:11Z |
Reports Higher NGL and Natural Gas Volumes
TULSA, Okla., May 3, 2022 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced first quarter 2022 results and affirmed full-year 2022 financial guidance.
First Quarter 2022 Results, Compared With First Quarter 2021:
- Net income increased to $391.2 million, resulting in 87 cents per diluted share (EPS).
- Adjusted EBITDA of $863.9 million.
- 24% increase in EPS, excluding the impact of Winter Storm Uri in the first quarter 2021.
- 11% increase in adjusted EBITDA, excluding the impact of Winter Storm Uri in the first quarter 2021.
- 17% increase in total NGL raw feed throughput volumes.
- 24% increase in Rocky Mountain region NGL raw feed throughput volumes.
- 11% increase in Rocky Mountain region natural gas volumes processed.
"ONEOK's first quarter 2022 results were driven by higher NGL and natural gas volumes," said Pierce H. Norton II, ONEOK president and chief executive officer. "Current events continue to demonstrate the importance of natural gas and NGLs in a long-term energy transformation and highlight the critical role ONEOK plays in providing essential energy products and services," added Norton.
FIRST QUARTER 2022 FINANCIAL HIGHLIGHTS
(a) Amounts for the three months ended March 31, 2021, include a benefit of $69.5 million, or 16 cents per diluted share after-tax, related to the impact of Winter Storm Uri.
(b) Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) is a non-GAAP measure. Reconciliation to the relevant GAAP measure is included in this news release.
(c) Amount for the three months ended March 31, 2021, includes a benefit of approximately $90 million related to the impact of Winter Storm Uri.
FIRST QUARTER 2022 FINANCIAL PERFORMANCE
ONEOK's net income and adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) were $391.2 million and $863.9 million, respectively, in the first quarter 2022. Results benefited from higher natural gas liquids (NGL) and natural gas volumes, and higher average fee rates in the natural gas liquids segment. Net income for the period also benefited from lower interest expense related to lower debt balances and increased capitalized interest.
First quarter 2021 financial results included the net positive impact of approximately $90 million in adjusted EBITDA related to Winter Storm Uri, primarily related to increased natural gas sales.
HIGHLIGHTS:
- Rocky Mountain region NGL raw feed throughput volumes reached more than 385,000 barrels per day (bpd) in April 2022.
- Rocky Mountain region natural gas processed volumes reached more than 1.4 billion cubic feet per day (Bcf/d) in April 2022.
- More than 90 wells connected in the Rocky Mountain region in the first quarter 2022.
- Construction of the 125,000 bpd MB-5 fractionator in Mont Belvieu, Texas, is now expected to be complete in the second quarter 2023.
- Natural gas storage capacity expansions:
- In April 2022, Moody's updated ONEOK's ratings outlook to 'positive' and affirmed the company's investment-grade credit rating.
- In April 2022, ONEOK declared a quarterly dividend of 93.5 cents per share, or $3.74 per share on an annualized basis.
- As of March 31, 2022:
BUSINESS SEGMENT RESULTS:
Natural Gas Liquids Segment
The increase in first quarter 2022 adjusted EBITDA, compared with the first quarter 2021, primarily reflects:
- A $58.3 million increase in exchange services (excluding the impact of Winter Storm Uri in 2021 discussed below) due primarily to:
- A $46.2 million increase in exchange services due primarily to the unfavorable impact of Winter Storm Uri in the first quarter 2021, which resulted in lower volumes across ONEOK's operations and increased electricity costs; offset by
- A $4.3 million decrease in optimization and marketing due primarily to favorable nonrecurring activities in the first quarter 2021 during Winter Storm Uri, offset partially by wider location and commodity price differentials in the first quarter 2022.
Natural Gas Gathering and Processing Segment
The increase in first quarter 2022 adjusted EBITDA, compared with the first quarter 2021, primarily reflects:
- A $24.9 million increase from higher volumes due primarily to increased producer activity in the Rocky Mountain region, offset partially by volume declines in the Mid-Continent region; offset by
- A $6.2 million decrease due primarily to lower realized natural gas prices due to the impact of hedging; and
- A $7.9 million increase in operating costs due primarily to higher materials and supplies expense, and higher outside services expenses primarily related to the growth of ONEOK's operations.
Natural Gas Pipelines Segment
The decrease in first quarter 2022 adjusted EBITDA, compared with the first quarter 2021, primarily reflects:
- A $125.4 million decrease due to increased sales of natural gas previously held in inventory, interruptible transportation revenue and park-and-loan activity related to Winter Storm Uri in the first quarter 2021; offset by
- A $7.2 million increase due primarily to higher average prices on sales of natural gas previously held in inventory, excluding the impact of Winter Storm Uri in the first quarter 2021 discussed above;
- A $6.8 million increase in transportation services due primarily to higher interruptible transportation revenue, excluding the impact of Winter Storm Uri in the first quarter 2021 discussed above, and higher firm transportation rates; and
- A $5.1 million increase in storage services due primarily to higher storage rates.
EARNINGS CONFERENCE CALL AND WEBCAST:
ONEOK executive management will conduct a conference call at 11 a.m. Eastern Daylight Time (10 a.m. Central Daylight Time) on May 4, 2022. The call also will be carried live on ONEOK's website.
To participate in the telephone conference call, dial 888-254-3590, pass code 5317668, or log on to www.oneok.com.
If you are unable to participate in the conference call or the webcast, the replay will be available on ONEOK's website, www.oneok.com, for 90 days. A recording will be available by phone for seven days. The playback call may be accessed at 888-203-1112, pass code 5317668.
LINK TO EARNINGS TABLES AND PRESENTATION:
https://ir.oneok.com/financial-information/financial-reports/2022
NON-GAAP (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) FINANCIAL MEASURES:
ONEOK has disclosed in this news release adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), which is a non-GAAP financial metric, used to measure the company's financial performance. Adjusted EBITDA is defined as net income adjusted for interest expense, depreciation and amortization, noncash impairment charges, income taxes, noncash compensation expense, allowance for equity funds used during construction (equity AFUDC), and other noncash items.
Adjusted EBITDA is useful to investors because it, and similar measures, is used by many companies in the industry as a measure of financial performance and is commonly employed by financial analysts and others to evaluate ONEOK's financial performance and to compare the company's financial performance with the performance of other companies within the industry. Adjusted EBITDA should not be considered in isolation or as a substitute for net income or any other measure of financial performance presented in accordance with GAAP.
This non-GAAP financial measure excludes some, but not all, items that affect net income. Additionally, this calculation may not be comparable with similarly titled measures of other companies. A reconciliation of net income to adjusted EBITDA is included in the tables.
ONEOK, Inc. (pronounced ONE-OAK) (NYSE:OKE) is a leading midstream service provider and owner of one of the nation's premier natural gas liquids (NGL) systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centers and an extensive network of natural gas gathering, processing, storage and transportation assets.
ONEOK is a FORTUNE 500 company and is included in S&P 500.
For information about ONEOK, visit the website: www.oneok.com.
For the latest news about ONEOK, find us on LinkedIn, Instagram, Facebook and Twitter.
This news release contains certain "forward-looking statements" within the meaning of federal securities laws. Words such as "anticipates," "believes," "continues," "could," "estimates," "expects," "forecasts," "goal," "target," "guidance," "intends," "may," "might," "outlook," "plans," "potential," "projects," "scheduled," "should," "will," "would," and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect our current views about future events. Such forward-looking statements include, but are not limited to, statements about the benefits of the transaction involving us, including future financial and operating results, our plans, objectives, expectations and intentions, and other statements that are not historical facts, including future results of operations, projected cash flow and liquidity, business strategy, expected synergies or cost savings, and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected.
Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties, many of which are beyond our control, and are not guarantees of future results. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. These risks and uncertainties include, without limitation, the following:
- the length, severity and reemergence of a pandemic or other health crisis, such as the COVID-19 pandemic and the measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address it, which may (as with COVID-19) precipitate or exacerbate one or more of the factors herein, reduce the demand for natural gas, NGLs and crude oil and significantly disrupt or prevent us and our customers and counterparties from operating in the ordinary course for an extended period and increase the cost of operating our business;
- operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruption;
- the impact on drilling and production by factors beyond our control, including the demand for natural gas and crude oil; producers' desire and ability to drill and obtain necessary permits; regulatory compliance; reserve performance; and capacity constraints and/or shut downs on the pipelines that transport crude oil, natural gas and NGLs from producing areas and our facilities;
- risks associated with adequate supply to our gathering, processing, fractionation and pipeline facilities, including production declines that outpace new drilling, the shutting-in of production by producers, actions taken by federal, state or local governments to require producers to prorate or to cut their production levels as a way to address any excess market supply situations or extended periods of ethane rejection;
- demand for our services and products in the proximity of our facilities;
- economic climate and growth in the geographic areas in which we operate;
- the risk of a slowdown in growth or decline in the United States or international economies, including liquidity risks in United States or foreign credit markets;
- the possibility of future terrorist attacks or the possibility or occurrence of an outbreak of, or changes in, hostilities or changes in the political conditions throughout the world, including the current conflict in Ukraine and the surrounding region;
- performance of contractual obligations by our customers, service providers, contractors and shippers;
- the effects of changes in governmental policies and regulatory actions, including changes with respect to income and other taxes, pipeline safety, environmental compliance, cybersecurity, climate change initiatives, emissions credits, carbon offsets, carbon pricing, production limits and authorized rates of recovery of natural gas and natural gas transportation costs;
- changes in demand for the use of natural gas, NGLs and crude oil because of the development of new technologies or other market conditions caused by concerns about climate change;
- the impact of the transition to a lower-carbon economy, including the timing and extent of the transition, as well as the expected role of different energy sources, including natural gas, NGLs and crude oil, in such a transition;
- the pace of technological advancements and industry innovation, including those focused on reducing GHG emissions and advancing other climate-related initiatives, and our ability to take advantage of those innovations and developments;
- the effectiveness of our risk-management function, including mitigating cyber- and climate-related risks;
- our ability to identify and execute opportunities, and the economic viability of those opportunities, including those relating to renewable natural gas, carbon capture, use and storage, other renewable energy sources such as solar and wind and alternative low carbon fuel sources such as hydrogen;
- the ability of our existing assets and our ability to apply and continue to develop our expertise to support the growth of, and transition to, various renewable and alternative energy opportunities, including through the positioning and optimization of our assets;
- our ability to efficiently reduce our GHG emissions (both Scope 1 and 2 emissions), including through the use of lower carbon power alternatives, management practices and system optimizations;
- the necessity to focus on maintaining and enhancing our existing assets while reducing our Scope 1 and 2 GHG emissions;
- the effects of weather and other natural phenomena and the effects of climate change (including physical and transition-related effects) on our operations, demand for our services and energy prices;
- acts of nature, sabotage, terrorism or other similar acts that cause damage to our facilities or our suppliers', customers' or shippers' facilities;
- the risk of increased costs for insurance premiums, security or other items as a consequence of terrorist attacks;
- the timing and extent of changes in energy commodity prices, including changes due to production decisions by other countries, such as the failure of countries to abide by agreements to reduce production volumes;
- competition from other United States and foreign energy suppliers and transporters, as well as alternative forms of energy, including, but not limited to, solar power, wind power, geothermal energy and biofuels such as ethanol and biodiesel;
- the ability to market pipeline capacity on favorable terms, including the effects of:
- the efficiency of our plants in processing natural gas and extracting and fractionating NGLs;
- the composition and quality of the natural gas and NGLs we gather and process in our plants and transport on our pipelines;
- risks of marketing, trading and hedging activities, including the risks of changes in energy prices or the financial condition of our counterparties;
- our ability to control operating costs and make cost-saving changes;
- the risks inherent in the use of information systems in our respective businesses and those of our counterparties and service providers, including cyber-attacks, which, according to experts, have increased in volume and sophistication since the beginning of the COVID-19 pandemic; implementation of new software and hardware; and the impact on the timeliness of information for financial reporting;
- the timely receipt of approval by applicable governmental entities for construction and operation of our pipeline and other projects and required regulatory clearances;
- the ability to recover operating costs and amounts equivalent to income taxes, costs of property, plant and equipment and regulatory assets in our state and Federal Energy Regulatory Commission (FERC)-regulated rates;
- the results of governmental actions, administrative proceedings and litigation, regulatory actions, executive orders, rule changes and receipt of expected clearances involving any local, state or federal regulatory body, including the FERC, the National Transportation Safety Board, Homeland Security, the Pipeline and Hazardous Materials Safety Administration (PHMSA), the U.S. Environmental Protection Agency (EPA) and the U.S. Commodity Futures Trading Commission (CFTC);
- the mechanical integrity of facilities and pipelines operated;
- the capital-intensive nature of our businesses;
- the impact of unforeseen changes in interest rates, debt and equity markets, inflation rates, economic recession and other external factors over which we have no control, including the effect on pension and postretirement expense and funding resulting from changes in equity and bond market returns;
- actions by rating agencies concerning our credit;
- our indebtedness and guarantee obligations could make us vulnerable to general adverse economic and industry conditions, limit our ability to borrow additional funds and/or place us at competitive disadvantages compared with our competitors that have less debt or have other adverse consequences;
- our ability to access capital at competitive rates or on terms acceptable to us;
- our ability to acquire all necessary permits, consents or other approvals in a timely manner, to promptly obtain all necessary materials and supplies required for construction, and to construct gathering, processing, storage, fractionation and transportation facilities without labor or contractor problems;
- our ability to control construction costs and completion schedules of our pipelines and other projects;
- difficulties or delays experienced by trucks, railroads or pipelines in delivering products to or from our terminals or pipelines;
- the uncertainty of estimates, including accruals and costs of environmental remediation;
- the impact of uncontracted capacity in our assets being greater or less than expected;
- the impact of potential impairment charges;
- the profitability of assets or businesses acquired or constructed by us;
- the risks associated with pending or possible acquisitions and dispositions, including our ability to finance or integrate any such acquisitions and any regulatory delay or conditions imposed by regulatory bodies in connection with any such acquisitions and dispositions;
- the risk that material weaknesses or significant deficiencies in our internal controls over financial reporting could emerge or that minor problems could become significant;
- the impact and outcome of pending and future litigation;
- the impact of recently issued and future accounting updates and other changes in accounting policies; and
- the risk factors listed in the reports we have filed, which are incorporated by reference and may file with the SEC.
These reports are also available from the sources described below. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. ONEOK undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or changes in circumstances, expectations or otherwise.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in the most recent reports on Form 10-K and Form 10-Q and other documents of ONEOK on file with the SEC. ONEOK's SEC filings are available publicly on the SEC's website at www.sec.gov.
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SOURCE ONEOK, Inc. | https://www.whsv.com/prnewswire/2022/05/03/oneok-announces-higher-first-quarter-2022-net-income-affirms-2022-financial-guidance/ | 2022-05-03T21:27:20Z |
HOUSTON, May 3, 2022 /PRNewswire/ -- Orbital Energy Group, Inc. (Nasdaq: OEG) ("Orbital Energy" or the "Company") today announced that it has closed its previously announced registered direct offering with a single institutional investor, to purchase 16,153,847 shares of the Company's common stock (or common stock equivalents) at an effective purchase price of $1.30 per share and warrants to purchase 16,153,847 shares of its common stock at an exercise price of $1.31 per share for gross proceeds of approximately $21.0 million. The warrants have a five-year term and are exercisable six months following the date of issuance.
A.G.P./Alliance Global Partners acted as sole placement agent for the offering.
This offering is being made pursuant to an effective shelf registration statement on Form S-3 (File No. 333-252682) previously filed with the U.S. Securities and Exchange Commission (the "SEC") under the Securities Act of 1933, as amended, which was declared effective by the SEC on April 29, 2021. A final prospectus supplement describing the terms of the proposed offering has been filed with the SEC and is available on the SEC's website located at http://www.sec.gov. Electronic copies of the prospectus supplement may be obtained, when available, from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Orbital Energy Group, Inc. (Nasdaq: OEG) is a diversified infrastructure services platform, providing engineering, design, construction, and maintenance services to customers in the electric power, telecommunications, and renewable industries.
Orbital Energy Group is dedicated to maximizing shareholder value, by striving to exceed our customers' expectations, building a diverse workforce and making a positive difference in the lives of our employees and the communities in which we operate, and contributing to reducing the carbon footprint through the services we provide.
For more information please visit: www.orbitalenergygroup.com
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and Private Securities Litigation Reform Act, as amended, including those relating to the timing and completion of the proposed offering and other statement that are predictive in nature. These statements may be identified by the use of forward-looking expressions, including, but not limited to, "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential," "predict," "project," "should," "would" and similar expressions and the negatives of those terms. These statements relate to future events and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any results, performance or achievements expressed or implied by the forward-looking statements. Such factors include the risk factors set forth in the Company's filings with the SEC, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2021. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this press release. Orbital undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
Investor Relations Contact
Three Part Advisors
John Beisler or Steven Hooser
817-310-8776
investors@orbitalenergygroup.com
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SOURCE Orbital Energy Group, Inc. | https://www.whsv.com/prnewswire/2022/05/03/orbital-energy-group-inc-announces-closing-210-million-registered-direct-offering/ | 2022-05-03T21:27:27Z |
NEWPORT, R.I., May 3, 2022 /PRNewswire/ -- Pangaea Logistics Solutions Ltd. ("Pangaea" or the "Company") (Nasdaq: PANL), a global provider of comprehensive maritime logistics solutions, today announced that it will release its first quarter 2022 financial results after market hours on Tuesday, May 10, 2022, along with an accompanying presentation that will be available with our Securities and Exchange Commission filing.
The company will host a teleconference to discuss the Company's first quarter 2022 financial results, including a question-and-answer session with management, at 8:00 a.m. ET on Wednesday, May 11, 2022.
To access the teleconference, please dial 866-518-6930 (domestic) or 203-518-9797 (international) approximately ten minutes before the teleconference's scheduled start time and reference Conference ID: PANLQ122.
A recording of the call will also be available for one week following the teleconference and will be accessible by calling 800-938-1584 (domestic) or 402-220-1542 (international).
About Pangaea Logistics Solutions Ltd.
Pangaea Logistics Solutions Ltd. provides logistics services to a broad base of industrial customers who require the transportation of a wide variety of dry bulk cargoes, including grains, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone. The Company addresses the transportation needs of its customers with a comprehensive set of services and activities, including cargo loading, cargo discharge, vessel chartering, and voyage planning. Learn more at www.pangaeals.com.
Contacts
Investor Relations Contacts
Emily Blum
Prosek Partners
973-464-5240
eblum@prosek.com
Gianni Del Signore
Pangaea Logistics Solutions Ltd.
401-846-7790
Investors@pangaeals.com
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SOURCE Pangaea Logistics Solutions Ltd. | https://www.whsv.com/prnewswire/2022/05/03/pangaea-logistics-solutions-ltd-report-first-quarter-2022-results/ | 2022-05-03T21:27:34Z |
ALAMEDA, Calif., May 3, 2022 /PRNewswire/ -- Penumbra, Inc. (NYSE: PEN), a global healthcare company focused on innovative therapies, today reported financial results for the first quarter ended March 31, 2022.
- Revenue of $203.9 million in the first quarter of 2022, an increase of 20.5%, or 21.8% in constant currency1, compared to the first quarter of 2021.
Total revenue increased to $203.9 million for the first quarter of 2022 compared to $169.2 million for the first quarter of 2021, an increase of 20.5%, or 21.8% on a constant currency basis. The United States represented 71% of total revenue and international represented 29% of total revenue for the first quarter of 2022. Revenue from sales of vascular products grew to $122.8 million for the first quarter of 2022, an increase of 37.7%, or 38.8% on constant currency basis. Revenue from sales of neuro products grew to $81.1 million for the first quarter of 2022, an increase of 1.3%, or 2.9% on a constant currency basis.
Gross profit was $127.4 million, or 62.5% of total revenue for the first quarter of 2022 and was impacted by higher labor and logistics costs as a result of manufacturing transfer activities and higher labor absenteeism due to the Omicron variant at the beginning of the quarter. This compared to $111.3 million, or 65.8% of total revenue, for the first quarter of 2021.
Total operating expenses were $131.5 million, or 64.5% of total revenue, for the first quarter of 2022, including a $1.8 million amortization expense of finite lived intangible assets acquired in connection with the Sixense acquisition. Excluding this charge, total non-GAAP operating expenses1 were $129.7 million or 63.6% of total revenue, for the first quarter of 2022. This compares to GAAP and non-GAAP operating expenses of $97.9 million, or 57.8% of total revenue, for the first quarter of 2021. R&D expenses were $20.6 million for the first quarter of 2022, compared to $18.1 million for the first quarter of 2021. SG&A expenses were $110.9 million for the first quarter of 2022, compared to $79.8 million for the first quarter of 2021.
Operating loss for the first quarter of 2022 was $4.0 million. Excluding the charge associated with the amortization expense of finite lived intangible assets acquired in connection with the Sixense acquisition, non-GAAP operating loss1 was $2.3 million. This compares to GAAP and non-GAAP operating income of $13.5 million for the first quarter of 2021.
Penumbra, Inc. will host a conference call to discuss the first quarter 2022 financial results after market close on Tuesday, May 3, 2022 at 4:30 PM Eastern Time. The conference call can be accessed live over the phone by dialing (888) 330-2443 for domestic and international callers (conference id: 4604622), or the webcast can be accessed on the "Events" section under the "Investors" tab of the Company's website at: www.penumbrainc.com. The webcast will be available on the Company's website for at least two weeks following the completion of the call.
Penumbra, Inc., headquartered in Alameda, California, is a global healthcare company focused on innovative therapies. Penumbra designs, develops, manufactures and markets novel products and has a broad portfolio that addresses challenging medical conditions in markets with significant unmet need. Penumbra supports healthcare providers, hospitals and clinics in more than 100 countries. The Penumbra logo is a trademark of Penumbra, Inc. For more information, visit www.penumbrainc.com and connect on Twitter and LinkedIn.
1See "Non-GAAP Financial Measures" for important information about our use of non-GAAP measures.
In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company uses the following non-GAAP financial measures in this press release: a) constant currency and b) non-GAAP operating expenses, non-GAAP operating (loss) income, non-GAAP net (loss) income and non-GAAP diluted earnings per share ("EPS").
Constant Currency. The Company's constant currency revenue disclosures estimate the impact of changes in foreign currency rates on the translation of the Company's current period revenue as compared to the applicable comparable period in the prior year. This impact is derived by taking the current local currency revenue and translating it into U.S. dollars based upon the foreign currency exchange rates used to translate the local currency revenue for the applicable comparable period in the prior year, rather than the actual exchange rates in effect during the current period. It does not include any other effect of changes in foreign currency rates on the Company's results or business.
Non-GAAP operating expenses, non-GAAP operating (loss) income, non-GAAP net (loss) income and non-GAAP diluted EPS. The adjustments to the GAAP financial measures reflect the exclusion of:
- the effect of the amortization of finite lived intangible assets acquired in connection with the Sixense acquisition over their estimated useful lives; and
- the excess tax benefits associated with share-based compensation arrangements.
Full reconciliation of these non-GAAP measures to the most comparable GAAP measures is set forth in the tables below.
Our management believes the non-GAAP financial measures disclosed in this press release are useful to investors in assessing the operating performance of our business and provide meaningful comparisons to prior periods and thus a more complete understanding of our business than could be obtained absent this disclosure. Specifically, we consider the change in constant currency revenue as a useful metric as it provides an alternative framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations. We consider non-GAAP operating expenses, non-GAAP operating (loss) income, non-GAAP net (loss) income and non-GAAP diluted EPS useful metrics as they provide an alternative framework for assessing how our underlying business performed excluding the amortization expense of finite lived intangible assets acquired in connection with the Sixense acquisition and the excess tax benefits associated with share-based compensation arrangements.
The non-GAAP financial measures included in this press release may be different from, and therefore may not be comparable to, similarly titled measures used by other companies. These non-GAAP measures should not be considered in isolation or as alternatives to GAAP measures. We urge investors to review the reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures included in this press release, and not to rely on any single financial measure to evaluate our business.
Except for historical information, certain statements in this press release are forward-looking in nature and are subject to risks, uncertainties and assumptions about us. Our business and operations are subject to a variety of risks and uncertainties and, consequently, actual results may differ materially from those projected by any forward-looking statements. Factors that could cause actual results to differ from those projected include, but are not limited to: the impact of the COVID-19 pandemic on our business, results of operations and financial condition; failure to sustain or grow profitability or generate positive cash flows; failure to effectively introduce and market new products; delays in product introductions; significant competition; inability to further penetrate our current customer base, expand our user base and increase the frequency of use of our products by our customers; inability to achieve or maintain satisfactory pricing and margins; manufacturing difficulties; permanent write-downs or write-offs of our inventory; product defects or failures; unfavorable outcomes in clinical trials; inability to maintain our culture as we grow; fluctuations in foreign currency exchange rates; potential adverse regulatory actions; and the potential impact of any acquisitions, mergers, dispositions, joint ventures or investments we may make. These risks and uncertainties, as well as others, are discussed in greater detail in our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 22, 2022. There may be additional risks of which we are not presently aware or that we currently believe are immaterial which could have an adverse impact on our business. Any forward-looking statements are based on our current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements. We make no commitment to revise or update any forward-looking statements in order to reflect events or circumstances that may change.
Investor Relations
Penumbra, Inc.
