Market Newsdesk

November 12, 2020 6:33 am

Babcock & Wilcox Enterprises Reports Third Quarter 2020 Results

Babcock & Wilcox Enterprises Reports Third Quarter 2020 Results

– Revenues of $132.5 million

– Net income of $34.7 million, a $91.7 million improvement

– Adjusted EBITDA of $25.6 million with adjusted EBITDA margin of 19.3%

– Diluted EPS improved to $0.69, compared to $(1.39)

– Quarterly bookings increased 106% compared to third quarter 2019, and increased 111% sequentially

– The above results include the recognition of a $26.0 million loss recovery settlement related to certain historical EPC loss contracts

AKRON, Ohio–(BUSINESS WIRE)–
Babcock & Wilcox Enterprises, Inc. (“B&W” or the “Company”) (NYSE: BW) reported financial results for the third quarter ended September 30, 2020.

Management Commentary

“Our third quarter results improved significantly, driven by a loss recovery from our historical European EPC loss projects, and reflecting the ongoing execution of our turnaround strategy,” said Kenneth Young, B&W’s CEO. “Despite the challenges presented by COVID-19 and its impact on revenues across our segments, adjusted EBITDA was roughly break-even for the quarter before the benefit of the loss recovery, demonstrating the benefits of our cost-savings initiatives. Our rebranding initiative announced in August, coupled with our reorganization and international expansion, is accelerating our growth and drove our bookings of $177 million in the quarter, an improvement of 106% compared to the third quarter of 2019. Our pipeline of over $5 billion of identified project opportunities that we expect to bid through 2023 continues to strengthen, and the expansion of our international presence is progressing as planned.”

“While COVID-19 impacted all of our segments in the third quarter, a number of projects that were previously delayed or deferred due to the pandemic are restarting,” Young added. “We continue meeting customer and market needs by providing technology solutions to help achieve a clean, sustainable energy and industrial infrastructure. This includes our broad suite of advanced renewable, environmental and thermal technologies, such as high-performance waste-to-energy systems, innovative submerged grind conveyor systems, and flexible natural gas-fired package boilers, as well as strategic partnerships to accelerate advanced energy storage solutions.”

Louis Salamone, B&W’s CFO, commented: “As an essential business, we continue to focus on supporting our customers and driving our growth strategy while continuing to manage our costs and cash flow through the global pandemic. While we can’t fully predict the evolving impacts of COVID-19, based on the current strength of our bookings, pipeline and information from our customers, as well as current assumptions regarding the impacts of COVID-19 on our business, we continue to target between $70 million and $80 million of adjusted EBITDA in 2021.”

New Segment Financial Reporting

Beginning with the third quarter of 2020, B&W is reporting its financial results under three new reportable segments aligned with the Company’s strategic, market-focused organizational and rebranding initiative announced this past August to accelerate growth and provide stakeholders with improved visibility into its renewable and environmental growth platforms. Segment results for prior periods have been restated for comparative purposes.

B&W Renewable segment: Cost-effective technologies for efficient and environmentally sustainable power and heat generation, including waste-to-energy, biomass energy and black liquor systems for the pulp and paper industry. The segment’s leading technologies support a circular economy, diverting waste from landfills to use for power generation and replacing fossil fuels, while recovering metals and reducing emissions.

B&W Environmental segment: A full suite of best-in-class emissions control and environmental technology solutions for utility and industrial steam generation applications around the world. The segment’s broad experience includes systems for cooling, ash handling, particulate control, nitrogen oxides and sulfur dioxides removal, chemical looping for carbon control, and mercury control.

B&W Thermal segment: Steam generation equipment, aftermarket parts, construction, maintenance and field services for plants in the power generation, oil and gas, and industrial sectors. The segment has an extensive global base of installed equipment for utilities and general industrial applications including refining, petrochemical, food processing, metals and others.

Results of Operations

Consolidated revenues in the third quarter of 2020 were $132.5 million compared to $198.6 million in the third quarter of 2019. The Company’s focus on core technologies and profitability, combined with the adverse impacts of COVID-19, were the primary drivers of the revenue decline.

GAAP operating income in the third quarter of 2020 was $14.1 million, including the impact of a non-recurring loss recovery of $26.0 million recognized in the B&W Renewable segment under an October 10, 2020 settlement agreement with an insurer in connection with five of the six historical European EPC loss contracts, compared to an operating loss of $3.2 million in the third quarter of 2019. The increase was partially offset by lower volume in each of the segments and customer delays as a result of COVID-19, as well as restructuring and settlement costs and advisory fees of $6.2 million. GAAP net income was $34.7 million, a $91.7 million improvement compared to third quarter 2019, primarily driven by the non-recurring loss recovery and favorable foreign exchange effects, partially offset by lower interest expense. Adjusted EBITDA improved to $25.6 million compared to $10.1 million in the third quarter of 2019.

All amounts referred to in this release are on a continuing operations basis, unless otherwise noted. Reconciliations of operating income, the most directly comparable GAAP measure, to adjusted EBITDA, as well as to adjusted gross profit for the Company’s segments, are provided in the exhibits to this release.

Babcock & Wilcox Renewable segment revenues were $39.1 million in the third quarter of 2020 compared to $51.3 million in the third quarter of 2019 due to new anticipated revenues being deferred due to COVID-19, as well as the advanced completion of activities on the historical EPC loss projects compared to the third quarter of 2019. Adjusted EBITDA in the third quarter of 2020 was $23.6 million compared to $(0.6) million in last year’s quarter, primarily due to the aforementioned non-recurring loss recovery of $26.0 million, partially offset by lower volume. The segment’s adjusted gross profit was $32.1 million in the third quarter of 2020 compared to $6.6 million reported in the third quarter of 2019, primarily driven by the loss recovery, partially offset by lower volume.

Babcock & Wilcox Environmental segment revenues were $25.3 million in the third quarter of 2020 compared to $45.0 million in the third quarter of 2019. The decrease was primarily due to the completion of large construction projects in the prior year and the postponement of new projects by customers as a result of COVID-19. Adjusted EBITDA was $1.1 million compared to $1.8 million in the same period last year, driven primarily by the impact of COVID-19 and lower volume. Adjusted gross profit declined to $5.9 million in the third quarter of 2020, compared to $9.0 million in the prior-year period, primarily due to the decrease in revenue partially offset by favorable product mix. At September 30, 2020, the segment had two remaining significant loss contracts, previously reported as part of B&W SPIG’s U.S. entity. The first was approximately 100% complete at the end of the third quarter of 2020 with only performance testing remaining, which is expected to be completed in the fourth quarter of 2020. The second was approximately 97% complete at the end of the third quarter of 2020 and is expected to be completed in the fourth quarter of 2020.

Babcock & Wilcox Thermal segment revenues were $70.0 million for the third quarter of 2020, compared to $108.2 million in the prior-year period. The decrease is attributable to the adverse impacts of COVID-19 resulting in customer delays and lower parts, construction, package boilers and international service orders. Adjusted EBITDA in the quarter declined to $7.3 million compared to $12.9 million in the third quarter last year, primarily due to the decrease in revenue volume. This was partially offset by the results of costs savings and restructuring initiatives. Adjusted EBITDA margin was 10.4% in the quarter as compared to 11.9% in the same period last year. Adjusted gross profit in the third quarter of 2020 was $20.6 million compared to $25.6 million in the prior-year period, consistent with the decrease in Adjusted EBITDA. Adjusted gross profit margin was 29.5% compared to 23.7% in the same period last year, primarily due to favorable product mix and the benefits of costs savings and restructuring initiatives.

Financing, Liquidity and Balance Sheet

At September 30, 2020, the Company had cash and cash equivalents of $38.9 million and borrowing availability of $23.1 million.

On October 23, 2020, the Company received $26.0 million from an insurer through a previously disclosed loss recovery settlement. As required by the Company’s U.S. Revolving Credit Facility, 50% of the net proceeds, or approximately $8 million, of the settlement received by the Company was applied as a permanent reduction of the U.S. Revolving Credit Facility.

In addition, as previously disclosed, on October 30, 2020, the Company entered into an amendment of its Credit Agreement to provide, among other matters, that with respect to any prepayment event, the commitment reduction amount shall be only an amount equal to 50% of the net cash proceeds of such prepayment event, and also established, as required by the terms of the Credit Agreement, new financial covenants of interest coverage ratios and senior leverage ratios.

The Company is continuing to pursue cost recoveries from responsible subcontractors for the B&W Renewable segment’sEuropean EPC loss contracts. The Company also continues to evaluate additional opportunities for cost savings and potential dispositions as appropriate.

Earnings Call Information

B&W plans to host a conference call and webcast on Thursday, November 12, 2020 at 8:30 a.m. ET. to discuss the Company’s third quarter 2020 results. The listen-only audio of the conference call will be broadcast live via the Internet on B&W’s Investor Relations site. The dial-in number for participants in the U.S. is (833) 227-5843; the dial-in number for participants outside the U.S. is (647) 689-4070. The conference ID for all participants is 4193759. A replay of this conference call will remain accessible in the investor relations section of the Company’s website for a limited time.

COVID-19 Impact

The global COVID-19 pandemic has disrupted business operations, trade, commerce, financial and credit markets, and daily life throughout the world. The Company’s business has been, and continues to be, adversely impacted by the measures taken and restrictions imposed in the locations in which it operates by local governments and others to control the spread of this virus. These measures and restrictions have varied widely and have been subject to significant changes from time to time depending on the changes in the severity of the virus in these locations. These restrictions, including travel restrictions and curtailment of other activity, negatively impact the Company’s ability to conduct business. Although some of these restrictions have been lifted or scaled back, a recent resurgence of COVID-19 has resulted in the reimposition of certain restrictions and may lead to other restrictions being implemented in response to efforts to reduce the spread of the virus. These varying and changing events have caused many of the projects the Company anticipated to begin in 2020 to be delayed to later in 2020 and others to be delayed further into 2021 and 2022. Many customers and projects require B&W’s employees to travel to customer and project worksites. Certain customers and significant projects are located in areas where travel restrictions have been imposed, certain customers have closed or reduced on-site activities, and timelines for completion of certain projects have, as noted above, been extended into next year and beyond. Additionally, out of concern for the Company’s employees, even where restrictions permit employees to return to Company offices and worksites, the Company has advised those who are uncomfortable returning to worksites due to the pandemic that they are not required to do so for an indefinite period of time. The resulting uncertainty concerning, among other things, the spread and economic impact of the virus has also caused significant volatility and, at times, illiquidity in global equity and credit markets. As part of the Company’s recent response to the impact of the COVID-19 pandemic on its business, the Company has taken a number of cash conservation and cost reduction measures. At the time of this release, it is impossible to predict the overall impact the pandemic will have on the Company’s business, liquidity, capital resources or financial results. More detail can be found in the Company’s Form 10-Q for the third quarter of 2020.

Non-GAAP Financial Measures

The Company uses non-GAAP financial measures internally to evaluate its performance and in making financial and operational decisions. When viewed in conjunction with GAAP results and the accompanying reconciliation, the Company believes that its presentation of these measures provides investors with greater transparency and a greater understanding of factors affecting our financial condition and results of operations than GAAP measures alone.

This release presents adjusted gross profit for each business segment and adjusted EBITDA, which are non-GAAP financial measures. Adjusted EBITDA on a consolidated basis is defined as the sum of the adjusted EBITDA for each of the segments, further adjusted for corporate allocations and research and development costs. At a segment level, the adjusted EBITDA presented is consistent with the way the Company’s chief operating decision maker reviews the results of operations and makes strategic decisions about the business and is calculated as earnings before interest, tax, depreciation and amortization adjusted for items such as gains or losses on asset sales, mark to market (“MTM”) pension adjustments, restructuring and spin costs, impairments, losses on debt extinguishment, costs related to financial consulting required under the U.S. Revolving Credit Facility and other costs that may not be directly controllable by segment management and are not allocated to the segment. The Company presented consolidated Adjusted EBITDA because it believes it is useful to investors to help facilitate comparisons of the ongoing, operating performance before corporate overhead and other expenses not attributable to the operating performance of the Company’s revenue generating segments. This release also presents certain targets for our adjusted EBITDA in the future; these targets are not intended as guidance regarding how the Company believes the business will perform. The Company is unable to reconcile these targets to their GAAP counterparts without unreasonable effort and expense due to the aspirational nature of these targets.

This release also presents adjusted gross profit by segment. The Company believes that adjusted gross profit by segment is useful to investors to help facilitate comparisons of the ongoing, operating performance of the segments by excluding expenses related to, among other things, activities related to the spin-off, activities related to various restructuring activities the Company has undertaken, corporate overhead (such as SG&A expenses and research and development costs) and certain non-cash expenses such as intangible amortization and goodwill impairments that are not allocated by segment.

Forward-Looking Statements

B&W Enterprises cautions that this release contains forward-looking statements, including, without limitation, statements relating to the application of the proceeds of the term loans under the Agreement, and management expectations regarding future growth and our ability to achieve sustained value for our shareholders. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, the impact of COVID-19 on us and the capital markets and global economic climate generally; our recognition of any asset impairments as a result of any decline in the value of our assets or our efforts to dispose of any assets in the future; our ability to obtain and maintain sufficient financing to provide liquidity to meet our business objectives, surety bonds, letters of credit and similar financing; our ability to comply with the requirements of, and to service the indebtedness under, our credit agreement as amended and restated (the “A&R” Credit Agreement”); our ability to obtain waivers of required pension contributions; the highly competitive nature of our businesses and our ability to win work, including identified project opportunities in our pipeline; general economic and business conditions, including changes in interest rates and currency exchange rates; cancellations of and adjustments to backlog and the resulting impact from using backlog as an indicator of future earnings; our ability to perform contracts on time and on budget, in accordance with the schedules and terms established by the applicable contracts with customers; failure by third-party subcontractors, partners or suppliers to perform their obligations on time and as specified; our ability to successfully resolve claims by vendors for goods and services provided and claims by customers for items under warranty; our ability to realize anticipated savings and operational benefits from our restructuring plans, and other cost-savings initiatives; our ability to successfully address productivity and schedule issues in our B&W Renewable and B&W Environmental segments, including the ability to complete our B&W Renewable’s European EPC projects and B&W Environmental’s U.S. loss projects within the expected time frame and the estimated costs; our ability to successfully partner with third parties to win and execute contracts within our B&W Environmental and B&W Renewable segments; changes in our effective tax rate and tax positions, including any limitation on our ability to use our net operating loss carryforwards and other tax assets; our ability to maintain operational support for our information systems against service outages and data corruption, as well as protection against cyber-based network security breaches and theft of data; our ability to protect our intellectual property and renew licenses to use intellectual property of third parties; our use of the percentage-of-completion method of accounting to recognize revenue over time; our ability to successfully manage research and development projects and costs, including our efforts to successfully develop and commercialize new technologies and products; the operating risks normally incident to our lines of business, including professional liability, product liability, warranty and other claims against us; changes in, or our failure or inability to comply with, laws and government regulations; actual or anticipated changes in governmental regulation, including trade and tariff policies; difficulties we may encounter in obtaining regulatory or other necessary permits or approvals; changes in, and liabilities relating to, existing or future environmental regulatory matters; changes in actuarial assumptions and market fluctuations that affect our net pension liabilities and income; potential violations of the Foreign Corrupt Practices Act; our ability to successfully compete with current and future competitors; the loss of key personnel and the continued availability of qualified personnel; our ability to negotiate and maintain good relationships with labor unions; changes in pension and medical expenses associated with our retirement benefit programs; social, political, competitive and economic situations in foreign countries where we do business or seek new business; the possibilities of war, other armed conflicts or terrorist attacks; the willingness of customers and suppliers to continue to do business with us on reasonable terms and conditions; our ability to successfully consummate strategic alternatives for non-core assets, if we determine to pursue them; and the other factors specified and set forth under “Risk Factors” in our periodic reports filed with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and our quarterly report on Form 10-Q for the quarter ended September 30, 2020. The Company cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this report, and the Company undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

About B&W Enterprises

Headquartered in Akron, Ohio, Babcock & Wilcox Enterprises is a global leader in energy and environmental technologies and services for the power and industrial markets. Follow B&W on LinkedIn and learn more at www.babcock.com.

