Hercules Capital Announces Date for Release of Fourth Quarter and Full-Year 2020 Financial Results and Conference Call

Hercules Capital Announces Date for Release of Fourth Quarter and Full-Year 2020 Financial Results and Conference Call

PALO ALTO, Calif.–(BUSINESS WIRE)–Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or the “Company”), the largest and leading specialty financing provider to innovative venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, today announced that it has scheduled its fourth quarter and full-year 2020 financial results conference call for Tuesday, February 23, 2021, at 2:00 p.m. PT (5:00 p.m. ET). Hercules will release its financial results after market close that same day.

To listen to the call, please dial (877) 304-8957 (or (408) 427-3709 internationally) and reference Conference ID: 1585214 if asked, approximately 10 minutes prior to the start of the call. A taped replay will be made available approximately three hours after the conclusion of the call and will remain available for seven days. To access the replay, please dial (855) 859-2056 or (404) 537-3406 and enter the passcode 1585214.

A live webcast of the fourth quarter and full-year 2020 financial results conference call will also be available on the investor relations section of the Company’s website at www.htgc.com. An archived webcast replay will be available on the Company’s website for 90 days following the conference call.

About Hercules Capital, Inc.

Hercules Capital, Inc. (NYSE: HTGC) is the leading and largest specialty finance company focused on providing senior secured venture growth loans to high-growth, innovative venture capital-backed companies in a broad variety of technology, life sciences and sustainable and renewable technology industries. Since inception (December 2003), Hercules has committed more than $11.0 billion to over 520 companies and is the lender of choice for entrepreneurs and venture capital firms seeking growth capital financing. Companies interested in learning more about financing opportunities should contact [email protected], or call 650.289.3060.

Hercules’ common stock trades on the New York Stock Exchange (NYSE) under ticker symbol HTGC. In addition, Hercules has two retail bond issuances of5.25% Notes due 2025 (NYSE: HCXZ) and 6.25% Notes due 2033 (NYSE: HCXY).

Michael Hara

Investor Relations and Corporate Communications

Hercules Capital, Inc.

650-433-5578

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Professional Services Finance

MEDIA:

Logo
Logo

IFG Ends Successful IP Infringement Case in South Africa

BAKERSFIELD, Calif., Feb. 09, 2021 (GLOBE NEWSWIRE) — INTERNATIONAL FRUIT GENETICS LLC (IFG) After several years of sometimes acrimonious lawsuits, IFG has finally come to the end of infringement proceedings in which it sought to protect its proprietary grape varietals in the Western Cape, South Africa.

During 2010, IFG concluded a suite of licensing, planting, and marketing agreements with a table grape grower in Paarl, South Africa, as well as other associated farming entities. In terms of the agreements, the grower was licensed to plant, grow and market several IFG grape varieties in South Africa, which was done successfully over several years. However, during an inspection, IFG determined that this grower had unlawfully propagated some of the varietals beyond license limits and was growing and propagating an IFG varietal before protection for the variety was granted in South Africa. Upon further investigation, IFG determined that the grower had stolen a slip of the varietal from one of the IFG founder’s vineyards in California while visiting and had transported it to South Africa, where it was grafted, propagated, and commercially grown.

Due to the growers’ unlawful conduct, IFG canceled all of the agreements it had with the licensee and asked that the grower to cease all use of IFG’s proprietary plant material and destroy all IFG proprietary plant material by cutting off all vines below the graft union. Unfortunately, the grower refused to do so, forcing IFG to take more drastic measures, including the freezing of bank accounts and contempt of court proceedings for failure to comply with the court’s orders.

Ultimately, when it became clear to the grower that IFG was taking the necessary steps required to protect their intellectual property, the grower agreed and complied by cutting the vines below the graft union on all IFG varietals.

This case marks a stunning success for IFG and for all owners of plant breeders’ rights, which are an extremely valuable form of intellectual property. Respect of these rights allows breeders globally to make the continued investments, ensuring that the table grape industry has a bright and vibrant future.