510-995-2461
investors@penumbrainc.com
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PURCHASE, N.Y., May 3, 2022 /PRNewswire/ -- The Board of Directors of PepsiCo, Inc. (NASDAQ: PEP) today declared a quarterly dividend of $1.15 per share of PepsiCo common stock, a 7 percent increase versus the comparable year-earlier period. Today's action is consistent with PepsiCo's previously announced increase in its annualized dividend to $4.60 per share from $4.30 per share, which will begin with the June 2022 payment. This dividend is payable on June 30, 2022 to shareholders of record at the close of business on June 3, 2022. PepsiCo has paid consecutive quarterly cash dividends since 1965, and 2022 marks the company's 50th consecutive annual dividend increase.
About PepsiCo
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $79 billion in net revenue in 2021, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.
Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with PepsiCo Positive (pep+). pep+ is our strategic end-to-end transformation that puts sustainability at the center of how we will create value and growth by operating within planetary boundaries and inspiring positive change for planet and people. For more information, visit www.pepsico.com.
Cautionary Statement
Statements in this release that are "forward-looking statements" are based on currently available information, operating plans and projections about future events and trends. Forward-looking statements inherently involve risks and uncertainties. For information on certain factors that could cause actual events or results to differ materially from our expectations, please see PepsiCo's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. PepsiCo undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact: pepsicomediarelations@pepsico.com
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SOURCE PepsiCo, Inc. | https://www.whsv.com/prnewswire/2022/05/03/pepsico-declares-quarterly-dividend/ | 2022-05-03T21:27:47Z |
HOUSTON, May 3, 2022 /PRNewswire/ -- Powell Industries, Inc. (NASDAQ: POWL), a leading supplier of custom-engineered solutions for the management, control and distribution of electrical energy, today announced results for the fiscal 2022 second quarter ended March 31, 2022.
Fiscal Second Quarter Key Highlights:
- Revenues totaled $128 million;
- Net Loss was $1.2 million, or a loss of $0.10 per diluted share;
- New orders totaled $151 million;
- Backlog as of March 31, 2022 totaled $440 million;
- Cash and short-term investments as of March 31, 2022 totaled $114 million.
Brett A. Cope, Powell's Chairman and Chief Executive Officer, stated, "Powell delivered improved second quarter results that reflected ongoing initiatives supporting diligent and deliberate strategic efforts to diversify our business mix and broaden our Services offerings. Revenue totaled $128 million with associated gross margin of 14.9%, an improvement of 230 basis points sequentially, as we continue to navigate this challenging cost environment and the timing of new projects. Most notably, new orders in the quarter totaled $151 million which marks four consecutive quarters of increasing new orders despite the lack of a full recovery in our core industrial end markets. The strength across our utility and light commercial sectors clearly demonstrates the focused efforts to grow our presence in the non-industrial markets where Powell has not historically maintained a sustainable base of commercial activity. Overall, we are encouraged by both the direction of the recovery within our end markets as well as the positive developments we are seeing from our strategic initiatives."
Revenues for the second quarter totaled $127.9 million compared to $106.6 million in the first quarter and compared to $118.7 million in the second quarter in the prior year.
New orders placed in the second quarter totaled $151 million which compares to $122 million of gross new orders in the first fiscal quarter and compares to $89 million of new orders in the second quarter of the prior fiscal year.
Backlog as of March 31, 2022 totaled $440 million which represents sequential growth of 6% compared to $416 million as of December 31, 2021 and compares to $437 million as of March 31, 2021.
Net loss for the fiscal second quarter was $1.2 million, or $0.10 per diluted share, compared to a net loss of $2.8 million, or a loss of $0.24 per diluted share, in the fiscal first quarter. In anticipation of higher than previously expected pre-tax income on a total year fiscal 2022 basis, a tax provision was recorded in the second fiscal quarter which resulted in the current period net loss. Net loss was $0.2 million, or $0.02 per diluted share, in the second fiscal quarter in the prior year.
Cope added, "Over the near-term, we continue to see stabilization of our Oil & Gas and Petrochemical end markets and the fundamentals within LNG, gas pipeline and gas-to-chemical projects remain favorable. In addition, we are encouraged by the efficiency of our operations and by the execution throughout the Company."
OUTLOOK
Commenting on the Company's outlook, Michael Metcalf, Powell's Chief Financial Officer said, "We are optimistic that our core industrial end markets will continue to steadily recover, while we are also encouraged by the strength across the utility and light commercial end markets, recognizing a consolidated 1.2x book-to-bill ratio in the fiscal second quarter. As we navigate through the current inflationary environment that is dominated by supply chain constraints, we continue to pursue proactive actions in order to help offset these headwinds, as demonstrated by the sequential improvement in profitability. Looking forward, we anticipate that profitability will continue to improve as we progress through the second half of fiscal 2022 as pricing, factory efficiencies and cost controls gain momentum, while continuing to execute on our $440 million order book."
CONFERENCE CALL
Powell Industries has scheduled a conference call for Wednesday, May 4, 2022 at 11:00 a.m. Eastern time. To participate in the conference call, dial 1-833-953-2431 (domestic) or 1-412-317-5760 (international) at least 10 minutes before the call begins and ask for the Powell Industries conference call. A telephonic replay of the conference call will be available through May 11, 2022 and may be accessed by calling 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and using passcode 8444747#.
Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by visiting powellind.com. To listen to the live call on the web, please visit the website at least 15 minutes before the call begins to register, download and install any necessary audio software. For those who cannot listen to the live webcast, an archive will be available shortly after the call and will remain available for approximately 90 days at powellind.com.
Powell Industries, Inc., headquartered in Houston, designs, manufactures and services custom-engineered equipment and systems for the distribution, control and monitoring of electrical energy. Powell markets include large industrial customers such as utilities, oil and gas producers, refineries, liquefied natural gas facilities, petrochemical plants, pulp and paper producers, mining operations and commuter railways. For more information, please visit powellind.com.
Any forward-looking statements in the preceding paragraphs of this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties in that actual results may differ materially from those projected in the forward-looking statements. In the course of operations, we are subject to certain risk factors, competition and competitive pressures, sensitivity to general economic and industrial conditions, international political and economic risks, availability and price of raw materials and execution of business strategy. For further information, please refer to the Company's filings with the Securities and Exchange Commission, copies of which are available from the Company without charge.
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SOURCE Powell Industries | https://www.whsv.com/prnewswire/2022/05/03/powell-industries-announces-fiscal-2022-second-quarter-results/ | 2022-05-03T21:27:55Z |
HOUSTON, May 3, 2022 /PRNewswire/ -- Powell Industries, Inc. (NASDAQ: POWL), a leading supplier of custom engineered solutions for the management, control and distribution of electrical energy, today announced that its Board of Directors has declared a quarterly cash dividend on the Company's common stock in the amount of $0.26 per share. The dividend is payable on June 15, 2022 to shareholders of record at the close of business on May 18, 2022.
Powell Industries, Inc., headquartered in Houston, designs, manufactures and services custom-engineered equipment and systems for the distribution, control and monitoring of electrical energy. Powell markets include large industrial customers such as utilities, oil and gas producers, refineries, petrochemical plants, pulp and paper producers, mining operations and commuter railways. For more information, please visit powellind.com.
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SOURCE Powell Industries | https://www.whsv.com/prnewswire/2022/05/03/powell-industries-declares-quarterly-cash-dividend/ | 2022-05-03T21:28:02Z |
Haynor Brings Significant Supply Chain Experience and Track Record of Operational Efficiency
LEHI, Utah, May 3, 2022 /PRNewswire/ -- Purple Innovation, Inc. (NASDAQ: PRPL) ("Purple"), a comfort innovation company known for creating the "World's First No Pressure® Mattress," today announced the appointment of Eric Haynor as its Chief Operating Officer, effective June 6, 2022. Mr. Haynor will oversee all aspects of the company's operations, playing a key role in supporting Purple's future growth plans through supply chain and manufacturing efficiency.
"Eric's 30-year track record of end-to-end supply chain management excellence will be a welcome addition for our young company," said Rob DeMartini, Chief Executive Officer. "As we continue to advance the early stages of our turnaround journey, Eric will play a significant role in returning Purple to operational excellence; a key part of our long-range profitability plan. We are very confident in Eric's abilities to help us mature our operational activities and unlock the underlying value of our organization."
Most recently, Mr. Haynor served as Senior Vice President of Global Industrial Supply Chain at Ecolab, Inc., a global leader in water, hygiene and infection prevention solutions and services, where he had direct responsibility for North American supply chain operations. In this role, he had end-to-end supply chain accountability for the industrial business group. Prior to that, Mr. Haynor held several progressively senior roles within Ecolab Inc.'s supply chain group, including VP of Global Equipment Operations and Global Life Sciences, VP of Supply Chain Operations for EMEA, and VP of Supply Chain Operations for Asia Pacific.
"I am thrilled to join Purple at such a critical juncture in the company's history," said Haynor. "As Purple's product sophistication and brand reach has grown, so has the need for a more wholistic approach to the end-to-end supply chain. I look forward to joining the team at Purple and helping to take the next step forward in operational excellence."
Haynor earned a Bachelor of Science in Mechanical Engineering from Michigan State University.
Inducement Equity Grant
Upon the effectiveness of his appointment, Mr. Haynor will receive an equity grant valued at $500,000 based on the market price of the Company's Class A Common Stock. This grant will consist of PSUs (65%) and RSUs (35%). The PSUs will have a three-year cliff vesting schedule and are contingent on the stock price hitting certain performance targets. The RSUs have a vesting schedule of 1/3rd vesting every 12 months. This grant is an inducement grant outside of the Company's 2017 Equity Incentive Plan in accordance with the NASDAQ inducement grant exception found in NASDAQ Listing Rule 5635(c)(4).
About Purple
Purple is a digitally-native vertical brand with a mission to help people feel and live better through innovative comfort solutions. We design and manufacture a variety of innovative, premium, branded comfort products, including mattresses, pillows, cushions, frames, sheets and more. Our products are the result of over 30 years of innovation and investment in proprietary and patented comfort technologies and the development of our own manufacturing processes. Our proprietary gel technology, Hyper-Elastic Polymer®, underpins many of our comfort products and provides a range of benefits that differentiate our offerings from other competitors' products. We market and sell our products through our direct-to-consumer online channels, traditional retail partners, third-party online retailers and our owned retail showrooms. For more information on Purple, visit purple.com.
Forward-Looking Statements
Certain statements made in this release that are not historical facts are "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements include but are not limited to statements about operational improvements and the Company's long-range profitability. Statements based on historical data are not intended and should not be understood to indicate the Company's expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Factors that could influence the realization of forward-looking statements include the risk factors outlined in the "Risk Factors" section of our Annual Report on Form 10-K filed with the SEC on March 1, 2022, as amended by our Annual Report on Form 10-K/A Amendment No. 1 filed with the SEC on March 16, 2022 and in our other filings with the SEC. Many of these risks and uncertainties have been, and will be, exacerbated by the COVID–19 pandemic and any worsening of the global business and economic environment as a result. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Investor Contact:
Brendon Frey, ICR
brendon.frey@icrinc.com
203-682-8200
Purple Innovation, Inc.
Gina Balistreri
Senior Public Relations Manager
gina.b@purple.com
414-213-4460
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SOURCE Purple Innovation, Inc. | https://www.whsv.com/prnewswire/2022/05/03/purple-appoints-eric-haynor-chief-operating-officer/ | 2022-05-03T21:28:08Z |
STAMFORD, Conn., May 3, 2022 /PRNewswire/ -- ReneSola Ltd ("ReneSola Power" or the "Company") (www.renesolapower.com) (NYSE: SOL), a leading fully integrated solar project developer, today announced that its management team will participate in the Credit Suisse 2022 Renewables and Utilities Conference on Friday, May 13th, 2022.
Management will be available for one-on-one and group meetings with institutional investors at the conference. Portfolio managers and analysts who wish to request a meeting should contact their institutional sales representative at Credit Suisse.
About ReneSola Power
ReneSola Power (NYSE: SOL) is a leading global solar project developer and operator. The Company focuses on solar power project development, construction management and project financing services. With local professional teams in more than 10 countries around the world, the business is spread across number of regions where the solar power project markets are growing rapidly and can sustain that growth due to improved clarity around government policies. The Company's strategy is to pursue high-margin project development opportunities in these profitable and growing markets; specifically, in the U.S. and Europe, where the Company has a market-leading position in several geographies, including Poland, Hungary, Minnesota and New York. For more information, please visit www.renesolapower.com.
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SOURCE ReneSola Ltd. | https://www.whsv.com/prnewswire/2022/05/03/renesola-power-participate-credit-suisse-2022-renewables-utilities-conference/ | 2022-05-03T21:28:16Z |
SCOTTSDALE, Ariz., May 3, 2022 /PRNewswire/ -- Resideo Technologies, Inc. (NYSE: REZI), a leading global provider of home comfort and security solutions and distributor of commercial and residential security and audio-visual products, today announced financial results for the first quarter ended April 2, 2022.
First Quarter 2022 Highlights
- Net revenue of $1.51 billion, up 6% from $1.42 billion in the first quarter 2021
- Gross profit margin of 28.8%, up 290 basis points compared to gross profit margin of 25.9% in the prior year comparable period
- Operating profit of $172 million, or 11.4% of revenue, compared to $130 million, or 9.2% of revenue, in the first quarter 2021
- Fully diluted earnings per share of $0.58 compared to fully diluted earnings per share of $0.33 in the first quarter 2021
- Completed First Alert and Arrow Wire & Cable acquisitions
Management Remarks
"We began 2022 on a strong note with both ADI and Products & Solutions delivering year-over-year sales and profitability expansion," commented Jay Geldmacher, Resideo's President and CEO. "Overall demand indicators remain positive across the business as residential and commercial customers invest to improve the security, energy efficiency and comfort of their surroundings."
"At ADI we continue to expand digital initiatives to support improved customer experience and invest in tools to drive sales force effectiveness, while also focusing on capturing value from the current pricing environment. Products & Solutions is delivering strong realization on 2021 price actions and demand continues to outstrip our ability to fully supply. We closed the acquisitions of First Alert and Arrow Wire & Cable and we are excited to welcome the respective teams to Resideo. We are hitting the ground running on unlocking the meaningful value creation opportunity we see from bringing these organizations together with Products & Solutions and ADI."
Products & Solutions First Quarter 2022 Highlights
- Revenue of $619 million, up 2% compared to the first quarter 2021
- Operating profit of $153 million, up 18% compared to the first quarter 2021
- Completed acquisition of First Alert on March 31, adding highly complementary smoke and carbon monoxide detection home safety products
Products & Solutions delivered revenue of $619 million in the first quarter 2022, up 2% compared to first quarter 2021. Strong flow through of price adjustments put in place throughout 2021 drove the year-over-year revenue expansion. Demand remains healthy in our air and energy product categories across channels, which offset softness in security products. The supply chain environment remained challenging during the first quarter. This included both materials sourcing, particularly related to semiconductor components, and shipping costs, which remained at historically elevated levels. Products & Solutions continues to make progress deepening its relationships with key customers and partners and is actively expanding efforts within attractive growth categories. This includes initiatives targeting residential new construction, multi-family, hydrogen and energy management.
Gross margin for the quarter was 42.8%, compared to 38.0% in first quarter 2021. Pricing activity and annual inventory revaluation benefited first quarter gross margin and helped offset year-over-year material input cost inflation. Operating profit for the quarter was $153 million, or 24.7% of revenue, up 18% compared to first quarter 2021 and representing a 320 basis point expansion in operating margin.
The acquisition of First Alert, a leader in the residential smoke alarm and carbon monoxide detection markets, closed on March 31, 2022. First Alert expands Resideo's sensors within the home and occupies a highly strategic position on the ceiling. Efforts are already underway to leverage the significant strategic opportunity from a channel perspective and in exploring potential from more tightly integrating First Alert's offerings with existing products. This includes the opportunity to drive category growth in connected offerings.
ADI Global Distribution First Quarter 2022 Highlights
- Revenue of $887 million, up 9% compared to the first quarter 2021
- Operating profit of $80 million, up 36% compared to the first quarter 2021
- E-commerce sales growth of 24%, accounting for 17% of ADI total sales
- Expanded data communications offering with acquisition of Arrow Wire & Cable
ADI first quarter 2022 revenue of $887 million was up 9% compared to the first quarter 2021. Growth was driven by volume expansion, recent acquisitions and a strong pricing environment. Demand was strongest in categories that typically serve commercial end markets including fire and access control. Vendor supply issues remained a headwind to growth, particularly in the video surveillance category. Sales through ADI's e-commerce channel grew 24%, representing 17% of total ADI sales, and private brands sales grew over 40% compared to first quarter 2021.
Gross margin of 19.2% in the first quarter 2022 was up 200 basis points compared to first quarter 2021. This expansion was driven by ADI capturing the benefits of the current inflationary pricing environment, progress on ADI specific price optimization efforts and expansion of private brands. ADI is continuing to invest in and roll out tools to enable its sales team to better understand and serve customers, which has had significant benefit on sales efficiency. Operating profit of $80 million for first quarter 2022 was up 36% from $59 million in first quarter 2021, reaching 9% of revenue.
During the first quarter ADI saw significant growth in key adjacent categories of professional and residential audio visual and in data communications. In the first quarter, ADI completed the acquisition of Arrow Wire & Cable, a U.S. west coast distributor of data communications products. The acquisition complements the 2021 acquisition of Norfolk Wire & Electronics geographically, strengthening ADI's position in a key strategic growth category. Arrow is the fourth acquisition for ADI since 2020.
First Quarter 2022 Performance
Consolidated revenue of $1.51 billion in the first quarter 2022 grew 6% compared with the prior year of $1.42 billion. Gross profit margin for the first quarter 2022 was 28.8%, up 290 basis points compared to 25.9% in the prior year. Resideo's operating profit of $172 million in the first quarter 2022 compared to a prior year operating profit of $130 million. Total Corporate costs were $61 million, up from $59 million in the prior year primarily due to $10 million of one-time transaction costs associated with the First Alert acquisition. Net income for the first quarter 2022 was $87 million, or $0.58 per diluted common share, compared with $49 million, or $0.33 per diluted common share, in the prior year.
Cash Flow and Liquidity
First quarter 2022 net cash used by operating activities of $59 million compared to cash provided by operating activities of $5 million in the prior year comparable period. The use of cash was primarily due to typical seasonal timing of cash payments for bonus and customer rebate payments accrued in prior periods, higher working capital to support growth and a strategic decision to increase inventory levels. At April 2, 2022, Resideo had cash and cash equivalents of $244 million and total outstanding debt of $1.4 billion.
Outlook
Based on first quarter results and the outlook for the remainder of 2022, the company now expects full year 2022 revenue to be in the range of $6.45 billion to $6.65 billion, gross profit margin in the range of 27.5% to 28.5% and operating profit in the range of $680 million to $720 million.
The company expects second quarter 2022 revenue to be in the range of $1.65 billion to $1.70 billion, gross profit margin in the range of 27.0% to 28.0% and operating profit in the range of $165 million to $175 million.
Conference Call and Webcast Details
Resideo will hold a conference call with investors on May 3, 2022, at 5:00 p.m. ET. An audio webcast of the call will be accessible at https://investor.resideo.com, where related materials will be posted before the call. A replay of the webcast will be available following the presentation. To join the conference call, please dial 888-660-6357 (U.S. toll-free) or 1-929-201-6127 (international), with the conference title "Resideo First Quarter 2022 Earnings" or the conference ID: 7301399.
Resideo is a leading global manufacturer and distributor of technology-driven products and solutions that provide comfort, security, energy efficiency and control to customers worldwide. Building on a 130-year heritage, Resideo has a presence in more than 150 million homes globally, with 15 million systems installed in homes each year. We continue to serve more than 110,000 professionals through leading distributors, including our ADI Global Distribution business, which exports to more than 100 countries from nearly 200 stocking locations around the world. For more information about Resideo, please visit www.resideo.com.
Forward-Looking Statements
This release contains "forward-looking statements." All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks and uncertainties, which may cause the actual results or performance of the Company to differ materially from such forward-looking statements. Such risks and uncertainties include, but are not limited to, (1) our ability to achieve our outlook regarding the second quarter 2022 and full year 2022, (2) the duration and severity of the COVID-19 pandemic and the disruption to our business and the global economy caused by it, including its effect on our and our business partners' supply chains, (3) the amount of our obligations and nature of our contractual restrictions pursuant to, and disputes that have or may hereafter arise under the agreements we entered into with Honeywell in connection with our spin-off, (4) the likelihood of continued success of our transformation programs and initiatives, (5) risks related to our recently completed acquisitions, including First Alert, including our ability to achieve the targeted amount of annual cost synergies, successfully integrate the acquired operations (including successfully driving category growth in connected offerings), and the expected net present value of tax benefits resulting from the First Alert transaction and (6) the other risks described under the headings "Risk Factors" and "Cautionary Statement Concerning Forward-Looking Statements" in our Annual Report on Form 10-K for the year ended December 31, 2021 and other periodic filings we make from time to time with the Securities and Exchange Commission. Forward-looking statements are not guarantees of future performance, and actual results, developments, and business decisions may differ from those envisaged by our forward-looking statements. Except as required by law, we undertake no obligation to update such statements to reflect events or circumstances arising after the date of this press release and we caution investors not to place undue reliance on any such forward looking statements.
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MEMPHIS, Tenn., May 3, 2022 /PRNewswire/ -- Emmy-nominated NFL Network host Rich Eisen kicked off "60 Days for St. Jude," a fundraising and awareness campaign to benefit St. Jude Children's Research Hospital®, with his annual Run Rich Run event. Now in its 18th year, Run Rich Run aired on Saturday, April 30, during Rounds 4-7 of the NFL Draft.
The 60-day campaign coincides with the 60th anniversary of St. Jude Children's Research Hospital and nods to the NFL Play 60 partnership with St. Jude. Now through June 30, visit StJude.org/RunRichRun to participate. There are a variety of fun ways to get involved, including by donating to St. Jude and uploading 40-yard-dash videos on social media using the hashtag #RunRichRun.
This year's Run Rich Run was filmed at the Rose Bowl, in Pasadena, California, where Eisen was joined in his now iconic run by NFL Legends and nationally recognized business entrepreneurs who each attempted their best 40-yard-dash to support St. Jude kids and families.
Running alongside the formidable athletes and pillars of industry was St. Jude patient Alexander, 11. Alexander was just 7 years old when he was diagnosed in 2017 with medulloblastoma, a form of brain cancer. After being treated at St. Jude, Alexander is now cancer-free. His participation in this year's Run Rich Run event was a tribute to all the kids being treated at St. Jude. Alexander loves running and not only ran the 40-yard-dash but served as the official timer and motivator for Eisen and the other runners.
"To watch our friend Rich Eisen take the field each year for Run Rich Run is truly inspirational and his dedication to helping kids like Alexander is nothing less than extraordinary," said Richard C. Shadyac Jr., president and CEO of ALSAC, the fundraising and awareness organization for St. Jude Children's Research Hospital. "Because of efforts by supporters like Rich, our partners at the NFL and so many dedicated Run Rich Run fans, St. Jude can advance its six-year, $11.5 billion strategic plan that includes tripling its global investment to help more of the 400,000 kids around the world with cancer each year."
Eisen was named 2021 St. Jude Ambassador of the Year for his ongoing efforts to support the mission of St. Jude: Finding cures. Saving children.® Fundraising from events like Run Rich Run ensure that families never receive a bill from St. Jude for treatment, travel, housing or food, so they can focus on helping their child live.
Since 2012, the NFL has partnered with St. Jude through NFL PLAY 60, which is the "Official Champion of Play" at St. Jude Children's Research Hospital. As the League's national youth health and wellness campaign encouraging youth to get physically active for 60 minutes a day, the NFL PLAY 60 initiative helps patients and families at St. Jude cope with serious illnesses through play therapy, peer interaction and other activities. NFL PLAY 60 Super Kid Aubrey Anaya, 11, attended this year's run as an ambassador and supporter.
To learn more or support Run Rich Run, visit stjude.org/runrichrun.
About St. Jude Children's Research Hospital®
St. Jude Children's Research Hospital is leading the way the world understands, treats and defeats childhood cancer and other life-threatening diseases. Its purpose is clear: Finding cures. Saving children.® It is the only National Cancer Institute-designated Comprehensive Cancer Center devoted solely to children. Treatments invented at St. Jude have helped push the overall childhood cancer survival rate from 20% to more than 80% since the hospital opened in 1962. St. Jude won't stop until no child dies from cancer. St. Jude shares the breakthroughs it makes, and every child saved at St. Jude means doctors and scientists worldwide can use that knowledge to save thousands more children. Because of generous donors, families never receive a bill from St. Jude for treatment, travel, housing or food, so they can focus on helping their child live. Visit St. Jude Inspire to discover powerful St. Jude stories of hope, strength, love and kindness. Join the St. Jude mission by visiting stjude.org, liking St. Jude on Facebook, following St. Jude on Twitter, Instagram, LinkedIn and TikTok, and subscribing to its YouTube channel.
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SOURCE ALSAC/St. Jude Children's Research Hospital | https://www.whsv.com/prnewswire/2022/05/03/run-rich-run-kicks-off-60-days-st-jude-during-60th-anniversary-st-jude-childrens-research-hospital/ | 2022-05-03T21:28:30Z |
TORONTO, May 3, 2022 /PRNewswire/ - Russel Metals Inc. (RUS: TSX) announces financial results for three months ended March 31, 2022.