Exhibit 1

Babcock & Wilcox Enterprises, Inc.

Condensed Consolidated Statements of Operations⁽¹⁾

(In millions, except per share amounts)

Three months ended

September 30,

Nine months ended

September 30,

2020

2019

2020

2019

Revenues

$

132.5

$

198.6

$

416.5

$

678.7

Costs and expenses:

Cost of operations

75.2

158.3

292.7

563.2

Selling, general and administrative expenses

35.7

36.0

107.9

120.4

Advisory fees and settlement costs

3.8

4.5

10.1

22.9

Restructuring activities

2.4

2.6

6.7

9.6

Research and development costs

1.4

0.8

3.9

2.3

Gain on asset disposals, net

—

(0.3

)

(0.9

)

(0.2

)

Total costs and expenses

118.4

201.8

420.4

718.1

Operating income (loss)

14.1

(3.2

)

(3.9

)

(39.4

)

Other (expense) income:

Interest expense

(12.2

)

(29.5

)

(49.8

)

(67.4

)

Interest income

0.2

0.1

0.4

0.9

Loss on debt extinguishment

—

—

(6.2

)

(4.0

)

Loss on sale of business

—

—

(0.1

)

(3.6

)

Benefit plans, net

7.3

3.6

22.3

9.1

Foreign exchange

25.0

(26.7

)

22.7

(27.4

)

Other – net

(0.3

)

(0.3

)

(3.1

)

0.2

Total other income (expense)

20.0

(52.8

)

(13.7

)

(92.2

)

Income (loss) before income tax

(benefit) expense

34.1

(55.9

)

(17.6

)

(131.6

)

Income tax (benefit) expense

(0.5

)

1.0

(0.5

)

3.6

Income (loss) from continuing

operations

34.6

(57.0

)

(17.1

)

(135.2

)

Income from discontinued operations, net of tax

—

—

1.8

0.7

Net income (loss)

34.6

(57.0

)

(15.3

)

(134.5

)

Net loss attributable to non-controlling interest

0.2

—

0.4

0.1

Net income (loss) attributable to

stockholders

$

34.7

$

(57.0

)

$

(14.9

)

$

(134.4

)

Basic earnings (loss) per share – continuing

operations

$

0.70

$

(1.39

)

$

(0.35

)

$

(5.21

)

Basic earnings per share – discontinued operations

—

—

0.04

0.03

Basic earnings (loss) per share

$

0.70

$

(1.39

)

$

(0.31

)

$

(5.18

)

Diluted earnings (loss) per share – continuing

operations

$

0.69

$

(1.39

)

$

(0.35

)

$

(5.21

)

Diluted earnings per share – discontinued

operations

—

—

0.04

0.03

Diluted earnings (loss) per share

$

0.69

$

(1.39

)

$

(0.31

)

$

(5.18

)

Shares used in the computation of earnings per share:

Basic

49.5

40.9

47.6

26.0

Diluted

50.1

40.9

47.6

26.0

⁽¹⁾ Figures may not be clerically accurate due to rounding.

Exhibit 2

Babcock & Wilcox Enterprises, Inc.

Condensed Consolidated Balance Sheets⁽¹⁾

(In millions, except per share amount)

September 30, 2020

December 31, 2019

Cash and cash equivalents

$

38.9

$

43.8

Restricted cash and cash equivalents

9.4

13.2

Accounts receivable – trade, net

126.8

142.2

Accounts receivable – other

52.1

23.3

Contracts in progress

73.9

91.6

Inventories

67.0

63.1

Other current assets

20.6

27.0

Current assets held for sale

4.8

8.1

Total current assets

393.6

412.2

Net property, plant and equipment, and finance lease

88.6

97.1

Goodwill

47.1

47.2

Intangible assets

23.7

25.3

Right-of-use assets

10.3

12.5

Other assets

34.9

25.0

Non-current assets held for sale

7.5

7.3

Total assets

$

605.8

$

626.5

Revolving credit facilities

—

179.0

Last out term loans

—

104.0

Financing lease liabilities

0.9

—

Accounts payable

80.0

109.9

Accrued employee benefits

17.4

18.3

Advance billings on contracts

54.0

75.3

Accrued warranty expense

26.8

33.4

Operating lease liabilities

4.0

4.3

Other accrued liabilities

86.8

68.8

Current liabilities held for sale

6.9

9.5

Total current liabilities

276.7

602.5

Revolving credit facilities

181.9

—

Last out term loans

173.3

—

Pension and other accumulated postretirement benefit liabilities

236.4

259.3

Non-current finance lease liabilities

29.9

30.5

Non-current operating lease liabilities

6.4

8.4

Other non-current liabilities

21.9

20.9

Non-current liabilities held for sale

—

—

Total liabilities

926.5

921.5

Commitments and contingencies

Stockholders’ deficit:

Common stock, par value $0.01 per share, authorized shares of 500,000;

issued and outstanding shares of 52,006 and 46,374 at September 30, 2020 and

December 31, 2019, respectively

4.8

4.7

Capital in excess of par value

1,157.8

1,142.6

Treasury stock at cost, 716 and 616 shares at September 30, 2020 and December 31, 2019, respectively

(106.0

)

(105.7

)

Accumulated deficit

(1,354.8

)

(1,339.9

)

Accumulated other comprehensive income (loss)

(23.4

)

1.9

Stockholders’ deficit attributable to shareholders

(321.7

)

(296.4

)

Non-controlling interest

0.9

1.4

Total stockholders’ deficit

(320.8

)

(294.9

)

Total liabilities and stockholders’ deficit

$

605.8

$

626.5

⁽¹⁾ Figures may not be clerically accurate due to rounding.

Exhibit 3

Babcock & Wilcox Enterprises, Inc.

Condensed Consolidated Statements of Cash Flows⁽¹⁾

(In millions)

Nine months ended September 30,

2020

2019

Cash flows from operating activities:

Net loss

$

(15.3

)

$

(134.5

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization of long-lived assets

12.3

19.1

Amortization of deferred financing costs, debt discount and payment-in-kind interest

16.0

42.2

Amortization of guaranty fee

0.7

—

Non-cash operating lease expense

3.6

4.1

Loss on sale of business

0.1

3.6

Loss on debt extinguishment

6.2

4.0

(Gains) losses on asset disposals and impairments

(0.9

)

(0.2

)

Benefit from deferred income taxes, including valuation allowances

(0.8

)

(0.7

)

Mark to market losses (gains) and prior service cost amortization for pension plans

(0.7

)

(0.1

)

Stock-based compensation, net of associated income taxes

3.3

1.8

Changes in assets and liabilities:

Accounts receivable

28.6

41.3

Accrued insurance receivable

(26.0

)

—

Contracts in progress

21.6

23.1

Advance billings on contracts

(23.2

)

(68.1

)

Inventories

(4.9

)

(6.6

)

Income taxes

(4.8

)

1.6

Accounts payable

(33.5

)

(71.3

)

Accrued and other current liabilities

9.9

(21.1

)

Accrued non-cash interest expense

11.9

—

Accrued contract loss

(5.3

)

(49.8

)

Pension liabilities, accrued postretirement benefits and employee benefits

(25.9

)

(5.8

)

Other, net

(40.3

)

16.2

Net cash used in operating activities

(67.3

)

(201.1

)

Cash flows from investing activities:

Purchase of property, plant and equipment

(2.3

)

(1.6

)

Proceeds from sale of business

8.0

7.4

Purchases of available-for-sale securities

(19.1

)

(3.5

)

Sales and maturities of available-for-sale securities

14.6

5.1

Other, net

0.8

(0.4

)

Net cash from investing activities

2.0

7.1

Cash flows from financing activities:

Borrowings under our U.S. revolving credit facility

126.3

251.9

Repayments of our U.S. revolving credit facility

(123.4

)

(205.1

)

Borrowings under Last Out Term Loans

60.0

151.4

Repayments under Last Out Term Loans

—

(41.8

)

Repayments under our foreign revolving credit facilities

—

(0.6

)

Shares of our common stock returned to treasury stock

(0.3

)

—

Proceeds from rights offering

—

40.4

Costs related to rights offering

—

(0.7

)

Debt issuance costs

(10.3

)

(15.5

)

Issuance of common stock

—

1.4

Other, net

0.1

(0.3

)

Net cash from financing activities

52.4

181.0

Effects of exchange rate changes on cash

4.4

(4.0

)

Net decrease in cash, cash equivalents and restricted cash

(8.6

)

(16.9

)

Cash, cash equivalents and restricted cash, beginning of period

56.9

60.3

Cash, cash equivalents and restricted cash, end of period

$

48.4

$

43.3

⁽¹⁾ Figures may not be clerically accurate due to rounding.

Exhibit 4

Babcock & Wilcox Enterprises, Inc.

Segment Information⁽¹⁾

(In millions)

SEGMENT RESULTS

Three months ended

September 30,

Nine months ended

September 30,

2020

2019

2020

2019

REVENUES:

Babcock & Wilcox Renewable

$

39.1

$

51.3

$

118.6

$

158.9

Babcock & Wilcox Environmental

25.3

45.0

76.4

234.5

Babcock & Wilcox Thermal

70.0

108.2

223.9

315.6

Eliminations

(1.8

)

(5.8

)

(2.4

)

(30.3

)

$

132.5

$

198.6

$

416.5

$

678.7

ADJUSTED EBITDA:

Babcock & Wilcox Renewable

$

23.6

$

(0.6

)

$

22.0

$

(4.2

)

Babcock & Wilcox Environmental

1.1

1.8

(0.1

)

2.5

Babcock & Wilcox Thermal

7.3

12.9

22.7

35.0

Corporate

(4.9

)

(3.1

)

(12.9

)

(17.0

)

Research and development costs

(1.4

)

(0.8

)

(3.9

)

(2.3

)

$

25.6

$

10.1

$

27.8

$

14.0

AMORTIZATION EXPENSE:

Babcock & Wilcox Renewable ⁽²⁾

$

0.1

$

0.1

$

0.5

$

0.5

Babcock & Wilcox Environmental

0.8

0.8

2.3

2.5

Babcock & Wilcox Thermal ⁽²⁾

0.4

0.1

1.3

0.3

$

1.3

$

1.0

$

4.1

$

3.3

DEPRECIATION EXPENSE:

Babcock & Wilcox Renewable

$

0.7

$

1.0

$

2.3

$

3.7

Babcock & Wilcox Environmental

0.4

0.4

1.4

1.6

Babcock & Wilcox Thermal

1.5

2.9

4.5

10.5

Corporate

—

—

—

—

$

2.7

$

4.3

$

8.2

$

15.8

As of September 30,

BACKLOG:

2020

2019

Babcock & Wilcox Renewable ⁽³⁾

$

196

$

207

Babcock & Wilcox Environmental

107

112

Babcock & Wilcox Thermal

208

161

Other/Eliminations

(2

)

(7

)

$

509

$

473

⁽¹⁾

Figures may not be clerically accurate due to rounding.

⁽²⁾

Amortization expense in the Babcock and Wilcox Renewable and Babcock and Wilcox Thermal segments include $0.1 million and $0.4 million in finance lease amortization for the three months ended September 30, 2020, respectively. Amortization expense in the Babcock and Wilcox Renewable and Babcock and Wilcox Thermal segments include $0.3 million and $1.2 million in finance lease amortization for the nine months ended September 30, 2020, respectively.

⁽³⁾

Babcock & Wilcox Renewable backlog at September 30, 2020, includes $159.0 million related to long-term operation and maintenance contracts for renewable energy plants, with remaining durations extending until 2034. Generally, such contracts have a duration of 10-20 years and include options to extend.

Exhibit 5

Babcock & Wilcox Enterprises, Inc.

Reconciliation of Adjusted EBITDA⁽²⁾

(In millions)

Three months ended

September 30,

Nine months ended

September 30,

2020

2019

2020

2019

Adjusted EBITDA

B&W Renewable segment

$

23.6

$

(0.6

)

$

22.0

$

(4.2

)

B&W Environmental segment

1.1

1.8

(0.1

)

2.5

B&W Thermal segment

7.3

12.9

22.7

35.0

Corporate

(4.9

)

(3.1

)

(12.9

)

(17.0

)

Research and development costs

(1.4

)

(0.8

)

(3.9

)

(2.3

)

25.6

10.1

27.8

14.0

Restructuring activities

(2.4

)

(2.6

)

(6.7

)

(9.6

)

Financial advisory services

(1.7

)

(1.2

)

(3.2

)

(8.4

)

Settlement cost to exit B&W Renewable contract ⁽¹⁾

—

—

—

(6.6

)

Advisory fees for settlement costs and liquidity planning

(1.4

)

(2.8

)

(5.2

)

(7.4

)

Litigation legal costs

(0.8

)

(0.5

)

(1.8

)

(0.5

)

Stock compensation

(1.2

)

(1.3

)

(3.1

)

(2.1

)

Loss from business held for sale

(0.1

)

—

(0.4

)

—

Depreciation & amortization

(4.1

)

(5.3

)

(12.3

)

(19.1

)

Gain on asset disposals, net

—

0.3

0.9

0.2

Operating income (loss)

14.1

(3.2

)

(3.9

)

(39.4

)

Interest expense, net

(12.0

)

(29.4

)

(49.3

)

(66.6

)

Loss on debt extinguishment

—

—

(6.2

)

(4.0

)

Loss on sale of business

—

—

(0.1

)

(3.6

)

Net pension benefit before MTM

7.3

3.6

22.3

10.4

MTM loss from benefit plans

—

—

—

(1.3

)

Foreign exchange

25.0

(26.7

)

22.7

(27.4

)

Other – net

(0.3

)

(0.3

)

(3.1

)

0.2

Total other income (expense)

20.0

(52.8

)

(13.7

)

(92.2

)

Income (loss) before income tax (benefit)

expense

34.1

(55.9

)

(17.6

)

(131.6

)

Income tax (benefit) expense

(0.5

)

1.0

(0.5

)

3.6

Income (loss) from continuing operations

34.6

(57.0

)

(17.1

)

(135.2

)

Income from discontinued operations, net of tax

—

—

1.8

0.7

Net income (loss)

34.6

(57.0

)

(15.3

)

(134.5

)

Net loss attributable to non-controlling interest

0.2

—

0.4

0.1

Net income (loss) attributable to stockholders

$

34.7

$

(57.0

)

$

(14.9

)

$

(134.4

)

⁽¹⁾

In March 2019, we entered into a settlement in connection with an additional B&W Renewable waste-to-energy EPC contract, for which notice to proceed was not given and the contract was not started. The settlement eliminated our obligations to act, and our risk related to acting, as the prime EPC should the project have moved forward.

