Newsdesk, Author at Market Newsdesk

November 11, 2020 4:18 pm

Daseke Appoints Julie Hoagland as Chief People Officer

New CPO brings 25 years of Human Resources experience to the Company and completes the Company’s executive leadership team

ADDISON, Texas, Nov. 11, 2020 (GLOBE NEWSWIRE) — Daseke, Inc. (NASDAQ: DSKE) (“Daseke” or the “Company”), the largest flatbed, specialized transportation and logistics solutions company in North America, announced today that it has named Julie Hoagland as the Company’s Chief People Officer (“CPO”). In this new executive role, Ms. Hoagland will report to Chris Easter, Chief Executive Officer of Daseke, and lead all aspects of the Company’s human resources function, with a focus on fostering the strategic development of the Company’s culture, leadership, and talent.

Chris Easter commented, “We are excited to announce Julie’s appointment as Daseke’s first ever Chief People Officer, which compliments and completes the strong leadership team we have built over the last year. Julie brings over two and a half decades of experience as an established and highly respected human resources professional. To enable our strategy and build an even stronger Daseke, we must continue to invest in our people and culture. Our strategy remains focused on our goal to deliver a ninety percent operating ratio over the long-term, and we will need to further invest in building a highly functional culture and strong bench of talent to be successful. We are happy to welcome Julie to the team and look forward to her contribution.”

Ms. Hoagland brings over 25 years of human resources experience to Daseke’s leadership team. Ms. Hoagland joins Daseke from A. H. Belo Corporation, a Dallas-based news and emerging media and digital marketing company, where she served as Senior Vice President and Chief People Officer since 2016. Prior to joining A. H. Belo Corporation, Ms. Hoagland served as Head of People Services at DaVita Rx, where she helped support significant growth, including employee headcount expansion from 500 to over 1,700 employees, while maintaining a great place to work. Her work at DaVita Rx garnered her recognition as the 2012 HR Executive of the Year by Dallas HR (the local SHRM affiliate). She earned a Bachelor’s degree in Personnel Management and Industrial Relations from the University of North Texas and completed her Business of Human Resources Executive Program at the University of North Carolina.

In connection with Ms. Hoagland’s hiring, the Board of Directors has approved equity awards as an inducement material to her acceptance of employment with the Company in accordance with NASDAQ Listing Rule 5635(c)(4). Ms. Hoagland was granted the following awards: (A) options to purchase 66,600 shares of the Company’s common stock, with an exercise price of $6.89 per share (the closing price of the Company’s common stock on November 6, 2020), which are scheduled to vest in three equal annual installments, subject to the her continued employment; and (B) 45,700 performance stock units that are eligible to vest at the end of a three-year performance period subject to the achievement of specified stock price hurdles and the her continued employment. Ms. Hoagland’s inducement grants provide for varying levels of accelerated vesting upon the occurrence of specified employment termination and change in control events.

About Daseke, Inc.

Daseke, Inc. is the largest flatbed and specialized transportation and logistics company in North America. Daseke offers comprehensive, best-in-class services to many of the world’s most respected industrial shippers through experienced people, a fleet of more than 5,000 tractors and 11,500 flatbed and specialized trailers. For more information, please visit www.daseke.com.

Forward‐Looking Statements

This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “may,” “will,” “expect,” “anticipate,” “continue,” “estimate,” “project,” “believe,” “plan,” “should,” “could,” “would,” “forecast,” “seek,” “target,” “predict,” and “potential,” the negative of these terms, or other comparable terminology. Projected financial information, including our guidance outlook, are forward-looking statements. Forward-looking statements may also include statements about the Company’s goals, including its restructuring actions and cost reduction initiatives; the Company’s financial strategy, liquidity and capital required for its business strategy and plans; the Company’s competition and government regulations; general economic conditions; and the Company’s future operating results.

These forward-looking statements are based on information available as of the date of this release, and current expectations, forecasts and assumptions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that the Company anticipates. Accordingly, forward-looking statements should not be relied upon as representing the Company’s views as of any subsequent date, and the Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements.

The effect of the COVID-19 pandemic may remain prevalent for a significant period of time and may continue to adversely affect the Company’s business, results of operations and financial condition even after the COVID-19 pandemic has subsided and “stay at home” mandates have been lifted. The extent to which the COVID-19 pandemic impacts the Company will depend on numerous evolving factors and future developments that it cannot predict. There are no comparable recent events that provide guidance as to the effect the COVID-19 global pandemic may have, and, as a result, the ultimate impact of the pandemic is highly uncertain and subject to change. Additionally, the Company will regularly evaluate its capital structure and liquidity position. From time to time and as opportunities arise, the Company may access the debt capital markets and modify its debt arrangements to optimize its capital structure and liquidity position.

Forward-looking statements are subject to risks and uncertainties (many of which are beyond our control) that could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, general economic and business risks, such as downturns in customers’ business cycles and disruptions in capital and credit markets, the impact to the Company’s business and operations resulting from the COVID-19 pandemic, the Company’s ability to execute and realize all of the expected benefits of its integration, business improvement and comprehensive restructuring plans, the Company’s ability to complete planned or future divestitures successfully, the Company’s ability to adequately address downward pricing and other competitive pressures, driver shortages and increases in driver compensation or owner-operator contracted rates, loss of senior management or key operating personnel, our ability to realize intended benefits from its recent or future acquisitions, seasonality and the impact of weather and other catastrophic events, fluctuations in the price or availability of diesel fuel, increased prices for, or decreases in the availability of, new revenue equipment and decreases in the value of used revenue equipment, the Company’s ability to generate sufficient cash to service all of the Company’s indebtedness, restrictions in its existing and future debt agreements, increases in interest rates, changes in existing laws or regulations, including environmental and worker health safety laws and regulations and those relating to tax rates or taxes in general, the impact of governmental regulations and other governmental actions related to the Company and its operations, litigation and governmental proceedings, and insurance and claims expenses. You should not place undue reliance on these forward-looking statements. For additional information regarding known material factors that could cause our actual results to differ from those expressed in forward-looking statements, please see Daseke’s filings with the Securities and Exchange Commission, available at www.sec.gov, including Daseke’s most recent annual report on Form 10-K, and subsequent quarterly reports on Form 10-Q, particularly the section titled “Risk Factors.”