Record Revenues of $1,339 Million and EBITDA1 of $153 Million
Strong Capital Structure with Liquidity1 of $457 Million
Non-GAAP Measures and Ratios
We use a number of measures that are not prescribed by International Financial Reporting Standards ("IFRS" or "GAAP") and as such may not be comparable to similar measures presented by other companies. We believe these measures are commonly employed to measure performance in our industry and are used by analysts, investors, lenders and other interested parties to evaluate financial performance and our ability to incur and service debt to support our business activities. These non-GAAP measures include EBITDA, Adjusted EBITDA and Liquidity and are defined below. Refer to Non-GAAP Measures and Ratios and Adjusted Non-GAAP Measures on page 2 of our Management Discussion and Analysis.
EBIT - represents net earnings before interest and income taxes.
Adjusted EBIT - represents net earnings before asset impairment, interest and, income taxes.
EBITDA - represents net earnings before interest, income taxes, depreciation and amortization.
Adjusted EBITDA - we adjust our EBITDA to remove the impact of long-lived asset impairment, to calculate the Adjusted EBITDA.
Adjusted Net Earnings - we adjust our reported net earnings to remove long-lived asset impairment, net of income taxes, to calculate adjusted net earnings.
Adjusted Net Earnings Per Share - we adjust our reported net earnings to remove the impact of long-lived asset impairment, net of income taxes, to calculate the adjusted net earnings per share.
Liquidity - represents cash on hand less bank indebtedness plus excess availability under our bank credit facility.
The following table shows the reconciliation of net earnings in accordance with GAAP to Adjusted EBITDA for 2022 and 2021:
Our basic earnings per share of $1.56 for the quarter ended March 31, 2022, was higher than the $1.29 per share recorded in the first quarter of 2021 and lower than the $1.62 reported in the fourth quarter of 2021. Revenues of $1,339 million were a record and higher than the $885 million experienced in the first quarter of 2021 and the $1,147 million in the fourth quarter of 2021. Our gross margins were 21.7% for the first quarter of 2022, which were higher than historical averages but lower than the 28.8% in the same quarter of 2021 and 26.1% in the fourth quarter of 2021. Steel market conditions rebounded significantly late in the 2022 first quarter and resulted in both revenues and margins for the last month of the quarter being higher than the average for the quarter. Our Adjusted EBITDA, which equaled EBITDA, for the quarter was $153 million compared to Adjusted EBITDA of $129 million in the same quarter of 2021 and $164 million in the fourth quarter of 2021.
Each of our business segments generated strong operating results in the first quarter of 2022. Metals service centers had a quarter-over-quarter increase in tons shipped of 13% on a same store basis and 19% after taking into account a full quarter contribution from the acquisition of Boyd Metals ("Boyd"). This was accomplished in spite of weather and COVID related challenges that impacted shipping activities in the early part of the quarter. The steel distributors segment benefited from supply chain disruptions that continued to affect steel availability and our business was able to serve strong customer demand. In our energy products segment, the improved prices and activity in both Canada and the U.S. allowed our business to generate higher quarter-over-quarter revenues as it benefited from the continued recovery of the energy industry.
Market Conditions
Steel prices moderated through the early part of the 2022 first quarter but rebounded significantly during March 2022, due to reduced inventory in the supply chain, further global supply chain disruptions caused by the Russian invasion of Ukraine and strong demand. In the energy sector, operating conditions continued to improve in conjunction with the increased activity in the oil and gas sector.
Liquidity and Capital Structure Improvements
During the 2022 first quarter, we generated $43 million of cash from operating activities and ended the quarter with total available liquidity of $457 million.
Business Optimization
On March 31, 2022, we divested Apex Western Fiberglass Inc. ("AWF"), which was a part of our energy segment, for cash consideration of $10 million. There was no gain or loss on sale as cash proceeds equaled the net book value. We completed the sale to further refine our business portfolio and enhance our return on capital over the cycle, since AWF's returns did not meet our criteria.
Declaration of Quarterly Dividends
The Board of Directors approved a quarterly dividend of $0.38 per common share payable June 15, 2022, to shareholders of record as of May 27, 2022. We will continue our practice of prudently reviewing our dividend and ensure that it is supported by a strong balance sheet and cash flows.
Outlook
Demand remains strong for our metals service centers segment. Over the past year, steel prices and our margin dollars have remained above historic levels, and we expect both to remain above historical levels over the near term. New projects in the oil and gas sector and a short spring breakup should result in gradually improving demand in our energy products segment over the near-to-medium term.
Investor Conference Call
The Company will be holding an Investor Conference Call on Wednesday, May 4, 2022, at 9:00 a.m. ET to review its 2022 first quarter results. The dial-in telephone numbers for the call are 416-764-8688 (Toronto and International callers) and 1-888-390-0546 (U.S. and Canada). Please dial in 10 minutes prior to the call to ensure that you get a line.
A replay of the call will be available at 416-764-8677 (Toronto and International callers) and 1-888-390-0541 (U.S. and Canada) until midnight, Wednesday, May 18, 2022. You will be required to enter pass code 934317# to access the call.
Additional supplemental financial information is available in our investor conference call package located on our website at www.russelmetals.com.
About Russel Metals Inc.
Russel Metals is one of the largest metals distribution companies in North America with a growing focus on value-added processing. It carries on business in three segments: metals service centers, energy products and steel distributors. Its network of metals service centers carries an extensive line of metal products in a wide range of sizes, shapes and specifications, including carbon hot rolled and cold finished steel, pipe and tubular products, stainless steel, aluminum and other non-ferrous specialty metals. Its energy products operations carry a specialized product line focused on the needs of energy industry customers. Its steel distributors operations act as master distributors selling steel in large volumes to other steel service centers and large equipment manufacturers mainly on an "as is" basis.
Cautionary Statement on Forward-Looking Information
Certain statements contained in this press release constitute forward-looking statements or information within the meaning of applicable securities laws, including statements as to our future capital expenditures, our outlook, the availability of future financing and our ability to pay dividends. Forward-looking statements relate to future events or our future performance. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by us, inherently involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the factors described below.
We are subject to a number of risks and uncertainties which could have a material adverse effect on our future profitability and financial position, including the risks and uncertainties listed below, which are important factors in our business and the metals distribution industry. Such risks and uncertainties include, but are not limited to: the volatility in metal prices; volatility in oil and natural gas prices; cyclicality of the metals industry; capital budgets in the energy industry; pandemics and epidemics; climate change; product claims; significant competition; sources of metals supply; manufacturers selling directly; material substitution; credit risk; currency exchange risk; restrictive debt covenants; asset impairments; the unexpected loss of key individuals; decentralized operating structure; future acquisitions; the failure of our key computer-based systems, labour interruptions; laws and governmental regulations; litigious environment; environmental liabilities; carbon emissions; health and safety laws and regulations; and common share risks.
While we believe that the expectations reflected in our forward-looking statements are reasonable, no assurance can be given that these expectations will prove to be correct, and our forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release and, except as required by law, we do not assume any obligation to update our forward-looking statements. Our actual results could differ materially from those anticipated in our forward-looking statements including as a result of the risk factors described above and under the heading "Risk" in our MD&A and under the heading "Risk Management and Risks Affecting Our Business" in our most recent Annual Information Form and as otherwise disclosed in our filings with securities regulatory authorities which are available on SEDAR at www.sedar.com.
If you would like to unsubscribe from receiving Press Releases, you may do so by emailing info@russelmetals.com; or by calling our Investor Relations Line: 905-816-5178.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
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SOURCE Russel Metals Inc. | https://www.whsv.com/prnewswire/2022/05/03/russel-metals-announces-2022-first-quarter-results/ | 2022-05-03T21:28:37Z |
TORONTO, May 3, 2022 /PRNewswire/ - Russel Metals Inc. (TSX: RUS) announces that it has declared a dividend in the amount of CA$0.38 per share on its common shares, payable on June 15, 2022 to shareholders of record at the close of business on May 27, 2022.
About Russel Metals
Russel Metals is one of the largest metals distribution companies in North America, with a growing focus on value-added processing. It carries on business in three segments: metals service centers, energy products and steel distributors. Its network of metals service centers carries an extensive line of metal products in a wide range of sizes, shapes and specifications, including carbon hot rolled and cold finished steel, pipe and tubular products, stainless steel, aluminum and other non-ferrous specialty metals. Its energy products operations carry a specialized product line focused on the needs of energy industry customers. Its steel distributors operations act as master distributors selling steel in large volumes to other steel service centers and large equipment manufacturers mainly on an "as is" basis.
If you would like to unsubscribe from receiving Press Releases, you may do so by emailing info@russelmetals.com; or by calling our Investor Relations Line: 905-816-5178.
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SOURCE Russel Metals Inc. | https://www.whsv.com/prnewswire/2022/05/03/russel-metals-declares-81st-consecutive-quarterly-common-share-dividend/ | 2022-05-03T21:28:43Z |
NEW YORK, May 3, 2022 /PRNewswire/ -- RW Capital Partners, Inc. ("RW Partners") is pleased to announce that Kirby Toolan, CPA has joined RW Partners as the firm's Chief Financial Officer. Based in the Philadelphia office, she will lead the firm's finance organization and financial activities, including accounting, financial planning and analysis, tax, audit and treasury.
Mrs. Toolan comes to RW Partners with over a decade of experience in financial management, business leadership and strategy. Previously at Comcast Corporation as a Senior Manager in Reporting and Analysis, she managed annual budgeting and monthly forecasting, had oversight over reporting of financial results to senior management and was an advisor on complex accounting issues. Prior to Comcast, she was an Audit Manager in PricewaterhouseCoopers' Private Company Services practice.
Mrs. Toolan graduated from Towson University in Baltimore, MD with a B.S. in Economics and International Studies. She also earned a Masters in Accounting and Finance from The University of Maryland.
About RW Capital Partners, Inc:
Founded in 2012 by Robert F. Whalen, Jr., RW Partners, Inc. has acquired or redeveloped approximately $300 million of retail and self-storage real estate assets while deploying more than $90 million of equity since inception.
Media Contact:
Kuku Mesfin, kuku@theglobalimprint.com
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SOURCE RW Partners | https://www.whsv.com/prnewswire/2022/05/03/rw-capital-partners-inc-names-kirby-toolan-cpa-chief-financial-officer/ | 2022-05-03T21:28:50Z |
SANTA CRUZ, Calif., May 3, 2022 /PRNewswire/ -- Santa Cruz County Bank (OTCQX: SCZC), today announced Maxwell Sinclair has joined the Bank as Executive Vice President and Chief Risk Officer.
Mr. Sinclair has a 28-year history in the banking industry with extensive executive-level experience in risk management, compliance, AML/BSA and human resource management. Most recently, Mr. Sinclair served as EVP Chief Risk, Compliance & Human Resources Officer at Pacific Mercantile Bancorp/Pacific Mercantile Bank, where he managed all aspects of risk, compliance, and regulatory matters, human resources, as well as regulatory relationships and corporate governance. He is also a founder of an Arizona-based de novo where he served in the capacity of Chief Risk Officer with responsibilities for governance, audit, compliance and human resource management. His experience includes serving as VP Compliance & BSA Manager at Zions Bancorp (California Bank & Trust). He also served as VP Compliance & BSA Officer and CRA & Security Manager at several Southern California-based financial institutions.
Mr. Sinclair obtained his Master of Business Administration degree from the University of Southern California and his Bachelor of Science degree in Business Management from University of the Redlands. He is a graduate of Pacific Coast Banking School, American Bankers Association National Compliance School, and also holds a certificate in Human Resource Management from Loyola Marymount University.
Commenting on his new appointment, Mr. Sinclair stated, "It is a pleasure to be joining an institution that I have long admired for its strong ties and commitment to the local community. After working with Santa Cruz County Bank's entire team and Board of Directors, it validated and solidified my respect for the Bank's sound practices, well-managed operations and outstanding reputation in the industry. Working strategically with the team and understanding its mission and vision lead to my acceptance of this incredible opportunity to permanently lead the Bank's risk management enterprise."
Krista Snelling, President and CEO commented, "Maxwell served as an advisor in the areas of compliance and risk management. He stepped in at a crucial moment, before an FDIC Examination, which he handled smoothly and professionally, and delivered best outcomes. The vast experience and professionalism he brings to the Bank are already playing a key role in our success and growth. We're thrilled to have him on the Executive Team."
Mr. Sinclair is a current board member of AOJAH and the Wiley Center/LA Speech and Language, and a former board member of Juvenile Diabetes Foundation Los Angeles Chapter, USC Summer Leadership Program, and also served as a former Advisory Board member of Central City Lutheran Mission, San Bernardino, and Bethlehem Temple Economic Development. Mr. Sinclair currently resides in Los Angeles with his wife, Rosario, and will maintain an office at the Bank's 75 River Street office in downtown Santa Cruz.
ABOUT SANTA CRUZ COUNTY BANK
Santa Cruz County Bank was founded in 2004. It is a top-rated, locally-owned and operated, full-service community bank headquartered in Santa Cruz, California. The bank has branches in Aptos, Capitola, Cupertino, Monterey, Santa Cruz, Scotts Valley and Watsonville. Santa Cruz County Bank is distinguished from "big banks" by its relationship-based service, problem-solving focus and direct access to decision makers. The bank is a leading SBA lender in Santa Cruz County and Silicon Valley and a top USDA lender in the state of California. As a full-service bank, Santa Cruz County Bank offers competitive deposit and lending solutions for businesses and individuals; including business loans, lines of credit, commercial real estate financing, construction lending, agricultural loans, SBA and USDA government guaranteed loans, credit cards, merchant services, remote deposit capture, mobile and online banking, bill payment and treasury management. True to its community roots, Santa Cruz County Bank has supported regional well-being by actively participating in and donating to local not-for-profit organizations.
Santa Cruz County Bank stock is publicly traded on the OTCQX U.S. Premier marketplace under the symbol SCZC. Stock purchase orders may be placed online, through a brokerage firm, or through Market Makers listed in the Investor Relations section of the bank's website. For more information about Santa Cruz County Bank, visit www.sccountybank.com.
This release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, and competition within the business areas in which the Bank is conducting its operations, including the real estate market in California and other factors beyond the Bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
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SOURCE Santa Cruz County Bank | https://www.whsv.com/prnewswire/2022/05/03/santa-cruz-county-bank-hires-chief-risk-officer-maxwell-sinclair/ | 2022-05-03T21:28:56Z |
Revenue of $294.8 million generated during the first quarter of 2022, up 16% sequentially from the fourth quarter of 2021
Net income of $8.0 million and Adjusted EBITDA of $32.2 million during the first quarter of 2022
Repurchased 2.3 million shares of Class A common stock in the open market for $16.4 million in the first quarter of 2022
Closed on the acquisition of Nuverra Environmental Solutions, Inc. (NYSE American: NES) ("Nuverra")
Closed on $270 million sustainability-linked credit facility with innovative pricing structure prioritizing increased recycled water volumes and delivering superior employee safety performance
Issued its 2021 Sustainability Report, the Company's inaugural report
HOUSTON, May 3, 2022 /PRNewswire/ -- Select Energy Services, Inc. (NYSE: WTTR) ("Select" or the "Company"), a leading provider of sustainable water and chemical solutions to the U.S. unconventional oil and gas industry, today announced its financial results for the first quarter ended March 31, 2022.
John Schmitz, Chairman of the Board, President and CEO, stated, "Overall, I'm very pleased with our first quarter performance and the continued progress we've made in executing our strategy to improve and bolster the base business, advance our technology, ESG and diversification efforts, and execute on strategic M&A. The first quarter represented another strong quarter of sequential revenue growth while we expanded margins and recorded positive net income. Select benefitted from a strong commodity price backdrop and continued positive momentum from an industry activity standpoint. This combination of factors led to 16% consolidated sequential revenue growth during the quarter, reaching gross revenue levels not seen since mid-2019. Additionally, we produced net income of $8.0 million and Adjusted EBITDA increased significantly to $32.2 million, up 22% sequentially, supported by both improvements in our base business and our recent acquisitions.
"On the M&A front, we have seen meaningful contributions from our recent acquisitions, including a partial quarter contribution from Nuverra Environmental Solutions, which closed in late February. Setting aside the partial quarter growth contributions from Nuverra, the business grew revenue sequentially by 12%. This continued growth was driven by a combination of activity expansion, market share capture and, most importantly, continued pricing improvements and operational efficiencies achieved from the integration of our 2021 acquisitions.
"We continue to see significant opportunities to build upon the infrastructure footprint we've assembled through our recent acquisitions. During the first quarter, we executed a long-term acreage dedication contract for a new recycling facility in the Northern Delaware Basin with a large independent operator, thereby expanding the scope of our relationship with this existing recycling customer. This facility will be further supported by a multi-year contract with another third party water midstream company to allow them to tie in via pipeline, which provides dedicated produced water for additional recycling volumes. We also reached an agreement to increase the size of our previously announced DJ Basin recycling facility, supported by additional long-term committed contractual volumes from our anchor customer. Additionally, we've signed numerous new multi-year contracts, including wellbore dedications and minimum volume commitments, to build additional gathering pipelines to tie in produced water volumes into existing disposal facilities in the MidCon and Haynesville regions. Several of these recent development opportunities are built around infrastructure assets acquired from our recent M&A activities. While I'm excited about these recent successes, I believe a very strong pipeline of additional development opportunities remains.
"I'm also proud of the recent commitments we've made to our sustainability strategy through the closing of our $270 million sustainability-linked credit facility, as well as the issuance of our inaugural Sustainability Report. We take our leadership in providing sustainable full life cycle water and chemical solutions seriously, and embrace additional accountability and transparency as we work to expand this leading position, as displayed by our ambitious water recycling and safety performance targets tied to our new sustainability-linked credit facility. Select is committed to implementing a corporate strategy that supports the long-term viability of its business model in a manner that focuses on its people, its customers, the environment, and the communities in which we operate.
"Additionally, as we look at our overall capital allocation priorities, we continue to believe that returning capital to shareholders is a key part of our overall business strategy. To this end, we executed the opportunistic open market repurchase of approximately 2.3 million Class A shares during the first quarter for approximately $16.4 million.
"Ultimately, I am excited about our recent financial performance, M&A execution, our infrastructure development projects and our other sustainability-focused investments and initiatives. I firmly believe the strategy we've undertaken not only leaves us well positioned to execute on additional growth ahead, but also positions us to further evaluate opportunities to return capital to shareholders in the future. With growing activity, strong commodity prices and improved operational and financial performance, the future remains bright for Select," concluded Schmitz.
Consolidated Financial Information
Revenue for the first quarter of 2022 was $294.8 million as compared to $255.1 million in the fourth quarter of 2021 and $143.7 million in the first quarter of 2021. Net income for the first quarter of 2022 was $8.0 million as compared to $11.2 million in the fourth quarter of 2021 and a net loss of $27.4 million in the first quarter of 2021.
For the first quarter of 2022, gross profit was $24.7 million, as compared to $17.9 million in the fourth quarter of 2021 and a gross loss of $4.4 million in the first quarter of 2021. Total gross margin was 8.4% in the first quarter of 2022 as compared to 7.0% in the fourth quarter of 2021 and (3.1)% in the first quarter of 2021. Gross margin before depreciation and amortization ("D&A") for the first quarter of 2022 was 17.4% as compared to 16.6% for the fourth quarter of 2021 and 12.0% for the first quarter of 2021.
SG&A during the first quarter of 2022 was $28.3 million as compared to $25.2 million during the fourth quarter of 2021 and $19.9 million during the first quarter of 2021. SG&A during the first quarter of 2022 and the fourth quarter of 2021 was impacted by non-recurring transaction costs of $3.6 million and $2.0 million, respectively. SG&A during the first quarter of 2021 was impacted by $3.2 million of non-recurring severance costs relating to our CEO transition.
Adjusted EBITDA was $32.2 million in the first quarter of 2022 as compared to $26.4 million in the fourth quarter of 2021 and $0.9 million in the first quarter of 2021. Adjusted EBITDA was negatively impacted by the deduction of $11.4 million of non-recurring bargain purchase price gains that benefited Net Income during the quarter related to our recent acquisition activity. Additionally, Adjusted EBITDA was impacted by $3.6 million of non-recurring transaction costs, $0.5 million of non-cash losses on asset sales, $0.1 million in lease abandonment costs, and $0.1 million in other adjustments. Non-cash compensation expense accounted for an additional $3.3 million adjustment. Please refer to the end of this release for reconciliations of gross profit (loss) before D&A (non-GAAP measure) to gross profit (loss) and of Adjusted EBITDA (non-GAAP measure) to net income (loss).
Business Segment Information
The Water Services segment generated revenues of $163.6 million in the first quarter of 2022 as compared to $140.7 million in the fourth quarter of 2021 and $64.2 million in the first quarter of 2021. Gross margin before D&A for Water Services was 16.2% in the first quarter of 2022 as compared to 15.4% in the fourth quarter of 2021 and 3.0% in the first quarter of 2021. Revenues improved 16.3% sequentially, with approximately 70% of the revenue growth from the existing business and approximately 30% of the growth from the Nuverra acquisition that closed during the first quarter. Looking at the second quarter of 2022, the Company expects to see 8% – 12% revenue growth with modest continued improvements to gross margins before D&A, supported by continued pricing improvements, market activity and incremental contributions from the recently closed acquisition of Nuverra.
The Water Infrastructure segment generated revenues of $58.6 million in the first quarter of 2022 as compared to $46.9 million in the fourth quarter of 2021 and $37.8 million in the first quarter of 2021. Gross margin before D&A for Water Infrastructure was 24.2% in the first quarter of 2022 as compared to 25.8% in the fourth quarter of 2021 and 30.2% in the first quarter of 2021. Revenues improved 24.9% sequentially, driven by increased volumes at our recycling and pipeline facilities. Additionally, the Nuverra acquisition accounted for approximately a quarter of the sequential revenue growth for the segment. Gross margins were impacted by increased integration costs incurred during the quarter, as well as operational downtime related to the maintenance and upgrades of recently acquired assets. For the second quarter of 2022, the Company anticipates revenue growth of 5% – 10%, with gross margins before D&A in mid- to high-20 percent range.
The Oilfield Chemicals segment generated revenues of $72.6 million in the first quarter of 2022 as compared to $67.5 million in the fourth quarter of 2021 and $41.7 million in the first quarter of 2021. Gross margin before D&A for Oilfield Chemicals was 14.4% in the first quarter of 2022 as compared to 12.6% in the fourth quarter of 2021 and 9.5% in the first quarter of 2021. Revenues improved 7.5% sequentially, well exceeding expectations, driven by strong growth in the Haynesville and Eagle Ford shale regions. The revenue expansion in these areas was supported by growth from our recently reactivated Tyler manufacturing facility in east Texas. Gross margins improved sequentially driven by a combination of continued absorption of the Tyler manufacturing facility and pricing improvements. Supported by the recent strong revenue growth in the first quarter of 2022, the Company anticipates relatively stable revenues in this segment during the second quarter of 2022 with gross margins before D&A holding steady as operational efficiencies and pricing improvements counteract continued supply chain challenges.
Cash Flow and Capital Expenditures
Cash flow from operations for the first quarter of 2022 was ($18.6) million as compared to ($2.4) million in the fourth quarter of 2021 and ($3.9) million in the first quarter of 2021. Cash flow from operations during the first quarter of 2022 was significantly impacted by a $44.9 million use of cash to fund working capital needs of the business, including the settlement of acquired Nuverra liabilities.
Net capital expenditures for the first quarter of 2022 were $3.3 million, comprised of $15.5 million of capital expenditures, largely offset by $12.1 million of cash proceeds from asset sales, including the divestment of underutilized equipment and real estate from recently acquired businesses. Cash flow from operations less net capital expenditures, was ($21.9) million during the first quarter of 2022.
Cash flow used in investing activities during the first quarter of 2022 included an inflow of approximately $6.9 million of cash and restricted cash received from the Company's acquisition of Nuverra, and outflows of $1.8 million of additional investment in AquaNyx Midstream and $1.7 million of additional investment in ICE Thermal Solutions.
Cash flow from financing activities during the first quarter of 2022 included $18.8 million for the repayment of outstanding Nuverra indebtedness, $18.9 million for the repurchase of outstanding Class A common stock, including $16.4 million of repurchases in the open market, and $2.0 million of debt issuance costs related to the Company's sustainability-linked credit facility
Balance Sheet and Capital Structure
Total cash and cash equivalents were $24.8 million as of March 31, 2022 as compared to $85.8 million as of December 31, 2021. The Company had no borrowings outstanding under its sustainability-linked credit facility as of March 31, 2022 and no borrowings under its previous credit facility as of December 31, 2021.
As of March 31, 2022 and December 31, 2021, the borrowing base under the sustainability-linked credit facility and the previous credit facility was $204.1 million and $132.7 million, respectively. The Company had available borrowing capacity under its sustainability-linked credit facility and its previous credit facility as of March 31, 2022 and December 31, 2021, of approximately $188.5 million and $117.1 million, respectively, after giving effect to $15.6 million of outstanding letters of credit as of both March 31, 2022 and December 31, 2021.
Total liquidity was $213.3 million as of March 31, 2022, as compared to $202.9 million as of December 31, 2021. The Company had 91,821,906 weighted average Class A shares outstanding and 16,221,101 weighted average Class B shares outstanding during the first quarter of 2022.
Acquisition of Nuverra Environmental Solutions, Inc.
On February 23, 2022, Select closed on the acquisition of Nuverra. Under the terms of the agreement, Nuverra stockholders received 0.2551 shares of Select Class A common stock for each share of Nuverra common stock, or approximately 4.2 million shares of Select Class A common stock in exchange for all outstanding shares of Nuverra. Additionally, Select repaid approximately $18.8 million of Nuverra's indebtedness at closing. The transaction was unanimously approved by each of Select's and Nuverra's board of directors and a majority of Nuverra's stockholders.