⁽²⁾

Figures may not be clerically accurate due to rounding.

Exhibit 6

Babcock & Wilcox Enterprises, Inc.

Reconciliation of Adjusted Gross Profit (Loss)⁽²⁾

(In millions)

Three months ended

September 30,

Nine months ended

September 30,

2020

2019

2020

2019

Adjusted gross profit (loss) ⁽¹⁾

Operating income (loss)

$

14.1

$

(3.2

)

$

(3.9

)

$

(39.4

)

Selling, general and administrative (“SG&A”) expenses

35.6

35.8

107.6

120.0

Advisory fees and settlement costs

3.8

4.5

10.1

22.9

Amortization expense

1.4

1.0

4.1

3.3

Restructuring activities

2.4

2.6

6.7

9.6

Research and development costs

1.4

0.8

3.9

2.3

Losses (gains) on asset disposals, net

—

(0.3

)

(0.9

)

(0.2

)

Adjusted gross profit (loss)

58.6

41.2

127.7

118.4

Adjusted gross profit by segment is as follows:

Three months ended

September 30,

Nine months ended

September 30,

2020

2019

2020

2019

Adjusted gross profit (loss) ⁽¹⁾

B&W Renewable segment

32.1

6.6

48.4

19.3

B&W Environmental segment

5.9

9.0

15.5

33.6

B&W Thermal segment

20.6

25.6

63.8

65.5

Adjusted gross profit (loss)

58.6

41.2

127.7

118.4

⁽¹⁾

Amortization is not allocated to the segments’ adjusted gross profit, but depreciation is allocated to the segments’ adjusted gross profit.

⁽²⁾

Figures may not be clerically accurate due to rounding.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112005408/en/

Investors:

Megan Wilson

Vice President, Corporate Development & Investor Relations

Babcock & Wilcox Enterprises

704.625.4944 | [email protected]

Media:

Ryan Cornell

Public Relations

Babcock & Wilcox Enterprises

330.860.1345 | [email protected]

KEYWORDS: United States North America Ohio

INDUSTRY KEYWORDS: Packaging Engineering Chemicals/Plastics Automotive Manufacturing Other Energy Utilities Manufacturing Oil/Gas Coal Alternative Energy Energy Other Manufacturing Textiles Steel

MEDIA:

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Posted on November 12, 2020 6:33 am
Utz Brands to Acquire ON THE BORDER® Tortilla Chips

Utz Brands to Acquire ON THE BORDER^® Tortilla Chips

Expands Position in Attractive Tortilla Chip Sub-Category

HANOVER, Pa.–(BUSINESS WIRE)–
Utz Brands, Inc. (NYSE: UTZ) (“Utz” or the “Company”), a leading U.S. manufacturer of branded salty snacks, announced that its subsidiaries Utz Quality Foods, LLC (“UQF”) and Heron Holding Corporation have entered into a definitive agreement to acquire Truco Enterprises (“Truco”), a leading seller of tortilla chips, salsa and queso under the ON THE BORDER^® (“OTB”) brand, from Insignia Capital Group for a total purchase price of $480 million, subject to a customary post-closing purchase price adjustment. The acquisition includes all rights to the ON THE BORDER^® trademarks for use in the manufacture, sale, and distribution of snack food products in the United States and certain other international markets. The transaction represents an acquisition multiple of approximately 9.2x estimated fiscal 202 Truco Adjusted EBITDA of $50 million excluding estimated synergies, and 8.4x estimated fiscal 2020 Truco Adjusted EBITDA including run-rate cost synergies of at least $5 million, in each case including approximately $20 million in net present value from expected tax assets resulting from the transaction. Utz expects the transaction to be accretive to earnings in 2021 and beyond. The transaction is expected to close in December 2020 and is subject to customary closing conditions including the receipt of regulatory approvals.

The ON THE BORDER^®brand provides Utz a growing Power Brand with significant scale in the attractive $6.2 billion retail sales tortilla chip sub-category, the #2 sub-category in salty snacks behind potato chips, as well as a meaningful presence in salsa, queso, and dips, and a strong innovation pipeline. The transaction also strengthens Utz’s national geographic footprint, with the majority of OTB’s sales in Expansion and Emerging geographies, and enhances the Company’s presence in the Mass and Club retail channels where OTBhas a strong position. Utz plans to use its robust sales, manufacturing, and distribution platform to expand ON THE BORDER^® tortilla chips, salsa, and queso further into channels where OTB is under-penetrated, including Grocery and Convenience, and to increase marketing and innovation investments behind the brand.

“This strategic acquisition will make Utz a significant competitor in the tortilla chip sub-category, where OTB holds the #3 position, and also provides us with a meaningful position in salsa, queso, and dips,” said Dylan Lissette, CEO of Utz. “In combination with our small but growing premium Tortiyahs!® brand, the integration of the ON THE BORDER^®brand will continue to improve Utz’s scale and product diversification, which are important success factors in salty snacks. This acquisition strengthens our competitive position, as well as our financial profile. We are confident this transaction will drive long-term value creation for our stockholders and help position us for continued long-term growth.”

“The Truco team is thrilled to be joining the Utz family of brands, and we are thankful to our partners at Insignia Capital for all of their support,” said Shane Chambers, CEO of Truco Enterprises. “ON THE BORDER^® is now one of the fastest growing tortilla chip brands, and the fastest growing dip brand in the category. Utz will be able to leverage its world class Direct Store Delivery network to help expand our brand into new markets. As a result, more consumers across the U.S will have access to our delicious, high quality tortilla chips and dips. I’m looking forward to working with Dylan and the rest of the Utz senior management team to continue our excellent growth trajectory.”

Strategic Rationale

The combination of Utz’s existing portfolio of Power Brands, including Utz^®, Zapp’s^®, Golden Flake^® Pork Skins, Good Health^®, Boulder Canyon^®, Hawaiian^® Brand, and Tortiyahs!^®, with the ON THE BORDER^® brand of tortilla chips, salsa, queso, and dips, will uniquely position Utz as a leading player in the $28 billion U.S. Salty Snack category. ON THE BORDER^® is currently the #3 brand in the $6.2 billion retail sales tortilla chip sub-category, the second largest sub-category of salty snacks. Tortilla chip retail sales grew 10% in the 52 weeks ending 10/4/20.¹ Further, ON THE BORDER^® is a significant player in the growing $1.5 billion retail sales salsa sub-category, and is the #3 brand in the $107 million retail sales queso sub-category. Following the transaction, Utz would have approximately $1.3 billion in total retail sales. The acquisition increases Utz’s presence with leading customers in the Mass and Club channels, and expands Utz’s geographic presence, providing approximately $190 million of retail sales in Utz’s Expansion and Emerging geographies. Along with these topline benefits, Utz expects run-rate cost synergies of at least $5 million.

Compelling Financial Benefits

Utz expects Truco Enterprises to generate approximately $195 million in Net Sales in fiscal 2020, an increase of approximately 32% compared to the prior year, and approximately $50 million of Truco Adjusted EBITDA in fiscal 2020, excluding expected run-rate cost synergies. Truco Enterprises’ business has benefited from the COVID-19 pandemic, which has helped drive strong performance in the company’s Mass, Club, and Grocery channels. The combined company’s fiscal 2020 Adjusted EBITDA margin, including the pre-acquisition Truco Adjusted EBITDA margin and the expected run-rate cost synergies, is expected to increase to approximately 16% from approximately 14% for Utz stand-alone, based on the Company’s latest guidance. The transaction is expected to be accretive to earnings in 2021 and beyond. Further, due to Truco Enterprises’ asset-light nature through the use of co-manufacturers, Truco Enterprises’ free cash flow contribution to Utz is meaningful, as capital expenditures are nominal and working capital averages approximately 6% of net sales. Utz expects to receive a tax basis step up from the acquisition of intellectual property associated with the trademark with an estimated net present value of approximately $20 million.

Transaction Details

Under the terms of the transaction agreement, Truco will become a wholly owned indirect subsidiary of Utz. The Company has debt financing commitments for the full transaction amount from BofA Securities and Goldman Sachs. Assuming Utz fully draws this commitment, net leverage immediately following the transaction would be approximately 4.8x on 2020E Combined Utz and Truco Adjusted EBITDA including expected cost synergies, and we would expect to return to our stated target net leverage range of 3-4x within 12-18 months after closing, consistent with the financial policy outlined in our SPAC business combination investor presentation.

Conference Call and Webcast Information

The Company will host a conference call to discuss this announcement today at 8:30 a.m. Eastern Time. Please visit the “Events & Presentations” section of Utz’s Investor Relations website at https://investors.utzsnacks.com/ to access the live listen-only webcast and presentation. Investors can also dial in over the phone by calling (833) 670-0764 from the U.S. and (343) 761-2595 internationally. The Company has also posted presentation slides and additional supplemental financial information, which are available now on Utz’s Investor Relations website.

A replay will be archived online, and is also available telephonically approximately two hours after the call concludes through Thursday, November 26, 2020, by dialing (800) 585-8367 from the U.S., or (416) 621-4642 from international locations, and entering confirmation code 8419588.

Advisors

Goldman Sachs is acting as lead financial advisor, BofA Securities is acting as financial advisor, and Cozen O’Connor is serving as legal counsel to Utz Brands, Inc. Harris Williams & Co. is acting as lead financial advisor and Kirkland & Ellis LLP is acting as legal counsel to Truco Enterprises.

About Utz Brands, Inc.

Utz manufactures a diverse portfolio of savory snacks under popular brands including Utz^®, Zapp’s^®, Golden Flake^®, Good Health^®, Boulder Canyon^®, Hawaiian^® Brand, and Tortiyahs!^® among others.

After nearly a century with strong family heritage, Utz continues to have a passion for exciting and delighting consumers with delicious snack foods made from top-quality ingredients. Utz’s products are distributed nationally and internationally through grocery, mass merchant, club, convenience, drug and other channels. Based in Hanover, Pennsylvania, Utz operates fourteen facilities located in Pennsylvania, Alabama, Arizona, Illinois, Indiana, Louisiana, Washington, and Massachusetts. For more information, please visit www.utzsnacks.com or call 1‐800‐FOR‐SNAX.

About Truco Enterprises

Truco is a leading developer and marketer of tortilla chips, salsa, and queso under the ON THE BORDER^® brand. The Company’s products are sold nationally through grocery retailers, club stores, and mass merchandisers. Truco Enterprises is the exclusive licensee of the ON THE BORDER^®brand for food products sold through retail. For more information, please visit www.ontheborderchips.com. Truco Enterprises is a portfolio company of Insignia Capital Group.

About Non-GAAP Financial Measures and Items Affecting Comparability

“Adjusted EBITDA” is defined as EBITDA further adjusted to exclude certain non-cash items, such as stock-based compensation, hedging and purchase commitments adjustments, and asset impairments; acquisition and integration costs; business transformation initiatives; and financing-related costs. Adjusted EBITDA is one of the key performance indicators we use in evaluating our operating performance and in making financial, operating, and planning decisions. We believe Adjusted EBITDA is useful to the users of this presentation and financial information contained in the presentation in the evaluation of Utz’s operating performance compared to other companies in the salty snack industry, as similar measures are commonly used by companies in this industry. We have historically reported an Adjusted EBITDA metric to investors and banks for covenant compliance. We also provide in this presentation, Adjusted EBITDA as a percentage of Net Sales, as an additional measure for readers to evaluate our Adjusted EBITDA margins on Net Sales. “Truco Adjusted EBITDA” is defined as Adjusted EBITDA further adjusted to exclude certain royalty fee costs which will not be incurred following the acquisition of Truco Enterprises. We use Truco Adjusted EBITDA to evaluate the estimated contribution of Truco Enterprises to our Adjusted EBITDA upon transaction close. We believe Truco Adjusted EBITDA is useful to the users of this release and financial information contained in the release to evaluate the estimated contribution of the Truco Enterprises acquisition to our Adjusted EBITDA and compare to other companies in the salty snack industry, as similar measures are commonly used by companies in this industry. “EBITDA” is defined as Net Income before Interest, Income Taxes, and Depreciation and Amortization. “Combined Utz and Truco Net Sales” is defined as the combined estimated fiscal 2020 Net Sales of Utz and Truco. “Combined Utz and Truco Adjusted EBITDA” is defined as Adjusted EBITDA plus Truco Adjusted EBITDA estimated for fiscal 2020. “Combined Adjusted EBITDA Margin” is defined as Combined Utz and Truco Adjusted EBITDA as a percentage of Combined Utz and Truco Net Sales in fiscal 2020.

A non-GAAP financial measure is a numerical measure of financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP). Utz believes that the non-GAAP financial measures are meaningful to investors because they increase transparency and assist investors to understand and analyze our ongoing operational performance. The financial measures are shown as supplemental disclosures in this release because they are widely used by the investment community for analysis and comparative evaluation. They also provide additional metrics to evaluate Utz’s operations and, when considered with both the GAAP results, provide a more complete understanding of Utz’s business than could be obtained absent this disclosure. These non-GAAP measures are not and should not be considered an alternative to the most comparable GAAP measures or any other figure calculated in accordance with GAAP, or as an indicator of operating performance. Utz’s calculation of the non-GAAP financial measures may differ from methods used by other companies. Utz’s management believes that the non-GAAP measures are important to having an understanding of Utz’s overall operating results in the periods presented. The non-GAAP financial measures are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. As new events or circumstances arise, these definitions could change.