“It was a long road, and we are glad to come to the end of it, but we have no regrets,” said Andy Higgins, CEO of IFG. “Our intellectual property rights are the heart of our business, and we need to protect them. We will not hesitate to take similar action in other parts of the world should there be a need to do so.”

For more information, visit www.ifg.world

Media Contact:

Olivia Riley
Bastion Elevate
949-522-0549
[email protected]



Perion Reports 51% YoY Revenue Growth in 2020, Record Quarter Since Inception

Perion Reports 51% YoY Revenue Growth in 2020, Record Quarter Since Inception

Display and Social Advertising achieved 69% annual revenue growth, propelled by new interactive Connected Television (iCTV) offering and Content Monetization solution

GAAP Net Income increased by 53% YOY during the fourth quarter to $9M

TEL AVIV & NEW YORK–(BUSINESS WIRE)–
Perion Network Ltd. (NASDAQ: PERI), a global advertising technology company that delivers its Synchronized Digital Branding solution across the three main pillars of digital advertising – ad search, social media and display / video / CTV advertising – announced today its financial results for the fourth quarter and twelve months ended December 31, 2020.

Fourth Quarter 2020 Highlights

  • Revenues were $118.3 million, a 51% increase year over year;
  • Display and social advertising revenues were $68.4 million, a 159% increase year over year;
  • CTV revenues were $6.5 million, 132% increase from previous quarter;
  • Search advertising and other revenues were $49.9 million, a 4% decrease year over year;
  • Average Daily Traffic Search achieved the highest level of 15.7M, 32% increase year over year;
  • In the fourth quarter of 2020, GAAP SG&A was 13% of revenues, compared to the 18% of revenues in the fourth quarter of 2019;
  • Net cash provided by operating activities were $12.8M, a 14% increase year over year.

Fourth Quarter and Full Year 2020 Results Summary*

(In millions, except per share data)

 

Three months ended

 

Year ended

 

 

December 31,

 

December 31,

 

 

2020

 

2019

 

%

 

2020

 

2019

 

%

 

Display and Social Advertising revenues

$

68.4

 

$

26.4

 

+159%

 

$

148.7

 

$

87.9

 

+69%

 

Search Advertising and other revenues

$

49.9

 

$

51.8

 

-4%

 

$

179.4

 

$

173.6

 

+3%

 

Total Revenues

$

118.3

 

$

78.3

 

+51%

 

$

328.1

 

$

261.5

 

+25%

 

GAAP Net Income

$

9.0

 

$

5.9

 

+53%

 

$

10.2

 

$

12.9

 

-21%

 

Non-GAAP Net Income

$

13.8

 

$

8.9

 

+56%

 

$

26.6

 

$

21.6

 

+23%

 

Adjusted EBITDA

$

15.3

 

$

12.2

 

+26%

 

$

32.8

 

$

32.4

 

+1%

 

Net cash provided by operating activities

$

12.8

 

$

11.2

 

+14%

 

$

22.0

 

$

44.7

 

-51%

 

GAAP Diluted Earnings Per Share

$

0.30

 

$

0.22

 

+36%

 

$

0.36

 

$

0.49

 

-27%

 

Non-GAAP Diluted Earnings Per Share

$

0.45

 

$

0.32

 

+41%

 

$

0.91

 

$

0.83

 

+10%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Reconciliation of GAAP to Non-GAAP measures follows.

Doron Gerstel, Perion’s CEO, commented, “Perion closed 2020 delivering strong revenues and earnings that well exceeded our 2019 results. The effectiveness of our content monetization engine as a holistic, one-stop solution for brands and agencies, and the acceleration of our Connected TV advertising offering, were the main factors behind 25% revenue growth for the full year. Despite that travel advertisers that traditionally contribute 15% or $10 million in revenues in 2019 dramatically reduced their digital ad spend, we continued to drive healthy growth thanks to our diversification strategy, allowing us to capitalize on any shifting budget between the three main pillars of digital advertising: display, search and social.”

“During the fourth quarter, we renewed and expanded our strategic partnership with Microsoft Bing for an additional four years,” Gerstel added. “The continuing collaboration with Microsoft is a significant factor in Perion’s multi-year strategic plan to achieve sustainable and highly profitable double-digit annual revenue growth, with a desired target of $500 million in annual revenue by 2023.”