Nuverra is an energy-focused solutions company, providing environmental solutions, including the removal, treatment, recycling, transportation and disposal of restricted solids, fluids and hydrocarbons for exploration and production companies operating across the U.S., including in the Bakken, Haynesville, Marcellus and Utica Shales.
The acquisition strengthens Select's geographic footprint with a unique set of water logistics and infrastructure assets, particularly in the Bakken, Haynesville and Northeast, while continuing to expand Select's production-related revenues. Select also acquired a 60-mile underground twin pipeline network in the Haynesville Shale in Texas and Louisiana. The pipeline network provides for the collection of produced water for transport to interconnected disposal wells and the delivery or re-delivery of water from water sources to operator locations for use in well completion activities. Additionally, Nuverra operates a landfill facility in North Dakota located on a 50-acre site. The facility provides a unique opportunity for Select to expand its logistics capabilities into a new service offering. The acquisition is expected to result in a bargain purchase gain based on our preliminary evaluation.
Sustainability-linked Credit Facility
On March 17, 2022, Select successfully transitioned its existing Asset-Backed Loan credit facility into a Sustainability-Linked credit facility, while extending the facility through March of 2027. Under the terms of the amended facility, Select will receive pricing benefits for achieving ambitious targets associated with escalating volumes of produced water recycled through its permanent or semi-permanent facilities and operating substantially more safely than industry peers, or pay higher fees for failing to hit those targets.
The Lead Arranger for the facility was Wells Fargo Bank, N.A., with Bank of America, N. A. acting as Joint Lead Arranger and Joint Bookrunner. Wells Fargo Capital Finance, LLC acted as Sustainability Structuring Agent. Amegy Bank, Royal Bank of Canada, Cadence Bank and BOK Financial each serve as additional Lenders in the facility.
2021 Sustainability Report
On April 28, 2022, Select issued its 2021 Sustainability Report, the Company's inaugural release. Select's 2021 Sustainability Report highlights the policies, processes, procedures and performance by which Select establishes and advances Environmental, Social, and Governance ("ESG") goals and criteria, as well as how the Company aims to act as a force for environmental stewardship and promote sustainable development in communities in which it operates. The report reviews the application of Select's business principles and supporting policies across the business. The report includes information based on internal discussions, external stakeholder feedback, and consultations with third-party experts. Select intends to regularly report on our ESG policies, procedures, and performance, both on our website and through our annual Sustainability Report. Readers are encouraged to read the report in its entirety, which is accessible at https://www.selectenergy.com/sustainability/.
Business Development Updates
Northern Delaware Produced Water Recycling Facility
During the first quarter of 2022, Select signed a long-term acreage dedication contract from a large independent operator to build a 50,000 barrel per day recycling facility in the Northern Delaware Basin. The facility will be supported by a previous pipeline Select constructed for this customer to transport volumes between multiple fields of their operations. Additionally, this facility will be supported by a multi-year contract with an independent third party water midstream provider to tie in via pipeline its existing produced water for additional recycling volumes. This facility will be supplemented by 1.2 million barrels of surface storage capacity and is expected to be completed during the second quarter of 2022 at a cost of approximately $5 million.
DJ Basin Produced Water Gathering, Disposal and Recycling Facility
During the first quarter of 2022, Select amended its previously announced agreement with a major integrated oil and gas company supporting its produced water gathering, disposal and recycling facility in the DJ Basin. The amended agreement will increase the take-or-pay volume commitment in exchange for increasing the size of the facility to 25,000 barrels per day of capacity, an increase of 10,000 barrels per day. The facility commenced operations during the first quarter of 2022 and the expansion is expected to be fully operational in the second quarter of 2022.
Haynesville Gathering and Disposal Facility
During the first quarter of 2022, Select signed a 10-year wellbore dedication agreement with a large independent operator to reactivate a recently acquired disposal facility that had been previously shut in. As part of the agreement, Select will be providing a capacity guarantee to the operator and the facility is expected to be on line during the second quarter of 2022.
MidCon Gathering and Disposal Agreements
During the first quarter of 2022, Select signed a multi-year gathering and disposal agreement with a minimum volume commitment in exchange for a capacity dedication with a large independent operator in the MidCon region. Additionally, Select signed an agreement with an additional operator to tie in their existing pipeline infrastructure. These facilities were recently acquired assets and represent our first new contractual dedication in the MidCon region since the Complete Energy Services acquisition in the third quarter of 2021.
Conference Call
Select has scheduled a conference call on Wednesday, May 4, 2022 at 11:00 a.m. Eastern time / 10:00 a.m. Central time. Please dial 201-389-0872 and ask for the Select Energy Services call at least 10 minutes prior to the start time of the call, or listen to the call live over the Internet by logging on to the website at the address http://investors.selectenergy.com/events-and-presentations. A telephonic replay of the conference call will be available through May 18, 2022 and may be accessed by calling 201-612-7415 using passcode 13729213#. A webcast archive will also be available at the link above shortly after the call and will be accessible for approximately 90 days.
About Select Energy Services, Inc.
Select Energy Services, Inc. and its consolidated subsidiaries (collectively referred to as "Select" or the "Company") is a leading provider of sustainable water and chemical solutions to the oil and gas industry. Select develops, manufactures and delivers a full suite of chemical products for use in oil and gas well completion and production operations as well as integration into the full water life-cycle. These solutions are supported by the Company's critical water infrastructure assets and water treatment and recycling capabilities. As a leader in sustainable water and chemical solutions, Select places the utmost importance on safe, environmentally responsible management of oilfield water throughout the lifecycle of a well. Additionally, Select believes that responsibly managing water resources throughout its operations to help conserve and protect the environment is paramount to the continued success of the Company. For more information, please visit Select's website, http://www.selectenergy.com.
Cautionary Statement Regarding Forward-Looking Statements
All statements in this communication other than statements of historical facts are forward-looking statements which contain our current expectations about our future results. We have attempted to identify any forward-looking statements by using words such as "could," "believe," "anticipate," "expect," "project," "will," "estimate" and other similar expressions. Although we believe that the expectations reflected, and the assumptions or bases underlying our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause our actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements. Factors that could materially impact such forward-looking statements include, but are not limited to: the severity and duration of world health events, including the COVID-19 pandemic, which had a negative impact on our business; the global macroeconomic uncertainty related to the Russia-Ukraine war; actions by the members of OPEC+ with respect to oil production levels and announcements of potential changes in such levels, including the ability of the OPEC+ countries to agree on and comply with supply limitations; operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions; the level of capital spending and access to capital markets by oil and gas companies, trends and volatility in oil and gas prices, and our ability to manage through such volatility; and other factors discussed or referenced in the "Risk Factors" section of our most recent Annual Report on Form 10-K and those set forth from time to time in our other filings with the SEC. Investors should not place undue reliance on our forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required by law.
Comparison of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, gross profit before depreciation and amortization (D&A) and gross margin before D&A are not financial measures presented in accordance with GAAP. We define EBITDA as net income (loss), plus interest expense, income taxes and depreciation and amortization. We define Adjusted EBITDA as EBITDA plus/(minus) loss/(income) from discontinued operations, plus any impairment charges or asset write-offs pursuant to accounting principles generally accepted in the U.S. ("GAAP"), plus non-cash losses on the sale of assets or subsidiaries, non-recurring compensation expense, non-cash compensation expense, and non-recurring or unusual expenses or charges, including severance expenses, transaction costs, or facilities-related exit and disposal-related expenditures, plus/(minus) foreign currency losses/(gains) and plus/(minus) losses/(gains) on unconsolidated entities less bargain purchase gains from business combinations. We define gross profit before D&A as revenue less cost of revenue, excluding cost of sales D&A expense. We define gross margin before D&A as gross profit before D&A divided by revenue. EBITDA, Adjusted EBITDA, gross profit before D&A and gross margin before D&A are supplemental non-GAAP financial measures that we believe provide useful information to external users of our financial statements, such as industry analysts, investors, lenders and rating agencies because it allows them to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization) and non-recurring items outside the control of our management team. We present EBITDA, Adjusted EBITDA, gross profit before D&A and gross margin before D&A because we believe they provide useful information regarding the factors and trends affecting our business in addition to measures calculated under GAAP.
Net income (loss) is the GAAP measure most directly comparable to EBITDA and Adjusted EBITDA. Gross profit (loss) is the GAAP measure most directly comparable to gross profit before D&A. Our non-GAAP financial measures should not be considered as alternatives to the most directly comparable GAAP financial measure. Each of these non-GAAP financial measures has important limitations as an analytical tool due to exclusion of some but not all items that affect the most directly comparable GAAP financial measures. You should not consider EBITDA, Adjusted EBITDA or gross profit before D&A in isolation or as substitutes for an analysis of our results as reported under GAAP. Because EBITDA, Adjusted EBITDA and gross profit before D&A may be defined differently by other companies in our industry, our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
The following table presents a reconciliation of EBITDA and Adjusted EBITDA to our net income (loss), which is the most directly comparable GAAP measure for the periods presented:
The following table presents a reconciliation of gross profit before D&A to total gross loss, which is the most directly comparable GAAP measure, and a calculation of gross margin before D&A for the periods presented:
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SOURCE Select Energy Services, Inc. | https://www.whsv.com/prnewswire/2022/05/03/select-energy-services-reports-first-quarter-2022-financial-results-provides-operational-update/ | 2022-05-03T21:29:02Z |
Conference call on Wednesday, May 4, 2022, at 8:00 a.m. Central Time.
Investor Day Presentation on Thursday, May 5, 2022 at 8:30 a.m. Central Time.
HOUSTON, May 3, 2022 /PRNewswire/ -- Service Corporation International (NYSE: SCI), the largest provider of deathcare products and services in North America, today reported results for the first quarter of 2022.
Tom Ryan, the Company's Chairman and CEO, commented on first quarter results:
"Today we are pleased to report a solid start to 2022 with adjusted earnings per share of $1.34, a $0.02 increase over the prior year quarter. We continued to experience elevated levels of funeral services, burials, and preneed sales against a robust customer spend. Both preneed funeral and cemetery sales production grew at double-digit percentages and we were able to generate $34 million of revenue growth against a strong first quarter 2021.
We are raising the midpoint of our full year 2022 adjusted earnings guidance by 50 cents to $3.50 and the midpoint of our adjusted operating cash flow guidance by $75 million to $775 million. These increases are driven by the strong earnings performance in the first quarter, particularly around higher funeral services performed and higher preneed cemetery sales. Additionally, we have raised our expectations for preneed cemetery sales production and cemetery revenue for the remaining nine months.
I would like to thank each and every one of our associates for continuing to do what you do best, which is helping our client families gain closure and healing through the process of grieving, remembrance, and celebration."
First Quarter Highlights:
- Revenue grew $34 million over the prior year quarter to $1,112 million.
- GAAP earnings per share were $1.34.
- Adjusted earnings per share grew $0.02 over the prior year quarter to $1.34.
- Comparable average revenue per funeral service grew 5%.
- Comparable preneed funeral sales production grew $42 million, or 17%.
- Comparable preneed cemetery sales production grew $35 million, or 11%.
Details of our first quarter of 2022 financial results and the unaudited consolidated financial statements can be found in the Appendix at the end of this press release. The table below summarizes our key financial results.
- Diluted earnings per share were $1.34 in the first quarter of 2022 compared to $1.33 in the first quarter of 2021. The current year quarter was favorably impacted by $0.5 million of net gains on divestitures and impairment charges. The prior year quarter was favorably impacted by a $1.3 million of net gains on divestitures and impairment charges. Diluted earnings per share excluding special items was $1.34 in the first quarter of 2022 compared to $1.32 in the first quarter of 2021. The growth of $0.02 is primarily due to the benefit of fewer shares outstanding and an increase in gross profit from recent acquisitions and new builds. Both the funeral and cemetery segments continued to generate impressive performance against a strong prior year quarter. While we experienced significant growth in comparable preneed cemetery sales production, a significant portion of these incremental sales will be recognized as revenue in future quarters upon completed construction of the cemetery property.
- Net cash provided by operating activities increased $34.6 million to $332.2 million in the first quarter of 2022 compared to $297.6 million in the first quarter of 2021. The increase in operating cash flow is primarily due to lower cash tax payments and favorable working capital driven by cash receipts from the increased preneed cemetery sales production.
UPDATED OUTLOOK FOR 2022
The guidance provided below continues to have a wider range than usual due to the uncertainty around the impact of the COVID-19 pandemic. Our outlook for net cash provided by operating activities excluding special items reflects an estimated $20 million of payroll tax payments in 2022 that were deferred from 2020 as allowed under the CARES Act.
CONFERENCE CALL AND WEBCAST
We will host a conference call on Wednesday, May 4, 2022, at 8:00 a.m. Central Time. A question and answer session will follow a brief presentation made by management. The conference call dial-in numbers are (877) 870-4263 (US) or (412) 317-0790 (International) with the passcode of 2130373. The conference call will also be broadcast live via the Internet and can be accessed through our website at www.sci-corp.com. A replay of the conference call will be available through May 11, 2022 and can be accessed at (877) 344-7529 (US) or (412) 317-0088 (International) with the passcode of 5559660. Additionally, a replay of the conference call will be available on our website for approximately three months.
2022 INVESTOR DAY AND WEBCAST
We will host an Investor Day on Thursday, May 5, 2022. The event will begin at 8:30 a.m. central time and is expected to conclude by approximately 11 a.m. central time. During the event, President and CEO Tom Ryan, CFO Eric Tanzberger, and other members of the SCI executive leadership team will present the company's key business drivers and growth prospects over a multi-year period. The event will be accessible in-person and via a live webcast on SCI's 2022 Investor Day website accessible at https://www.sci-corp.com/Investor-Day.
ABOUT SERVICE CORPORATION INTERNATIONAL
Service Corporation International (NYSE: SCI), headquartered in Houston, Texas, is North America's leading provider of funeral, cemetery and cremation services, as well as final-arrangement planning in advance, serving more than 600,000 families each year. Our diversified portfolio of brands provides families and individuals a full range of choices to meet their needs, from simple cremations to full life celebrations and personalized remembrances. Our Dignity Memorial® brand is the name families turn to for professionalism, compassion, and attention to detail that is second to none. At March 31, 2022, we owned and operated 1,467 funeral service locations and 488 cemeteries (of which 300 are combination locations) in 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. For more information about Service Corporation International, please visit our website at www.sci-corp.com. For more information about Dignity Memorial®, please visit www.dignitymemorial.com.
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
The statements in this press release that are not historical facts are forward-looking statements made in reliance on the "safe harbor" protections provided under the Private Securities Litigation Reform Act of 1995. These statements may be accompanied by words such as "believe," "estimate," "project," "expect," "anticipate," "predict," or other similar words that convey the uncertainty of future events or outcomes. The absence of these words, however, does not mean that the statements are not forward-looking. These statements are based on assumptions that we believe are reasonable; however, many important factors could cause our actual results in the future to differ materially from the forward-looking statements made herein and in any other documents or oral presentations made by us, or on our behalf. Important factors, which could cause actual results to differ materially from those in forward-looking statements include, among others, the following:
- Our affiliated trust funds own investments in securities, which are affected by market conditions that are beyond our control.
- We may be required to replenish our affiliated funeral and cemetery trust funds to meet minimum funding requirements, which would have a negative effect on our earnings and cash flow.
- Our ability to execute our strategic plan depends on many factors, some of which are beyond our control.
- Our results may be adversely affected by significant weather events, natural disasters, catastrophic events or public health crises.
- Our credit agreements contain covenants that may prevent us from engaging in certain transactions.
- If we lost the ability to use surety bonding to support our preneed activities, we may be required to make material cash payments to fund certain trust funds.
- Increasing death benefits related to preneed contracts funded through life insurance or annuity contracts may not cover future increases in the cost of providing a price-guaranteed service.
- The financial condition of third-party life insurance companies that fund our preneed contracts may impact our future revenue.
- Unfavorable publicity could affect our reputation and business.
- We use a combination of insurance, self-insurance, and large deductibles in managing our exposure to certain inherent risks; therefore, we could be exposed to unexpected costs that could negatively affect our financial performance.
- Declines in overall economic conditions beyond our control could reduce future potential earnings and cash flows and could result in future impairments to goodwill and/or other intangible assets.
- Any failure to maintain the security of the information relating to our customers, their loved ones, our associates, and our vendors could damage our reputation, could cause us to incur substantial additional costs and to become subject to litigation, and could adversely affect our operating results, financial condition, or cash flow.
- Our Canadian business exposes us to operational, economic, and currency risks.
- Our level of indebtedness could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry, and may prevent us from fulfilling our obligations under our indebtedness.
- A failure of a key information technology system or process could disrupt and adversely affect our business.
- Failure to maintain effective internal control over financial reporting could adversely affect our results of operations, investor confidence, and our stock price.
- The funeral and cemetery industry is competitive.
- If the number of deaths in our markets declines, our cash flows and revenue may decrease. Changes in the number of deaths are not predictable from market to market or over the short term.
- If we are not able to respond effectively to changing consumer preferences, our market share, revenue, and/or profitability could decrease.
- The continuing upward trend in the number of cremations performed in North America could result in lower revenue, operating profit, and cash flows.
- Our funeral and cemetery businesses are high fixed-cost businesses.
- Risks associated with our supply chain could materially adversely affect our financial performance.
- Regulation and compliance could have a material adverse impact on our financial results.
- Unfavorable results of litigation could have a material adverse impact on our financial statements.
- Cemetery burial practice claims could have a material adverse impact on our financial results.
- The application of unclaimed property laws by certain states to our preneed funeral and cemetery backlog could have a material adverse impact on our liquidity, cash flows, and financial results.
- Changes in taxation as well as the inherent difficulty in quantifying potential tax effects of business decisions could have a material adverse effect on the results of our operations, financial condition, or cash flows.
For further information on these and other risks and uncertainties, see our Securities and Exchange Commission filings, including our 2021 Annual Report on Form 10-K. Copies of this document as well as other SEC filings can be obtained from our website at www.sci-corp.com. We assume no obligation and make no undertaking to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by us whether as a result of new information, future events, or otherwise.
SERVICE CORPORATION INTERNATIONAL
APPENDIX: RESULTS FOR THE FIRST QUARTER OF 2022
Comparable Funeral Results
The table below details comparable funeral results of operations ("same store") for the three months ended March 31, 2022 and 2021. We consider comparable funeral operations to be those businesses owned for the entire period beginning January 1, 2021 and ending March 31, 2022.
- Total comparable funeral revenue increased by $17.7 million, or 2.9%, in the first quarter of 2022 compared to the same period of 2021, primarily driven by growth in core funeral revenue of $9.0 million and other revenue of $6.5 million.
- The growth in core funeral revenue of $9.0 million, or 1.7%, was primarily the result of a 6.0% increase in core average revenue per service that more than offset a better than expected 4.0% decrease in core funeral services performed. The comparable core cremation rate grew by 120 basis points to 53.2%.
- Non-funeral home revenue increased $1.0 million, or 5.1%, as average revenue per service grew 4.0% and services performed grew 1.0%.
- Other revenue grew $6.5 million, or 21.8%, primarily due to higher general agency revenue as a result of a 20.6% increase in comparable preneed funeral insurance production during the quarter.
- Comparable funeral gross profit decreased $2.1 million to $193.4 million and the gross profit percentage decreased 120 basis points to 30.4% both compared to 2021 elevated COVID-19 levels of activity. Funeral margins were impacted by higher costs in the current quarter relative to the prior year as staffing and service levels normalized driven by more comprehensive services compared to the prior year first quarter. Increases in incentive compensation also put downward pressure on funeral margins.
- Comparable preneed funeral sales production grew $42.0 million, or 16.7%, in the first quarter of 2022 compared to 2021. We experienced a 20.3% increase at our core funeral locations and a 6.4% increase in preneed production through our non-funeral home channel. The elevated comparable preneed funeral sales production during the quarter was due to continued increases in both velocity and sales averages as we continue to benefit from the increased quantity and quality of leads.
Comparable Cemetery Results
The table below details comparable cemetery results of operations ("same store") for the three months ended March 31, 2022 and 2021. We consider comparable cemetery operations to be those businesses owned for the entire period beginning January 1, 2021 and ending March 31, 2022.
- Comparable cemetery revenue grew $0.9 million, or 0.2%, in the first quarter of 2022 compared to the first quarter of 2021. The increase was primarily due to a $3.5 million, or 11.7%, growth in other revenue, which was partially offset by a decrease of $2.6 million, or 0.6%, in core revenue.
- The core revenue decrease of $2.6 million was a result of a $1.8 million, or 1.4%, decrease in atneed revenue and a decrease in recognized preneed revenue of $0.8 million, or 0.3%. Preneed cemetery sales production grew an impressive $35.4 million, or 10.9%, however our recognition rates were lower as a significant amount of the increase in property sales was deferred and will benefit us in future quarters as the undeveloped property sold is constructed.
- Other revenue was higher by $3.5 million, or 11.7%, compared to the prior year quarter primarily from an increase in endowment care trust fund income due to timing of receipts from investment distributions.
- Comparable cemetery gross profit decreased $9.6 million to $178.5 million. The gross profit percentage decreased to 38.9% from 41.0%. Selling compensation recognized during the quarter increased as a result of the 10.9% of growth in preneed cemetery sales production, in which a significant amount will be recognized as revenue in future 2022 quarters. We also experienced modest inflationary cost increases and higher incentive compensation costs when compared to the prior year quarter.
- Comparable preneed cemetery sales production growth of $35.4 million, or 10.9%, was driven primarily by higher quality sales averages and increased large sales activity. Comparable preneed cemetery sales production continues to benefit from a more productive and efficient sales force, with better utilization of our customer relationship management system. The sales averages benefited from our continued investment in high-quality inventory at moderately higher price points.
Other Financial Results
- Corporate general and administrative expenses remained flat at $41.7 million in the first quarter of 2022 compared to the first quarter of 2021.
- Interest expense increased $3.2 million to $39.0 million in the first quarter of 2022 primarily due to the issuance of fixed rate bonds earlier in 2021 partially offset by lower balances of our floating rate debt. During the first quarter, our fixed rate debt carried a weighted average interest rate of 4.3%, while our floating rate debt carried a weighted average rate of 1.6%.
- The GAAP effective income tax rate for the first quarter of 2022 was 26.0%, up from 25.3% in the prior year quarter. Our adjusted effective tax rate was 25.9% in the first quarter of 2022 compared to 25.3% in the prior year quarter. The higher tax rate in the current period is primarily due to a decrease in the cash value of certain life insurance policies due to negative returns in the financial markets, which lowered a tax benefit for us in the quarter.
Cash Flow and Capital Spending
Net cash provided by operating activities increased $34.6 million to $332.2 million in the first quarter of 2022 compared to $297.6 million in the first quarter of 2021. While earnings quarter over quarter were relatively flat, the increase in operating cash flow is due to favorable working capital changes primarily associated with cash collected on preneed cemetery property sales that were deferred for revenue recognition. Additionally, we paid $9.5 million less in cash taxes due to timing.
A summary of our capital expenditures is set forth below:
Total capital expenditures increased in the current quarter by $14.4 million, primarily due to an increase in capital improvements at existing operating locations, including increased investments in technology and related infrastructure projects at our funeral and cemetery locations. We also slightly increased spend on cemetery property development as we develop additional inventory to meet continued consumer demand.
Trust Fund Returns
Total trust fund returns include realized and unrealized gains and losses and dividends and are shown gross without netting of certain fees. A summary of our consolidated trust fund returns as of March 31, 2022 is set forth below:
Non-GAAP Financial Measures
Earnings excluding special items and diluted earnings per share excluding special items shown above are non-GAAP financial measures. We believe these non-GAAP financial measures provide a consistent basis for comparison between quarters and years, and better reflect the performance of our core operations, as they are not influenced by certain income or expense items not affecting operations. We also believe these measures help facilitate comparisons to our competitors' operating results.
Set forth below is a reconciliation of our reported net income attributable to common stockholders to earnings excluding special items and our GAAP diluted earnings per share to diluted earnings per share excluding special items. We do not intend for this information to be considered in isolation or as a substitute for other measures of performance prepared in accordance with GAAP.
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SOURCE Service Corporation International | https://www.whsv.com/prnewswire/2022/05/03/service-corporation-international-announces-first-quarter-2022-financial-results-increases-2022-guidance/ | 2022-05-03T21:29:10Z |
STAG INDUSTRIAL ANNOUNCES FIRST QUARTER 2022 RESULTS
Published: May. 3, 2022 at 4:06 PM EDT|Updated: 1 hour ago
BOSTON, May 3, 2022/PRNewswire/ -- STAG Industrial, Inc. (the "Company") (NYSE: STAG), today announced its financial and operating results for the quarter ended March 31, 2022.
"As previously announced, I will be moving to the Executive Chair role on July 1st," said Ben Butcher, Chief Executive Officer of the Company. "Bill Crooker, currently our President, will succeed me as CEO. I have full confidence in him, the rest of the STAG team and the direction of the Company."
First Quarter 2022 Highlights
Reported $0.30 of net income per basic and diluted common share for the first quarter of 2022, compared to $0.13 of net income per basic and diluted common share for the first quarter of 2021. Reported $52.8 million of net income attributable to common stockholders for the first quarter of 2022, compared to net income attributable to common stockholders of $20.9 million for the first quarter of 2021.
Achieved $0.53 of Core FFO per diluted share for the first quarter of 2022, an increase of 8.2% compared to first quarter 2021 Core FFO per diluted share of $0.49. Generated Core FFO of $97.1 million for the first quarter of 2022, compared to $79.8 million for the first quarter of 2021, an increase of 21.6%.