Utz does not provide a reconciliation of Utz’s forward-looking Adjusted EBITDA, Adjusted EBITDA margins, Truco Adjusted EBITDA, Truco Adjusted EBITDA Margin or other such forward looking metrics to the most directly comparable GAAP financial measures because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for acquisition-related expenses, gains and losses and other charges reflected in the Company’s reconciliation of historic non-GAAP financial measures, the amounts of which, based on past experience, could be material.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this press release include, without limitation, statements related to the planned acquisition of Truco Enterprises and the timing and financing thereof; the expected impact of the planned acquisition, including without limitation, the expected impact on Utz’s overall market position, the projected Adjusted EBITDA and Adjusted EBITDA margins, Truco Adjusted EBITDA, and Truco Adjusted EBITDA margins included in the release, the projected Truco fiscal 2020 Net Sales included in the release, the predictions related to earnings included in the release, the projected retail sales included in the release, stated target net leverage and net leverage ranges included in the release and cash flow metrics included in the release; and the expected tax benefits of the acquisition. Utz’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, Utz’s expectations with respect to future performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside Utz’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: whether and when the required regulatory approvals will be obtained for this acquisition, whether and when the other closing conditions will be satisfied and whether and when the acquisition will close, whether and when Utz will be able to realize the expected financial results and accretive effect of the acquisition, and how customers, competitors, suppliers and employees will react to the acquisition; the risk that the recently completed Business Combination with Collier Creek Holdings disrupts plans and operations; the ability to recognize the anticipated benefits of such Business Combination, which may be affected by, among other things, competition and the ability of Utz to grow and manage growth profitably and retain its key employees; the outcome of any legal proceedings that may be instituted against Utz following the consummation of such Business Combination; changes in applicable law or regulations; costs related to the Business Combination; the inability of Utz to maintain the listing of Utz’s Class A Common Stock and public warrants on the New York Stock Exchange; the inability of Utz to develop and maintain effective internal controls; the risk that Utz’s gross profit margins may be adversely impacted by a variety of factors, including variations in raw materials pricing, retail customer requirements and mix, sales velocities and required promotional support; changes in consumers’ loyalty to the Company’s brands due to factors beyond Utz’s control; changes in demand for Utz’s products affected by changes in consumer preferences and tastes or if Utz is unable to innovate or market its products effectively; costs associated with building brand loyalty and interest in Utz’s products, which may be affected by Utz’s competitors’ actions that result in Utz’s products not suitably differentiated from the products of competitors; fluctuations in results of operations of Utz from quarter to quarter because of changes in promotional activities; the possibility that Utz may be adversely affected by other economic, business or competitive factors; and other risks and uncertainties set forth in the section entitled “Risk Factors” and “Forward-Looking Statements” in Utz’s Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission on November 5, 2020. Some of these risks and uncertainties may in the future be amplified by the COVID-19 outbreak and there may be additional risks that Utz considers immaterial or which are unknown. It is not possible to predict or identify all such risks. Utz cautions that the foregoing list of factors is not exclusive. Utz cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Utz does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, except as otherwise required by law.

___________________________

¹ Source: IRI data for MULO + C as of 10/4/20.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112005355/en/

Media Contacts

Marie Espinel, Katie Lewis or Hannah Arnold

The LAKPR Group

[email protected], [email protected] or [email protected]

Investor Contact

Chris Mandeville and Anna Kate Heller

ICR

[email protected]

203-682-8304

KEYWORDS: Pennsylvania United States North America

INDUSTRY KEYWORDS: Supermarket Retail Convenience Store Food/Beverage

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Posted on November 12, 2020 6:33 am
Radian Honored with MBA Diversity and Inclusion Leadership Award

Radian Honored with MBA Diversity and Inclusion Leadership Award

Award Spotlights Company’s Focus on Gender Parity and Inclusive & Diverse Hiring Practices

PHILADELPHIA–(BUSINESS WIRE)–
Radian Group Inc. (NYSE: RDN) has been honored by the Mortgage Bankers Association (MBA) as a recipient of its 2020 Diversity and Inclusion Residential Leadership Award. Winning companies were recognized for either Organizational Diversity & Inclusion or Market Outreach Strategies; Radian won the award for Organizational Diversity & Inclusion in the non-lender category. The MBA is the leading real estate finance trade association and has more than 2,200 member companies.

The award was announced during the MBA’s virtual 2020 Annual Convention & Expo. Radian is a second-time winner; it received an honorable mention in the Market Outreach Strategies category in 2016, the inaugural year for the awards.

In a press release, the MBA said, “Radian is being recognized for its Inclusion and Diversity (I&D) program, which boasted impressive metrics with a strong emphasis on talent acquisition. Radian’s I&D Leadership Council’s efforts focused on sourcing new talent from a diverse slate as well as offering numerous training opportunities for its employees.”

“At Radian we are driven both by our mission of helping Americans of every background sustainably achieve their dream of homeownership and by our commitment to furthering positive change at our company and beyond,” said Radian’s Chief Executive Officer Rick Thornberry. “We are proud of the achievements this award recognizes and will continue working hard to support minority homeownership and ensure that our workforce fully reflects the wonderful diversity of the communities we serve.”

Recent Inclusion and Diversity Highlights at Radian

In 2019, Radian launched a formal program for I&D, as well as an I&D Council, comprised of a group of cross-functional leaders, that helps drive the company’s I&D initiatives and strategic objectives. CEO Rick Thornberry also signed the “CEO Action for Diversity and Inclusion” pledge, which has been signed by more than 750 business leaders across various industries. By signing the pledge, Radian has committed to cultivating a trusting environment where all ideas and employees are welcomed.

Gender equality is a core component of the company’s overall I&D strategy. Radian has been recognized for two consecutive years on the Bloomberg Gender-Equality Index (GEI), which highlights companies dedicated to advancing women’s equality in the workplace. For example, the company increased the number of women on its board of directors in 2019 and again in 2020.

The company has also created a Hiring Manager Guide to promote inclusive hiring practices, developed targeted recruitment strategies, improved internal reporting capabilities regarding diversity, trained all managers on unconscious bias, and is carrying out an initiative to train all employees on unconscious bias. Additionally, current employee resource groups (ERGs) are being redefined, and new ones are being created.

CEO Rick Thornberry serves as the I&D Council’s Executive Sponsor, and the Council is led by two Co-Chairs: Emily Riley, EVP, Chief Marketing and Communications Officer, and Eric Ray, Sr EVP, Chief Digital Officer and Co-Head of Real Estate. It is also guided by HR Advisors Anita Scott, EVP, Chief Human Resources Officer and Dana Keyser, VP, HR Business Partner.

About Radian’s Corporate Responsibility Program

Radian’s I&D efforts are part of its broader Corporate Responsibility Program, which focuses on supporting the company’s commitment to environmental, health and safety, corporate social responsibility, corporate governance, sustainability and other public policy matters relevant to the company and its operations. This program aligns with Radian’s company-wide commitments to continue to be responsible corporate citizens with a positive impact in the community and with the people it serves.

A report and website provide further information about the company’s Corporate Responsibility programs and practices, including how its Environmental, Social and Governance (ESG) efforts help achieve the United Nations Sustainable Development Goals (UN SDGs) and correspond to the Sustainability Accounting Standards Board (SASB) standards for the Insurance sector.

About Radian

Radian Group Inc. (NYSE: RDN) is ensuring the American dream of homeownership responsibly and sustainably through products and services that include industry-leading mortgage insurance and a comprehensive suite of mortgage, risk, title, valuation, asset management and other real estate services. We are powered by technology, informed by data and driven to deliver new and better ways to transact and manage risk. Visit www.radian.com to learn more about how Radian is shaping the future of mortgage and real estate services.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112005352/en/

For the Media:

Rashi Iyer – Phone: 215.231.1167

Email: [email protected]

For Investors:

John Damian – Phone: 215.231.1383

Email: [email protected]

KEYWORDS: Pennsylvania United States North America

INDUSTRY KEYWORDS: Men Insurance Human Resources Finance Consumer Other Construction & Property Training Residential Building & Real Estate Professional Services Construction & Property Other Philanthropy Philanthropy Education Women

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Posted on November 12, 2020 6:33 am
CPI Aerostructures Reports Second Quarter 2020 Results

Second

Qua

rter 20

20

vs. Restated

Second

Quarter 201

9

Revenue of $19.7 million compared to $20.1 million;

Gross profit of $2.6 million compared to $2.2 million;

Gross margin was 13.1% compared to 11.2%;

Net loss of $0.6 million compared to $0.9 million;

Loss per diluted share of $0.05 compared to $0.07;

Cash flow from operations was $0.6 million compared to $(1.1) million;

Total backlog as of June 30, 2020 of $546.4 million including multi-year defense contracts of $491.1 million compared to total backlog as of June 30, 2019 of $394.0 million, including multi-year defense contracts of $319.1 million;

Total funded backlog of $209.0 million as of June 30, 2020, of which 98% or $205.6 million is comprised of defense orders, compared to total funded backlog of $116.0 as of June 30, 2019, of which 86%, or $99.7 million is comprised of defense orders.

Six Months 2020 vs. Restated Six Months 2019

Revenue of $36.6 million compared to $42.1 million;

Gross profit of $3.3 million compared to $4.7 million;

Gross margin of 9.0% compared to 11.2%;

Net loss of $3.4 million compared to $1.8 million;

Loss per share of $0.29 compared to $0.15;

Cash flow from operations of $(0.9) million compared to $(3.4) million

EDGEWOOD, N.Y., Nov. 12, 2020 (GLOBE NEWSWIRE) — CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE American: CVU) today announced financial results for the three- and six-month periods ended June 30, 2020.

“Through continued execution of our funded defense backlog, we delivered solid results for the second quarter,” said Douglas McCrosson, president and CEO of CPI Aero. “Revenue was essentially flat with last year, reflecting revenue increases in our defense business offset by weakness in our commercial aviation business. As expected, gross margin percentage rebounded from the first quarter and we continue to expect that full-year 2020 gross margin percentage will be higher than 2019. Notably, we generated operating cash flow for the quarter, demonstrating initial evidence of our working capital improvement initiatives. On a year-to-date basis, cash from operations improved $2.5 million vs. last year despite a headwind of cash payments of approximately $.8 million for non-recurring professional fees related to the restatement.”

“Subsequent to the quarter end, we applied for full forgiveness of our $4.8 Paycheck Protection Loan we received under the CARES Act in April. The forgiveness application has been accepted by our lender during the fourth quarter and forwarded to the Small Business Administration for review and final approval. We expect that upon SBA approval, the balance sheet will reflect the conversion of the loan to a grant and the amount of the loan that is forgiven will be included in future results as ‘Other Income’. Despite the revenue decline during the first half of the year, our funded defense backlog of $205.6 million at June 30 is fueling a strong second half of the year, both in terms of accelerating revenue and margin improvement, and we expect to end the year with higher revenue and operating income than 2019,” concluded McCrosson.

Conference Call

Management will host a conference call on Thursday, November 12 at 8:30 a.m. to discuss these results. After opening remarks there will be a question and answer period. Interested parties may participate in the call by dialing 844-378-6486 or 412-542-4181. Please call 10 minutes before the conference call is scheduled to begin and ask for the CPI Aero call. The conference call will also be broadcast live over the Internet. Additionally, a slide presentation will accompany the conference call. To listen to the live call, please go to www.cpiaero.com, click the Investor Relations section, then the Event Calendar. Please go to the website 15 minutes early to download and install any audio software. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days.

About CPI Aero

CPI Aero is a U.S. manufacturer of structural assemblies for fixed wing aircraft, helicopters and airborne Intelligence Surveillance and Reconnaissance and Electronic Warfare pod systems, primarily for national security markets. Within the global aerostructure supply chain, CPI Aero is either a Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1 manufacturers. CPI also is a prime contractor to the U.S. Department of Defense, primarily the Air Force. In conjunction with its assembly operations, CPI Aero provides engineering, program management, supply chain management, and MRO services. CPI Aero is included in the Russell Microcap® Index.

The above statements include forward looking statements that involve risks and uncertainties, which are described from time to time in CPI Aero’s SEC reports, including CPI Aero’s Form 10-K for the year ended December 31, 2019 and Form 10-Q for the three-month period ended March 31, 2020 and June 30, 2020.

CPI Aero® is a registered trademark of CPI Aerostructures, Inc. For more information, visit www.cpiaero.com, and follow us on Twitter @CPIAERO.

Contact:
Investor Relations Counsel:
LHA Investor Relations
Jody Burfening
(212) 838-3777
[email protected]
www.lhai.com

CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

June 30, December 31,

2020

(Unaudited) 2019

ASSETS

Current Assets:

Cash $6,749,201 $4,052,109

Restricted cash 1,380,684 1,380,684

Accounts receivable, net of allowance for doubtful accounts of $213,605 as of June 30, 2020 and $230,855 as of December 31, 2019 6,958,417 7,029,602

Contract assets 15,566,681 15,280,807

Inventory 7,658,508 5,891,386

Refundable income taxes 36,973 474,904

Prepaid expenses and other current assets 864,781 721,964

Total
current
assets 39,215,245 34,831,456

Operating lease right-of-use assets 3,122,360 3,886,863

Property and equipment, net 2,840,872 3,282,939

Intangibles, net 312,500 375,000

Goodwill 1,784,254 1,784,254

Other assets 123,013 179,068

Total assets $
47,398,244 $
44,339,580

LIABILITIES AND SHAREHOLDERS’ DEFICIT

Current Liabilities:

Accounts payable $9,078,736 $8,199,557

Accrued expenses 3,825,606 2,372,522

Contract liabilities 4,995,427 3,561,707

Loss contract reserve 2,101,123 2,650,963

Current portion of long-term debt 4,728,515 2,484,619

Operating lease liabilities 1,783,249 1,709,153

Income tax payable 1,216 1,216

Total current liabilities 26,513,872 20,979,737

Line of credit 26,738,685 26,738,685

Long-term operating lease liabilities 1,680,897 2,596,784

Long-term debt, net of current portion 3,077,992 1,764,614

Total liabilities 58,011,446 52,079,820

Shareholders’ Deficit:

Common stock – $.001 par value; authorized 50,000,000 shares, 11,855,606

and 11,818,830 shares, respectively, issued and outstanding 11,856 11,819

Additional paid-in capital 71,830,980 71,294,629

Accumulated Deficit (82,456,038 ) (79,046,688 )

Total Shareholders’ Deficit (10,613,202 ) (7,740,240 )

Total Liabilities and Shareholders’ Deficit $
47,398,244 $
44,339,580

CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

For the Three Months Ended

J
une 30
,

2020 2019

Revenue $19,740,767 $20,101,713

Cost of sales 17,160,698 17,858,070

Gross profit 2,580,069 2,243,643

Selling, general and administrative expenses 2,815,252 2,547,762

Loss from operations (235,183 ) (304,119 )

Interest expense 360,126 575,412

Loss before provision for income taxes (595,309 ) (879,531 )

Provision for income taxes 1,522 1,636

Net loss $(596,831 ) $(881,167 )

Loss per common share – basic $(0.05 ) $(0.07 )

Loss per common share – diluted $(0.05 ) $(0.07 )

Shares used in computing loss per common share:

Basic 11,855,404 11,817,713

Diluted 11,855,404 11,817,713

Posted on November 12, 2020 6:33 am
Avaya Cloud Office™ UCaaS Solution Introduced in Five Additional Markets

Avaya Cloud Office^™ UCaaS Solution Introduced in Five Additional Markets

Global adoption accelerates as solution becomes available in additional large economies of Europe

RALEIGH-DURHAM, N.C. & BELMONT, Calif.–(BUSINESS WIRE)–Avaya (NYSE: AVYA) and RingCentral Inc. (NYSE: RNG) today announced that Avaya Cloud Office^™ by RingCentral^®, the unified communications solution offering team messaging, video meetings, and cloud PBX is expanding availability to five of the largest economies in Europe in December – Austria, Belgium, Germany, Italy, and Spain.