Investor Relations:

Alpha IR Group
Joseph Caminiti or Chris Hodges
312-445-2870
[email protected]

November 11, 2020 4:18 pm

EnerSys Reports Second Quarter Fiscal 2021 Results

READING, Pa., Nov. 11, 2020 (GLOBE NEWSWIRE) — EnerSys (NYSE: ENS), the global leader in stored energy solutions for industrial applications, announced today results for its second quarter of fiscal 2021, which ended on October 4, 2020.

Second Quarter FY 21 Highlights
Net sales of $708M down 7% YoY Gross Profit Margins steady at 25% Operating Expenses flexed with volume YTD Operating Cash Flow of $217M remains strong **	Operating earnings up 60 bps sequentially due to better volume Net Earnings per Diluted Share at $0.83 Credit facility leverage ratio improved to 2.1x TPPL capacity expansion on schedule for H2 Transportation demand fueling surge in Specialty segment

Message from the CEO

We exited our 2nd quarter with a renewed sense of optimism as our incoming order rate approached pre-pandemic levels. COVID-19 adversely impacted our revenue in Q2, but lower costs including commodities led to another quarter of strong cash flow. We generated $217M of operating cash flows in H1. We continue to flex manufacturing capacity to match demand, minimizing manufacturing inefficiency while benefiting from raw material cost reductions. The company remains vigilant about employee safety and is monitoring globally any potentially worsening impacts from the pandemic.

Of our three lines of business, Motive Power remains most affected by COVID-19, but is improving rapidly. Our Energy Systems business held up well as telecommunications operators continue to expand their capacity and continue their 5G rollouts in a measured fashion. Cable operators have remained sluggish related to power supply purchases, but have been very active in recent spectrum auctions boding well for the future. Our Specialty business has benefited from several new aftermarket transportation contracts and renewed demand from over-the-road truck manufacturers. Specialty’s defense unit also won several large multi-year development contracts for batteries on guided munitions again this quarter.

To offset the year over year reduction in revenue, we have taken multiple initiatives to flex our operational expenses. These expenses not only decreased by nearly $13 million for the quarter from the prior year, but as a percentage of sales it improved by 60 bps. As a result, in our second fiscal quarter, we halved the decrease in operating earnings as a percentage of sales from the prior year while posting a sequential improvement of 60 bps. In addition, we have announced the restructuring of our Motive Power business in EMEA with the closure of our Hagen, Germany manufacturing facility. We expect this restructuring will allow the company to save nearly $20 million per year, with an anticipated 3.5 year cash payback.

Our new products and other strategic initiatives will soon become significant sources of additional profitability in addition to improved market conditions. This has occurred through tremendous efforts and sacrifices made by EnerSys colleagues during these trying times. We have strengthened measures to protect ourselves against COVID-19, implementing enhanced health and safety protocols at our facilities around the world. Our employees have responded very well to these challenges.

This second quarter closes out a trying first half of our fiscal year 2021. We have weathered significant headwinds while remaining focused on our strategy and execution. We now have the confidence to resume providing guidance for our upcoming fiscal quarter and we expect to achieve as-adjusted earnings of between $1.17 to $1.23 per share in our third fiscal quarter.

David M. Shaffer, President and Chief Executive Officer, EnerSys

Key Results from Operations by Segments ($ in millions)

Q2 FY21

Q2 FY20

% Change

Energy Systems

Net Sales

340.8

342.9

(0.6

)

Operating Earnings

22.8

20.4

12.4

Adjusted Operating Earnings *

30.1

29.6

1.8

Motive Power

Net Sales

263.8

335.3

(21.3

)

Operating Earnings

24.2

34.6

(30.1

)

Adjusted Operating Earnings *

24.2

35.0

(30.9

)

Specialty

Net Sales

103.8

83.9

23.8

Operating Earnings

11.5

10.0

13.8

Adjusted Operating Earnings *

11.9

10.3

15.2

* This is a non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures” for more information.
** Please refer to Item 1. Financial Statements, Consolidated Condensed Statement of Cash Flows set forth in EnerSys’ Quarterly Report on Form 10-Q for the second quarter ended October 4, 2020.

Net earnings attributable to EnerSys stockholders (“Net earnings”) for the second quarter of fiscal 2021 was $35.7 million, or $0.83 per diluted share, which included an unfavorable highlighted net of tax impact of $7.5 million, or $0.17 per diluted share, from highlighted items described in further detail in the tables shown below, reconciling non-GAAP adjusted financial measures to reported amounts.

Net earnings for the second quarter of fiscal 2020 were $62.7 million, or $1.47 per diluted share, which included a favorable highlighted net of tax impact of $10.0 million, or $0.24 per diluted share from highlighted items described in further detail in the tables shown below, reconciling non-GAAP adjusted financial measures to reported amounts.

Excluding these highlighted items, adjusted Net earnings per diluted share for the second quarter of fiscal 2021, on a non-GAAP basis, were $1.00.

These earnings compare to the prior year second quarter adjusted Net earnings of $1.23 per diluted share. Please refer to the section included herein under the heading “Reconciliation of Non-GAAP Financial Measures” for a discussion of the Company’s use of non-GAAP adjusted financial information, which includes tables reconciling GAAP and non-GAAP adjusted financial measures for the quarters ended October 4, 2020 and September 29, 2019.

Net sales for the second quarter of fiscal 2021 were $708.4 million, a decrease of 7% from the prior year second quarter net sales of $762.1 million and remained relatively flat sequentially from the first quarter of fiscal 2021 net sales of $704.9 million. The decrease from the prior year quarter was the result of a 11% decrease in organic volume and a 1% decrease in pricing, partially offset by a 4% increase from the NorthStar acquisition and a 1% increase in foreign currency translation impact. The sequential flatness was the result of a combined 2% decrease in organic volume and pricing offset by a 2% increase in foreign currency translation impact.

On July 6, 2020, the Company announced that it was changing its reportable segments, beginning with its first quarter of fiscal 2021, from being based on geographic regions to lines of business. The new reportable segments are Energy Systems (which includes energy solutions related to telecommunications systems, uninterruptible power systems, and other power applications), Motive Power (which includes power for electric industrial forklifts used in manufacturing, warehousing and other material handling applications, as well as mining equipment, diesel locomotive starting and other rail equipment) and Specialty (which includes energy solutions for transportation, satellites, military aircraft, submarines, ships and other tactical vehicles). Prior year quarter and year to date financial information has been restated to reflect the new reportable segments.