Produced Cash NOI of $122.9 million for the first quarter of 2022, an increase of 18.6% compared to the first quarter of 2021 of $103.7 million.
Produced Same Store Cash NOI of $103.6 million for the first quarter of 2022, an increase of 4.8% compared to the first quarter of 2021 of $98.8 million.
Produced Cash Available for Distribution of $82.4 million for the first quarter of 2022, an increase of 13.8% compared to the first quarter of 2021 of $72.5 million.
Acquired eight buildings in the first quarter of 2022, consisting of 1.8 million square feet, for $166.4 million, with a Cash Capitalization Rate of 5.0% and a Straight-Line Capitalization Rate of 5.2%.
Sold one building and one land parcel in the first quarter of 2022, consisting of 237,500 square feet for $36.1 million, resulting in a net gain of $24.0 million.
Achieved an Occupancy Rate of 96.9% on the total portfolio and 97.3% on the Operating Portfolio as of March 31, 2022.
Commenced Operating Portfolio leases of 3.1 million square feet for the first quarter of 2022, resulting in a Cash Rent Change and Straight-Line Rent Change of 15.2% and 25.1%, respectively.
Experienced 58.4% Retention for 3.4 million square feet of leases expiring in the quarter.
Subsequent to quarter end, on April 28, 2022, originated $400 million of fixed rate senior unsecured notes in a private placement offering.
Please refer to the Non-GAAP Financial Measures and Other Definitions section at the end of this release for definitions of capitalized terms used in this release.
The Company will host a conference call tomorrow, Wednesday, May 4, 2022 at 10:00 a.m. (Eastern Time), to discuss the quarter's results and provide information about acquisitions, operations, capital markets and corporate activities. Details of the call can be found at the end of this release.
Key Financial Measures
Definitions of the above-mentioned non-GAAP financial measures, together with reconciliations to net income (loss) in accordance with GAAP, appear at the end of this release. Please also see the Company's supplemental information package for additional disclosure.
Acquisition and Disposition Activity
For the three months ended March 31, 2022, the Company acquired eight buildings for $166.4 million with an Occupancy Rate of 96.4% upon acquisition. The chart below details the acquisition activity for the quarter:
The chart below details the 2022 acquisition activity and Pipeline through May 3, 2022:
The chart below details the disposition activity for the three months ended March 31, 2022:
Note: The chart above includes one parcel of land sold in the first quarter of 2022 for $190,000.
Leasing Activity
The chart below details the leasing activity for leases commenced during the three months ended March 31, 2022:
Additionally, for the three months ended March 31, 2022, leases commenced totaling 511,236 square feet related to Value Add assets and first generation leasing. These are excluded from the Operating Portfolio statistics above.
Capital Markets Activity
The chart below details the ATM program activity for the three months ended March 31, 2022:
On March 29, 2022, the Company physically settled a forward sale agreement for 1,200,000 shares related to the over-allotment option from the November 2021 public common stock offering for net proceeds of $49.7 million.
As of March 31, 2022, net debt to annualized Run Rate Adjusted EBITDAre was 5.1x and Liquidity was $397.1 million.
On April 28, 2022, the Company entered into a note purchase agreement to issue $400 million of fixed rate senior unsecured notes in a private placement offering with an interest rate of 4.12% and a ten-year term maturing on June 28, 2032.
Conference Call
The Company will host a conference call tomorrow, Wednesday, May 4, 2022, at 10:00 a.m. (Eastern Time) to discuss the quarter's results. The call can be accessed live over the phone toll-free by dialing (877) 407-4018, or for international callers, (201) 689-8471. A replay will be available shortly after the call and can be accessed by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the replay is 13728511.
Interested parties may also listen to a simultaneous webcast of the conference call by visiting the Investor Relations section of the Company's website at www.stagindustrial.com, or by clicking on the following link:
The Company has provided a supplemental information package with additional disclosure and financial information on its website (www.stagindustrial.com) under the "Quarterly Results" tab in the Investor Relations section.
Non-GAAP Financial Measures and Other Definitions
Acquisition Capital Expenditures: We define Acquisition Capital Expenditures as capital expenditures identified at the time of acquisition. Acquisition Capital Expenditures also include new lease commissions and tenant improvements for space that was not occupied under the Company's ownership.
Cash Available for Distribution: Cash Available for Distribution represents Core FFO, excluding non-rental property depreciation and amortization, straight-line rent adjustments, non-cash portion of interest expense, non-cash compensation expense, and deducts capital expenditures reimbursed by tenants, capital expenditures, leasing commissions and tenant improvements, and severance costs.
Cash Available for Distribution should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, these measurements should be compared with our reported net income or net loss in accordance with GAAP, as presented in our consolidated financial statements.
Cash Available for Distribution excludes, among other items, depreciation and amortization and capture neither the changes in the value of our buildings that result from use or market conditions of our buildings, all of which have real economic effects and could materially impact our results from operations, the utility of these measures as measures of our performance is limited. In addition, our calculation of Cash Available for Distribution may not be comparable to similarly titled measures disclosed by other REITs.
Cash Capitalization Rate: We define Cash Capitalization Rate as calculated by dividing (i) the Company's estimate of year one cash net operating income from the applicable property's operations stabilized for occupancy (post-lease-up for vacant properties), which does not include termination income, solar income, miscellaneous other income, capital expenditures, general and administrative costs, reserves, tenant improvements and leasing commissions, credit loss, or vacancy loss, by (ii) the GAAP purchase price plus estimated Acquisition Capital Expenditures. These Capitalization Rate estimates are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2021.
Cash Rent Change: We define Cash Rent Change as the percentage change in the base rent of the lease commenced during the period compared to the base rent of the Comparable Lease for assets included in the Operating Portfolio. The calculation compares the first base rent payment due after the lease commencement date compared to the base rent of the last monthly payment due prior to the termination of the lease, excluding holdover rent. Rent under gross or similar type leases are converted to a net rent based on an estimate of the applicable recoverable expenses.
Comparable Lease: We define a Comparable Lease as a lease in the same space with a similar lease structure as compared to the previous in-place lease, excluding new leases for space that was not occupied under our ownership.
Earnings before Interest, Taxes, Depreciation, and Amortization for Real Estate (EBITDAre), Adjusted EBITDAre, Annualized Adjusted EBITDAre, and Run Rate Adjusted EBITDAre: We define EBITDAre in accordance with the standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). EBITDAre represents net income (loss) (computed in accordance with GAAP) before interest expense, interest and other income, tax, depreciation and amortization, gains or losses on the sale of rental property, and loss on impairments. Adjusted EBITDAre further excludes straight-line rent adjustments, non-cash compensation expense, amortization of above and below market leases, net, gain (loss) on involuntary conversion, debt extinguishment and modification expenses, and other non-recurring items.
We define Annualized Adjusted EBITDAre as Adjusted EBITDAre multiplied by four.
We define Run Rate Adjusted EBITDAre as Adjusted EBITDAre plus incremental Adjusted EBITDAre adjusted for a full period of acquisitions and dispositions. Run Rate Adjusted EBITDAre does not reflect the Company's historical results and does not predict future results, which may be substantially different.
EBITDAre, Adjusted EBITDAre, and Run Rate Adjusted EBITDAre should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, EBITDAre, Adjusted EBITDAre, and Run Rate Adjusted EBITDAre should be compared with our reported net income or net loss in accordance with GAAP, as presented in our consolidated financial statements. We believe that EBITDAre, Adjusted EBITDAre, and Run Rate Adjusted EBITDAre are helpful to investors as supplemental measures of the operating performance of a real estate company because they are direct measures of the actual operating results of our properties. We also use these measures in ratios to compare our performance to that of our industry peers.
Funds from Operations (FFO) and Core FFO: We define FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). FFO represents net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating property, gains (losses) from sales of land, impairment write-downs of depreciable real estate, rental property depreciation and amortization (excluding amortization of deferred financing costs and fair market value of debt adjustment) and after adjustments for unconsolidated partnerships and joint ventures. Core FFO excludes amortization of above and below market leases, net, debt extinguishment and modification expenses, gain (loss) on involuntary conversion, gain (loss) on swap ineffectiveness, and non-recurring other expenses.
None of FFO or Core FFO should be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, these measurements should be compared with our reported net income or net loss in accordance with GAAP, as presented in our consolidated financial statements. We use FFO as a supplemental performance measure because it is a widely recognized measure of the performance of REITs. FFO may be used by investors as a basis to compare our operating performance with that of other REITs. We and investors may use Core FFO similarly as FFO.
However, because FFO and Core FFO exclude, among other items, depreciation and amortization and capture neither the changes in the value of our buildings that result from use or market conditions of our buildings, all of which have real economic effects and could materially impact our results from operations, the utility of these measures as measures of our performance is limited. In addition, other REITs may not calculate FFO in accordance with the NAREIT definition as we do, and, accordingly, our FFO may not be comparable to such other REITs' FFO. Similarly, our calculation of Core FFO may not be comparable to similarly titled measures disclosed by other REITs.
GAAP: We define GAAP as generally accepted accounting principles in the United States.
Liquidity: We define Liquidity as the amount of aggregate undrawn nominal commitments the Company could immediately borrow under the Company's unsecured debt instruments, consistent with the financial covenants, plus unrestricted cash balances.
Market: We define Market as the market defined by CoStar based on the building address. If the building is located outside of a CoStar defined market, the city and state is reflected.
Net operating income (NOI), Cash NOI, and Run Rate Cash NOI: We define NOI as rental income, including reimbursements, less property expenses, which excludes depreciation, amortization, loss on impairments, general and administrative expenses, interest expense, interest income, gain (loss) on involuntary conversion, debt extinguishment and modification expenses, gain on sales of rental property, and other expenses.
We define Cash NOI as NOI less rental property straight-line rent adjustments and less amortization of above and below market leases, net.
We define Run Rate Cash NOI as Cash NOI plus Cash NOI adjusted for a full period of acquisitions and dispositions, less cash termination income, solar income and revenue associated with one-time tenant reimbursements of capital expenditures. Run Rate Cash NOI does not reflect the Company's historical results and does not predict future results, which may be substantially different.
We consider NOI, Cash NOI and Run Rate Cash NOI to be appropriate supplemental performance measures to net income because we believe they help us, and investors understand the core operations of our buildings. None of these measures should be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, these measurements should be compared with our reported net income or net loss in accordance with GAAP, as presented in our consolidated financial statements. Further, our calculations of NOI, Cash NOI and Run Rate NOI may not be comparable to similarly titled measures disclosed by other REITs.
Occupancy Rate: We define Occupancy Rate as the percentage of total leasable square footage for which either revenue recognition has commenced in accordance with GAAP or the lease term has commenced as of the close of the reporting period, whichever occurs earlier.
Operating Portfolio: We define the Operating Portfolio as all warehouse and light manufacturing assets that were acquired stabilized or have achieved Stabilization. The Operating Portfolio excludes non-core flex/office assets, assets contained in the Value Add Portfolio, and assets classified as held for sale.
Pipeline: We define Pipeline as a point in time measure that includes all of the transactions under consideration by the Company's acquisitions group that have passed the initial screening process. The pipeline also includes transactions under contract and transactions with non-binding LOIs.
Renewal Lease: We define a Renewal Lease as a lease signed by an existing tenant to extend the term for 12 months or more, including (i) a renewal of the same space as the current lease at lease expiration, (ii) a renewal of only a portion of the current space at lease expiration, or (iii) an early renewal or workout, which ultimately does extend the original term for 12 months or more.
Retention: We define Retention as the percentage determined by taking Renewal Lease square footage commencing in the period divided by square footage of leases expiring in the period for assets included in the Operating Portfolio.
Same Store: We define Same Store properties as properties that were in the Operating Portfolio for the entirety of the comparative periods presented. Same Store GAAP NOI and Same Store Cash NOI exclude termination fees, solar income, and revenue associated with one-time tenant reimbursements of capital expenditures.
Stabilization: We define Stabilization for assets under development or redevelopment to occur as the earlier of achieving 90% occupancy or 12 months after completion. Stabilization for assets that were acquired and immediately added to the Value Add Portfolio occurs under the following:
if acquired with less than 75% occupancy as of the acquisition date, Stabilization will occur upon the earlier of achieving 90% occupancy or 12 months from the acquisition date;
if acquired and will be less than 75% occupied due to known move-outs within two years of the acquisition date, Stabilization will occur upon the earlier of achieving 90% occupancy after the known move-outs have occurred or 12 months after the known move-outs have occurred.
Straight-Line Capitalization Rate: We define Straight-Line Capitalization Rate as calculated by dividing (i) the Company's estimate of average annual net operating income from the applicable property's operations stabilized for occupancy (post-lease-up for vacant properties), which does not include termination income, solar income, miscellaneous other income, capital expenditures, general and administrative costs, reserves, tenant improvements and leasing commissions, credit loss, or vacancy loss, by (ii) the GAAP purchase price plus estimated Acquisition Capital Expenditures. These Capitalization Rate estimates are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2021.
Straight-Line Rent Change (SL Rent Change): We define SL Rent Change as the percentage change in the average monthly base rent over the term of the lease that commenced during the period compared to the Comparable Lease for assets included in the Operating Portfolio. Rent under gross or similar type leases are converted to a net rent based on an estimate of the applicable recoverable expenses, and this calculation excludes the impact of any holdover rent.
Value Add Portfolio: We define the Value Add Portfolio as properties that meet any of the following criteria:
less than 75% occupied as of the acquisition date;
will be less than 75% occupied due to known move-outs within two years of the acquisition date;
out of service with significant physical renovation of the asset;
development.
Weighted Average Lease Term: We define Weighted Average Lease Term as the contractual lease term in years as of the lease start date weighted by square footage. Weighted Average Lease Term related to acquired assets reflects the remaining lease term in years as of the acquisition date weighted by square footage.
Forward-Looking Statements
This earnings release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. STAG Industrial, Inc. (STAG) intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe STAG's future plans, strategies and expectations, are generally identifiable by use of the words "believe," "will," "expect," "intend," "anticipate," "estimate," "should", "project" or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond STAG's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, the risk factors discussed in STAG's most recent Annual Report on Form 10-K for the year ended December 31, 2021, as updated by the Company's subsequent reports filed with the Securities and Exchange Commission. Accordingly, there is no assurance that STAG's expectations will be realized. Except as otherwise required by the federal securities laws, STAG disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in STAG's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
The above press release was provided courtesy of PRNewswire. The views, opinions and statements in the press release are not endorsed by Gray Media Group nor do they necessarily state or reflect those of Gray Media Group, Inc. | https://www.whsv.com/prnewswire/2022/05/03/stag-industrial-announces-first-quarter-2022-results/ | 2022-05-03T21:29:18Z |
MILTON, ON, May 3, 2022 /PRNewswire/ - TRAFFIX has hired Scott Goodman to fill a new role in the company, Chief People Officer (CPO). Mr. Goodman will be responsible for maintaining employee satisfaction during explosive corporate expansion.
"We are thrilled to have Scott Goodman join our rapidly growing company. Scott's depth of experience and proven track record align perfectly with TRAFFIX' vision for growth. Having Scott as our CPO will ensure we continue to develop our exceptional team members who create our culture of High-Performance allowing for continued success", says Duane Coghlan, Managing Partner.
Mr. Goodman is tasked with maintaining and developing the people-focused culture that has been engrained in TRAFFIX since its inception in 1979. The company has added 350+ industry experts in the last ten months and now has a workforce exceeding 600 people employed at locations across North America.
"I'm very excited to continue TRAFFIX' tradition of prioritizing the human element in a field where it adds so much customer value", says Scott Goodman. "Other companies chose to develop technology solutions rather than their people. TRAFFIX is doing the opposite. Here we develop technology to support the people we invest in. This approach makes the company attractive to the industry talent we look forward to bringing onboard."
The TRAFFIX executive team created the role of Chief People Officer as part of its mission to become the best employer in the transportation industry. The company depends on its team of experts to manage the pickup and delivery of more than 300,000+ shipments annually.
Prior to his role at TRAFFIX, Mr. Goodman worked for 15 years as a Human Resources executive developing recruitment, team building, and competency programs. A member of the Ontario Bar since 2000, Scott practiced law prior to his entry into the Human Resources field and maintains his expertise in employment law. He holds a Bachelor of Arts from York University, an LLB from the University of Western Ontario, and an MBA from Royal Roads University.
Founded in 1979, TRAFFIX has grown from a small Canadian freight broker to a leading third-party logistics solutions provider that is soon to exceed $1 billion-in-revenue.
Headquartered in Milton, Ontario, Canada, the company's workforce is comprised of 600+ fully trained people in 21 offices across North America. See www.traffix.com for more details.
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SOURCE TRAFFIX | https://www.whsv.com/prnewswire/2022/05/03/traffix-hires-scott-goodman-chief-people-officer/ | 2022-05-03T21:29:25Z |
ANDOVER, Mass., May 3, 2022 /PRNewswire/ -- TransMedics Group, Inc. ("TransMedics") (Nasdaq: TMDX), a medical technology company that is transforming organ transplant therapy for patients with end-stage lung, heart, and liver failure, today reported financial results for the quarter ended March 31, 2022.
Recent Highlights
- Net revenue of $15.9 million in the first quarter of 2022, a 125% increase compared to the first quarter of 2021
- Received FDA pre-market approval (PMA) of OCS™ DCD heart indication on April 28, 2022
- Results from the U.S. randomized OCS™ DCD Heart trial along with OCS™ Lung Trial 5-year data presented at the International Society of Heart and Lung Transplantation (ISHLT) annual meeting
"We are proud of our strong first quarter revenue performance and are now laser focused on continuing to drive commercial growth across each of our three OCS technology platforms," said Waleed Hassanein, MD, President, and Chief Executive Officer. "The National OCS™ Program (NOP) was our primary growth driver, providing us with a high level of confidence in our strategy and in our ability to enable sustained growth in transplant volumes to help more patients in need of life-saving organ transplant procedures."
ISHLT 2022 Clinical Presentation Summary
Data from the U.S. randomized OCS™ DCD Heart trial presented at ISHLT 2022 showed that OCS™ Heart technology enabled successful utilization of 89% of DCD donor hearts. Results demonstrated 1- and 2-year survival rates of 93% in the DCD OCS™ treatment arm compared to 86% and 83% respectively in the DBD Control arm using standard criteria heart transplanted with cold storage.
OCS™ Lung EXPAND Trial 5-year data showed that the use of the OCS™ Lung with extended criteria DBD and DCD donor lungs resulted in a 5-year survival rate of 68%, compared to 59% for lung transplant survival outcomes in the U.S. reported by UNOS/OPTN national reports.
First Quarter 2022 Financial Results
Net revenue for the first quarter of 2022 was $15.9 million, a 125% increase compared to $7.1 million in the first quarter of 2021. The increase was due primarily to the continued increase in commercial sales of the OCS™ Heart and OCS™ Liver in the United States.
Gross margin for the first quarter of 2022 was 76%, as compared to 68% in the first quarter of 2021.
Operating expenses for the first quarter of 2022 were $21.5 million, compared to $11.3 million in the first quarter of 2021. The increase in operating expense was driven predominantly by increased investment in the company's NOP, our next generation OCS™ platform, as well as further investments in general commercial efforts and corporate infrastructure. First quarter operating expenses in 2022 included $2.3 million of stock compensation expense, compared to $ 1.1 million of stock compensation in the first quarter of 2021.
Net loss for the first quarter of 2022 was $10.6 million, compared to $7.9 million in the first quarter of 2021.
Cash, cash equivalents and marketable securities were $72.0 million as of March 31, 2022.
2022 Financial Outlook
TransMedics is updating full year 2022 net revenue to be in the range of $59 million to $65 million, which represents 95% to 115% growth compared to the company's prior year net revenue. TransMedics' prior 2022 net revenue guidance was $49 million to $55 million.
Webcast and Conference Call Details
The TransMedics management team will host a conference call beginning at 5:00 p.m. ET / 2:00 p.m. PT on Tuesday, May 3, 2022. Investors interested in listening to the conference call may do so by dialing (844) 200-6205 for domestic callers or (929) 526-1599 for international callers, followed by Conference ID: 215877. A live and archived webcast of the event will be available on the "Investors" section of the TransMedics website at www.transmedics.com.
About TransMedics Group, Inc.
TransMedics is the world's leader in portable extracorporeal warm perfusion and assessment of donor organs for transplantation. Headquartered in Andover, Massachusetts, the company was founded to address the unmet need for more and better organs for transplantation and has developed technologies to preserve organ quality, assess organ viability prior to transplant, and potentially increase the utilization of donor organs for the treatment of end-stage heart, lung, and liver failure.
Forward-Looking Statements
This press release contains forward-looking statements with respect to, among other things, our full year guidance, and statements about our operations and financial position, business plans and our ability to deliver OCS technology to more patients. These forward-looking statements are subject to a number of risks, uncertainties and assumptions. Moreover, we operate in a very competitive and rapidly changing environment and new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in or implied by any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Some of the key factors that could cause actual results to differ include: that we continue to incur losses; our need to raise additional funding; our existing and any future indebtedness, including our ability to comply with affirmative and negative covenants under our credit agreement to which we will remain subject to until maturity, and our ability to obtain additional financing or refinance existing debt on favorable terms or at all; the fluctuation of our financial results from quarter to quarter; our ability to use net operating losses and research and development credit carryforwards; our dependence on the success of the OCS; our ability to expand access to OCS through the National OCS Program; the rate and degree of market acceptance of the OCS; our ability to educate patients, surgeons, transplant centers and private payors of benefits offered by the OCS; our ability to improve the OCS platform; our dependence on a limited number of customers for a significant portion of our net revenue; our ability to maintain regulatory approvals or clearances for our OCS products; our ability to adequately respond to FDA follow-up inquiries in a timely manner; the performance of our third-party suppliers and manufacturers; price increases of the components of our products; the timing or results of post-approval studies and any clinical trials for the OCS; our manufacturing, sales, marketing and clinical support capabilities and strategy; attacks against our information technology infrastructure; the economic, political and other risks associated with our foreign operations; our ability to attract and retain key personnel; the impact of the outbreak of COVID-19, including variants of the virus an associated containment, remediation and vaccination efforts; our ability to protect, defend, maintain and enforce our intellectual property rights relating to the OCS and avoid allegations that our products infringe, misappropriate or otherwise violate the intellectual property rights of third parties; the pricing of the OCS, as well as the reimbursement coverage for the OCS in the United States and internationally; regulatory developments in the United States, European Union and other jurisdictions; the extent and success of competing products that are or may become available; the impact of any product recalls or improper use of our products; our estimates regarding revenues, expenses and needs for additional financing; and other factors that may be described in our filings with the Securities and Exchange Commission (the "SEC"). Additional information will be made available by our annual and quarterly reports and other filings that we make from time to time with the SEC. These forward-looking statements speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.
Investor Contact:
Brian Johnston
332-895-3222
Investors@transmedics.com
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- Continued Driver Out operations including refinement of our Minimum Risk Condition capabilities which are critical to removing support vehicles from our operations
- Announced an advanced integration with Werner Enterprises to provide roadside service and support
- Expanded our dedicated AFN terminal footprint to Ryder facilities in Houston and Laredo preparing for Driver Out operations in Texas
SAN DIEGO, May 3, 2022 /PRNewswire/ -- TuSimple (Nasdaq: TSP), a global self-driving technology company based in San Diego, California, has released unaudited financial results for the first quarter ending March 31, 2022. TuSimple's complete quarterly financial results and management commentary can be accessed through the company's shareholder letter on the quarterly results page of the investor relations website at ir.tusimple.com.
"During Q1, we made strong progress on our technology development including a continuation of our Driver Out operations," said Xiaodi Hou, Co-Founder and CEO, TuSimple. "TuSimple has entered the Driver Out era. In this new era, we are focusing on increasing efficiency through expanding our operational design domain and optimizing our operations so we can deliver a world class product to our customers."
What: TuSimple Q1 2021 Earnings Conference Call
When: Tuesday, May 3, 2022
Time: 2 p.m. PST/ 5 p.m. EST
To Listen via Telephone:
Conference Topic: TuSimple Q1 2021 Earnings Conference Call
Conference ID: 9028484
US/CANADA (Toll-Free) Number: +1 (833) 519-1404
International (Paid) Number: +1 (270) 215-9738
To Listen via Internet: ir.tusimple.com
About TuSimple
TuSimple is a global autonomous driving technology company headquartered in San Diego, California, with operations in Arizona, Texas, Europe, and China. Founded in 2015, TuSimple is developing a commercial-ready, fully autonomous (SAE Level 4) driving solution for long-haul heavy-duty trucks. TuSimple aims to transform the $4 trillion global truck freight industry through the company's leading AI technology, which makes it possible for trucks to drive safely autonomously, operate nearly continuously, and reduce fuel consumption by 10%+ relative to manually driven trucks. Global achievements include the world's first fully autonomous, 'driver-out' semi-truck run on open public roads, and development of the world's first Autonomous Freight Network (AFN). Visit us at www.tusimple.com.
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SOURCE TuSimple Holdings, Inc. | https://www.whsv.com/prnewswire/2022/05/03/tusimple-announces-first-quarter-2022-results/ | 2022-05-03T21:29:39Z |
Fundraise comes off the heels of Fortune 500 client growth utilizing Teamwork Platform
NEW YORK, May 3, 2022 /PRNewswire/ -- Valence, the leading teamwork platform, today announced its $25 million Series A fundraise led by New York-based private equity and venture capital Insight Partners with additional investments from existing investors. This round of funding will be used to meet growing market demand and attract premier talent.