“We enter 2021 in a strong position,” Gerstel concluded. “In January, we completed a follow-on public offering, which was both upsized and oversubscribed, generating net proceeds of more than $61 million. This successful transaction further solidifies our balance sheet and better positions Perion to capitalize on the growth opportunities in front of us as we prudently evaluate accretive and synergistic acquisitions to bolster our content monetization platform, expand our technology moat, and that are capable of driving predictable and profitable growth.”

Financial Comparison for the Fourth Quarter of 2020

Revenues: Revenues increased by 51%, from $78.3 million in the fourth quarter of 2019 to $118.3 million in the fourth quarter of 2020. This increase was primarily attributable to a 159% increase in Display and Social Advertising revenues, resulting from the acceleration of our Connected TV advertising offering and the contribution of our content monetization offering. Search Advertising and other revenues decreased by 4% as a result of lower RPMs, partially offset by growth in number of daily searches.

Customer Acquisition Costs and Media Buy (“CAC”): CAC in the fourth quarter of 2020 were $74.8 million, or 63% of revenues, compared to $41.1 million, or 53% of revenues, in the fourth quarter of 2019. The increase as a percentage of revenues is primarily due to the acquisitions of Content IQ and Pub Ocean as well as product mix.

Net Income: In the fourth quarter of 2020, GAAP net income was $9.0 million, or 8% of revenues, compared to the $5.9 million, or 8% of revenues in the fourth quarter of 2019.

Non-GAAP Net Income: In the fourth quarter of 2020, non-GAAP net income was $13.8 million, or 12% of revenues, compared to the $8.9 million, or 11% of revenues in the fourth quarter of 2019. A reconciliation of GAAP to non-GAAP net income is included in this press release.

Adjusted EBITDA: In the fourth quarter of 2020, Adjusted EBITDA was $15.3 million, or 13% of revenues, compared to $12.2 million, or 16% of revenues, in the fourth quarter of 2019. A reconciliation of GAAP Net Income to Adjusted EBITDA is included in this press release.

Cash and Cash Flow from Operations: As of December 31, 2020, cash and cash equivalents and short-term bank deposits were $60.4 million. Cash provided from operations in the fourth quarter of 2020 was $12.8 million, compared to $11.2 million in the fourth quarter of 2019.

Short-Term Debt, Long-term Debt: As of December 31, 2020, total debt was $8.3 million, compared to $22.9 million at September 30, 2020 and $16.7 million at December 31, 2019. During the fourth quarter of 2020, the Company returned $12.5 million drawn during the third quarter of 2020 out of its secured credit line and made scheduled paydown of $2.1 million of its credit facility balance.

Financial Comparison for the full year of 2020

Revenues: Revenues increased by 25%, from $261.5 million in 2019 to $328.1 million in 2020. This increase was driven by 69% growth in Display and Social Advertising primarily resulting from the acceleration of our Connected TV advertising offering and the contribution of our content monetization offering. Search Advertising and other revenues increased by 3% due to a higher number of daily searches partially offset by lower RPMs.

Customer Acquisition Costs and Media Buy (CAC): CAC in 2020 were $197.6 million, or 60% of revenues, as compared to $135.9 million, or 52% of revenues, in 2019. The increase as a percentage of revenues is primarily due to the acquisitions of Content IQ and Pub Ocean as well as product mix.

Net Income: During 2020, GAAP net income was $10.2 million, or 3% of revenues, compared to the $12.9 million, or 5% of revenues in 2019.

Non-GAAP Net Income: During 2020, Non-GAAP net income was $26.6 million, or 8% of revenues, compared to the $21.6 million, or 8% of revenues in 2019.

Adjusted EBITDA: In 2020, Adjusted EBITDA was $32.8 million, or 10% of revenues, compared to $32.4 million, or 12% of revenues in 2019.

Cash Flow from Operations: Cash provided from operations in 2020 decreased by 51%, from $44.7 million in 2019 to $22.0 million in 2020, the primary reason for the decrease compared to the prior year is mainly due to working capital needs of approximately $10 million in connection with the acquisitions of CIQ and Pub Ocean.