The Company’s operating results for its business segments for the second quarters of fiscal 2021 and 2020 are as follows:

	Quarter ended
	($ millions)
	October 4, 2020			September 29, 2019
Net sales by segment
Energy Systems	$	340.8		$	342.9
Motive Power	263.8			335.3
Specialty	103.8			83.9
Total net sales	$	708.4		$	762.1
Operating earnings
Energy Systems	$	30.1		$	29.6
Motive Power	24.2			35.0
Specialty	11.9			10.3
Restructuring charges – Energy Systems	(1.3		)	(0.6		)
Restructuring and other exit charges – Motive Power	(1.7		)	(0.4		)
Restructuring and other exit charges – Specialty	(0.1		)	0.2
Fixed asset write-off relating to exit activities and other – Energy Systems	—			(0.1		)
Fixed asset write-off relating to exit activities and other – Motive Power	—			(5.4		)
Amortization of identified intangible assets from recent acquisitions – Energy Systems	(5.7		)	(5.3		)
Amortization of identified intangible assets from recent acquisitions – Specialty	(0.4		)	—
ERP system implementation and other – Energy Systems	(1.5		)	(3.2		)
ERP system implementation and other – Motive Power	—			(0.4		)
Acquisition activity expense – Energy Systems	(0.1		)	(0.7		)
Acquisition activity expense – Specialty	—			(0.3		)
Total operating earnings	$	55.4		$	58.7

Net earnings for the six months of fiscal 2021 was $70.9 million, or $1.65 per diluted share, which included an unfavorable highlighted net of tax impact of $11.7 million, or $0.27 per diluted share, from highlighted items described in further detail in the tables shown below, reconciling non-GAAP adjusted financial measures to reported amounts.

Net earnings for the six months of fiscal 2020 were $111.3 million, or $2.59 per diluted share, which included a favorable highlighted net of tax impact of $2.7 million, or $0.06 per diluted share from highlighted items described in further detail in the tables shown below, reconciling non-GAAP adjusted financial measures to reported amounts.

Adjusted Net earnings per diluted share for the six months of fiscal 2021, on a non-GAAP basis, were $1.92. This compares to the prior year six months adjusted Net earnings of $2.53 per diluted share. Please refer to the section included herein under the heading “Reconciliation of Non-GAAP Financial Measures” for a discussion of the Company’s use of non-GAAP adjusted financial information.

Net sales for the six months of fiscal 2021 were $1,413.3 million, a decrease of 8% from the prior year six months net sales of $1,542.3 million. The decrease from the prior year six months was the result of an 11% decrease in organic volume and a 1% decrease in pricing, partially offset by a 4% increase from the NorthStar acquisition.

The Company’s operating results for its business segments for the six months of fiscal 2021 and 2020 are as follows:

	Six months ended
	($ millions)
	October 4, 2020			September 29, 2019
Net sales by segment
Energy Systems	$	694.2		$	696.7
Motive Power	526.6			679.7
Specialty	192.5			165.9
Total net sales	$	1,413.3		$	1,542.3
Operating earnings
Energy Systems	$	58.2		$	59.5
Motive Power	51.5			72.6
Specialty	17.7			20.5
Restructuring charges – Energy Systems	(1.8		)	(1.7		)
Restructuring and other exit charges – Motive Power	(2.5		)	(1.0		)
Restructuring and other exit charges – Specialty	(0.2		)	(0.5		)
Fixed asset write-off relating to exit activities and other – Energy Systems	—			(0.1		)
Fixed asset write-off relating to exit activities and other – Motive Power	—			(5.4		)
Amortization of identified intangible assets from recent acquisitions – Energy Systems	(11.7		)	(10.6		)
Amortization of identified intangible assets from recent acquisitions – Specialty	(0.8		)	—
ERP system implementation and other – Energy Systems	(1.5		)	(4.1		)
ERP system implementation and other – Motive Power	—			(0.9		)
Acquisition activity expense – Energy Systems	(0.2		)	(0.8		)
Acquisition activity expense – Specialty	(0.1		)	(0.5		)
Total operating earnings	$	108.6		$	127.0

Reconciliation of Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles, (“GAAP”). EnerSys’ management uses the non-GAAP measures “adjusted Net earnings” and “adjusted operating earnings” as applicable, in their analysis of the Company’s performance. This measure, as used by EnerSys in past quarters and years, adjusts operating earnings and Net earnings determined in accordance with GAAP to reflect changes in financial results associated with the Company’s restructuring initiatives and other highlighted charges and income items. Management believes the presentation of these financial measures reflecting these non-GAAP adjustments provides important supplemental information in evaluating the operating results of the Company as distinct from results that include items that are not indicative of ongoing operating results and overall business performance; in particular, those charges that the Company incurs as a result of restructuring activities, impairment of goodwill and indefinite-lived intangibles and other assets, acquisition activities and those charges and credits that are not directly related to operating unit performance, such as significant legal proceedings, ERP system implementation, amortization of Alpha and NorthStar related intangible assets and tax valuation allowance changes, including those related to the adoption of the Tax Cuts and Jobs Act in the United States and the Federal Act on Tax Reform and AHV Financing in Switzerland. Because these charges are not incurred as a result of ongoing operations, or are incurred as a result of a potential or previous acquisition, they are not as helpful a measure of the performance of our underlying business, particularly in light of their unpredictable nature and are difficult to forecast. Although we exclude the amortization of purchased intangibles from these non-GAAP measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.

Income tax effects of non-GAAP adjustments are calculated using the applicable statutory tax rate for the jurisdictions in which the charges (benefits) are incurred, while taking into consideration any valuation allowances. For those items which are non-taxable, the tax expense (benefit) is calculated at 0%.

These non-GAAP disclosures have limitations as an analytical tool, should not be viewed as a substitute for operating earnings or Net earnings determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Management believes that this non-GAAP supplemental information will be helpful in understanding the Company’s ongoing operating results. This supplemental presentation should not be construed as an inference that the Company’s future results will be unaffected by similar adjustments to Net earnings determined in accordance with GAAP.