With the addition of these five new countries, Avaya Cloud Office has expanded its global market presence to 12 countries since its U.S. launch in March, with additional markets planned for 2021. Today’s announcement comes just weeks after Avaya and RingCentral announced the general availability of Avaya Cloud Office in Ireland, France, and the Netherlands.

“The ongoing global rollout of Avaya Cloud Office is proceeding rapidly in response to high levels of partner and customer interest, and our efforts to meet that demand,” said Dennis Kozak, SVP, Business Transformation, Avaya. “Today’s announcement brings greater opportunities for European businesses to leverage a compelling UCaaS solution that meets the new needs of a mobile and distributed workforce. Avaya Cloud Office is becoming an important pillar in a meaningful number of our customers’ digital transformation strategies, many of which have been significantly accelerated as the world continues to adopt new ways of working. The solution delivers advanced communications features in a flexible and reliable package that meets increasingly varied business needs.”

Flexibility is a key draw for businesses adopting Avaya Cloud Office. According to the European Commission’s Summer 2020 Economic Forecast¹, the euro area economy is expected to rebound from 2020 and grow by 6.1 percent in 2021. Avaya Cloud Office helps to reduce business uncertainty associated with fluctuating economic forecasts with scalability, migration tools, enhanced devices support, and advanced telephony management among other capabilities.

“Frost & Sullivan’s latest analysis of the European UCaaS market finds that European businesses are expected to become increasingly distributed due to a growing number of remote and mobile workers, as well as expanding customer bases, reseller channels and supply chains across multiple countries and regions,” said Elka Popova, Vice President – Information & Communications Technologies, Frost & Sullivan. “This trend will drive demand for flexible technology consumption models, mobility, and advanced collaboration tools. In fact, 83% of global IT/telecom investment decision makers responding to a Frost & Sullivan survey report that they will have moved parts or all of their enterprise telephony workloads to the cloud by 2021. Avaya Cloud Office may provide considerable value to businesses looking to adopt feature-rich, flexible cloud solutions to improve business continuity and boost collaboration across distributed teams.”

In addition to the features that address current market needs, Avaya Cloud Office customers will enjoy new capabilities, such as:

Enhanced user experience: Avaya Cloud Office will now offer dark theme for easier viewing, integration with Microsoft O365 and Google contacts for easy communication, and desktop phone updates for better navigation.

New call features: will enable users to switch from a voice call to a video call with a single click, pick-up calls that are directed to another user’s extension, and setup queue overflow to extensions so that more calls are answered vs. getting routed to voicemail.

Enhanced video meeting experience and security: Avaya Cloud Office will include admin, host and moderator controls, and password protection. Also, participants will now have the ability to switch their view of the video gallery to one of two new layouts: Film Strip and Active Speaker. This will provide an improved user experience so if users choose, they can focus on who is speaking or presenting without distraction from other users.

Continued enhancement of migration tools: will help expedite the customer on-boarding to Avaya Cloud Office. Existing customer configurations such as page groups & user greetings, can now be quickly ported over to Avaya Cloud Office

“As European businesses continue to adapt to the impact from COVID-19, they need reliable, flexible communication solution that gives their workforce the power to communicate from anywhere, using any device, and in any mode,” said Phil Sorgen, Chief Revenue Officer, RingCentral. “Since jointly launching Avaya Cloud Office in March, and expanding its availability in new countries thereafter, we’ve helped organizations adapt quickly to the changing business environment, and now we look forward to doing the same for more customers across Europe.”

Avaya Cloud Office is scheduled to be available to new customers in these five countries starting December 2020. To support the latest geographic expansion of the solution, Avaya continues to pursue new master agent partnerships and extend existing partners to new countries to help meet growing regional demand. To date, six new partnership agreements have been implemented across five countries, with more to come.

About Avaya

Businesses are built by the experiences they provide, and everyday millions of those experiences are delivered by Avaya Holdings Corp. (NYSE: AVYA). Avaya is shaping what’s next for the future of work, with innovation and partnerships that deliver game-changing business benefits. Our cloud communications solutions and multi-cloud application ecosystem power personalized, intelligent, and effortless customer and employee experiences to help achieve strategic ambitions and desired outcomes. Together, we are committed to help grow your business by delivering Experiences that Matter. Learn more at http://www.avaya.com

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone™ (MVP), customer engagement and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral and the RingCentral logo are trademarks of RingCentral, Inc.

All trademarks identified by ®, TM, or SM are registered marks, trademarks, and service marks, respectively, of Avaya Inc. All other trademarks are the property of their respective owners.

Cautionary Note Regarding Forward-Looking Statements

This document contains certain “forward-looking statements.” All statements other than statements of historical fact are “forward-looking” statements for purposes of the U.S. federal and state securities laws. These statements may be identified by the use of forward looking terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “our vision,” “plan,” “potential,” “preliminary,” “predict,” “should,” “will,” or “would” or the negative thereof or other variations thereof or comparable terminology. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond its control. The factors are discussed in the Company’s Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”) available at www.sec.gov, and may cause the Company’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. The Company cautions you that the list of important factors included in the Company’s SEC filings may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this press release may not in fact occur. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Source: Avaya Newsroom

¹ Summer 2020 Economic Forecast: An even deeper recession with wider divergences https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1269

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112005252/en/

For Avaya Media Inquiries:

Alex Alias

[email protected]

RingCentral media inquiries:

Jyotsna Grover

[email protected]

KEYWORDS: California Europe United States North America

INDUSTRY KEYWORDS: Technology Mobile/Wireless Telecommunications Audio/Video Software Networks Internet Consumer Electronics VoIP

MEDIA:

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Posted on November 12, 2020 6:33 am
Armed Forces Services Corporation (AFSC) Rebrands as Magellan Federal

Armed Forces Services Corporation (AFSC) Rebrands as Magellan Federal

Initiative elevates commitment to reflect alignment in name and mission.

PHOENIX–(BUSINESS WIRE)–Magellan Health, Inc. (NASDAQ: MGLN) today announced the official rebrand of Armed Forces Services Corporation (AFSC) to Magellan Federal. The rebranding initiative positions Magellan Federal to effectively communicate its value and differentiation, and showcase the full breadth of capabilities to its target market.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201112005219/en/

“As we transition to Magellan Federal and leave behind the AFSC brand, we will continue to put individuals and their families at the center of our services, and deliver quality solutions with compassion, respect and dignity,” said Oscar Montes, chief executive officer, Magellan Federal. “In solidifying our identity as Magellan Federal, we remain a strong partner to our military and Federal customers, bringing next-generation, innovative solutions to the table.”

In 2016, Magellan Healthcare, Inc., acquired AFSC as a wholly-owned subsidiary, increasing both organizations’ capabilities and experience. Over the past four years, the combined Federal Government contract teams under Magellan Healthcare, Inc. have operated under a business unit identified as Magellan Federal. Magellan Federal has over 3,000 employees delivering services on more than 250 bases, installations, and agencies around the world. 

The new brand will encompass the exceptional services and experience of AFSC and the expanded resources and capabilities of Magellan Healthcare. As Magellan Federal, more can be offered to its employees, clients, and ultimately, the deserving military and federal families that they serve. Magellan Federal is a registered d/b/a of AFSC.

About Magellan Healthcare: Magellan Healthcare, Inc., the healthcare business unit of Magellan Health, Inc., offers solutions for complex conditions in the areas of behavioral health, medical specialty treatment and fully integrated managed care. Magellan Healthcare serves commercial health plans, employers, state and local governments, and the Federal government, including the Department of Defense. For more information, visit MagellanHealthcare.com.

About Magellan Health: Magellan Health, Inc., a Fortune 500 company, is a leader in managing the fastest growing, most complex areas of health, including special populations, complete pharmacy benefits and other specialty areas of healthcare. Magellan supports innovative ways of accessing better health through technology, while remaining focused on the critical personal relationships that are necessary to achieve a healthy, vibrant life. Magellan’s customers include health plans and other managed care organizations, employers, labor unions, various military and governmental agencies and third-party administrators. For more information, visit MagellanHealth.com.

(MGLN-GEN)

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112005219/en/

Media Contact: Lilly Ackley, [email protected], (860) 507-1923

Investor Contact: Darren Lehrich, [email protected], (860) 507-1814

KEYWORDS: United States North America Arizona

INDUSTRY KEYWORDS: Professional Services Health Insurance Practice Management Managed Care Pharmaceutical

MEDIA:

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Posted on November 12, 2020 6:33 am
InfuSystem Holdings, Inc. Reports Financial Results for the Third Quarter 2020

Revenue: $25.1 million, a 17% increase vs. Prior Year

Net Income: $2.9 million, an increase of 159%, and

Adjusted EBITDA: $7.5 million, a 46% increase

Company

Raises

Full Year 2020 Guidance

:

Revenues of $96 million – $97 million;
Adjusted EBITDA of $26 million – $27 million;
Operating Cash Flow of $18 million – $19 million

ROCHESTER HILLS, Michigan, Nov. 12, 2020 (GLOBE NEWSWIRE) — InfuSystem Holdings, Inc. (NYSE American: INFU), (“InfuSystem” or the “Company”), a leading national health care service provider, facilitating outpatient care for durable medical equipment manufacturers and health care providers, today reported financial results for the third quarter ended September 30, 2020.

Third

Quarter Highlights

:

Net revenues were $25.1 million, an increase of 17% vs. prior year.

Gross profit was $15.1 million, an increase of 24% vs. prior year.

Gross margin was 60.2%, an improvement of 3.2% vs. prior year.

Net income of $2.9 million, or $0.14 per diluted share, an improvement of $1.8 million compared to the net income of $1.1 million, or $0.05 per diluted share, during the prior year.

Adjusted earnings before interest, income taxes, depreciation, and amortization (“Adjusted EBITDA”) was $7.5 million, an increase of 46% vs. prior year.

Operating cash flow was $8.4 million, an increase of 61% vs. prior year.

Management Discussion

Richard DiIorio, chief executive officer of InfuSystem, said, “I am extremely pleased with how the team continues to execute as we build momentum, including achieving very solid third quarter financial results with strong double-digit year-over-year growth at both the top- and bottom-lines. For the second consecutive quarter, we delivered better than expected revenue and net income, highlighted by net revenue growth of 17%, net income growth of 159% and Adjusted EBITDA growth of 46%.”

“We have successfully transformed InfuSystem into a growth company by focusing on high touch service opportunities that leverage our best-in-class medical device fleet and our unique and highly-leverageable platform, which allows us to address high-growth opportunities by adding new devices and expanding into new therapies with minimal additional expense. Our core Integrated Therapy Service (“ITS”) segment provides services allowing patients to leave the hospital and continue their medical treatment at home in a safe manner. Oncology has been the backbone of the ITS platform, but we believe pain management and negative pressure will be the next growth drivers of the business. Our goal for pain management is to double revenues in each of the next two years and our goal in negative pressure is to capture 5% to 10% of the estimated $600 million home health market opportunity over the next 3 to 5 years.”

Mr. DiIorio, continued, “On the strength of the third quarter and our continuing momentum, we are raising our full year 2020 guidance with net revenues to be within the range of $96 million to $97 million; Adjusted EBITDA¹ to be within the range of $26 million to $27 million; and operating cash flow between the range of $18 million to $19 million. Our guidance reflects our best estimates given the current market conditions.”

“Our success is due to the commitment and dedication of our employees and I want to thank them for all their efforts during these unprecedented times. We look forward to continuing to meet the rising demand for in-home health care services by providing our patients and customers with industry-leading service and improving patient outcomes,” concluded Mr. DiIorio.

¹
Future period non-GAAP guidance includes adjustments for items not indicative of our core operations, which may include, without limitation, items included in the accompanying schedule, titled “GAAP to Non-GAAP
Reconciliation
.” Such adjustments may be affected by changes in ongoing assumptions and judgments, as well as nonrecurring, unusual or unanticipated charges, expenses or gains or other items that may not directly correlate to the underlying performance of our business operations. The exact amounts of these adjustments are not currently determinable but may be significant. It is therefore not practicable to provide the comparable GAAP measures or reconcile this non-GAAP guidance to the most comparable GAAP measures.

2020

Third

Quarter Financial Review

Results of operations

Net revenues for the third quarter ended September 30, 2020 were $25.1 million, an increase of $3.6 million, or 17%, compared to $21.5 million for the prior year third quarter. The increase was due to continued market penetration in Oncology and a strong market demand for infusion pumps in the DME Services segment.

ITS net revenue of $15.6 million during the 2020 third quarter increased $2.2 million, or 16%, primarily due to favorable changes in the competitive environment for oncology services, improved third party payor billing throughput and other market-related organic growth.

DME Services net revenue during the third quarter of 2020 of $9.5 million increased $1.5 million, or 18%, as compared to the prior year period. This performance was driven by strong market demand for infusion pumps attributable to the COVID-19 pandemic, expansion of our market share with national home infusion service providers and the addition of new devices to our product offerings stemming from new partnerships with certain device manufacturers. During the third quarter these activities mainly benefited rental revenues, which increased by $1.1 million. Sales of new and pre-owned medical equipment returned to normal levels during the 2020 third quarter, down from the peak amounts shipped during the 2020 second quarter.

Gross profit for the third quarter of 2020 of $15.1 million increased $2.9 million, or 24%, from $12.2 million for the third quarter of 2019. Gross margin increased to 60.2%, during this period as compared to 57.0% during the prior year third quarter, an increase of 3.2%. These improvements were driven by the increase in net revenues, improved operating leverage and favorable revenue mix. Both operating segments contributed to these improvements.

ITS gross profit was $10.1 million during the third quarter of 2020, an increase of $1.5 million, or 17%, compared to the prior year. ITS gross margin increased to 64.6%, an increase of 0.4% from the prior year, mainly due to improved leverage of fixed costs.

DME Services gross profit during the third quarter of 2020 was $5.0 million, an increase of $1.4 million, or 40%, over the prior year. The DME gross margin increased to 53.0%, compared to 44.7%, an increase of 8.3%, from the prior year. The improvement was primarily due to the increase in proportionally higher net revenues from equipment rentals, which typically have higher margins than other types of DME revenue such as sales of new medical equipment.

General and administrative (“G&A”) expenses for the third quarter of 2020 were $8.6 million, an increase of 24% from $6.9 million for the third quarter of 2019. The increase of $1.7 million was largely due to an increase in employee compensation reflecting higher staff levels supporting the growth in revenue volumes over the past 12 months, increases in short and long-term incentive compensation and annual inflation.