With this funding round, Valence also announced its launch of their Board of Advisors featuring an esteemed group of enterprise-scale experts, including Bill McNabb (former chairman and CEO at Vanguard), Eric Roza (former CEO at CrossFit), Katie Bullard (former president & chief growth officer at ZoomInfo and now Managing Director at Insight Partners), and with more to come.
Valence is changing enterprise companies' approach to talent and development and helps them go beyond bespoke or one-size-fits-all coaching to a more effective approach that addresses the complex dynamics of teamwork. Valence works with leading companies, including Applied Materials, The Coca-Cola Company, Boston Scientific, Illumina, and many others to provide best practices and teams-based coaching at scale through digital tools.
Valence's teamwork platform provides enterprises with:
- Individual and team assessments: Diagnostic tools to uncover working styles of individuals and the patterns and dynamics of the broader team they sit within
- Discussion facilitation: AI-powered coaching prompts, benchmarks, and guides to conduct alignment exercises across individuals and teams
- 360 Learning Journeys: In-depth peer-based reviews with actionable feedback to uncover blind spots and identify areas to improve
- Habits prompts: Automated and customizable reminders on actions to hold one another accountable for the habits that will lead to meaningful change for a team
"Valence saw tremendous growth over the last year, and we are thrilled by the strong validation we are receiving from our incredible clients and the market," said Parker Mitchell, co-founder and CEO at Valence. "As more enterprises embrace the new reality of modern workforces, we will continue to make manager enablement in hybrid environments scale for them, and allow our clients to effortlessly improve team performance and employee retention. This funding will help us attract premier talent and rapidly expand Valence's business."
Katie Bullard, managing director at Insight Partners added, "Insight is thrilled to partner with Valence as the company builds on its category-leading manager enablement platform." She then went on to say that, "Equipping teams to succeed and work well together as organizations get increasingly complex is a top priority for every enterprise. We are excited to support Valence's hyper-growth journey as the company continues to innovate and expand."
"The companies that I've seen excel in recent years recognize that teams are the foundation of employee performance," said Bill McNabb, former chairman and CEO at Vanguard. "In today's workplace, teams provide the foundation for trust, teaching, and learning that is so important for employee fulfillment and success. This has been accelerated by the changing workplace where hybrid and highly distributed teams are the norm. I'm excited to be helping Valence scale to reach an even larger set of clients who recognize that a teams-based focus in their learning and development programs will drive performance."
People thrive when they are on teams that help them learn and grow with their colleagues, and are able to produce creative, meaningful work. These teams combine empathy, understanding and performance and are more than the sum of the parts. They are increasingly the aspiration for every leader, company, and employee.
However, most HR platforms and learning and development (L&D) approaches are focused on individuals, and this holds back a manager's ability to build stronger teams. When a professional development program only focuses on the individual, it ignores the potential friction and nuances of the environment that person is expected to apply those new skills within. When the individual and the broader team are both considered and developed, all of this goes more smoothly.
Valence's clients see meaningful improvements in employee satisfaction and retention when teams-based coaching is deployed, with many focusing on new managers, higher performance employees, hybrid and remote workers, and global distribution.
"We need our teams and leaders to have accessible ways to improve how well they perform together." said Michael Hill Ph.D, director of integrated talent at Applied Materials. "Valence creates a data-driven and well structured way for teams to diagnose their issues, and come up with solutions."
About Valence
Founded in 2017, Valence is the only teamwork platform used by Fortune 500 companies. Valence helps managers leverage data and on-demand industry-leading expertise to accelerate the team health, connectivity, and performance required for today's workplace.
Valence gives every manager the tools and insights they need to understand their team's health in real time, intervene with powerful guided conversations, and set and track shared commitments to team improvements. Valence's easy to use, web-enabled team experience modules eliminate the need for expensive coaches and talent team interventions, putting managers in the driver's seat of their team experience. Managing has never been harder, and Valence eases the burden managers bear by helping them develop and support their teams while also driving performance and improvement. To learn more, visit valence.co
About Insight Partners
Insight Partners is a global software investor partnering with high-growth technology, software, and Internet startup and ScaleUp companies that are driving transformative change in their industries. As of February 24, 2022, the closing of the firm's recent fundraise, Fund XII, brings Insight Partners regulatory assets under management to over $90B. Insight Partners has invested in more than 600 companies worldwide and has seen over 55 portfolio companies achieve an IPO. Headquartered in New York City, Insight has offices in London, Tel Aviv, and Palo Alto. Insight's mission is to find, fund, and work successfully with visionary executives, providing them with practical, hands-on software expertise to foster long-term success. Insight Partners meets great software leaders where they are in their growth journey, from their first investment to IPO. For more information on Insight and all its investments, visit insightpartners.com or follow us on Twitter @insightpartners.
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SOURCE Valence | https://www.whsv.com/prnewswire/2022/05/03/valence-raises-25m-help-enterprises-build-stronger-teams-more-productive-workplaces-scale/ | 2022-05-03T21:29:46Z |
HARTFORD, Conn., May 3, 2022 /PRNewswire/ -- Virtus Total Return Fund Inc. (NYSE: ZTR) previously announced the following monthly distribution on March 3, 2022:
Under the terms of its Managed Distribution Plan, the Fund will seek to maintain a consistent distribution level that may be paid in part or in full from net investment income and realized capital gains, or a combination thereof. Shareholders should note, however, that if the Fund's aggregate net investment income and net realized capital gains are less than the amount of the distribution level, the difference will be distributed from the Fund's assets and will constitute a return of the shareholder's capital. You should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Fund's Managed Distribution Plan.
The Fund estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with 'yield' or 'income'.
The Fund provided this estimate of the sources of the distributions:
Information regarding the Fund's performance and distribution rates is set forth below. Please note that all performance figures are based on the Fund's NAV and not the market price of the Fund's shares. Performance figures are not meant to represent individual shareholder performance.
The amounts and sources of distributions reported in this notice are estimates only and are not being provided for tax reporting purposes. The actual amounts and sources of the distributions for tax purposes will depend on the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund or your broker will send you a Form 1099-DIV for the calendar year that will tell you what distributions to report for federal income tax purposes.
Virtus Total Return Fund Inc. is a diversified closed-end fund whose investment objective is capital appreciation, with income as a secondary objective. Virtus Investment Advisers, Inc. has been the investment adviser, and Duff & Phelps Investment Management Co. and Newfleet Asset Management, LLC have been subadvisers to the Fund since December 9, 2011. Performance and characteristics prior to December 9, 2011 were attained by the previous adviser using a different investment strategy.
For more information on the Fund, contact shareholder services at (866) 270-7788, by email at closedendfunds@virtus.com, or through the closed-end fund section of www.virtus.com.
An investment in a fund is subject to risk, including the risk of possible loss of principal. A fund's shares may be worth less upon their sale than what an investor paid for them. Shares of closed-end funds may trade at a premium or discount to their net asset value. For more information about each Fund's investment objective and risks, please see the Fund's annual report. A copy of the Fund's most recent annual report may be obtained free of charge by contacting "Shareholder Services" as set forth at the bottom of this press release.
Duff & Phelps Investment Management Co. has more than 35 years of experience managing investment portfolios, including institutional separate accounts and open- and closed-end funds investing in utilities, master limited partnerships (MLPs), infrastructure, and real estate investment trusts (REITs). For more information, visit www.dpimc.com.
Newfleet Asset Management, an affiliated manager of Virtus Investment Partners, provides comprehensive fixed income portfolio management in multiple strategies. The Newfleet Multi-Sector Strategies team that manages the Virtus Total Return Fund Inc. leverages the knowledge and skill of investment professionals with expertise in every sector of the bond market, including evolving, specialized, and out-of-favor sectors. The team employs active sector rotation and disciplined risk management to portfolio construction, avoiding interest rate bets, and remaining duration neutral to each strategy's stated benchmark. For more information, visit www.newfleet.com.
Virtus Investment Partners (NASDAQ: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. The company provides investment management products and services through its affiliated managers and select subadvisers, each with a distinct investment style, autonomous investment process, and individual brand. For more information, visit www.virtus.com.
For Further Information:
Shareholder Services
(866) 270-7788
closedendfunds@virtus.com
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SOURCE Virtus Total Return Fund Inc. | https://www.whsv.com/prnewswire/2022/05/03/virtus-total-return-fund-inc-discloses-sources-distribution-section-19a-notice/ | 2022-05-03T21:29:52Z |
TORONTO, May 3, 2022 /PRNewswire/ -- Waste Connections, Inc. (TSX/NYSE: WCN) ("Waste Connections" or the "Company") today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.23 U.S. per common share of the Company. The regular quarterly cash dividend will be paid on June 1, 2022 to shareholders of record at the close of business on May 18, 2022. The Board intends to review the quarterly dividend each October, with a long-term objective of increasing the amount of the dividend.
Shareholders of Waste Connections whose common shares are held by a bank or broker that participates in U.S. depositary DTC will receive payment of their dividends in U.S. dollars. Shareholders of Waste Connections whose common shares are held by a bank or broker that participates in Canadian depositary CDS will receive payment of their dividends in Canadian dollars, calculated based on the Bank of Canada's daily average exchange rate on May 18, 2022. Shareholders of Waste Connections who hold their shares in direct registration with Computershare, the Company's transfer agent, will receive payment of their dividends in Canadian dollars if they are residents of Canada, as reflected in Waste Connections' shareholders register, and will receive their dividend payments in U.S. dollars if they are not residents of Canada, including if they are residents of the U.S.
Waste Connections is an integrated solid waste services company that provides non-hazardous waste collection, transfer and disposal services, along with resource recovery primarily through recycling and renewable fuels generation. The Company serves more than eight million residential, commercial and industrial customers in mostly exclusive and secondary markets across 43 states in the U.S. and six provinces in Canada. Waste Connections also provides non-hazardous oilfield waste treatment, recovery and disposal services in several basins across the U.S., as well as intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest. For more information, visit Waste Connections at www.wasteconnections.com.
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 ("PSLRA"), including "forward-looking information" within the meaning of applicable Canadian securities laws. These forward-looking statements are neither historical facts nor assurances of future performance and reflect Waste Connections' current beliefs and expectations regarding future events and operating performance. These forward-looking statements can be identified by the use of forward-looking terminology such as "believes," "expects," "intends," "may," "might," "will," "could," "should" or "anticipates," or the negative thereof or comparable terminology, or by discussions of strategy. All of the forward-looking statements included in this press release are made pursuant to the safe harbor provisions of the PSLRA and applicable Canadian securities laws. Forward-looking statements involve risks and uncertainties. Forward-looking statements in this press release include, but are not limited to, statements about the timing and amount of cash dividends. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, risk factors detailed from time to time in the Company's filings with the SEC and the securities commissions or similar regulatory authorities in Canada. You should not place undue reliance on forward-looking statements, which speak only as of the date of this press release. Waste Connections undertakes no obligation to update the forward-looking statements set forth in this press release, whether as a result of new information, future events, or otherwise, unless required by applicable securities laws.
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SOURCE Waste Connections, Inc. | https://www.whsv.com/prnewswire/2022/05/03/waste-connections-announces-regular-quarterly-cash-dividend/ | 2022-05-03T21:29:59Z |
WASTE CONNECTIONS REPORTS FIRST QUARTER 2022 RESULTS
Published: May. 3, 2022 at 4:05 PM EDT|Updated: 1 hour ago
Solid waste pricing growth of 7.1% drives underlying margin expansion and better than expected Q1 results
Revenue of $1.646 billion, up 17.9%
Net income(a) of $180.3 million, and adjusted EBITDA(b) of $502.1 million, or 30.5% of revenue and up 15.9%
Net income of $0.69 per share, and adjusted net income(b) of $0.82 per share, up 17.1%
Net cash provided by operating activities of $440.9 million and adjusted free cash flow(b) of $320.4 million, or 19.5% of revenue and up 10.6% year over year
Completes acquisitions with approximately $175 million of total annualized revenue
TORONTO, May 3, 2022 /PRNewswire/ -- Waste Connections, Inc. (TSX/NYSE: WCN) ("Waste Connections" or the "Company") today announced its results for the first quarter of 2022.
"We are extremely pleased by our strong start to the year, with record solid waste pricing growth driving underlying margin expansion in spite of inflationary pressures. Our 50 basis points year-over-year decline in adjusted EBITDA(b) margin in the quarter included 90 basis points combined margin impact, as expected, from $10 million of COVID-related frontline support in January and acquisitions completed since the prior year period. Looking ahead, further sequential improvement in solid waste pricing growth, increasing E&P waste activity and strong operational execution should continue to differentiate our performance," said Worthing F. Jackman, President and Chief Executive Officer. "Moreover, adjusted free cash flow(b) generation of over $320 million, or 19.5% of revenue in the period, positions us to meet or exceed our full year adjusted free cash flow(b) outlook of $1.150 billion."
Mr. Jackman added, "The elevated cadence of solid waste acquisition activity has continued, with approximately $175 million in annualized revenues closed year to date, confirming our expectations for another outsized year of such activity, for which we remain well-positioned."
Q1 2022 Results
Revenue in the first quarter totaled $1.646 billion, up from $1.396 billion in the year ago period. Operating income was $273.9 million, which included $4.7 million in acquisition-related costs and $1.9 million in impairments and other operating items. This compares to operating income of $238.4 million in the first quarter of 2021, which included $1.5 million in primarily acquisition-related costs. Net income in the first quarter was $180.3 million, or $0.69 per share on a diluted basis of 259.6 million shares. In the year ago period, the Company reported net income of $160.3 million, or $0.61 per share on a diluted basis of 263.2 million shares.
Adjusted net income(b) in the first quarter was $213.4 million, or $0.82 per diluted share, versus $185.5 million, or $0.70 per diluted share, in the prior year period. Adjusted EBITDA(b) in the first quarter was $502.1 million, as compared to $433.2 million in the prior year period. Adjusted net income, adjusted net income per diluted share and adjusted EBITDA, all non-GAAP measures, primarily exclude impairments and acquisition-related items, as reflected in the detailed reconciliations in the attached tables.
Environmental, Social and Governance
Waste Connections views its Environmental, Social and Governance ("ESG") efforts as integral to its business, with initiatives consistent with its objective of long-term value creation. In 2020, the Company introduced long-term, aspirational ESG targets and committed over $500 million for investments to meet or exceed such sustainability targets. These investments primarily focus on reducing emissions, increasing resource recovery of both recyclable commodities and clean energy fuels, reducing reliance on off-site disposal for landfill leachate, further improving safety through reduced incidents and enhancing employee engagement through improved voluntary turnover and Servant Leadership scores. The Company's 2021 Sustainability Report provides progress updates on its targets and investments towards their achievement. For more information, visit the Waste Connections website at wasteconnections.com/sustainability.
Q1 2022 Earnings Conference Call
Waste Connections will be hosting a conference call related to first quarter earnings on May 4th at 8:30 A.M. Eastern Time. A live audio webcast of the conference call can be accessed by visiting investors.wasteconnections.com and selecting "News & Events" from the website menu. Alternatively, listeners may access the call by dialing 800-926-4425 (within North America) or 212-231-2911 (international) approximately 10 minutes prior to the scheduled start time; a passcode is not required. A replay of the conference call will be available until May 11, 2022, by calling 800-633-8284 (within North America) or 402-977-9140 (international) and entering Passcode #22017071.
Waste Connections will be filing a Form 8-K on EDGAR and on SEDAR (as an "Other" document) prior to markets opening on May 4th, providing the Company's second quarter 2022 outlook for revenue, price plus volume growth for solid waste, and adjusted EBITDA(b).
About Waste Connections
Waste Connections is an integrated solid waste services company that provides non-hazardous waste collection, transfer and disposal services, along with resource recovery primarily through recycling and renewable fuels generation. The Company serves more than eight million residential, commercial and industrial customers in mostly exclusive and secondary markets across 43 states in the U.S. and six provinces in Canada. Waste Connections also provides non-hazardous oilfield waste treatment, recovery and disposal services in several basins across the U.S., as well as intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest. For more information, visit Waste Connections at wasteconnections.com.
Safe Harbor and Forward-Looking Information
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 ("PSLRA"), including "forward-looking information" within the meaning of applicable Canadian securities laws. These forward-looking statements are neither historical facts nor assurances of future performance and reflect Waste Connections' current beliefs and expectations regarding future events and operating performance. These forward-looking statements are often identified by the words "may," "might," "believes," "thinks," "expects," "estimate," "continue," "intends" or other words of similar meaning. All of the forward-looking statements included in this press release are made pursuant to the safe harbor provisions of the PSLRA and applicable securities laws in Canada. Forward-looking statements involve risks and uncertainties. Forward-looking statements in this press release include, but are not limited to, statements about expected 2022 financial results, outlook and related assumptions, and potential acquisition activity. Important factors that could cause actual results to differ, possibly materially, from those indicated by the forward-looking statements include, but are not limited to, risk factors detailed from time to time in the Company's filings with the SEC and the securities commissions or similar regulatory authorities in Canada. You should not place undue reliance on forward-looking statements, which speak only as of the date of this press release. Waste Connections undertakes no obligation to update the forward-looking statements set forth in this press release, whether as a result of new information, future events, or otherwise, unless required by applicable securities laws.
The above press release was provided courtesy of PRNewswire. The views, opinions and statements in the press release are not endorsed by Gray Media Group nor do they necessarily state or reflect those of Gray Media Group, Inc. | https://www.whsv.com/prnewswire/2022/05/03/waste-connections-reports-first-quarter-2022-results/ | 2022-05-03T21:30:09Z |
EXTON, Pa., May 3, 2022 /PRNewswire/ -- West Pharmaceutical Services, Inc. (NYSE: WST), a global leader in innovative solutions for injectable drug administration, today announced that it will participate in the Bank of America Securities 2022 Healthcare Conference taking place May 9-13, 2022, in Las Vegas, NV. Management will present on Tuesday, May 10, 2022, at 11:20 AM PDT.
It will also present at the 42nd Annual William Blair Growth Stock Conference in Chicago, IL on Monday, June 6, 2022, as well as at the Jefferies Global Healthcare Conference in New York, NY on Thursday, June 9, 2022.
A live audio webcast will be available in the "Investors" section of the Company's website at www.westpharma.com. Replay of the webcasts will be available for approximately 90 days after the events.
About West
West Pharmaceutical Services, Inc. is a leading provider of innovative, high-quality injectable solutions and services. As a trusted partner to established and emerging drug developers, West helps ensure the safe, effective containment and delivery of life-saving and life-enhancing medicines for patients. With approximately 10,000 team members across 50 sites worldwide, West helps support our customers by delivering over 45 billion components and devices each year.
Headquartered in Exton, Pennsylvania, and in business for nearly a century, West in its fiscal year 2021 generated $2.83 billion in net sales. West is traded on the New York Stock Exchange (NYSE: WST) and is included on the Standard & Poor's 500 index. For more information, visit www.westpharma.com.
All trademarks and registered trademarks used in this release are the property of West Pharmaceutical Services, Inc. or its subsidiaries, in the United States and other jurisdictions, unless otherwise noted.
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SOURCE West Pharmaceutical Services, Inc. | https://www.whsv.com/prnewswire/2022/05/03/west-participate-upcoming-investor-conferences/ | 2022-05-03T21:30:16Z |
Resilience and agility enable Yum China to serve communities in need
Grew Total Revenues and sustained Operating Profit despite significant challenges from the COVID-19 outbreak
Remains focused on long-term opportunities: Total stores exceeded 12,000, in Q1 opened 329 net new stores
SHANGHAI, May 3, 2022 /PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE: YUMC and HKEX: 9987) today reported unaudited results for the first quarter ended March 31, 2022.
Impact of COVID-19 Outbreak and Mitigation Efforts
The highly transmissible Omicron variant caused significant volatility in our business operations in the first quarter, and continues to have a severe impact in the second quarter. The COVID-19 situation was relatively stable in January and February. However, the situation rapidly deteriorated in March, resulting in the largest outbreak since COVID-19 first emerged in early 2020. This latest outbreak and the challenges we face are unprecedented. Compared to first quarter 2020, the case counts, duration, geographical coverage and restrictive measures experienced in the first quarter 2022 are much more severe:
- COVID-19 case counts have reached new records. In March, case counts (including asymptomatic cases) surpassed 2020 and 2021 combined. Cases in April further increased to nearly 600,000, which is approximately six times higher than that of March.
- Many cities across large swaths of China have been fully or partially locked down for weeks or even months, including economically important regions such as Shanghai, Tianjin, Jilin, Suzhou, Shenzhen and Guangzhou.
- Eastern China, the most vibrant economic region and most important market for us, accounting for 30-40% of our stores and sales, has been the most affected in this wave.
- Drastic public health measures are being stepped up nationwide in line with the strict enforcement of dynamic zero-COVID policy, resulting in further reductions of social activities, travel and consumption.
Stores temporarily closed or that offered only takeaway and delivery services significantly increased in March and April:
- January and February – Around 300 stores on average. Over 500 stores at the peak in January.
- March – Over 1,700 stores on average, of which approximately 40% of stores were temporarily closed.
- April – Around 3,000 stores, on average, of which approximately 50% of stores were temporarily closed.
- Temporary store closures are excluded from our same-store sales calculation.
- System sales are impacted by temporary store closures and same-store sales.
Same-store sales declined sharply in March and April:
- January and February combined – Decreased approximately 4% year over year, reflecting a sequential improvement from the fourth quarter.
- March – Decreased by more than 20% year over year, as the COVID-19 situation rapidly deteriorated.
- April (preliminary) – Decreased by more than 20% year over year, as the outbreak persisted.
We have responded quickly and taken measures intending to lessen the impact of these unprecedented headwinds.
- We designed alternative routes, set up temporary drop-off and pick-up sites and optimized sourcing to fulfill the demand of our store network. Our resilient supply chain management has enabled us to lessen disruptions from supply complexities and mobility restrictions.
- Nationwide, we have adjusted marketing campaigns, simplified menus and promoted off-premise services. Our digital capabilities have enabled us to engage customers directly and nimbly. Our hybrid delivery model has allowed us to maintain adequate rider capacity and continue operations in most places.
- In heavily impacted regions like Shanghai, to serve our community, we have quickly launched community purchasing (a new way of group ordering) across all our brands, promoted new retail packaged food, significantly cut down on menu offerings and shortened operating hours.
As a result of our tremendous efforts, first quarter operating profit of $191 million was in line with expectations indicated in the March business update. However, we were only able to partially mitigate COVID-19 impacts and incurred an operating loss in March. Unless conditions significantly improve in May and June, we expect to incur an operating loss in the second quarter, due to (1) the significant sales decline driven by the worsening COVID-19 situation, (2) a more pronounced sales deleveraging impact as the second quarter is seasonally a lower quarter for sales and profit margins and (3) increases in commodity prices, wages, and utility prices. In light of this, we are pulling back on advertising and promotional activities, temporarily postponing store remodels, negotiating rent relief, implementing austerity measures to reduce G&A, and optimizing our raw material cost structure.
First Quarter Highlights
- Total revenues increased 4% year over year to $2.67 billion from $2.56 billion (a 2% increase excluding foreign currency translation ("F/X")).
- Total system sales decreased 4% year over year, with decreases of 4% at KFC and 1% at Pizza Hut, excluding F/X.
- Same-store sales decreased 8% year over year, with decreases of 9% at KFC and 5% at Pizza Hut, excluding F/X.
- Opened 329 net new stores during the quarter; total store count reached 12,117 as of March 31, 2022.
- Restaurant margin was 13.8%, compared with 18.7% in the prior year period, primarily due to sales deleveraging as a result of the worsened COVID-19 situation.
- Operating Profit decreased 44% year over year to $191 million from $342 million (a 45% decrease excluding F/X).
- Adjusted Operating Profit decreased 44% year over year to $193 million from $345 million (a 45% decrease excluding F/X).
- Effective tax rate was 33.1%.
- Net Income decreased 57% to $100 million from $230 million in the prior year period, primarily due to the decrease in Operating Profit and the loss from our mark-to-market investment in Meituan Dianping.
- Adjusted Net Income decreased 56% to $102 million from $233 million in the prior year period (a 47% decrease excluding the net losses of $30 million and $16 million in the first quarter of 2022 and 2021, respectively, from our mark-to-market equity investments; a 48% decrease if further excluding F/X).
- Diluted EPS decreased 57% to $0.23 from $0.53 in the prior year period.
- Adjusted Diluted EPS decreased 56% to $0.24 from $0.54 in the prior year period (a 46% decrease excluding the net losses from our mark-to-market equity investments in the first quarter of 2022 and 2021; a 47% decrease if further excluding F/X).
- Results for the current year period include the consolidation of Hangzhou KFC.
Key Financial Results
Percentages may not recompute due to rounding.
System sales and same-store sales percentages exclude the impact of F/X. Effective January 1, 2018, temporary store closures are normalized in the same-store sales calculation by excluding the period during which stores are temporarily closed.
CEO and CFO Comments
Joey Wat, CEO of Yum China, commented, "Foremost, I want to thank frontline workers and volunteers for their selfless and noble efforts. The country and our company are facing the toughest challenges yet in the battle against COVID-19. Frontline employees in our stores and supply chain are once again rising to the occasion. Our teams worked together across the brands and functions, and quickly developed ways to address the fast-changing conditions. In the cities on lockdown, where most business activities have halted, we are one of the first authorized essential food suppliers serving communities in need. We have also been prioritizing meals to the frontline workers fighting the crisis and to disadvantaged and vulnerable groups. I hope we have been able to bring some joy to people in need during this difficult time."