A reconciliation of non-GAAP adjusted operating earnings is set forth in the table above, providing a reconciliation of non-GAAP adjusted operating earnings to the Company’s reported operating results for its business segments. Included below is a reconciliation of non-GAAP adjusted Net earnings to reported amounts. Non-GAAP adjusted operating earnings and Net earnings are calculated excluding restructuring and other highlighted charges and credits. The following tables provide additional information regarding certain non-GAAP measures:

	Quarter ended
	*(in millions, except share and per share amounts)*
	October 4, 2020					September 29, 2019
Net Earnings reconciliation
As reported Net Earnings	$	35.7				$	62.7
Non-GAAP adjustments:
Restructuring and other exit charges	3.1			(1	)	6.3			(1)
Amortization of identified intangible assets from recent acquisitions	6.1			(2	)	5.3			(2)
ERP system implementation and other	1.5			(3	)	3.6			(3)
Acquisition activity expense	0.1			(4	)	1.0			(4)
Income tax effect of above non-GAAP adjustments	(3.3		)			(5.2		)
Swiss Tax Reform	—					(21.0		)
Non-GAAP adjusted Net Earnings	$	43.2				$	52.7

Outstanding shares used in per share calculations
Basic		42,521,659					42,392,039
Diluted		43,087,455					42,708,082

Non-GAAP adjusted Net Earnings per share:
Basic	$	1.02				$	1.24
Diluted	$	1.00				$	1.23

Reported Net Earnings per share:
Basic	$	0.84				$	1.48
Diluted	$	0.83				$	1.47
Dividends per common share	$	0.175				$	0.175

The following table provides the line of business allocation of the non-GAAP adjustments shown in the reconciliation above:

	Quarter ended
	*($ millions)*
	October 4, 2020		September 29, 2019
	Pre-tax		Pre-tax
(1) Restructuring charges – Energy Systems	$	1.3	$	0.6
(1) Restructuring and other exit charges – Motive Power	1.7		0.4
(1) Restructuring and other exit charges – Specialty	0.1		(0.2		)
(1) Fixed asset write-off relating to exit activities and other – Energy Systems	—		0.1
(1) Fixed asset write-off relating to exit activities and other – Motive Power	—		5.4
(2) Amortization of identified intangible assets from recent acquisitions – Energy Systems	5.7		5.3
(2) Amortization of identified intangible assets from recent acquisitions – Specialty	0.4		—
(3) ERP system implementation and other – Energy Systems	1.5		3.2
(3) ERP system implementation and other – Motive Power	—		0.4
(4) Acquisition activity expense – Energy Systems	0.1		0.7
(4) Acquisition activity expense – Specialty	—		0.3
Total Non-GAAP adjustments	$	10.8	$	16.2


	Six months ended
	*(in millions, except share and per share amounts)*
	October 4, 2020					September 29, 2019
Net Earnings reconciliation
As reported Net Earnings	$	70.9				$	111.3
Non-GAAP adjustments:
Restructuring and other exit charges	4.5			(1	)	8.7			(1)
Amortization of identified intangible assets from recent acquisitions	12.5			(2	)	10.6			(2)
ERP system implementation and other	1.5			(3	)	5.0			(3)
Acquisition activity expense	0.3			(4	)	1.3			(4)
Income tax effect of above non-GAAP adjustments	(5.2		)			(7.3		)
Swiss Tax Reform	(1.9		)			(21.0		)
Non-GAAP adjusted Net Earnings	$	82.6				$	108.6

Outstanding shares used in per share calculations
Basic		42,453,774					42,524,189
Diluted		43,009,755					42,913,258

Non-GAAP adjusted Net Earnings per share:
Basic	$	1.95				$	2.55
Diluted	$	1.92				$	2.53

Reported Net Earnings per share:
Basic	$	1.67				$	2.62
Diluted	$	1.65				$	2.59
Dividends per common share	$	0.35				$	0.35

The following table provides the line of business allocation of the non-GAAP adjustments shown in the reconciliation above:

	Six months ended
	*($ millions)*
	October 4, 2020		September 29, 2019
	Pre-tax		Pre-tax
(1) Restructuring charges – Energy Systems	$	1.8	$	1.7
(1) Restructuring and other exit charges – Motive Power	2.5		1.0
(1) Restructuring and other exit charges – Specialty	0.2		0.5
(1) Fixed asset write-off relating to exit activities and other – Energy Systems	—		0.1
(1) Fixed asset write-off relating to exit activities and other – Motive Power	—		5.4
(2) Amortization of identified intangible assets from recent acquisitions – Energy Systems	11.7		10.6
(2) Amortization of identified intangible assets from recent acquisitions – Specialty	0.8		—
(3) ERP system implementation and other – Energy Systems	1.5		4.1
(3) ERP system implementation and other – Motive Power	—		0.9
(4) Acquisition activity expense – Energy Systems	0.2		0.8
(4) Acquisition activity expense – Specialty	0.1		0.5
Total Non-GAAP adjustments	$	18.8	$	25.6

Summary of Earnings (Unaudited)

(In millions, except share and per share data)

	Quarter ended
	October 4, 2020		September 29, 2019
Net sales	$	708.4	$	762.1
Gross profit	177.5		197.3
Operating expenses	119.0		132.3
Restructuring and other exit charges	3.1		6.3
Operating earnings	55.4		58.7
Earnings before income taxes	41.5		48.4
Income tax expense (benefit)	5.8		(14.3		)
Net earnings attributable to EnerSys stockholders	$	35.7	$	62.7

Net reported earnings per common share attributable to EnerSys stockholders:
Basic	$	0.84	$	1.48
Diluted	$	0.83	$	1.47
Dividends per common share	$	0.175	$	0.175
Weighted-average number of common shares used in reported earnings per share calculations:
Basic	42,521,659		42,392,039
Diluted	43,087,455		42,708,082

	Six months ended
	October 4, 2020		September 29, 2019
Net sales	$	1,413.3	$	1,542.3
Gross profit	352.5		398.8
Operating expenses	239.4		263.1
Restructuring and other exit charges	4.5		8.7
Operating earnings	108.6		127.0
Earnings before income taxes	83.1		107.0
Income tax expense (benefit)	12.2		(4.3		)
Net earnings attributable to EnerSys stockholders	$	70.9	$	111.3

Net reported earnings per common share attributable to EnerSys stockholders:
Basic	$	1.67	$	2.62
Diluted	$	1.65	$	2.59
Dividends per common share	$	0.35	$	0.35
Weighted-average number of common shares used in reported earnings per share calculations:
Basic	42,453,774		42,524,189
Diluted	43,009,755		42,913,258

EnerSys also announced that it will host a conference call to discuss the Company’s second quarter fiscal year 2021 financial results and provide an overview of the business. The call will conclude with a question and answer session.