Net income for the third quarter of 2020 was $2.9 million, or $0.14 per diluted share, an improvement of $1.8 million, or 159%, as compared to the prior year net income of $1.1 million, or $0.05 per diluted share.

Adjusted EBITDA, a non-GAAP measure, was $7.5 million, or 30.0% of net revenue, and increased by $2.4 million or 46% over Adjusted EBITDA for the prior year quarter of $5.2 million, or 24.0% of prior year net revenue. This improvement in the Adjusted EBITDA margin is indicative of our ability to deliver sustainable strong revenue growth while leveraging our existing cost structure.

Balance sheet
, cash flows
and liquidity

During the third quarter of 2020, operating cash flow increased to $8.4 million, a 61% increase over the prior year third quarter. The increase was primarily a result of a significant increase in net income, as adjusted for noncash items, and a reduction in working capital during the 2020 third quarter as compared to increases during the prior year period. Working capital decreases during the 2020 third quarter were due in part to the return of working capital elements including inventory and accounts receivable to normal operating levels which were down from the elevated amounts at the end of the 2020 second quarter related to our COVID-19 preparedness initiatives. Our cash used in investing activities, which mainly includes purchases of medical devices, totaled $0.5 million during the 2020 third quarter representing a $7.2 million reduction as compared to the prior year and a $4.0 million decrease from the 2020 second quarter. This reduction was the result of an acceleration in the timing of planned purchases of medical devices favoring the 2020 first half allocated with our COVID-19 response activities.

The favorable operating cash flow was partially used to pay down our revolving line of credit which increased available liquidity and reduced our outstanding debt. Our net debt, a non-GAAP measure (calculated as total debt of $34.8 million less cash and cash equivalents of $1.9 million) as of September 30, 2020 was $32.9 million representing a reduction of $7.5 million during the 2020 third quarter. As of September 30, 2020, we had $17.5 million in available liquidity, including cash and undrawn amounts under our revolving credit line and our capital equipment bank facility, as compared to $11.7 million at the beginning of the quarter, an increase of $5.8 million. The increase was primarily due to our favorable operating cash flow and reduced capital expenditures, partially offset by amortization of our term debt. We estimate that our available liquidity will continue to increase during the 2020 fourth quarter as operating cash flows are expected to continue to exceed cash outlays for capital expenditures during the balance of the year.

Full Year

2020

Guidance

InfuSystem is raising its annual guidance for the full year 2020 with net revenues estimated to be within the range of $96.0 million to $97.0 million; Adjusted EBITDA estimated to be within the range of $26.0 million to $27.0 million; and operating cash flow projected to be within the range of $18.0 million to $19.0 million. The higher 2020 guidance is a result of the continued execution of our growth strategy, and includes estimated net favorable impacts related to COVID-19 of $2.0 million to $3.0 million in Adjusted EBITDA which may not recur in future periods once the pandemic ceases to play an important role in the market. Previously, the Company issued estimated full year 2020 guidance of net revenues to be within the range of $94.0 million to $97.0 million; Adjusted EBITDA estimated to be within the range of $23.0 million to $26.0 million; and operating cash flow to be within the range of $16.0 million to $18.0 million.

The full year 2020 guidance reflects management’s current expectation for operational performance, given the current market conditions, as well as various COVID-19 related uncertainties. The Company cannot predict the degree to which COVID-19 will ultimately, negatively or positively, impact future business, financial condition, results of operations and cash flows. It may also heighten other risks to which the Company is subject, including risks discussed in our most recent annual report on Form 10-K. The financial guidance is subject to risks and uncertainties applicable to all forward-looking statements as described elsewhere in this press release.

Effect of Coronavirus (COVID-19)

The COVID-19 global pandemic has caused significant disruption to the United States and global economies and has severely impacted the overall health care industry and the related supply chain. The focus on preparing and treating large numbers of COVID-19 patients has resulted in significant shifts in market demand and related shortages in certain types of medical equipment, including infusion pumps, while simultaneously reducing capacity for non-COVID-19 services such as elective surgeries. These market dynamics resulted in a significant net favorable impact to InfuSystem during the second and third quarters. This impact included increased net revenues and margins in certain service lines that were partially offset by reductions in others. For example, the elevated levels of sales of new and pre-owed medical equipment sales in the second quarter will likely not recur in future quarters while a portion of the increased volume of DME rental revenues seen in the second and third quarters will likely continue in the near term but may slowly diminish over time. Pain management revenues decreased significantly in the second quarter as a result of the reduced capacity for elective surgeries yet recovered during the third quarter and is growing again. It is uncertain what additional impact the current second wave of COVID-19 will have on the demand for our products and services. However, we continue to prepare for future disruptions like the ones experienced during the second and third quarters which, if they occur, will likely include both positive and negative effects in varying amounts.

Conference Call

The Company will also conduct a conference call for all interested investors on Thursday, November 12, 2020, at 9:00 a.m. Eastern Time to discuss its third quarter 2020 financial results. The call will include discussion of Company developments, forward-looking statements and other material information about business and financial matters.

To participate in this call, please dial (833) 366-1127 or (412) 902-6773, or listen via a live webcast, which is available in the investors section of the Company’s website at https://ir.infusystem.com/. A replay of the call will be available by visiting https://ir.infusystem.com/ for the next 90 days or by calling (877) 344-7529 or (412) 317-0088, confirmation code 10149683, through November 19, 2020.

Non-GAAP Measures

This press release contains information prepared in conformity with GAAP as well as non-GAAP financial information. The Company believes that the non-GAAP financial measures presented in this press release provide useful information to the Company’s management, investors, and other interested parties about the Company’s operating performance because they allow them to understand and compare the Company’s operating results during the current periods to the prior year periods in a more consistent manner. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP, and similarly titled non-GAAP measures may be calculated differently by other companies. The Company calculates those non-GAAP measures by adjusting for non-recurring items that are not part of the normal course of business and that the Company’s management does not believe will have similar comparable year-over-year items or for non-operating items. A reconciliation of those measures to the most directly comparable GAAP measures is provided below.

About

InfuSystem

Holdings, Inc.

InfuSystem Holdings, Inc. (NYSE American: INFU), is a leading national health care service provider, facilitating outpatient care for durable medical equipment manufacturers and health care providers. INFU services are provided under a two-platform model. The lead platform is Integrated Therapy Services (“ITS”), providing the last-mile solution for clinic-to-home healthcare where the continuing treatment involves complex durable medical equipment and services. The ITS segment is comprised of Oncology, Pain Management, and Wound Therapy businesses. The second platform, Durable Medical Equipment Services (“DME Services”), supports the ITS platform and leverages strong service orientation to win incremental business from its direct payor clients. The DME Services segment is comprised of direct payor rentals, pump and consumable sales, and biomedical services and repair. Headquartered in Rochester Hills, Michigan, the Company delivers local, field-based customer support and also operates Centers of Excellence in Michigan, Kansas, California, Massachusetts and Ontario, Canada.

Forward-Looking Statements

The financial results in this press release reflect preliminary results, which are not final until the Company’s Form 10-Q for the quarter ended September 30, 2020 is filed. In addition, certain statements contained in this press release 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, such as statements relating to future actions, business plans, objectives and prospects, future operating or financial performance. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “strategy,” “future,” “likely,” variations of such words, and other similar expressions, as they relate to the Company, are intended to identify forward-looking statements. Forward-looking statements are subject to factors, risks and uncertainties that could cause actual results to differ materially, including, but not limited to, the uncertain impact of the COVID-19 pandemic, our dependence on estimates of collectible revenue, potential litigation, changes in third-party reimbursement processes, changes in law and other risk factors disclosed in the Company’s most recent annual report on Form 10-K and, to the extent applicable, quarterly reports on Form 10-Q. All forward-looking statements made in this press release speak only as of the date hereof. We do not undertake any obligation to update any forward-looking statements to reflect future events or circumstances, except as required by law.

Additional information about
InfuSystem
Holdings, Inc. is available at

www.infusystem.com

.

FINANCIAL TABLES FOLLOW

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended

Nine Months Ended

(in thousands, except share and per share data)

September 30,

September 30,

2020 2019 2020 2019

Net revenues $ 25,125 $ 21,489 $ 72,677 $ 59,405

Cost of revenues 10,003 9,251 28,914 25,470

Gross profit 15,122 12,238 43,763 33,935

Selling, general and administrative expenses:

Provision for doubtful accounts 11 160 534 (30 )

Amortization of intangibles 1,075 1,077 3,225 3,326

Selling and marketing 2,196 2,402 7,263 7,480

General and administrative 8,587 6,936 24,949 20,945

Total selling, general and administrative 11,869 10,575 35,971 31,721

Operating income 3,253 1,663 7,792 2,214

Other expense:

Interest expense (283 ) (488 ) (1,018 ) (1,436 )

Other income (expense) 8 (11 ) (20 ) (71 )

Income before income taxes 2,978 1,164 6,754 707

Provision for income taxes (38 ) (29 ) (92 ) (151 )

Net income $ 2,940 $ 1,135 $ 6,662 $ 556

Net income per share:

Basic $ 0.15 $ 0.06 $ 0.33 $ 0.03

Diluted 0.14 0.05 0.31 0.03

Weighted average shares outstanding:

Basic 20,179,056 19,781,527 20,060,416 19,690,737

Diluted 21,663,414 20,679,431 21,637,481 20,503,933

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

SEGMENT REPORTING

(UNAUDITED)

Three Months Ended

September 30, Better/

(in thousands, except share and per share data)
2020 2019 (Worse)

Net revenues:

ITS $ 15,638 $ 13,468 $ 2,170

DME Services (inclusive of inter-segment revenues) 10,946 8,989 1,957

Less: elimination of inter-segment revenues (1,459 ) (968 ) (491 )

Total 25,125 21,489 3,636

Gross profit (exclusive of certain inter-segment allocations):

ITS 11,554 9,620 1,934

DME Services 3,568 2,618 950

Total 15,122 12,238 2,884

Gross profit (inclusive of certain inter-segment allocations) (a):

ITS 10,095 8,652 1,443

DME Services 5,027 3,586 1,441

Total 15,122 12,238 2,884

(a) Inter-segment allocations are for cleaning and repair services performed on medical equipment.

Nine Months Ended

September 30, Better/

(in thousands, except share and per share data)
2020 2019 (Worse)

Net revenues:

ITS $ 45,369 $ 37,182 $ 8,187

DME Services (inclusive of inter-segment revenues) 31,263 25,012 6,251

Less: elimination of inter-segment revenues (3,955 ) (2,789 ) (1,166 )

Total 72,677 59,405 13,272

Gross profit (exclusive of certain inter-segment allocations):

ITS 33,435 26,271 7,164

DME Services 10,328 7,664 2,664

Total 43,763 33,935 9,828

Gross profit (inclusive of certain inter-segment allocations) (a):

ITS 29,480 23,482 5,998

DME Services 14,283 10,453 3,830

Total 43,763 33,935 9,828

(a) Inter-segment allocations are for cleaning and repair services performed on medical equipment.

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

GAAP TO
NON-GAAP RECONCILIATION

(UNAUDITED)

NET INCOME TO ADJUSTED EBITDA:

Three Months Ended Nine Months Ended

September 30, September 30,

(in thousands)
2020 2019 2020 2019

GAAP net income 2,940 1,135 6,662 556

Adjustments:

Interest expense 283 488 1,018 1,436

Income tax provision 38 29 92 151

Depreciation 2,485 2,051 7,267 5,727

Amortization 1,075 1,077 3,225 3,326

Non-GAAP EBITDA $ 6,821 $ 4,780 $ 18,264 $ 11,196

Stock compensation costs 659 250 1,222 780

Office move expenses – – 17 –

Early termination fees for capital leases – – – 190

Exited facility costs – – – 6

Management reorganization/transition costs 10 6 471 51

ASC 842 accounting principle change – 108 – 216

Certain other non-recurring costs 53 24 87 371

Non-GAAP Adjusted EBITDA $ 7,543 $ 5,168 $ 20,061 $ 12,810

GAAP Net Revenues $ 25,125 $ 21,489 $ 72,677 $ 59,405

Non-GAAP Adjusted EBITDA Margin 30.0 % 24.0 % 27.6 % 21.6 %

Non-GAAP Adjusted EBITDA Margin is defined as Non-GAAP Adjusted EBITDA as a percentage of GAAP Net Revenues.

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET
S

(UNAUDITED)

As of

September 30, December 31,

(in thousands, except share data)

2020 2019

ASSETS

Current assets:

Cash and cash equivalents $ 1,939 $ 2,647

Accounts receivable, net 13,927 12,097

Inventories 3,973 2,899

Other current assets 1,587 1,662

Total current assets 21,426 19,305

Medical equipment for sale or rental 1,359 1,306

Medical equipment in rental service, net of accumulated depreciation 36,110 33,225

Property & equipment, net of accumulated depreciation 4,286 4,037

Intangible assets, net 12,238 15,463

Operating lease right of use assets 4,784 5,733

Other assets 105 155

Total assets $ 80,308 $ 79,224

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable $ 6,936 $ 7,962

Current portion of long-term debt 7,759 8,082

Other current liabilities 5,009 5,803

Total current liabilities 19,704 21,847

Long-term debt, net of current portion 27,034 30,295

Deferred income taxes 120 104

Operating lease liabilities, net of current portion 4,061 4,644

Total liabilities 50,919 56,890

Stockholders’ equity:

Preferred stock, $.0001 par value: authorized 1,000,000 shares; none issued – –

Common stock, $.0001 par value: authorized 200,000,000 shares; issued and

outstanding 23,755,421 and 20,236,932, respectively, as of September 30, 2020

and 23,400,625 and 19,882,136, respectively, as of December 31, 2019 2 2

Additional paid-in capital 84,092 83,699

Retained deficit (54,705 ) (61,367 )

Total stockholders’ equity 29,389 22,334

Total liabilities and stockholders’ equity $ 80,308 $ 79,224

INFUSYSTEM HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

Nine Months Ended

September 30,

(in thousands)
2020 2019

OPERATING ACTIVITIES

Net income $ 6,662 $ 556

Adjustments to reconcile net income to net cash provided by operating activities:

Provision for doubtful accounts 534 (30 )

Depreciation 7,267 5,727

Loss on disposal of medical equipment and other assets 150 390

Gain on sale of medical equipment (2,949 ) (1,264 )

Amortization of intangible assets 3,225 3,326

Amortization of deferred debt issuance costs 13 29

Stock-based compensation 1,222 780

Deferred income taxes 16 76

Changes in assets – (Increase)/Decrease:

Accounts receivable (1,490 ) (735 )

Inventories (1,074 ) (514 )

Other current assets 75 (233 )

Other assets (114 ) (326 )

Changes in liabilities – Increase/(Decrease):

Accounts payable and other liabilities (869 ) 1,752

NET CASH PROVIDED BY OPERATING ACTIVITIES $ 12,668 $ 9,534

INVESTING ACTIVITIES

Purchase of medical equipment (11,955 ) (15,005 )

Purchase of property and equipment (865 ) (1,415 )

Proceeds from sale of medical equipment, property and equipment 3,870 2,239

NET CASH USED IN INVESTING ACTIVITIES (8,950 ) (14,181 )

FINANCING ACTIVITIES

Principal payments on term loans, equipment line, revolving credit facility and other financing (35,458 ) (3,915 )

Cash proceeds from 2019 equipment line, equipment line, revolving credit facility and other financing 31,861 7,462

Debt issuance costs – (3 )

Common stock repurchased to satisfy statutory withholding on employee

stock-based compensation plans (1,269 ) (295 )

Cash proceeds from stock plans 190 237

Common stock – issued 250 –

NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (4,426 ) 3,486

Net change in cash and cash equivalents (708 ) (1,161 )

Cash and cash equivalents, beginning of period 2,647 4,318

Cash and cash equivalents, end of period $ 1,939 $ 3,157

Posted on November 12, 2020 6:33 am
Docebo Reports Third Quarter 2020 Results

Docebo Reports Third Quarter 2020 Results

Annual Recurring Revenue (“ARR”) growth of 55% and positive Adjusted EBITDA

TORONTO–(BUSINESS WIRE)–Docebo Inc. (TSX:DCBO) (“Docebo” or the “Company”), a leading AI-powered learning platform, today announced financial results for the three and nine months ended September 30, 2020. All amounts are expressed in US dollars unless otherwise stated.