Wat continued, "Our ability to quickly adapt to this ever-changing operating environment is at the core of our resilience. Nationwide, we swiftly designed detour routes and optimized supply sourcing to lessen the impact of supply chain disruptions. In Shanghai, when less than 10% of our restaurants were open and operating with limited capacity, we launched community purchasing across all brands in a matter of days. This breakthrough allowed us to efficiently deploy limited resources to serve more customers. We seized at-home demand with our ready-to-eat products which are easy to store during the lockdown. We believe our solid business fundamentals and agility will continue to help us navigate the near-term challenges. Despite the current COVID-19 situation, we will remain focused on executing our RGM strategic framework to fortify resilience, accelerate growth and widen our strategic moat to drive long-term and sustainable growth."
Andy Yeung, CFO of Yum China, added, "First quarter operational performance was significantly impacted by the surge of Omicron variant in March. The case counts, duration, coverage, and severity of restrictive measures are far more extensive than previous outbreaks. Our quick response to sustain operations in areas on lockdown, drive off-premise sales and proactively manage costs partially mitigated the impact. While we generated operating profit in the first quarter, we experienced a loss for the month of March. Unless the COVID-19 situation improves significantly in May and June, we expect to incur an operating loss in the second quarter. During this enormously difficult time, our priority is to operate our restaurants safely in order to serve customers and communities in need."
Yeung continued, "We continue to employ a disciplined and balanced capital allocation strategy, ensuring that we have sufficient cash to sustain operations and deal with potential contingencies. While the pace of store remodeling and expansion may be temporarily impacted by the COVID-19 outbreak, our new unit development pipeline remains robust, powered by healthy unit economics. We will continue to make significant capex investments in digital, supply chain infrastructure and our store network expansion. We remain confident these investments will widen our strategic moat, drive sustainable growth and capture attractive long-term opportunities in China."
Share Repurchases and Dividends
- In March 2022, the Board of Directors (the "Board") increased the Company's share repurchase authorization by $1 billion to an aggregate of $2.4 billion.
- During the first quarter, we repurchased approximately 5.0 million shares of Yum China common stock for $232 million at an average price of $46.57 per share. As of March 31, 2022, approximately $1.4 billion remained available for future share repurchases under the current authorization.
- The Board declared a cash dividend of $0.12 per share on Yum China's common stock, payable on June 21, 2022 to shareholders of record as of the close of business on May 31, 2022.
Digital and Delivery
- The KFC and Pizza Hut loyalty programs exceeded 370 million members combined, as of quarter-end. Member sales accounted for approximately 62% of system sales in the first quarter of 2022.
- Delivery contributed approximately 36% of KFC and Pizza Hut's Company sales in the first quarter of 2022, an increase of approximately five percentage points from the prior year period due to more severe outbreaks.
- Digital orders, including delivery, mobile orders and kiosk orders, accounted for approximately 88% of KFC and Pizza Hut's Company sales in the first quarter of 2022.
New-Unit Development and Asset Upgrade
- The Company opened 522 gross new stores, or 329 net new stores in the first quarter of 2022, mainly driven by development of the KFC and Pizza Hut brands. The net reduction in others was mainly due to closures in the Huang Ji Huang and Little Sheep brands.
- The Company remodeled 96 stores in the first quarter of 2022.
2 Others include Taco Bell, Little Sheep, Huang Ji Huang, East Dawning, COFFii & JOY and Lavazza.
Restaurant Margin
- Restaurant margin was 13.8% in the first quarter of 2022, compared with 18.7% in the prior year period, primarily attributable to sales deleveraging, higher inflation in commodity, wage and utility costs, as well as increased rider cost associated with rising delivery volume.
2022 Outlook
Yum China remains focused on capturing long-term opportunities in China. The Company's fiscal year 2022 targets are unchanged:
- To open approximately 1,000 to 1,200 net new stores.
- To make capital expenditures in the range of approximately $800 million to $1 billion.
Other Updates
- On April 15, 2022, the Company and Yum! Brands entered into an amendment to the Master License Agreement to amend the development milestones for the Taco Bell brand. The Company has committed to expanding the Taco Bell store network to at least 100 stores by the end of 2022 and at least 225 stores by the end of 2025, with certain investment support from Yum! Brands. Subject to achieving these milestones, the Company will have the exclusive right to operate and sublicense the Taco Bell brand in China for 50 years.
- On April 19, 2022, the Company announced the appointments of Johnson Huang, General Manager, KFC, to the position of Chief Customer Officer of the Company and Warton Wang, Chief Development Officer, as General Manager, KFC, effective May 1, 2022.
Note on Non-GAAP Adjusted Measures
Reported GAAP results include Special Items, which are excluded from non-GAAP adjusted measures. Special Items are not allocated to any segment and therefore only impact reported GAAP results of Yum China. See "Reconciliation of Reported GAAP Results to Non-GAAP Adjusted Measures" within this release.
Conference Call
Yum China's management will hold an earnings conference call at 8:00 p.m. U.S. Eastern Time on Tuesday, May 3, 2022 (8:00 a.m. Beijing/Hong Kong Time on Wednesday, May 4, 2022).
Operator-assisted conference calls are not available at the moment. Please register in advance of the conference through the link provided below. Upon registering, you will be provided with participant dial-in numbers, a passcode and a unique registrant ID.
Pre-registration Link: http://apac.directeventreg.com/registration/event/3380199
Conference ID: 3380199
A live webcast of the call may also be accessed at https://edge.media-server.com/mmc/p/p4o65n8v.
A replay of the conference call will be available two hours after the call ends until 9:00 a.m. U.S. Eastern Time on Wednesday, May 11, 2022 (9:00 p.m. Beijing/Hong Kong Time on Wednesday, May 11, 2022) and may be accessed by phone at the following numbers:
U.S.: 1 855 452 5696
Mainland China: 400 820 9035 or 800 988 0552
Hong Kong: +852 3051 2780
U.K.: 0808 234 0072
International: +61 2 9003 4211
Replay access code: 3380199
Additionally, this earnings release, the accompanying slides, a live webcast and an archived webcast of this conference call will be available at Yum China's Investor Relations website at http://ir.yumchina.com.
For important news and information regarding Yum China, including our filings with the U.S. Securities and Exchange Commission and the Hong Kong Stock Exchange, visit Yum China's Investor Relations website at http://ir.yumchina.com. Yum China uses this website as a primary channel for disclosing key information to its investors, some of which may contain material and previously non-public information.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including under "2022 Outlook." We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as "expect," "expectation," "believe," "anticipate," "may," "could," "intend," "belief," "plan," "estimate," "target," "predict," "project," "likely," "will," "continue," "should," "forecast," "outlook", "commit" or similar terminology. These statements are based on current estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable under the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Forward-looking statements include, without limitation, statements regarding the future strategies, growth, business plans, investment, dividend and share repurchase plans, earnings, performance and returns of Yum China, anticipated effects of population and macroeconomic trends, the expected impact of the COVID-19 pandemic, the anticipated effects of our innovation, digital and delivery capabilities and investments on growth and beliefs regarding the long-term drivers of Yum China's business. Forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks and uncertainties that are difficult to predict and could cause our actual results or events to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or assumptions will be achieved. The forward-looking statements included in this press release are only made as of the date of this press release, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. Numerous factors could cause our actual results or events to differ materially from those expressed or implied by forward-looking statements, including, without limitation: whether we are able to achieve development goals at the times and in the amounts currently anticipated, if at all, the success of our marketing campaigns and product innovation, our ability to maintain food safety and quality control systems, changes in public health conditions, including the COVID-19 pandemic and regional outbreaks caused by existing or new COVID-19 variants, our ability to control costs and expenses, including tax costs, as well as changes in political, economic and regulatory conditions in China. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. You should consult our filings with the Securities and Exchange Commission (including the information set forth under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q) for additional detail about factors that could affect our financial and other results.
About Yum China Holdings, Inc.
Yum China Holdings, Inc. is a licensee of Yum! Brands in mainland China. It has exclusive rights in mainland China to KFC, China's leading quick-service restaurant brand, Pizza Hut, the leading casual dining restaurant brand in China, and Taco Bell, a California-based restaurant chain serving innovative Mexican-inspired food. Yum China also owns the Little Sheep, Huang Ji Huang and COFFii & JOY concepts outright. In addition, Yum China has partnered with Lavazza to explore and develop the Lavazza coffee shop concept in China. The Company had 12,117 restaurants in over 1,700 cities at the end of March 2022.
In 2021, Yum China ranked # 363 on the Fortune 500 list and was named to TIME100 Most Influential Companies list. Yum China has also been selected as member of both Dow Jones Sustainability Indices (DJSI): World Index and Emerging Market Index. In 2022, the Company was named to the Bloomberg Gender-Equality Index and was certified as a Top Employer 2022 in China by the Top Employers Institute, both for the fourth consecutive year. For more information, please visit http://ir.yumchina.com.
Percentages may not recompute due to rounding. NM refers to not meaningful.
Percentages may not recompute due to rounding. NM refers to not meaningful.
Percentages may not recompute due to rounding. NM refers to not meaningful.
In this press release:
- The Company provides certain percentage changes excluding the impact of foreign currency translation ("F/X"). These amounts are derived by translating current year results at prior year average exchange rates. We believe the elimination of the F/X impact provides better year-to-year comparability without the distortion of foreign currency fluctuations.
- System sales growth reflects the results of all restaurants regardless of ownership, including Company-owned, franchise and unconsolidated affiliate restaurants that operate our restaurant concepts, except for non-Company-owned restaurants for which we do not receive a sales-based royalty. Sales of franchise and unconsolidated affiliate restaurants typically generate ongoing franchise fees for the Company at an average rate of approximately 6% of system sales. Franchise and unconsolidated affiliate restaurant sales are not included in Company sales in the Condensed Consolidated Statements of Income; however, the franchise fees are included in the Company's revenues. We believe system sales growth is useful to investors as a significant indicator of the overall strength of our business as it incorporates all of our revenue drivers, Company and franchise same-store sales as well as net unit growth.
- Effective January 1, 2018, the Company revised its definition of same-store sales growth to represent the estimated percentage change in sales of food of all restaurants in the Company system that have been open prior to the first day of our prior fiscal year, excluding the period during which stores are temporarily closed. We refer to these as our "base" stores. Previously, same-store sales growth represented the estimated percentage change in sales of all restaurants in the Company system that have been open for one year or more, including stores temporarily closed, and the base stores changed on a rolling basis from month to month. This revision was made to align with how management measures performance internally and focuses on trends of a more stable base of stores.
- Company sales represent revenues from Company-owned restaurants. Company Restaurant profit ("Restaurant profit") is defined as Company sales less expenses incurred directly by our Company-owned restaurants in generating Company sales. Company restaurant margin percentage is defined as Restaurant profit divided by Company sales.
Reconciliation of Reported GAAP Results to Non-GAAP Adjusted Measures
(in millions, except per share data)
(unaudited)
In addition to the results provided in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") in this press release, the Company provides non-GAAP measures adjusted for Special Items, which include Adjusted Operating Profit, Adjusted Net Income, Adjusted Earnings Per Common Share ("EPS"), Adjusted Effective Tax Rate and Adjusted EBITDA, which we define as net income including noncontrolling interests adjusted for equity in net earnings (losses) from equity method investments, income tax, interest income, net, investment gain or loss, certain non-cash expenses, consisting of depreciation and amortization as well as store impairment charges, and Special Items.
The following table set forth the reconciliation of the most directly comparable GAAP financial measures to the non-GAAP adjusted financial measures.
Net income, along with the reconciliation to Adjusted EBITDA, is presented below:
Details of Special Items are presented below:
(1) In February 2020, the Company granted Partner PSU Awards to select employees who were deemed critical to the Company's execution of its strategic operating plan. These PSU awards will only vest if threshold performance goals are achieved over a four-year performance period, with the payout ranging from 0% to 200% of the target number of shares subject to the PSU awards. Partner PSU Awards were granted to address increased competition for executive talent, motivate transformational performance and encourage management retention. Given the unique nature of these grants, the Compensation Committee does not intend to grant similar, special grants to the same employees during the performance period. The impact from these special awards is excluded from metrics that management uses to assess the Company's performance. The Company recognized share-based compensation expense of $2 million and $3 million associated with the Partner PSU Awards for the quarter ended March 31, 2022 and 2021, respectively.
(2) The tax expense was determined based upon the nature, as well as the jurisdiction, of each Special Item at the applicable tax rate.
The Company excludes impact from Special Items for the purpose of evaluating performance internally. Special Items are not included in any of our segment results. In addition, the Company provides Adjusted EBITDA because we believe that investors and analysts may find it useful in measuring operating performance without regard to items such as equity in net earnings (losses) from equity method investments, income tax, interest income, net, investment gain or loss, depreciation and amortization, store impairment charges, and Special Items. Store impairment charges included as an adjustment item in Adjusted EBITDA primarily resulted from our semi-annual impairment evaluation of long-lived assets of individual restaurants, and additional impairment evaluation whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. If these restaurant-level assets were not impaired, depreciation of the assets would have been recorded and included in EBITDA. Therefore, store impairment charges were a non-cash item similar to depreciation and amortization of our long-lived assets of restaurants. The Company believes that investors and analyst may find it useful in measuring operating performance without regard to such non-cash item.
These adjusted measures are not intended to replace the presentation of our financial results in accordance with GAAP. Rather, the Company believes that the presentation of these adjusted measures provides additional information to investors to facilitate the comparison of past and present results, excluding those items that the Company does not believe are indicative of our ongoing operations due to their nature.
Unit Count by Brand
KFC
Pizza Hut
Others
The above tables reconcile segment information, which is based on management responsibility, with our Condensed Consolidated Statements of Income.
(1) Amounts have not been allocated to any segment for purpose of making operating decision or assessing financial performance as the transactions are deemed corporate revenues and expenses in nature.
(2) Primarily includes revenues and associated expenses of transactions with franchisees and unconsolidated affiliates derived from the Company's central procurement model whereby the Company centrally purchases substantially all food and paper products from suppliers and then sells and delivers to KFC and Pizza Hut restaurants, including franchisees and unconsolidated affiliates that operate our concepts.
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SOURCE Yum China Holdings, Inc. | https://www.whsv.com/prnewswire/2022/05/03/yum-china-reports-first-quarter-2022-results/ | 2022-05-03T21:30:23Z |
A funky take on Frank Zappa through a ¼-scale replica of the Grateful Dead's Wall of Sound - all in support of music education
REDDING, Conn., May 3, 2022 /PRNewswire/ -- What do Sugar Magnolia and Peaches en Regalia have in common? They're iconic songs from two iconic artists - The Grateful Dead and Frank Zappa - both of which will be featured in full force on Saturday, May 21 at The Bijou Theatre in Bridgeport, CT as part of the SpreadMusicNow Concert Series. All proceeds from this event will support SpreadMusicNow and TeachRock's work with Connecticut students.
Billed as Zappa Meets the Dead, the concert features Connecticut natives The Z3 - a funky organ trio featuring Tim Palmieri (Lotus, The Breakfast) on Guitar and Vocals, Bill Carbone (Max Creek, Melvin Sparks) on Drums and Vocals, and Beau Sasser (Kung Fu) on Organ, Keys, and Vocals - performing some of Zappa's all-time classics, with the entire performance piped through a ¼-scale replica of the Grateful Dead's legendary Wall of Sound.
While the Dead and Zappa never shared a stage, they did share the same desire to challenge the confines of traditional rock. Zappa Meets the Dead is designed to let audience members experience elements of both groundbreaking performers. Showtime is at 8:00 PM and all guests are invited to attend a Meet and Greet with Anthony Coscia at 7:00 PM to experience the power of the Mini Wall of Sound prior to the show.
SpreadMusicNow, a public charity that helps Connecticut's young people thrive, has created a concert series to benefit local nonprofits that provide music education and support creative youth development. The beneficiaries of this event will be SpreadMusicNow and TeachRock, the latter is an arts integration organization founded by legendary E-Street band guitarist "Little" Steven Van Zandt. TeachRock currently works with teachers in 15 Connecticut districts through a partnership with the Connecticut Department of Education.
According to Van Zandt, "I started Teachrock.org to keep the arts in the DNA of the public school system, to reach a generation of kids with the internet in their pockets, and to eventually lower the dropout rate. We don't tell kids to take out their headphones, we ask them what they're listening to and then we make connections between their favorite music and the core curricula they need to master to succeed in life. In TeachRock classrooms, kids feel safe, respected, and seen for who they are and who they imagine they might become."
Why Zappa? "This concert is a coming-together of everything important to me! As executive director of Teachrock.org, I work to weave music into school cultures to excite students and engage them in topics they thought they didn't care about. At the Bijou, I'll be performing the Zappa music that led teenaged me to intellectual places I never even considered at the time," said The Z3 drummer and vocalist, Bill Carbone.
The Z3 are and aren't a Zappa tribute band. They do play the music of Frank Zappa. But they don't try to recreate it exactly as it happened in the '60s, 70s, or 80s. They embrace the cynicism, sarcasm, and biting social criticism for which Zappa was famous, but they point it squarely at 2022. It's Funky Takes on Frank in the present tense.
The Z3 has tackled everything from Freak Out to Broadway the Hard Way with a playful and adventurous spirit that has thus far tickled the fancies of both diehard FZ fans as well as those that "never knew they liked him."
The Grateful Dead's 1974 "Wall of Sound" was a 600 speaker, 30+ foot tall pioneering feat in PA system technology and the largest and loudest mobile sound system in the world at that time. Dead bassist Phil Lesh described it as "Apocalyptic. Like the voice of God." The Wall of Sound toured with the Dead throughout 1974 and was never seen again--until now! Connecticut luthier Anthony Coscia has created a 1/4-scale version of the Wall of Sound, built exactly to the original specifications--right down to the tie-dye tapestries that hang from its rigging. The Z3 will perform through Coscia's Wall at the Bijou.
VIP ticket holders have boxed seating and are invited to a reception in WPKN's new studios, located directly above the Bijou Theatre. VIP ticket holders will also receive a free Z3 CD so you can bring their latest hits home.
"We are proud to produce this show with The Z3 and Anthony Coscia. It's wonderful to partner with Bill Carbone and TeachRock as fellow Connecticut nonprofit leaders supporting creative youth development," said Richard Wenning, co-founder of SpreadMusicNow. "Come on out for some great music and give back to the next generation of music makers."
Event Details
WHAT: Zappa Meets the Dead
WHEN: Saturday, May 21, 2022, 8:00 PM (6:30 PM Doors, 7:00 PM Meet & Greet)
WHERE: The Bijou Theatre, 275 Fairfield Ave, Bridgeport, CT 06605
TICKETS: https://www.eventbrite.com/e/zappa-meets-the-dead-tickets-289907530227
LIVE STREAM: https://www.musae.me/bijou/experiences/1298/zappa-meets
100% of your in-person ticket price will support music education for Connecticut's students.
Media are invited to attend. Please contact Richard Wenning at rich@befoundation.org.
About SpreadMusicNow
SpreadMusicNow funds music education and creative youth development that centers equity in outcomes and access for students' educational, career, and life success. Since 2014, SpreadMusicNow has made grants of over $1,800,000 to music programs in Connecticut and beyond. For more information visit www.spreadmusicnow.org.
About TeachRock
TeachRock empowers teachers and engages students by using popular music to create interdisciplinary, culturally responsive education materials for all 21st-century classrooms. Launched by Stevie Van Zandt and the Founders Board of Bono, Jackson Browne, Martin Scorsese, and Bruce Springsteen, TeachRock.org provides free, standards-aligned resources that use music to help K-12 students succeed across disciplines. For more information visit teachrock.org.
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SOURCE SpreadMusicNow | https://www.whsv.com/prnewswire/2022/05/03/zappa-meets-dead-spreadmusicnow-concert-series/ | 2022-05-03T21:30:32Z |
...HIGH SURF ADVISORY FOR SOUTH FACING SHORES OF ALL ISLANDS
THROUGH 6 PM HST THURSDAY...
.Several pulses of long-period south swell are expected to fill in over
the next couple of days.
...HIGH SURF ADVISORY REMAINS IN EFFECT UNTIL 6 PM HST THURSDAY...
* WHAT...Surf 7 to 10 feet, building to 8 to 12 feet.
* WHERE...South facing shores of all islands.
* WHEN...Until 6 PM HST Thursday.
* IMPACTS...Moderate. Expect strong breaking waves, shore break,
and strong longshore and rip currents making swimming
difficult and dangerous.
PRECAUTIONARY/PREPAREDNESS ACTIONS...
Beachgoers, swimmers, and surfers should heed all advice given by
ocean safety officials and exercise caution.
&&
Weather Alert
...SMALL CRAFT ADVISORY NOW IN EFFECT UNTIL 6 AM HST WEDNESDAY...
* WHAT...East to northeast winds 20 to 25 kt...up to 30 kt over
the Alenuihaha Channel. Seas 7 to 12 feet.
* WHERE...All Hawaiian Coastal Waters.
* WHEN...Until 6 AM HST Wednesday.
* IMPACTS...Conditions will be hazardous to small craft.
PRECAUTIONARY/PREPAREDNESS ACTIONS...
Inexperienced mariners, especially those operating smaller
vessels, should avoid navigating in these conditions.
&&
HONOLULU (KITV4) - United Airlines marked its 75th anniversary since its first flight to the Hawaiian Islands on May 1, 1947. At that time, that was the longest flight over water, a nine-hour flight to what is now a five-hour flight from San Francisco to Honolulu.
United Airlines operates more than 715 aircraft on the mainland in many major cities like Los Angeles, Denver, and Chicago. However, United Airlines also serves as one of only two airlines in a small regional airport in Northern California, the Redwood Coast-Humboldt County Airport.
Being a rural area, people in Humboldt County and surrounding areas such as Del Norte County rely on United Airlines for long distance travel. The town is fairly isolated and all larger cities are at least four hours away.
Eureka resident Lauri Garrison is a lifelong United Airlines customer who visits Honolulu frequently. She's thankful the company is not only in large international airports, but as well as smaller regional airports.
“Without United Airlines, we’d be landlocked. We’re 270 miles from San Francisco and that is the closest major city, so United serves as a lifeline for the Humboldt County community,” said Garrison.
Redwood Coast-Humboldt County Airport is home to two airlines, United Airlines and Avelo. Garrison said she has the option to use United Airlines to find connecting flights to Honolulu and hopes other airlines will expand the same way. | https://www.kitv.com/news/business/as-united-celebrates-75-years-of-service-to-hawaii-one-traveler-says-the-airline-an/article_6f2b70e8-ca5d-11ec-b1a9-2f86a3ef77f0.html | 2022-05-03T22:05:57Z |
The United States might need to update its Covid-19 vaccines each year, according to a trio of top US Food and Drug Administration officials, and "a new normal" may include an annual Covid-19 vaccine alongside a seasonal flu shot.
"Widespread vaccine- and infection-induced immunity, combined with the availability of effective therapeutics, could blunt the effects of future outbreaks. Nonetheless, it is time to accept that the presence of SARS-CoV-2, the virus that causes COVID-19, is the new normal. It will likely circulate globally for the foreseeable future, taking its place alongside other common respiratory viruses such as influenza. And it likely will require similar annual consideration for vaccine composition updates," Dr. Peter Marks, director of the FDA's Center for Biologics Evaluation and Research; Principal Deputy Commissioner Dr. Janet Woodcock; and new FDA Commissioner Dr. Robert Califf wrote in a paper published in the medical journal JAMA on Monday.
"During the 2022-2023 COVID-19 vaccine planning and selection process, it is important to recognize that the fall season will present a major opportunity to improve COVID-19 vaccination coverage with the goal of minimizing future societal disruption and saving lives," they wrote. "With the plan for implementation of this year's vaccine selection process, society is moving toward a new normal that may well include annual COVID-19 vaccination alongside seasonal influenza vaccination."
June could be when FDA officials make a decision on the composition of Covid-19 vaccines for the fall and winter seasons -- and what the vaccination plans might be.
By this summer, "decisions will need to be made" on who should be eligible for additional Covid-19 shots in the fall, and by June, the composition of the vaccines will need to be determined, Marks, Woodcock and Califf wrote.
Last week, the FDA announced plans to convene its Vaccines and Related Biological Products Advisory Committee on June 28 to discuss whether the composition of current Covid-19 vaccines should be modified, and if so, what updates should be selected for the fall.
"In terms of practical considerations, at the recent meeting of the VRBPAC, there was relatively uniform agreement that a single vaccine composition used by all manufacturers was desirable and that data would be needed to inform and drive the selection of a monovalent, bivalent, or multivalent COVID-19 vaccine," Marks, Woodcock and Califf wrote. "There was also general agreement that, should a new vaccine composition be recommended based on the totality of the available clinical and epidemiologic evidence, optimally it could be used for both primary vaccination as well as booster administration."
VRBPAC members met in April to discuss how the composition of Covid-19 vaccines could change to target any new and emerging coronavirus variants. The committee agreed that there needs to be a framework for how and when such changes take place. The advisers plan to continue their conversation in the coming months.
"By summer, decisions will need to be made for the 2022-2023 season about who should be eligible for vaccination with additional boosters and regarding vaccine composition. Administering additional COVID-19 vaccine doses to appropriate individuals this fall around the time of the usual influenza vaccine campaign has the potential to protect susceptible individuals against hospitalization and death, and therefore will be a topic for FDA consideration," Marks, Woodcock and Califf wrote.
Certain immunocompromised people and adults 50 and older are eligible for additional booster doses of Covid-19 vaccine in the United States. The FDA officials added that for those who have yet to get vaccinated or boosted, getting a vaccine dose now will not have adverse effects that preempt getting an additional dose in the fall.