The call, scheduled for Thursday, November 12, 2020 at 9:00 a.m., Eastern Time, will be hosted by David M. Shaffer, President and Chief Executive Officer, and Michael J. Schmidtlein, Chief Financial Officer.

The call will also be webcast on EnerSys’ website. There will be a free download of a compatible media player on the Company’s website at http://www.enersys.com.

The conference call information is:

	Date:	Thursday, November 12, 2020
	Time:	9:00 a.m. Eastern Time
	Via Internet:	http://www.enersys.com
	Domestic Dial-In Number:	877-359-9508
	International Dial-In Number:	224-357-2393
	Passcode:	2927246

A replay of the conference call will be available from 12:30 p.m. on November 12, 2020 through 12:30 p.m. on December 12, 2020.

The replay information is:

	Via Internet:	http://www.enersys.com
	Domestic Replay Number:	855-859-2056
	International Replay Number:	404-537-3406
	Passcode:	2927246

For more information, contact Michael J. Schmidtlein, Chief Financial Officer, EnerSys, P.O. Box 14145, Reading, PA 19612-4145, USA. Tel: 610-236-4040 or by emailing [email protected]; Web site: www.enersys.com.

EDITOR’S NOTE: EnerSys, the global leader in stored energy solutions for industrial applications, manufactures and distributes energy systems solutions and motive power batteries, specialty batteries, battery chargers, power equipment, battery accessories and outdoor equipment enclosure solutions to customers worldwide. Energy Systems, which combine enclosures, power conversion, power distribution and energy storage, are used in the telecommunication, broadband and utility industries, uninterruptible power supplies, and numerous applications requiring stored energy solutions. Motive power batteries and chargers are utilized in electric forklift trucks and other industrial electric powered vehicles. Specialty batteries are used in aerospace and defense applications, large over-the-road trucks, premium automotive, medical and security systems applications. EnerSys also provides aftermarket and customer support services to its customers in over 100 countries through its sales and manufacturing locations around the world. With the recent NorthStar acquisition, EnerSys has solidified its position as the market leader for premium Thin Plate Pure Lead batteries which are sold across all three lines of business.

More information regarding EnerSys can be found at www.enersys.com.

Caution Concerning Forward-Looking Statements

This press release, and oral statements made regarding the subjects of this release, contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, or the Reform Act, which may include, but are not limited to, statements regarding EnerSys’ earnings estimates, intention to pay quarterly cash dividends, return capital to stockholders, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts, including statements identified by words such as “believe,” “plan,” “seek,” “expect,” “intend,” “estimate,” “anticipate,” “will,” and similar expressions. All statements addressing operating performance, events, or developments that EnerSys expects or anticipates will occur in the future, including statements relating to sales growth, earnings or earnings per share growth, order intake, backlog, payment of future cash dividends, commodity prices, execution of its stock buy back program, judicial or regulatory proceedings, and market share, as well as statements expressing optimism or pessimism about future operating results or benefits from its cash dividend, its stock buy back programs, future responses to and effects of COVID-19 pandemic, future responses to and effects of COVID-19 pandemic, satisfactory resolution of insurance coverage and claims for both property damage and business interruption, strategy for business interruption, or revenue loss due to the fire at the Richmond, KY facility, are forward-looking statements within the meaning of the Reform Act. The forward-looking statements are based on management’s current views and assumptions regarding future events and operating performance, and are inherently subject to significant business, economic, and competitive uncertainties and contingencies and changes in circumstances, many of which are beyond the Company’s control. The statements in this press release are made as of the date of this press release, even if subsequently made available by EnerSys on its website or otherwise. EnerSys does not undertake any obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

Although EnerSys does not make forward-looking statements unless it believes it has a reasonable basis for doing so, EnerSys cannot guarantee their accuracy. The foregoing factors, among others, could cause actual results to differ materially from those described in these forward-looking statements. For a list of other factors which could affect EnerSys’ results, including earnings estimates, see EnerSys’ filings with the Securities and Exchange Commission, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” including “Forward-Looking Statements,” set forth in EnerSys’ Annual Report on Form 10-K for the fiscal year ended March 31, 2020. No undue reliance should be placed on any forward-looking statements.

November 11, 2020 4:18 pm

HollyFrontier Corporation Announces Regular Cash Dividend

HollyFrontier Corporation Announces Regular Cash Dividend

DALLAS–(BUSINESS WIRE)–
HollyFrontier Corporation (NYSE: HFC) (“HollyFrontier”) announced today that its Board of Directors declared a regular quarterly dividend in the amount of $0.35 per share, payable on December 7, 2020 to holders of record of common stock on November 23, 2020.

About HollyFrontier Corporation:

HollyFrontier Corporation, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer that produces high value light products such as gasoline, diesel fuel, jet fuel and other specialty products. HollyFrontier owns and operates refineries located in Kansas, Oklahoma, New Mexico and Utah and markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states. In addition, HollyFrontier produces base oils and other specialized lubricants in the U.S., Canada and the Netherlands, and exports products to more than 80 countries. HollyFrontier also owns a 57% limited partner interest and a non-economic general partner interest in Holly Energy Partners, L.P., a master limited partnership that provides petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, including HollyFrontier Corporation subsidiaries.

HFC Forward Looking Statement:

The statements contained herein relating to matters that are not historical facts are “forward-looking statements” within the meaning of the federal securities laws. These statements are based on our beliefs and assumptions using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties, including those contained in our filings with the Securities and Exchange Commission. Although we believe that such expectations reflected in such forward-looking statements are reasonable, we cannot give assurance that our expectations will prove to be correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in these statements. Any differences could be caused by a number of factors including, but not limited to:

the extraordinary market environment and effects of the COVID-19 pandemic, including the continuation of a material decline in demand for refined petroleum products in markets HollyFrontier serves;
risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products or lubricant and specialty products in HollyFrontier’s markets;
the spread between market prices for refined products and market prices for crude oil;
the possibility of constraints on the transportation of refined products or lubricant and specialty products;
the possibility of inefficiencies, curtailments or shutdowns in refinery operations or pipelines, whether due to infection in the workforce or in response to reductions in demand;
effects of governmental and environmental regulations and policies, including the effects of current restrictions on various commercial and economic activities in response to the COVID-19 pandemic;
the availability and cost of financing to HollyFrontier;
the effectiveness of HollyFrontier’s capital investments and marketing strategies;
HollyFrontier’s efficiency in carrying out and consummating construction projects, including the ability to complete announced capital projects, such as the conversion of the Cheyenne refinery to a renewable diesel facility and the construction of the Artesia renewable diesel unit and pretreatment unit, on time and within budget;
the ability to timely obtain or maintain permits, including those necessary for operations or capital projects;
the ability of HollyFrontier to acquire refined or lubricant product operations or pipeline and terminal operations on acceptable terms and to integrate any existing or future acquired operations;
the possibility of terrorist or cyber attacks and the consequences of any such attacks;
general economic conditions, including uncertainty regarding the timing, pace and extent of an economic recovery in the United States;
prolonged decline in our financial condition, restrictions in our debt agreements or certain legal requirements, which could result in our inability to declare future dividends;
further deterioration in gross margins or a prolonged economic slowdown due to COVID-19 could result in an impairment of goodwill and / or additional long-lived asset impairments; and
other financial, operational and legal risks and uncertainties detailed from time to time in HollyFrontier’s Securities and Exchange Commission filings.

The forward-looking statements speak only as of the date made and, other than as required by law, HollyFrontier undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201111005811/en/

HollyFrontier Corporation

Craig Biery, 214-954-6510

Vice President, Investor Relations

or

Trey Schonter, 214-954-6510

Investor Relations

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Oil/Gas Energy

MEDIA:

Logo

November 11, 2020 4:18 pm

Glaukos Announces Participation in Upcoming Investor Conferences

Glaukos Announces Participation in Upcoming Investor Conferences

SAN CLEMENTE, Calif.–(BUSINESS WIRE)–
Glaukos Corporation (NYSE: GKOS), an ophthalmic medical technology and pharmaceutical company focused on novel therapies for the treatment of glaucoma, corneal disorders and retinal diseases, today announced that its management is scheduled to virtually participate in the following upcoming investor conferences:

Berenberg U.S. CEO Conference on Thursday, November 12, 2020 (one-on-one and group meetings only)
Stephens Annual Investment Conference on Thursday, November 19, 2020 at 8:00 a.m. PST
Piper Sandler 32^nd Annual Healthcare Conference (a pre-recorded fireside chat presentation will be available for viewing beginning on Monday, November 23, 2020; management will participate in one-on-one and group meetings on Wednesday, December 2, 2020)

A live and archived webcast for these event, where applicable, will be available in the Investors section of the Glaukos website at http://investors.glaukos.com.

About Glaukos

Glaukos (www.glaukos.com) is an ophthalmic medical technology and pharmaceutical company focused on novel therapies for the treatment of glaucoma, corneal disorders and retinal diseases. The company pioneered Micro-Invasive Glaucoma Surgery, or MIGS, to revolutionize the traditional glaucoma treatment and management paradigm. Glaukos launched the iStent^®, its first MIGS device, in the United States in July 2012, its next-generation iStent inject^® device in the United States in September 2018 and most recently, its iStent inject^®W device in the United States in October 2020. In corneal health, Glaukos’ proprietary suite of single-use, bio-activated pharmaceuticals are designed to strengthen, stabilize and reshape the cornea through a process called corneal collagen cross-linking to treat corneal ectatic disorders and correct refractive conditions. Glaukos is leveraging its platform technology to build a comprehensive and proprietary portfolio of micro-scale surgical and pharmaceutical therapies in glaucoma, corneal health and retinal disease.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201111005692/en/

Chris Lewis

Director, Investor Relations, Corporate Strategy & Development

(949) 481-0510

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Biotechnology Medical Devices Health Pharmaceutical Optical

MEDIA:

November 11, 2020 4:18 pm

Dillard’s, Inc. to Report Third Quarter Results

Dillard’s, Inc. to Report Third Quarter Results

LITTLE ROCK, Ark.–(BUSINESS WIRE)–
Dillard’s, Inc. (NYSE: DDS) will announce results for the 13 and 39 weeks ended October 31, 2020 tomorrow after the close of the New York Stock Exchange.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201111005753/en/

Julie J. Guymon

Director of Investor Relations

(501) 376-5965

[email protected]

KEYWORDS: Arkansas United States North America

INDUSTRY KEYWORDS: Retail Department Stores Fashion

MEDIA:

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November 11, 2020 4:18 pm

Humana Inc. to Present at the Wolfe Research Healthcare Conference

Humana Inc. to Present at the Wolfe Research Healthcare Conference

LOUISVILLE, Ky.–(BUSINESS WIRE)–
Humana Inc. (NYSE: HUM) announced today that Brian A. Kane, Chief Financial Officer, will make a presentation to investors at the Wolfe Research Healthcare Conference on Thursday, November 19, 2020, at 7:50 a.m. Eastern time.

A live audio webcast of the presentation will be available via Humana’s Investor Relations page at humana.com. The company suggests webcast participants sign on approximately 15 minutes in advance of the presentation to allow time to run a system test and download any free software needed for access purposes.

About Humana

Humana Inc. (NYSE: HUM) is committed to helping our millions of medical and specialty members achieve their best health. Our successful history in care delivery and health plan administration is helping us create a new kind of integrated care with the power to improve health and well-being and lower costs. Our efforts are leading to a better quality of life for people with Medicare, families, individuals, military service personnel, and communities at large.

To accomplish that, we support physicians and other health care professionals as they work to deliver the right care in the right place for their patients, our members. Our range of clinical capabilities, resources and tools – such as in-home care, behavioral health, pharmacy services, data analytics and wellness solutions – combine to produce a simplified experience that makes health care easier to navigate and more effective.

More information regarding Humana is available to investors via the Investor Relations page of the company’s web site at humana.com, including copies of:

Annual reports to stockholders
Securities and Exchange Commission filings
Most recent investor conference presentations
Quarterly earnings news releases
Calendar of events
Corporate Governance information

View source version on businesswire.com: https://www.businesswire.com/news/home/20201111005624/en/

Amy Smith

Humana Investor Relations

(502) 580-2811

e-mail: [email protected]

Kelley Murphy

Humana Corporate Communications

(502) 224-1755

e-mail: [email protected]

KEYWORDS: Kentucky United States North America

INDUSTRY KEYWORDS: General Health Health Professional Services Insurance Managed Care

MEDIA:

November 11, 2020 4:18 pm

Evolving Systems Reports Third Quarter 2020 Financial Results

ENGLEWOOD, Colo., Nov. 11, 2020 (GLOBE NEWSWIRE) — Evolving Systems, Inc. (NASDAQ: EVOL) (the “Company”), a leader in real-time digital engagement, today reported financial results for its third quarter ended September 30, 2020.