“Customer momentum remained strong in the third quarter as we reported 55% year over year growth in ARR and 54% year over year growth in subscription revenue, driven by another quarter of record new logo and upsell performance,” said Claudio Erba, CEO and Founder of Docebo. “This resulted in our first quarter of positive Adjusted EBITDA as a public company as we are seeing strong returns from our investments in growth. We will continue to focus on increasing our sales reach, expanding our relationships with our customers and broadening our product offering to capitalize on the tailwinds we are seeing for Docebo and the LMS industry.”

Third Quarter 2020 Financial Highlights

Revenue of $16.1 million, an increase of 52.0% from the comparative period in the prior year

Subscription revenue of $15.1 million, representing 93.8% of total revenue, and an increase of 54.1% from the comparative period in the prior year

Annual Recurring Revenue^1,2 as at September 30, 2020 of $64.6 million, an increase of $22.9 million from $41.7 million at the end of the third quarter of 2019, or an increase of 55%

Gross profit of $13.2 million, or 82.1% of revenue, a 200 bps improvement from the comparative period in the prior year

Net loss of $1.2 million, compared to net loss of $3.7 million for the comparative period in the prior year

Positive Adjusted EBITDA² of $0.6 million, or 3.6% of revenue, compared to ($1.4) million, or (13.1%) of revenue, for the comparative period in the prior year

Positive cash flow generated from operating activities of $0.5 million, compared to $(1.9) million for the comparative period in the prior year

Free cash flow² was near break-even at ($0.140) million compared to $(1.986) million for the comparative period in the prior year

Completed bought deal offering comprised of 500,000 common shares issued from treasury for net proceeds of $18.1 million (C$23.8 million) and 1,225,000 common shares sold by the certain shareholders, including the exercise in full by the underwriters of their overallotment option to purchase 225,000 common shares

Cash and cash equivalents of $60.8 million as at September 30, 2020

¹ Please refer to “Key Performance Indicators” section of this press release.

²Please refer to “Non-IFRS Measures and Reconciliation of Non-IFRS Measures” section of this press release.

Third Quarter 2020 Business Highlights

Docebo is now used by 2,025 customers, an increase from 1,632 customers at the end of September 30, 2019¹

Strong growth in average contract value, calculated as total Annual Recurring Revenue divided by the number of active customers, increasing from $25,551 to $31,901¹

Signed a customer expansion agreement with one of the largest operators of quick-service restaurants in the world to scale their learning across the globe. Originally signed in November of 2018 to train in 3,000 restaurant locations, Docebo will now extend training across 24,000 locations worldwide beginning in 2021, and will include some of world’s most prominent and iconic quick-service restaurant brands

Signed a customer expansion agreement with Syngenta Group, the world’s largest agrochemical company, to scale internal training across multiple departments across their global organization

Signed a new customer agreement with Amazon Web Services (“AWS”) to power its training and certification products across the globe

Added new customer agreements with Economical Insurance, SiriusXM and the World Anti-Doping Agency (WADA) during the third quarter of 2020

Received first revenues from a second OEM partner, just one month after completing the agreement

In the third quarter of 2020, Docebo received 14 Learning Excellence awards with Brandon Hall Group alongside their customers

Docebo has also been recognized as the #1 Learning Management System of 2020 by eLearningIndustry and has been included on the list of Canada’s top growing companies for 2020 by The Globe and Mail Report on Business

Subsequent to quarter end, launched Docebo Learning Impact following the completion of the acquisition of forMetris Société par Actions Simplifiée, a leading SaaS-based learning impact evaluation platform

¹ Historically, in calculating average contract value, all references to the number of customers or companies we serve included separate accounts per customer based on their installation(s) count. For the third quarter of the fiscal year ended December 31, 2020 and going forward, any separate accounts that our customers may have will be aggregated and counted as one customer based on the contracted customer for the purposes of calculating our average contract value to provide a more precise understanding of this metric. The following table outlines our average contract value from the start of fiscal year 2019 using this updated calculation method and historically reported values:

Q1 2019

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Q2 2020

$

$

$

$

$

$

Updated Methodology

Number of customers

1,491

1,549

1,632

1,725

1,831

1,923

Average contract value (in thousands of US dollars)

$22,468

$23,848

$25,551

$27,362

$28,454

$29,616

As Previously Reported

Number of customers

1,596

1,651 ¹

1,712 ¹

1,808

1,938

2,046

Average contract value (in thousands of US dollars)

$20,990

$22,374

$24,357

$26,106

$26,883

$27,835

¹ Includes number of customers from OEM contracts

Third Quarter 2020 Results

Selected Financial Measures

Three months ended September 30,

Nine months ended September 30,

2020

2019

Change

Change

2020

2019

Change

Change

$

$

$

%

$

$

$

%

Subscription Revenue

15,101

9,802

5,299

54.1

%

40,699

26,036

14,663

56.3

%

Professional Services

995

784

211

26.9

%

3,462

3,109

353

11.3

%

Total Revenue

16,096

10,586

5,510

52.0

%

44,161

29,145

15,016

51.5

%

Gross Profit Margin

13,213

8,476

4,737

55.9

%

35,597

23,087

12,510

54.2

%

Percentage of Total Revenue

82.1

%

80.1

%

80.6

%

79.2

%

Key Performance Indicators

As at September 30,

2020

2019

Change

Change %

Annual Recurring Revenue (in millions of US dollars)

64.6

41.7

22.9

54.9

%

Average Contract Value (in thousands of US dollars)

31.9

25.6

6.3

24.6

%

Customers

2,025

1,632

393

24.1

%

Non-IFRS Metrics

Three months ended September 30,

Nine months ended September 30,

2020

2019

Change

Change

2020

2019

Change

Change

$

$

$

%

$

$

$

%

Adjusted EBITDA

577

(1,388

)

1,965

(142

)

(2,698

)

(4,552

)

1,854

(40.7

)%

Free Cash Flow

(140

)

(1,986

)

1,846

(93.0

)%

(2,882

)

(1,395

)

(1,487

)

106.6

%

Conference Call

Management will host a conference call on Thursday, November 12, 2020 at 8:00 am ET to discuss these third quarter results.

To access the conference call, please dial 416-764-8688 or 1-888-390-0546. The audited financial statements for the three and nine months ended September 30, 2020 and Management’s Discussion & Analysis for the same period have been filed on SEDAR at www.sedar.com. Alternatively, these documents along with a presentation in connection with the conference call can be accessed online at https://investors.docebo.com.

An archived recording of the conference call will be available until November 19, 2020 and for 90 days on our website. To listen to the recording, call 416-764-8677 or 1-888-390-0541 and enter passcode 296548.

Forward-looking Information

This press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information may relate to our future financial outlook and anticipated events or results and may include information regarding our financial position, business strategy, the impact of COVID-19 on our business, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information.

In some cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects”, “is expected”, “an opportunity exists”, “budget”, “scheduled”, “estimates”, “outlook”, “forecasts”, “projection”, “prospects”, “strategy”, “intends”, “anticipates”, “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or, “will”, “occur” or “be achieved”, and similar words or the negative of these terms and similar terminology. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances.

This forward-looking information includes, but is not limited to, statements regarding industry trends; our growth rates and growth strategies; addressable markets for our solutions; the achievement of advances in and expansion of our platform; expectations regarding our revenue and the revenue generation potential of our platform and other products; our business plans and strategies; and our competitive position in our industry.

Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that, while considered by the Company to be appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to:

the Company’s ability to execute on its growth strategies;

the impact of changing conditions in the global corporate e-learning market;

increasing competition in the global corporate e-learning market in which the Company operates;

fluctuations in currency exchange rates and volatility in financial markets;

the extent of the impact of COVID-19 and measures taken to contain the virus on our results of operations and overall financial performance;

changes in the attitudes, financial condition and demand of our target market;

developments and changes in applicable laws and regulations; and

such other factors discussed in greater detail under the “Risk Factors” section of our Annual Information Form dated March 11, 2020 (“AIF”), which is available under our profile on SEDAR at www.sedar.com.

If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. The opinions, estimates or assumptions referred to above and described in greater detail in the “Summary of Factors Affecting our Performance” section of our MD&A for the three and nine months ended September 30, 2020 and in the “Risk Factors” section of our AIF, should be considered carefully by prospective investors.

Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to us or that we presently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents our expectations as of the date specified herein, and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.

Additional information relating to Docebo, including our Annual Information Form, can be found on SEDAR at www.sedar.com.

About Docebo

Docebo is redefining the way enterprises learn by applying new technologies to the traditional corporate learning management system market. Docebo provides an easy-to-use, highly configurable learning platform with the end-to-end capabilities designed to make customers, partners, and employees love their learning experience.

Results of Operations

The following table outlines our consolidated statements of loss and comprehensive loss for the following periods:

Three months ended September 30,

Nine months ended September 30,

(In thousands of US dollars, except per share data)

2020

2019

2020

2019

$

$

$

$

Revenue

16,096

10,586

44,161

29,145

Cost of revenue

2,883

2,110

8,564

6,058

Gross profit

13,213

8,476

35,597

23,087

Operating expenses

General and administrative

3,575

3,219

11,260

9,342

Sales and marketing

5,796

5,711

17,559

13,104

Research and development

3,265

2,175

9,476

6,434

Share-based compensation

512

99

1,317

251

Foreign exchange (gain) loss

440

148

(1,607

)

102

Depreciation and amortization

279

207

771

594

13,867

11,559

38,776

29,827

Operating loss

(654

)

(3,083

)

(3,179

)

(6,740

)

Finance expense, net

78

228

37

707

Loss on change in fair value of convertible promissory notes

—

—

—

776

Other income

(19

)

(18

)

(57

)

(57

)

Loss before income taxes

(713

)

(3,293

)

(3,159

)

(8,166

)

Income tax expense

445

449

754

449

Net loss for the year

(1,158

)

(3,742

)

(3,913

)

(8,615

)

Other comprehensive loss

Item that may be reclassified subsequently to income:

Foreign currency translation loss (gain)

117

(471

)

2,035

(69

)

Item not subsequently reclassified to income:

Actuarial loss

—

10

—

30

117

(461

)

2,035

(39

)

Comprehensive loss

(1,275

)

(3,281

)

(5,948

)

(8,576

)

Loss per share – basic and diluted

(0.04

)

(0.16

)

(0.14

)

(0.37

)

Weighted average number of common shares outstanding – basic and diluted

28,748,652

23,760,149

28,560,806

23,122,698

Key Statement of Financial Position Information

(In thousands of US dollars, except percentages)

September 30,

2020

December 31,

2019

Change

Change

$

$

$

%

Cash and cash equivalents

60,835

46,278

14,557

31.5

%

Total assets

88,738

63,860

24,878

39.0

%

Total liabilities

43,740

32,479

11,261

34.7

%

Total long-term liabilities

4,477

3,938

539

13.7

%

Non-IFRS Measures and Reconciliation of Non-IFRS Measures

This press release makes reference to certain non-IFRS measures including key performance indicators used by management and typically used by our competitors in the software-as-a-service (“SaaS”) industry. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore not necessarily 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 our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. These non-IFRS measures and SaaS metrics are used to provide investors with supplemental measures of our operating performance and liquidity and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures, including SaaS industry metrics, in the evaluation of companies in the SaaS industry. Management also uses non-IFRS measures and SaaS industry metrics in order to facilitate operating performance comparisons from period to period, the preparation of annual operating budgets and forecasts and to determine components of executive compensation. The non-IFRS measures and SaaS industry metrics referred to in this press release include “Annual Recurring Revenue”, “Adjusted EBITDA” and “Free Cash Flow”.

Key Performance Indicators

We recognize subscription revenues ratably over the term of the subscription period under the provisions of our agreements with customers. The terms of our agreements, combined with high customer retention rates, provides us with a significant degree of visibility into our near-term revenues. Management uses a number of metrics, including the ones identified below, to measure the Company’s performance and customer trends, which are used to prepare financial plans and shape future strategy. Our key performance indicators may be calculated in a manner different than similar key performance indicators used by other companies.

Annual Recurring Revenue. We define Annual Recurring Revenue as the annualized equivalent value of the subscription revenue of all existing contracts (including Original Equipment Manufacturer (“OEM”) contracts) as at the date being measured, excluding non-recurring implementation, support and maintenance fees. Our customers generally enter into one to three year contracts which are non-cancellable or cancellable with penalty. All the customer contracts, including those for one-year terms, automatically renew unless cancelled by our customers. Accordingly, our calculation of Annual Recurring Revenue assumes that customers will renew the contractual commitments on a periodic basis as those commitments come up for renewal. Subscription agreements may be subject to price increases upon renewal reflecting both inflationary increases and the additional value provided by our solutions. In addition to the expected increase in subscription revenue from price increases over time, existing customers may subscribe for additional features, learners or services during the term. We believe that this measure provides a fair real-time measure of performance in a subscription-based environment. Annual Recurring Revenue provides us with visibility for consistent and predictable growth to our cash flows. Our strong total revenue growth coupled with increasing Annual Recurring Revenue indicates the continued strength in the expansion of our business and will continue to be our target on a go-forward basis.