The composition of the current vaccines could be updated to target circulating coronavirus variants. Marks, Woodcock and Califf wrote that this coming fall and winter, three factors may come together to place the nation at additional risk of Covid-19: waning immunity, seasonal waves of more coronavirus spread, and the further evolution of the coronavirus, leading to new variants.
"The timeframe to determine the composition of the COVID-19 vaccine for the 2022-2023 season, to use alongside the seasonal influenza vaccine for administration in the Northern Hemisphere beginning in about October, is compressed because of the time required for manufacturing the necessary doses," the officials wrote. "A decision on composition will need to be made in the US by June 2022."
The-CNN-Wire
™ & © 2022 Cable News Network, Inc., a WarnerMedia Company. All rights reserved. | https://www.kitv.com/news/business/fda-officials-say-annual-covid-19-shots-may-be-needed-in-the-future/article_334a8691-9cac-5e9c-b3d7-4ff0898f63f6.html | 2022-05-03T22:06:03Z |
...HIGH SURF ADVISORY FOR SOUTH FACING SHORES OF ALL ISLANDS
THROUGH 6 PM HST THURSDAY...
.Several pulses of long-period south swell are expected to fill in over
the next couple of days.
...HIGH SURF ADVISORY REMAINS IN EFFECT UNTIL 6 PM HST THURSDAY...
* WHAT...Surf 7 to 10 feet, building to 8 to 12 feet.
* WHERE...South facing shores of all islands.
* WHEN...Until 6 PM HST Thursday.
* IMPACTS...Moderate. Expect strong breaking waves, shore break,
and strong longshore and rip currents making swimming
difficult and dangerous.
PRECAUTIONARY/PREPAREDNESS ACTIONS...
Beachgoers, swimmers, and surfers should heed all advice given by
ocean safety officials and exercise caution.
&&
Weather Alert
...SMALL CRAFT ADVISORY NOW IN EFFECT UNTIL 6 AM HST WEDNESDAY...
* WHAT...East to northeast winds 20 to 25 kt...up to 30 kt over
the Alenuihaha Channel. Seas 7 to 12 feet.
* WHERE...All Hawaiian Coastal Waters.
* WHEN...Until 6 AM HST Wednesday.
* IMPACTS...Conditions will be hazardous to small craft.
PRECAUTIONARY/PREPAREDNESS ACTIONS...
Inexperienced mariners, especially those operating smaller
vessels, should avoid navigating in these conditions.
&&
People exercise at Planet Fitness as President Obama delivers his speech on health care on, Wednesday, Sept. 9, 2009 in Raleigh, N.C. (AP Photo/Gerry Broome)
HONOLULU (KITV4) -- Planet Fitness is inviting high school students between the ages of 14 and 19 to come work out for free over the summer at any of its locations across the US and Canada. That includes all four of its Hawaii locations.
The fitness giant conducted its own national study on the topic.
"Our study found that [92% of] high school students agreed that when they are regularly physically active, they feel much better mentally. Fitness is about feeling good, too, and our hope is that High School Summer Pass empowers teens to create life-long workout habits to help them succeed in every aspect of their lives," said Planet Fitness CEO Chris Rondeau.
In addition to Planet Fitness study results, the American Medical Association (AMA) reported that less than 15% of teens met the recommended 60-minutes of daily physical activity during the COVID-19 pandemic.
Beginning on May 3, Hawaii high schoolers can visit PlanetFitness.com/SummerPass to pre-register. That pre-registration comes with a reminder to formally sign up when the program officially kicks off on May 16. Teens under 18 must register with a parent or guardian online or in-club, officials said.
Here is where all of the Planet Fitness gyms are located in Hawaii:
Planet Fitness Ala Moana, Ala Moana Center, 1450 Ala Moana Boulevard, Honolulu
Planet Fitness Waianae, Waianae Shopping Center, 86-120 Farrington Highway, Waianae
Planet Fitness Kailua-Kona, 75-1000 Henry Street #100, Kailua-Kona
Planet Fitness Maui, Puunene Shopping Center, 32 Hookele Street, Kahului | https://www.kitv.com/news/business/heres-how-hawaii-teens-can-sign-up-for-free-planet-fitness-summer-passes/article_498a8f20-cb22-11ec-bc6d-efac6f54e248.html | 2022-05-03T22:06:09Z |
Home prices rose by double-digit percentages in most major US cities at the beginning of this year.
Of 185 metro areas tracked, 70% saw double-digit growth in median home prices during the first quarter of 2022 compared to a year before, according to a report from the National Association of Realtors. The number of cities with double-digit increases had been dropping from 94% in the second quarter of last year to 78% in the third quarter and down to a revised 66% at the end of last year.
But prices in early 2022 cranked back up in many places. The median price of a single-family home in the US was $368,200 in the first quarter, up 15.7% from a year earlier, according to the report.
"Prices throughout the country have surged for the better part of two years, including in the first quarter of 2022," said Lawrence Yun, NAR's chief economist. "Given the extremely low inventory, we're unlikely to see price declines, but appreciation should slow in the coming months."
Yun said the slower pace of appreciation will be driven by an increase in supply of homes for sale and less competition among buyers as rising mortgage rates push some would-be homeowners out of the market.
"I expect more pullback in housing demand as mortgage rates take a heavier toll on affordability," he added. "There are no indications that rates will ease anytime soon."
Where home prices rose the most
The biggest year-over-year price gains in the first quarter were in midsize and small cities, with half of them in Florida.
Punta Gorda, Florida, saw the biggest price appreciation in the first quarter, with prices up 34.4%. It was followed by Ocala, Florida; Ogden, Utah; Lakeland and Winter Haven, Florida; Decatur, Alabama; Tampa and St. Petersburg, Florida; Fort Collins, Colorado; Bradenton and Sarasota, Florida; Myrtle Beach, South Carolina; and Salt Lake City, Utah.
"Traditionally, homes in these markets were viewed as relatively inexpensive, but with recent migration trends, prices have increased significantly," Yun said. "Price gains in many smaller, tertiary cities are now outpacing those in the more expensive primary and secondary markets. This is due to buyers looking for less expensive housing and also a result of more opportunities to work from home, making relocation to smaller markets possible."
Half of the country's top ten most expensive cities are in California.
San Jose, California, had the highest home prices in the country, with the median price of a home at $1,875,000, up 25% from a year ago. It was followed by San Francisco; Anaheim, California; Honolulu; San Diego; Boulder, Colorado; Los Angeles; Seattle; Naples, Florida; and Denver, Colorado.
Affordability took a hit
As inventory fell to record lows in the first part of this year and home prices continued their steady march up, buyers rushed to close on a deal before mortgage rates rose.
Heading into this year, the interest rate on a 30-year, fixed-rate mortgage averaged 3.11%, according to Freddie Mac. By the end of March, it was 4.67%. It has since risen above 5% and is expected to continue to rise more this year.
With higher home prices and higher mortgage rates, affordability greatly worsened in the first quarter.
The monthly mortgage payment on a typical existing single-family home with a 20% down payment rose to $1,383, which is up $319, or 30%, from one year ago, according to NAR. The payments are taking a greater share of family income, too, with families typically spending 18.7% of their income on mortgage payments, compared to 14.2% one year ago.
"Declining affordability is always the most problematic to first-time buyers, who have no home to leverage, and it remains challenging for moderate-income potential buyers, as well," Yun added.
In the NAR analysis, a mortgage is considered unaffordable if the monthly payment, including principal and interest, amounts to more than 25% of the family's income. The national median priced home, at $368,200, was unaffordable to the typical first-time buyer.
The knock on affordability means first-time buyers spent a larger share of their income on a house payment than other buyers. The typical starter home had a median price of $313,000 in the first quarter, NAR said. First-time buyers typically spent 28.4% of their family income on mortgage payments, which is over the affordability threshold.
The income to qualify to buy a median-priced home with a 30-year fixed rate mortgage and a 20% down payment in the US at the beginning of the year was $66,365. But depending on the median price in various areas, the qualifying price could be lower or significantly higher.
In Youngstown, Ohio, for example, the buyer of a median priced home needed to earn $24,050 a year to qualify for a mortgage. Meanwhile, in San Jose, a buyer would need to earn $341,107 a year to qualify for a mortgage to buy a median priced home.
The-CNN-Wire
™ & © 2022 Cable News Network, Inc., a WarnerMedia Company. All rights reserved. | https://www.kitv.com/news/business/homes-got-even-pricier-and-harder-to-afford-in-most-us-cities/article_47b76d0e-32e3-5189-8d23-1f30533752f3.html | 2022-05-03T22:06:15Z |
...HIGH SURF ADVISORY FOR SOUTH FACING SHORES OF ALL ISLANDS
THROUGH 6 PM HST THURSDAY...
.Several pulses of long-period south swell are expected to fill in over
the next couple of days.
...HIGH SURF ADVISORY REMAINS IN EFFECT UNTIL 6 PM HST THURSDAY...
* WHAT...Surf 7 to 10 feet, building to 8 to 12 feet.
* WHERE...South facing shores of all islands.
* WHEN...Until 6 PM HST Thursday.
* IMPACTS...Moderate. Expect strong breaking waves, shore break,
and strong longshore and rip currents making swimming
difficult and dangerous.
PRECAUTIONARY/PREPAREDNESS ACTIONS...
Beachgoers, swimmers, and surfers should heed all advice given by
ocean safety officials and exercise caution.
&&
Weather Alert
...SMALL CRAFT ADVISORY NOW IN EFFECT UNTIL 6 AM HST WEDNESDAY...
* WHAT...East to northeast winds 20 to 25 kt...up to 30 kt over
the Alenuihaha Channel. Seas 7 to 12 feet.
* WHERE...All Hawaiian Coastal Waters.
* WHEN...Until 6 AM HST Wednesday.
* IMPACTS...Conditions will be hazardous to small craft.
PRECAUTIONARY/PREPAREDNESS ACTIONS...
Inexperienced mariners, especially those operating smaller
vessels, should avoid navigating in these conditions.
&&
WAIPAHU, Hawaii (KITV4) - It's Teacher Appreciation Week and from May 2-8, and all 73 McDonalds locations in Hawaii are participating by offering educators a free medium hot or iced coffee.
It's easy to order. Tell a McDonald's staff you're a teacher and show valid school ID and you get one free cup of coffee per day.
Owner and operator of McDonalds in Waipahu, Miles Inchinose, says he sees teachers coming into the restaurant at all hours working hard for students. Amidst a pandemic, teachers were there in person or over zoom providing the best learning environment possible.
Third grade teacher at Pearl City Elementary School, Jason Lagpacan, says his first job was at McDonald's while he was in High School and feels honored to see McDonald's giving back.
“You learn the most from your very first job. Working at McDonald’s really instilled the importance of strong social, leadership and management skills. I catch myself using those skills every day in my classroom to be a role model for my students,” said Lagpacan.
The deal ends on May 8 however many other businesses in Hawaii are offering deals to teachers throughout the month of May. | https://www.kitv.com/news/business/mcdonalds-giving-out-free-coffee-to-teachers-for-teacher-appreciation-week/article_1a1f9db0-cb19-11ec-b09b-5f6036237ae2.html | 2022-05-03T22:06:21Z |
There's no denying the numbers: Even with spotty reporting, Covid-19 cases and hospitalizations are rising again in the United States.
Cases are trending up in most states and have increased by more than 50% compared with the previous week in Washington, Mississippi, Georgia, Maine, Hawaii, South Dakota, Nevada and Montana. In New York, more than a quarter of the state's population is in a county with a "high" Covid-19 community level, where the US Centers for Disease Control and Prevention recommends indoor masking.
Average daily hospitalizations are up about 10% since last week, according to data collected by the US Department of Health and Human Services.
The culprit this time appears to be a spinoff of Omicron's BA.2 subvariant called BA.2.12.1, which was first flagged by New York state health officials in April.
BA.2.12.1, which is growing about 25% faster than its parent virus, BA.2, accounts for nearly 37% all Covid-19 cases across the US, according to new estimates from the CDC.
BA.2 caused an estimated 62% of all Covid-19 cases last week, down from 70% the week before.
US, South Africa contend with faster new variants
BA.2.12.1 isn't the only Omicron offshoot that scientists are watching.
After weeks of declines, South Africa saw its Covid-19 cases rise steeply in the past two weeks. Test positivity and hospitalizations have also popped up as scientists have watched two relatively new subvariants, BA.4 and BA.5, dominate transmission in that country. Taken together, they accounted for almost 60% of all new Covid-19 cases by the end of April, according to South Africa's National Institute of Communicable Diseases.
These new Omicron subvariants are spreading around the globe. BA.4 sequences have been reported in 15 countries and 10 US states, while BA.5 has been picked up in 13 countries and five US states, according to the website Outbreak.info, which maintained by a coalition of academic research centers and is supported by funding from the National Institutes of Health.
Like BA.2.12.1, BA.4 and BA.5 have a growth advantage over BA.2.
Omicron subvariants escape immunity
A new preprint study, published ahead of peer review, is pointing to why BA.4 and BA.5 are gaining ground: They can escape antibodies generated by previous infections caused by the first Omicron virus, BA.1, the variant responsible for the huge wave of infections that hit many countries in December and January. They can also escape antibodies in people who've been vaccinated and had breakthrough BA.1 infections, though this happened to a lesser degree than seen in people who've only been infected.
Researchers in South Africa tested the ability of antibodies in blood to disable BA.4 and BA.5 viruses in a lab. In people who were unvaccinated but recently recovered from a BA.1 infection, they saw a more than seven-fold drop in the ability of their antibodies to neutralize BA.4 and BA.5 viruses. In people who'd been vaccinated but recently had a breakthrough infection caused by BA.1, the drops were smaller, about three-fold lower.
By way of comparison, the World Health Organization uses an eight-fold drop in neutralization as the threshold for the loss of protection that requires an update to seasonal influenza vaccines.
The study results led the researchers to write that "BA.4 and BA.5 have potential to result in a new infection wave," making Covid-19 vaccinations and booster shots crucial to stopping the next wave.
"Our conclusions from this are, first, that Omicron by itself is not a great vaccine, right?" said Alex Sigal, a virologist at the Africa Health Research Institute who led the study. "Just because you were infected does not mean you have a lot of protection from what's coming next."
Dr. Eric Topol, a cardiologist who is the founder and director of the Scripps Research Translational Institute, praised the research, pointing out that this lab was also the first to characterize the first Omicron variant: "They've been first-rate all the way through the pandemic."
He said that overall, the finding was not good news. Even people who recovered from a Covid-19 infection as recently as December or January can be reinfected by these new subvariants.
"That dropoff of immune escape or immune evasion was pronounced in people who were unvaccinated," Topol said, pointing out that only about 1 in 3 people in South Africa have been vaccinated against Covid-19.
For those who are vaccinated, "those people are also not as bad, but they also have to face BA.4 and BA.5 with less solid neutralizing antibody response," he said. "The mutations in BA.4 and BA.5 are playing out to be a challenge to our immune response."
Only a few dozen sequences of these viruses have been reported in the US and Canada. Researchers say it's just too early to know whether BA.4 or BA.5 will take off in the United States.
It wouldn't be surprising if they do, said Andy Pekosz, a virologist and professor of molecular microbiology and immunology at Johns Hopkins University.
"We've seen this over and over again. As a variant becomes dominant in another country eventually ends up here in the US and spreading globally," Pekosz said.
In the meantime, Topol said, we have our own sublineage to deal with: BA.2.12.1.
"It may simulate the problems of BA.4 and BA.5," Topol said. "We don't know yet because there's no study like this one from the Sigal lab."
Shared mutation
The BA.4 and BA.5 viruses and BA.2.12.1 have mutations at location 452 of their genomes. This region codes for a part of the viruses receptor binding domain -- the part of the virus that docks onto a door on the outside of our cells. The Delta variant and some others have picked up mutations in this location. Researchers believe that changes there help the virus bind more tightly to our cells and hide from frontline immune defenders called antibodies that try to block the virus from invading our cells.
"That may make it transmit better perhaps between our cells as well," Sigal said.
BA.4 and BA.5 also have changes at location 486, which is a bit of a head-scratcher because previous viruses that changed in this location didn't do well. They fizzled out.
"Suddenly, this guy manages it. So we don't know what that does," Sigal said. "My suspicion is that's a heavy escape mutation," meaning it helps the virus hide from our immune system.
Scientists have begun work to try to better understand BA.2.12.1, which has been detected in 22 countries, though most of the sequences have come from the United States.
Pekosz said he has been growing copies of BA.2.12.1 in his lab and has recently shipped samples of the virus to other research groups for study. He said scientists have just started talking about experiments they want to do to try to answer two key questions: How quickly is it copying itself, and how well does it escape our immunity?
Before the SARS-CoV-2 virus, scientists thought coronaviruses didn't change much. Pekosz said that, looking back, we didn't know what we didn't know.
As long as the virus continues to find hosts to infect, it will continue to evolve.
"This virus has shown that it mutated slowly, but when it started to pick up good mutations, they just kept coming and coming and coming," he said.
The-CNN-Wire
™ & © 2022 Cable News Network, Inc., a WarnerMedia Company. All rights reserved. | https://www.kitv.com/news/coronavirus/newer-fitter-descendants-of-omicron-variant-begin-to-drive-their-own-coronavirus-waves/article_7da5869f-4dd2-580b-9bae-84a22eceffff.html | 2022-05-03T22:06:27Z |
President Joe Biden on Tuesday urged Congress to pass legislation codifying Roe v. Wade and said a woman's right to have an abortion is "fundamental," but said he wasn't ready to call for an end to the filibuster to push for abortion rights legislation.
"Roe has been the law of the land for almost fifty years, and basic fairness and the stability of our law demand that it not be overturned," Biden said in a statement after Politico published a draft of a Supreme Court majority opinion that would strike down Roe v. Wade.
The President later Tuesday morning told reporters that if the final opinion is issued along the lines of the draft it would be a "radical decision" that would throw into question "a whole range of rights."
"The idea that we're letting the states make those decisions, localities make those decisions, would be a fundamental shift in what we've done," Biden told reporters before boarding Air Force One.
He continued, "So it goes far beyond, in my view ... the concern of whether or not there is the right to choose. It goes to other basic rights -- the right to marriage, the right to determine a whole range of things."
"It's a fundamental shift in American jurisprudence," Biden said.
The President said he was "not prepared" to make a judgment on whether the Senate should remove the filibuster to codify Roe v. Wade, as some lawmakers -- like Sen. Bernie Sanders of Vermont -- have called for.
A Supreme Court spokesperson said in a statement the draft published by Politico is "authentic," but said "it does not represent a decision by the Court or the final position of any member on the issues in the case."
The President said he still hoped there were not enough votes to overturn Roe v. Wade.
Earlier on Tuesday, the President said in a written statement that if the court does overturn Roe, it will fall on lawmakers to protect access to reproductive health care and said he would work to pass legislation codifying the right to abortion. He also urged voters to elect supporters of abortion rights in the November midterm elections.
"At the federal level, we will need more pro-choice Senators and a pro-choice majority in the House to adopt legislation that codifies Roe, which I will work to pass and sign into law," the President said.
White House press secretary Jen Psaki told reporters later on Tuesday, "The President's position is that we need to codify Roe, and that is what he has long called on Congress to act on."
Psaki continued, "What is also true is that there has been a vote on the Women's Health Protection Act, which would do exactly that, and there were not even enough votes, even if there was no filibuster, to get that done."
The legislation, which would protect abortion access, passed the House in September but failed to advance in the Senate.
If the court issues a final opinion along the lines of the draft, it would be the most consequential abortion decision in decades and would transform the landscape of women's reproductive health in America
Politico on Monday published a draft of a majority opinion written by Justice Samuel Alito that would strike down Roe v. Wade. The draft was circulated in early February, according to Politico, and the publishing of the draft is a stunning breach of Supreme Court confidentiality. The final opinion has not been released and votes and language can change before opinions are formally released. The opinion in this case is not expected to be published until late June.
Supreme Court Chief Justice John Roberts issued a statement on Tuesday saying he had launched an investigation into the source of the leak, saying, "This was a singular and egregious breach of that trust that is an affront to the Court and the community of public servants who work here."
The Biden administration had urged the Supreme Court to uphold Roe v. Wade and to invalidate the Mississippi law that bars most abortions after 15 weeks. Biden has said in the past he would seek to codify Roe v. Wade, and that his administration was "deeply committed" to protecting access to reproductive health care, including abortion.
The President said in his Tuesday statement he has directed his Gender Policy Council and White House Counsel's Office to prepare different options in response to "the continued attack on abortion and reproductive rights."
"We will be ready when any ruling is issued," Biden said.
The President said his administration had argued strongly in defense of Roe v. Wade before the Supreme Court.
"We said that Roe is based on 'a long line of precedent recognizing 'the Fourteenth Amendment's concept of personal liberty ... against government interference with intensely personal decisions,'" Biden said.
Biden, a lifelong devout Catholic, has said he is personally opposed to abortion because of his faith but does not believe he should impose his views on the rest of society.
Biden wrote in his 2007 book, "Promises to Keep": "I personally am opposed to abortion, but I don't think I have the right to impose my view -- on something I accept as a matter of faith -- on the rest of society. I've thought a lot about it, and my position probably doesn't please anyone. I think the government should stay out completely."
"I've stuck to my middle-of-the-road position on abortion for more than thirty years. I still vote against partial birth abortion and federal funding, and I'd like to find ways to make it easier for scared young mothers to choose not to have an abortion, but I will also vote against a constitutional amendment that strips a woman of her right to make her own choice. That position has earned me the distrust of some women's groups and the outright enmity of the Right to Life groups," Biden wrote in his book.
Biden previously was a longtime supporter of the Hyde Amendment -- which bars federal funding from being used to pay for abortions, except in the cases of rape, incest or when the life of the mother is in jeopardy -- but reversed his position while he was running for President in 2020. Biden said he changed his mind because of laws that Republican state lawmakers had enacted making access to abortions more difficult for women who cannot afford the procedure or must travel to obtain it. He said these laws were extreme and in violation of Roe v. Wade.
This story has been updated with additional information.
The-CNN-Wire
™ & © 2022 Cable News Network, Inc., a WarnerMedia Company. All rights reserved. | https://www.kitv.com/news/national/biden-says-the-right-to-choose-is-fundamental-but-is-not-prepared-to-call-for/article_bbb8667b-c0bf-5312-8293-feaa76bda373.html | 2022-05-03T22:06:33Z |
Happening This Weekend: ‘A Night of Hope at the Historic Granada Theater’ coming to Bluefield, WV
The Granada Theater is located at 537 Commerce Street in Bluefield, WV
Updated: May. 2, 2022 at 4:51 PM EDT
BLUEFIELD, W.Va. (WVVA) - Bland Ministry Center presents a Night of Hope at the Historic Bluefield Granada. The evening features performances from Mercer County’s own Chosen Road, Jason Crabb and comedian Mickey Bell on May 7th at 7 PM.
Dede Hoosier with the Bland Ministry Center and Jonathan Buckner with Chosen Road stopped by our studios and told our Joshua Bolden all about the upcoming event.
You can purchase tickets here at ChosenRoadMusic.com for either VIP or general admission or here at BlandMinstryCenter.org.
Copyright 2022 WVVA. All rights reserved. | https://www.wvva.com/2022/05/02/happening-this-weekend-night-hope-historic-granada-theater-coming-bluefield-wv/ | 2022-05-03T22:13:58Z |
25 flamingos, 1 duck killed by wild fox at Smithsonian National Zoo
WASHINGTON (CNN) - The Smithsonian National Zoo is mourning the loss of 25 American flamingos and one northern pintail duck that were killed by a wild fox that broke into their outdoor habitat.
The zoo says staff discovered the massacre early Monday morning and saw the fox before it escaped the habitat.
The zoo says staff inspects the integrity of the enclosure multiple times a day and saw no areas of concern in the habitat Sunday afternoon.
It said there was a metal mesh breach where the fox entered, and staff have reinforced the metal mesh around the exhibit.
Live traps have been now been set around the area to catch predators.
The flock, which originally had 74 flamingos, has now been moved to an indoor barn and the ducks are in a covered, secure outdoor space.
Three more flamingos were injured in the attack but survived and are being treated by veterinarians.
The zoo is calling it a “heartbreaking loss.”
Copyright 2022 CNN Newsource. All rights reserved. | https://www.wvva.com/2022/05/03/25-flamingos-1-duck-killed-by-wild-fox-smithsonian-national-zoo/ | 2022-05-03T22:14:04Z |
Emu on the loose: Officers wrangle bird that traveled over 30 miles from home
LENOIR, N.C. (Gray News) – North Carolina officers found themselves taking an unusual suspect into custody over the weekend.
Officers with the City of Lenoir Police Department responded to a call for an emu that showed up at a home Saturday.
The female emu, named Kevin, walked up and laid down next to a father and his three children, which came as a shock to the family.
The dad called the police to help with catching Kevin.
The officers managed to get a dog leash on Kevin, fed her by hand and put her into a neighbor’s fenced-in backyard.
The Caldwell County Animal Care Enforcement Division then came out to pick up and care for Kevin until her owners could be located.
The authorities discovered that Kevin lives in Moravian Falls, which is over 30 miles northeast of Lenoir.
Emus are the second-largest living birds by height, following the ostrich.
Copyright 2022 Gray Media Group, Inc. All rights reserved. | https://www.wvva.com/2022/05/03/emu-loose-officers-wrangle-bird-that-traveled-over-30-miles-home/ | 2022-05-03T22:14:11Z |
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