20
20
Third
Quarter
Highlights:

Third quarter revenue of $6.8 million, an increase of $0.5 million from the previous quarter results
Year to date revenue of $19.4 million
The Company has generated positive cash flow from operations in 2020
Third quarter operating profit was $0.4 million, net income of $0.1 million
Adjusted earnings before interest, taxes, depreciation, and amortization (“adjusted EBITDA”) for the third quarter was $0.8 million

“As we continue to navigate through these historic times around the globe, we are proud to say we have been able to continue to generate positive operational performance, as our service revenue has increased from the corresponding period a year ago and we have generated positive cash flow for the year. Throughout our years of global service, we have developed a culture of successfully managing our business through telework. We continue to leverage our ability to implement and provide support remotely and have noted a relatively limited effect on our operations during this pandemic. We are working with existing and new clients, helping them to explore new ways of using our products and services to enhance their businesses during these unusual times. We have seen continued impact on our ability to interact with our clients in the traditional modes of sales and business development; although this has slowed our expected growth, we were excited to make the gains that we have,” said Matthew Stecker, Chief Executive Officer and Executive Chairman of the Company.

Third
Quarter
and Year
–
to
–
Date
20
20
Results

Total revenue for the third quarter ended September 30, 2020 was $6.8 million, a $0.7 million increase from the three months ended September 30, 2019. The change was primarily related to increased revenue from upgrades and new projects partially offset by project completion or reduction in orders from existing clients in the corresponding period in 2019. Total revenue for the nine months ended September 30, 2020 was $19.4 million, or approximately a 1.7% increase from $19.1 million in the same period a year ago, predominantly related to increased revenue from upgrades and new projects recognized this year, partially offset by one-time licensing fees recognized in the prior year period. Services revenue, which is mostly recurring in nature, was $19.0 million year-to-date, an increase year-over-year of $1.1 million, or 6.1% from $17.9 million during the comparable year-ago period. Services revenue, which includes revenues from the Company’s preference for managed services over perpetual licensing, comprised approximately 98% of total revenues for the nine months ended September 30, 2020.

The Company reported gross profit margins, excluding depreciation and amortization, of approximately 68.5% for the quarter ended September 30, 2020, as compared to gross profit margins of approximately 64.9% during the comparable year-ago period. This increase in gross margin was primarily related to the increased revenue recognized on new projects and upgrades. For the nine months ended September 30, 2020, the Company reported gross profit margins, excluding depreciation and amortization, of approximately 66.7%, as compared to gross profit margins of approximately 67.2% for the nine months ended September 30, 2019. This decrease in gross margin was primarily related to the product and service mix inclusive of the higher licensing revenue in the prior year period.

Total operating expenses were $4.3 million in each of the quarters ended September 30, 2020 and 2019. Expenses related to travel and marketing costs were lower due to the travel reductions during the global pandemic and were primarily offset by increases in general and administrative costs related to local accounting fees. Total operating expenses were $12.4 million for the nine months ended September 30, 2020. Total operating expenses were $20.8 million for the nine months ended September 30, 2019; or $14.1 million after excluding the $6.7 million goodwill impairment charge in 2019. The decrease of approximately $1.7 million was related to the mix of hours as delivery staff focused on customers’ projects, not product development as in the prior year, and a decrease in overall resourcing costs. There were also reductions in the Company’s accounting fees, incentive compensation expense, and the aforementioned decreases in travel and marketing costs, mainly due to the travel restrictions.

The Company reported operating profit of $0.4 million and net income of $0.1 million for the three months ended September 30, 2020, as compared to operating loss of $0.3 million and a net loss of $0.2 million for the three months ended September 30, 2019. The Company reported adjusted EBITDA of $0.8 million for the quarter ended September 30, 2020 compared to $0.1 million for the same period a year ago. Adjusted EBITDA for the nine months ended September 30, 2020 was $1.5 million compared to an adjusted EBITDA loss of $0.2 million for the first nine months in 2019.

Cash and cash equivalents as of September 30, 2020 were $3.5 million, an increase of 13.3% compared to $3.1 million as of December 31, 2019. At September 30, 2020, contract receivables, net of allowance for doubtful accounts, were $3.4 million, a decrease of $3.3 million compared to $6.7 million as of December 31, 2019. Unbilled work-in-progress was $3.4 million at September 30, 2020, an increase of $2.3 million compared to December 31, 2019. Working capital as of September 30, 2020 increased to $4.8 million as compared to $3.8 million as of December 31^,2019. This is primarily related to paydown of our loan with East West Bank, which is scheduled to be retired at the end of the year. The change also includes an alternative minimum tax refund expected in the current year which was previously recorded in our deferred tax assets. The Company believes it has sufficient cash on hand and working capital liquidity to fund its business and continued strategic investments for at least the next twelve months.

Matthew Stecker concluded: “As the year draws to a close, we continue to take the necessary actions to service our clients to our fullest ability through the on-going global pandemic. We must focus on continual business transformation, increasing innovation, and product enhancements while identifying opportunities to meet our customers’ changing needs. Our strong customer footprint and decades of proven performance gives us a significant head-start to maintain our business trend during these uncertain times. We selectively seek new opportunities whether through potential accretive acquisitions, joint ventures, or strategic partnerships to drive both top- and bottom-line performance to bring our shareholders long-term value.”

Conference Call

The Company will be conducting a conference call and webcast on Wednesday, November 11, 2020 at 5:00 p.m. Eastern Time and 3:00 p.m. Mountain Time. To access a live video webcast of the call, please click the ‘Investors’ tab on the Company’s website at https://www.evolving.com/investors and then click the ‘Q3 earnings call’ icon on the left. A replay of the webcast will be accessible at that website through February 11, 2021.

Non-GAAP Financial Measures

The Company reports its financial results in accordance with accounting principles generally accepted in the U.S. (GAAP). In addition, the Company is providing in this news release financial information in the form of non-GAAP net income and diluted net income per share and adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, impairment, stock compensation, restructuring and gain/loss on foreign exchange transactions). Management believes these non-GAAP financial measures are useful to investors and lenders in evaluating the overall financial health of the Company in that they allow for greater transparency of additional financial data routinely used by management to evaluate performance. Investors and financial analysts who follow the Company use non-GAAP net income and non-GAAP diluted income per share to compare the Company against other companies. Adjusted EBITDA can be useful for lenders as an indicator of earnings available to service debt. Non-GAAP financial measures should not be considered in isolation from or as an alternative to the financial information prepared in accordance with GAAP.