Annual Recurring Revenue was as follows as at September 30:

2020

2019

Change

Change %

Annual Recurring Revenue (in millions of US dollars)

64.6

41.7

22.9

54.9%

Adjusted EBITDA

Adjusted EBITDA is used by management as a supplemental measure to review and assess operating performance and, in conjunction with the financial statements, provides a more comprehensive picture of factors and trends affecting our business. Management believes that Adjusted EBITDA is a useful measure of operating performance and our ability to generate cash-based earnings, as it provides a useful view of operating results by excluding the effects of financing and investing activities which removes the effects of interest, depreciation and amortization expenses as non-cash items that are not reflective of our underlying business performance, and other one-time or non-recurring expenses. The Company defines Adjusted EBITDA as net loss excluding taxes (if applicable), net finance expense, depreciation and amortization, loss on change in fair value of convertible promissory notes, loss on disposal of assets (if applicable), share based compensation, transaction related expenses and foreign exchange gains and losses. Management believes that these adjustments are appropriate in making Adjusted EBITDA an approximation of cash-based earnings from operations before capital replacement, financing, and income tax charges. Adjusted EBITDA does not have a standardized meaning under IFRS and is not a measure of operating income, operating performance or liquidity presented in accordance with IFRS and is subject to important limitations. The Company’s definition of Adjusted EBITDA may be different than similarly titled measures used by other companies.

The following table reconciles Adjusted EBITDA to net loss for the periods indicated:

Three months ended September 30,

Nine months ended September 30,

(In thousands of US dollars)

2020

2019

2020

2019

$

$

$

$

Net loss

(1,158

)

(3,742

)

(3,913

)

(8,615

)

Finance (income) expense, net⁽¹⁾

78

228

37

707

Depreciation and amortization⁽²⁾

279

207

771

594

Income tax expense

445

449

754

449

Loss on change in fair value of convertible promissory notes⁽³⁾

—

—

—

776

Share-based compensation⁽⁴⁾

512

99

1,317

251

Other income⁽⁵⁾

(19

)

(18

)

(57

)

(57

)

Foreign exchange (gain) loss⁽⁶⁾

440

148

(1,607

)

102

Transaction related expenses⁽⁷⁾

—

1,241

—

1,241

Adjusted EBITDA

577

(1,388

)

(2,698

)

(4,552

)

Notes:

Finance expense for the three and nine months ended September 30, 2019 is primarily related to interest and accretion expense on the secured debentures and convertible promissory notes. As these were repaid in October 2019 with the net proceeds from the IPO, no further interest expenses on debt have been incurred during the three and nine months ended September 30, 2020. In fiscal 2020 interest income was earned on the net proceeds from the IPO as the funds are held within short-term investments in highly liquid marketable securities which is offset by interest expenses incurred on lease obligations.

Depreciation and amortization expense is primarily related to depreciation expense on right-of-use assets (“ROU assets”) and property and equipment. As a result of the adoption of IFRS 16 – Leases effective January 1, 2019 depreciation and amortization expense for the three and nine months ended September 30, 2020 includes amortization expense on ROU assets of $190 and $523, respectively (2019 – $150 and $432).

These costs are related to the change in valuation of our convertible promissory notes from period to period, which is a non-cash expense and is thus not indicative of our operating profitability. These costs should be adjusted for in accordance with management’s view of Adjusted EBITDA as an approximation of cash-based earnings from operations before capital replacement, financing, and income tax charges. In May 2019, these convertible promissory notes were converted into common shares. There will be no further impact on our results of operations from such convertible promissory notes and the Company does not currently intend to issue any additional convertible promissory notes.

These expenses represent non-cash expenditures recognized in connection with the issuance of share-based compensation to our employees and directors.

Other income is primarily comprised of rental income from subleasing office space.

These non-cash losses relate to foreign exchange (gain) loss.

These expenses are related to our IPO and include professional, legal, consulting and accounting fees that are non-recurring and would otherwise not have been incurred and are not considered an expense indicative of continuing operations.

Free Cash Flow

Free Cash Flow is defined as cash used in operating activities less additions to property and equipment and non-current assets. The following table reconciles our cash flow used in operating activities to Free Cash Flow:

Three months ended September 30,

Nine months ended September 30,

(In thousands of US dollars)

2020

2019

2020

2019

$

$

$

$

Cash flow used in operating activities

455

(1,893

)

(1,891

)

(1,089

)

Additions to property and equipment and non-current assets

(595

)

(93

)

(991

)

(306

)

Free Cash Flow

(140

)

(1,986

)

(2,882

)

(1,395

)

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112005187/en/

Dennis Fong, Investor Relations

(416) 283-9930

[email protected]

KEYWORDS: North America Canada

INDUSTRY KEYWORDS: Software Technology Mobile/Wireless Other Technology

MEDIA:

Logo

Posted on November 12, 2020 6:33 am
BiomX Reports Third Quarter 2020 Financial Results and Announces Expanded Portfolio of Phage Therapy Candidates

BiomX Reports Third Quarter 2020 Financial Results and Announces Expanded Portfolio of Phage Therapy Candidates

Company unveils BOLT (BacteriOphage Lead to Treatment) platform designed for more rapid and efficient development of phage therapy

BOLT enables the Company to expand portfolio with two additional phage therapy programs in cystic fibrosis and atopic dermatitis and allows consolidation of two programs into one product candidate, BX003, for the treatment of both inflammatory bowel disease (IBD) and primary sclerosing cholangitis (PSC)

Company to host conference call today at 8:00 a.m. Eastern Time

NESS ZIONA, Israel–(BUSINESS WIRE)–
BiomX Inc. (NYSE American: PHGE), a clinical stage company developing natural and engineered phage therapies targeting specific pathogenic bacteria, today reported financial results and a business update for the third quarter ended September 30, 2020.

“BiomX continues to lead in the field of phage therapy by implementing proprietary processes for accelerated development,” commented Jonathan Solomon, Chief Executive Officer of BiomX. “Our novel BOLT platform, which is the result of an accumulated five years of technological development, significantly reduces the time required to reach clinical proof-of-concept. The improved efficiency of this platform allows us to expand our portfolio with two significant new programs without affecting our projected cash runway.”

Continued Mr. Solomon, “This expansion includes near term opportunities with phage therapy candidates. We expect clinical proof of concept results in patients for cystic fibrosis and atopic dermatitis by the end of 2021 and mid-2022, respectively. Improvements in R&D also allow for the consolidation of our inflammatory bowel disease (IBD) and primary sclerosing cholangitis (PSC) programs. We now have one improved, broad host range product candidate, BX003, targeting Klebsiella pneumoniae, a potential pathogen implicated in both diseases to be developed for both indications. The consolidation of these programs results in an updated timeline for Phase 1b/2a results with BX003 expected in mid-2022. In addition, we expect data from a planned Phase 2 cosmetic clinical study in acne-prone skin in the second quarter of 2021.”

About the BOLT Platform

The newly unveiled BOLT (“BacteriOphage Lead to Treatment”) R&D platform enables BiomX to rapidly develop, manufacture and formulate a phage treatment targeting a given pathogenic bacteria. The platform allows BiomX to conduct an initial clinical proof of concept study in patients (Phase 2 results) within approximately 12-18 months of project initiation¹. The ability to move quickly into clinical development is also driven by the strong safety profile of naturally-occurring phage, as corroborated by regulatory guidance provided to BiomX by the FDA as relating to its IBD program, allowing the Company to bypass safety studies and studies in healthy volunteers and to proceed directly to patient studies.

Recent Highlights and Key Upcoming Milestones

Acne-Prone Skin

The Company expects to initiate a Phase 2 cosmetic clinical study of phage therapy BX001 in the first quarter of 2021, with results expected in the second quarter of 2021.

Cystic Fibrosis

A new program for development of a phage therapy targeting chronic respiratory infections caused by Pseudomonas aeruginosa, a main contributor to morbidity and mortality in patients with cystic fibrosis. Phase 2 results of a proof of concept clinical study evaluating safety and efficacy in patients are expected in the fourth quarter of 2021.

Atopic Dermatitis

A new program for development of a topically administered phage therapy targeting Staphylococcus aureus, a bacterium linked to the development and exacerbation of inflammation in atopic dermatitis. Phase 2 results of a proof of concept clinical study evaluating safety and efficacy in patients are expected in the first half of 2022.

IBD and PSC

Results of a Phase 1a study are expected in the first quarter of 2021. The study is designed to provide safety and pharmacokinetic data, including an assessment of delivery of viable phage to the gastrointestinal system as a key exploratory endpoint.

Results of the Phase 1b/2a study aimed at evaluating the efficacy of BX003, improved broad host range phage therapy, in reduction of the target bacteria Klebsiella pneumoniae are expected by mid-2022.

Tumor-Targeted Delivery in Cancer

BiomX is exploring phage mediated delivery of therapeutic payloads to Fusobacterium nucleatum bacteria residing in the tumors of patients with colorectal cancer. Preclinical results from animal studies evaluating use of phage therapy in combination with checkpoint inhibitors are expected in the second quarter of 2021.

Biomarker Discovery Collaboration with Boehringer Ingelheim

In September 2020, BiomX entered into a collaboration with Boehringer Ingelheim to utilize the BiomX XMarker microbiome-based biomarker discovery platform to potentially identify biomarkers associated with patient phenotypes in IBD.

Third Quarter 2020 Financial Results

Cash balance and short-term deposits as of September 30, 2020, were $64.5 million, compared to $82.4 million as of December 31, 2019. The decrease was primarily due to net cash used in operating activities.

Research and development expenses were $6.4 million in the third quarter of 2020, compared to $2.9 million in the same period of 2019. The increase was primarily due to growth in the number of employees which resulted in an increase of salaries and related expenses and due to an increase in depreciation and amortization expenses.

General and administrative expenses were $2.4 million in the third quarter of 2020, compared to $1.8 million in the same period in 2019. The increase was primarily due to expenses associated with operating as a public company, such as directors’ and officers’ insurance, filing and legal and accounting expenses.

Net loss was $8.8 million in the third quarter of 2020, compared to $4.3 million in the same period of 2019.

Net cash used in operating activities was $17.3 million for the nine months ended September 30, 2020, compared to $10.5 million in the same period of 2019.

Financial Expectations

Existing cash, cash equivalents and short-term deposits are expected to be sufficient to fund the Company’s current operating plan through mid-2022.

Conference Call Details

BiomX management will host a conference call and webcast today at 8:00 a.m. ET to report financial results for the third quarter of 2020 and provide business updates. To participate in the conference call, please dial 1-877-407-0724 (U.S.), 1-809-406-247 (Israel) or 1-201-389-0898 (international). A live and archived webcast of the call will be available in the Investors section of the company’s website at www.biomx.com.

About BiomX

BiomX is a clinical-stage biotechnology company developing both natural and engineered phage cocktails designed to target and destroy bacteria that affect the appearance of skin, as well as target bacteria in the treatment of chronic diseases, such as inflammatory bowel disease, primary sclerosing cholangitis, cystic fibrosis and colorectal cancer. BiomX discovers and validates proprietary bacterial targets and customizes phage compositions against these targets.

Additional information is available at www.biomx.com, the content of which does not form a part of this press release.

Safe Harbor Language

This press release contains express or implied “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 can be identified by words such as: “target,” “believe,” “expect,” “will,” “may,” “anticipate,” “estimate,” “would,” “positioned,” “future,” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. For example, when BiomX discusses the potential opportunities for and benefits of the BOLT platform, the expected timing of initiation and receipt of results from its various pre-clinical and clinical studies as well as the acceptance of regulatory agencies of the design thereof, its collaboration with Boehringer Ingelheim and the potential thereof and the sufficiency of its funding through mid-2022, BiomX is making forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on BiomX management’s current beliefs, expectations and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of BiomX control. Actual results and outcomes may differ materially from those indicated in the forward-looking statements. Therefore, investors should not rely on any of these forward-looking statements and should review the risks and uncertainties described under the caption “Risk Factors” in BiomX’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q and additional disclosures BiomX makes in its filings with the Securities and Exchange Commission (the “SEC”), which are available on the SEC’s website at www.sec.gov. Forward-looking statements are made as of the date of this press release, and except as provided by law BiomX expressly disclaims any obligation or undertaking to update forward-looking statements.

¹ In certain indications the length of clinical proof of concept may be longer depending on indication, identity of target bacteria, recruitment rate, cohort size and other factors.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112005113/en/

Noel Kurdi, BiomX

VP Investor Relations and Strategy

(646) 241-4400

[email protected]

Media contact:

Rich Allan, Solebury Trout

(646) 378-2958

[email protected]

KEYWORDS: United States North America Israel Middle East New York

INDUSTRY KEYWORDS: Biotechnology Pharmaceutical Health Clinical Trials

MEDIA:

Posted on November 12, 2020 6:33 am
MEDIA ADVISORY: WWF-Canada’s guide to Gifts That Change the World

WWF-Canada’s new collection lets you give a gift that gives back long after the holidays are over

TORONTO, Nov. 12, 2020 (GLOBE NEWSWIRE) — ‘Tis the season for giving — and for giving back! This holiday season, shoppers can choose from a range of new WWF-Canada products that can literally help change the world by supporting the conservation organization’s efforts to restore habitats, reverse wildlife decline and fight climate change.

WWF-Canada’s guide to Gifts that Change the World includes:

New wildlife species for adoption:

Four new species — the collared pika, red kangaroo, ring-tailed lemur and platypus –have joined the WWF-Canada plush collection this year. Dozens of past favourites have also returned, including polar bear, narwhal, bumblebee, sloth, grey wolf and giant panda.

Each $45 to $65 symbolic adoption kit includes a high-quality stuffed animal, personalized adoption certificate, educational poster about the species and conservation work the purchase supports, and a charitable tax receipt all wrapped up in a reusable WWF tote bag.

Purchasers can also choose to give a card-only symbolic adoption for $25. Each stunning wildlife card comes with an embedded adoption certificate, all enclosed in a beautiful envelope.

Virtual gifts
These e-cards are perfect for friends and family who you can’t see in person this year or as a last-minute gift for someone who has everything. Sent straight to their inbox, these gifts may be virtual, but their impact is very real.

Keep a bumblebee buzzing for $55

Give an orca the gift of silence for $45

Help reindeer thrive for $25

Clothing and accessories for kids and adults

This adorable panda print face masklets you show your support for wildlife.

WWF-branded T-shirts and hoodiesare eco-friendly and let you wear your love of nature on your sleeve.

Our branded wool mittensare 100 per cent cruelty-free and will keep your friends and family warm.

A panda-branded leash
lets you spoil the pets on your gift list

Sustainable stocking stuffers
Instead of single-use trinkets, fill their stockings with a WWF-branded reusable straw set, reusable produce sacks and a JOCO coffee cup.

How to order:

Visit wwf.ca/shop or call 1-800-26-PANDA.

Canada Post is experiencing high parcel volumes and has implemented important COVID-19 safety measures in their processing facilities which can result in shipping delays. To ensure delivery by Dec. 25, please place your order well before Dec. 13 for urban addresses or Dec. 11 for rural addresses. Priority shipping options are available.

Gifts that Change the World media assets are available for download.

About World Wildlife Fund Canada

WWF-Canada creates solutions to the environmental challenges that matter most for Canadians. We work in places that are unique and ecologically important, so that nature, wildlife and people thrive together. Because we are all wildlife. For more information, visit wwf.ca.

Attachments

Platypus Plush

Website image

Emily Vandermeer WWF-Canada 519-616-1556 [email protected]

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