About Evolving Systems®

Evolving Systems, Inc. (NASDAQ: EVOL) is a provider of real-time digital engagement solutions and services to more than 100 customers in over 60 countries worldwide. The Company’s portfolio includes market-leading solutions and services for real-time analytics, customer acquisition, customer value management and loyalty for telecom, retail and financial services companies. Founded in 1985, the Company has its headquarters in Englewood, Colorado, with offices in Asia, Europe, Africa, and North America. For more information, please visit www.evolving.com or follow us on Twitter at http://twitter.com/EvolvingSystems.

CAUTIONARY STATEMENT

This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, based on current expectations, estimates and projections that are subject to risk. Specifically, statements about the market for, and performance of, the Company’s products, its ability to successfully integrate its solutions with existing customer network systems, the Company’s ability to timely make all future payments under its debt facility, the Company’s business strategy and the Company’s cash runway are forward-looking statements. These statements are based on the Company’s expectations and are naturally subject to uncertainty and changes in circumstances. Readers should not place undue reliance on these forward-looking statements. Actual results could vary materially from these expectations. For a more extensive discussion of Evolving Systems’ business, and important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements, please refer to the Company’s filings and reports filed with the United States Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made. The Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

Investor Relations Contact:

Alice Ahern
Investor Relations
Evolving Systems
Tel: 1-844-732-5898
Email: [email protected]



EVOLVING SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)

	September 30,			December 31,
	2020			2019
ASSETS
Current assets:
Cash and cash equivalents	$	3,486		$	3,076
Contract receivables, net of allowance for doubtful accounts		3,409			6,732
Unbilled work-in-progress		3,356			1,105
Prepaid and other current assets		1,849			1,594
Income taxes receivable		819			953
Total current assets		12,919			13,460
Property and equipment, net		531			482
Amortizable intangible assets, net		2,918			3,665
Operating leases – right-of-use assets		979			1,205
Deferred income taxes, net		631			1,000
Total assets	$	17,978		$	19,812

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Term loan – current	$	428		$	1,577
Accounts payable and accrued liabilities		4,042			3,827
Lease obligations — operating leases		291			321
Unearned revenue		3,321			3,971
Total current liabilities		8,082			9,696
Long-term liabilities:
Term loan, net		319			122
Lease obligations, net		680			876
Total liabilities		9,081			10,694

Stockholders’ equity:
Common stock		12			12
Additional paid-in capital		99,714			99,555
Treasury stock		(1,253	)		(1,253	)
Accumulated other comprehensive loss		(10,489	)		(10,053	)
Accumulated deficit		(79,087	)		(79,143	)
Total stockholders’ equity		8,897			9,118
Total liabilities and stockholders’ equity	$	17,978		$	19,812

EVOLVING SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2020			2019			2020			2019
REVENUE
License fees	$	83		$	185		$	387		$	1,152
Services		6,691			5,928			19,001			17,914
Total revenue		6,774			6,113			19,388			19,066

COSTS OF REVENUE AND OPERATING EXPENSES
Costs of revenue, excluding depreciation and amortization		2,132			2,144			6,456			6,249
Sales and marketing		1,511			1,815			4,516			5,574
General and administrative		1,352			979			3,875			3,985
Product development		1,094			1,183			3,168			3,676
Depreciation		58			61			158			150
Amortization		236			232			704			704
Goodwill impairment loss		—			—			—			6,687
Total costs of revenue and operating expenses		6,383			6,414			18,877			27,025

Income (loss) from operations		391			(301	)		511			(7,959	)

Other income (expense)
Interest income		1			1			4			10
Interest expense		0			(71	)		(65	)		(255	)
Other (loss) income, net		(1	)		13			18			1
Foreign currency exchange gain (loss) income		(107	)		250			240			183
Other (expense) income, net		(107	)		193			197			(61	)

Income (loss) from operations before income taxes		284			(108	)		708			(8,020	)
Income tax expense		148			109			652			296
Net income (loss)	$	136		$	(217	)	$	56		$	(8,316	)

Basic earnings (loss) per common share – net income (loss)	$	0.01		$	(0.02	)	$	0.00		$	(0.68	)

Diluted earnings (loss) per common share – net income (loss)	$	0.01		$	(0.02	)	$	0.00		$	(0.68	)

Weighted average basic shares outstanding		12,195			12,163			12,185			12,154
Weighted average diluted shares outstanding		12,258			12,163			12,275			12,154



EVOLVING SYSTEMS, INC.
Reconciliation of GAAP to Non-GAAP Measures
(in thousands, except per share data)
(unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2020			2019			2020			2019
Adjusted EBITDA:
Net income (loss)	$	136		$	(217	)	$	56		$	(8,316	)
Depreciation		58			61			158			150
Amortization of intangible assets		236			232			704			704
Stock-based compensation expense		92			70			159			263
Goodwill impairment loss		—			—			—			6,687
Interest expense and other (benefit), net		107			(193	)		(197	)		61
Income tax expense		148			109			652			296
Adjusted EBITDA	$	777		$	62		$	1,532		$	(155	)


Non-GAAP net (loss) income:
GAAP net income (loss)	$	136		$	(217	)	$	56		$	(8,316	)
Amortization of intangible assets		236			232			704			704
Stock-based compensation expense		92			70			159			263
Goodwill impairment loss		—			—			—			6,687
Income tax adjustment for non-GAAP*		(57	)		(53	)		(147	)		(169	)
Non-GAAP net income (loss)	$	407		$	32		$	772		$	(831	)

Diluted net income (loss) per share
GAAP	$	0.01		$	(0.02	)	$	0.00		$	(0.68	)
Non-GAAP	$	0.03		$	0.00		$	0.06		$	(0.07	)
Shares used to compute diluted net income (loss) per share		12,258			12,163			12,275			12,154


* The estimated income tax for non-GAAP net income is adjusted by the amount of additional expense that we would accrue if we used non-GAAP results instead of GAAP results in the calculation of our tax liability, taking into account which tax jurisdiction each of the above adjustments would be made and the tax rate in that jurisdiction.