Outlook

In 2021, management expects to generate revenue of $350 to $370 million and Adjusted EBITDA of $35 million to $37 million. The mid-point of the guidance range reflects 10% growth and 10% Adjusted EBITDA margin.

Conference Call

Perion will host a conference call to discuss the results today, Tuesday, February 9, 2021 at 8:30 a.m. ET. Details are as follows:

  • Conference ID: 7553088
  • Dial-in number from within the United States: 1- 888-394-8218
  • Dial-in number from Israel: 1809 212 883
  • Dial-in number (other international): 1- 323-701-0225
  • Playback available until Tuesday, February 16, 2021 by calling 1-844-512-2921 (United States) or 1-412-317-6671 (international). Please use PIN code 7553088 for the replay
  • Link to the live webcast accessible at http://public.viavid.com/index.php?id=142903

About Perion Network Ltd.

Perion is a global technology company that delivers strategic business solutions that enable brands and advertisers to efficiently “Capture and Convince” users across multiple platforms and channels, including interactive connected television – or iCTV. Perion achieves this through its Synchronized Digital Branding capabilities, which are focused on high impact creative; content monetization; its branded search network, in partnership with Microsoft Bing; and social media management that orchestrates and optimizes paid advertising. This diversification positions Perion for growth as budgets shift across categories.

Non-GAAP measures

Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude share-based compensation expenses, retention and acquisition related expenses, revaluation of acquisition related contingent consideration, amortization of acquired intangible assets and the related taxes thereon, non-recurring expenses, foreign exchange gains (losses) associated with ASC-842, as well as changes in fair value of earnout contingent consideration. The Company excludes from its GAAP financial measures the fair value revaluations of both, the convertible bonds and the related derivative instrument, and by doing so, the non-GAAP measures reflect the Company’s results as if the convertible bonds were originally issued and denominated in US dollars, which is the Company’s functional currency. Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) is defined as operating income excluding stock-based compensation expenses, depreciation, acquisition related items consisting of amortization of intangible assets and goodwill, acquisition related expenses, gains and losses recognized on changes in the fair value of contingent consideration arrangements.

The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage and evaluate our business and make operating decisions, and we believe that they are useful to investors as a consistent and comparable measure of the ongoing performance of our business. However, our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. A reconciliation between results on a GAAP and non-GAAP basis is provided in the last table of this press release.

Forward Looking Statements

This press release contains historical information and forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of Perion. The words “will”, “believe,” “expect,” “intend,” “plan,” “should” and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptions and expectations of Perion with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results, performance or achievements of Perion to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, or financial information, including, among others, the failure to realize the anticipated benefits of companies and businesses we acquired and may acquire in the future, risks entailed in integrating the companies and businesses we acquire, including employee retention and customer acceptance; the risk that such transactions will divert management and other resources from the ongoing operations of the business or otherwise disrupt the conduct of those businesses, potential litigation associated with such transactions, and general risks associated with the business of Perion including intense and frequent changes in the markets in which the businesses operate and in general economic and business conditions, loss of key customers, unpredictable sales cycles, competitive pressures, market acceptance of new products, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, whether referenced or not referenced in this press release. Various other risks and uncertainties may affect Perion and its results of operations, as described in reports filed by Perion with the Securities and Exchange Commission from time to time, including its annual report on Form 20-F for the year ended December 31, 2019 filed with the SEC on March 16, 2020. Perion does not assume any obligation to update these forward-looking statements.

PERION NETWORK LTD. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

In thousands (except share and per share data)

Three months ended

 

Year ended

December 31,

 

December 31,

2020

 

2019

 

2020

 

2019

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Audited)

 

Revenues:

Display and Social Advertising

$ 68,400

$ 26,427

$ 148,698

$ 87,863

Search Advertising and other

49,856

51,830

179,365

173,587

Total Revenues

118,256

78,257

328,063

261,450

 

Costs and Expenses:

Cost of revenues

6,539

6,867

22,477

25,520

Customer acquisition costs and media buy

74,809

41,113

197,626

135,891

Research and development

8,480

6,137

30,880

22,585

Selling and marketing

11,717

9,095

39,085

34,736

General and administrative

4,060

4,960

15,819

14,999

Depreciation and amortization

2,675

2,407

9,923

9,711

Total Costs and Expenses

108,280

70,579

315,810

243,442

 

Income from Operations

9,976

7,678

12,253

18,008

Financial expense, net

1,446

737

2,638

3,470

Income before Taxes on income

8,530

6,941

9,615

14,538

Taxes on income (benefit)

(472)

1,054

(610)

1,645

Net Income

$ 9,002

$ 5,887

$ 10,225

$ 12,893

 

Net Earnings per Share

Basic

$ 0.33

$ 0.23

$ 0.38

$ 0.50

Diluted

$ 0.30

$ 0.22

$ 0.36

$ 0.49

 

Weighted average number of shares

Basic

26,946,060

26,115,057

26,687,145

25,965,357

Diluted

29,961,648

27,288,364

28,797,747

26,357,585

PERION NETWORK LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

In thousands

 

December 31,

 

December 31,

 

2020

 

2019

 

(Unaudited)

 

(Audited)

ASSETS

 

 

 

Current Assets:

 

 

 

Cash and cash equivalents

$ 47,656

 

$ 38,389

 

Restricted cash

1,222

 

1,216

 

Short-term bank deposits

12,700

 

23,234

 

Accounts receivable, net

81,221

 

49,098

 

Prepaid expenses and other current assets

4,560

 

3,170

Total Current Assets

147,359

 

115,107

 

 

 

 

Long-Term Assets:

 

 

 

 

Property and equipment, net

6,770

 

10,918

 

Operating lease right-of-use assets

20,266

 

22,429

 

Goodwill and intangible assets, net

176,679

 

128,444

 

Deferred taxes

7,111

 

6,171

 

Other assets

496

 

708

 

Total Long-Term Assets

211,322

 

168,670

Total Assets

$ 358,681

 

$ 283,777

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Current Liabilities:

 

 

 

Accounts payable

$ 72,498

 

$ 47,681

 

Accrued expenses and other liabilities

21,188

 

18,414

 

Short-term operating lease liability

4,514

 

3,667

 

Short-term loans and current maturities of long-term loans

8,333

 

8,333

 

Deferred revenues

5,711

 

4,188

 

Short-term payment obligation related to acquisitions

7,869

 

1,025

Total Current Liabilities

120,113

 

83,308

 

 

 

 

Long-Term Liabilities:

 

 

 

 

Long-term loans, net of current maturities

 

8,333

 

Payment obligation related to acquisition

30,035

 

 

Long-term operating lease liability

17,698

 

20,363

 

Other long-term liabilities

6,713

 

6,591

Total Long-Term Liabilities

54,446

 

35,287

Total Liabilities

174,559

 

118,595

 

 

 

 

Shareholders’ equity:

 

 

 

 

Ordinary shares

224

 

213

 

Additional paid-in capital

251,933

 

243,211

 

Treasury shares at cost

(1,002)

 

(1,002)

 

Accumulated other comprehensive gain

112

 

130

 

Accumulated deficit

(67,145)

 

(77,370)

Total Shareholders’ Equity

184,122

 

165,182

Total Liabilities and Shareholders’ Equity

$ 358,681

 

$ 283,777

 

 

 

 

 

 

PERION NETWORK LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

In thousands

 

Three months ended

Year ended

 

December 31,

December 31,

 

2020

 

2019

 

2020

 

2019

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Audited)

 

Cash flows from operating activities:

Net Income

$ 9,002

$ 5,887

$ 10,225

$ 12,893

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

Depreciation and amortization

2,674

2,407

9,923

9,711

Stock based compensation expense

1,534

692

4,447

2,293

Foreign currency translation

108

23

19

(86)

Accrued interest, net

(138)

(1)

(125)

(204)

Deferred taxes, net

(754)

(533)

(3,093)

(1,756)

Accrued severance pay, net

(228)

135

(23)

96

Fair value revaluation – convertible debt

600

Loss from sale of property and equipment

88

Net changes in operating assets and liabilities

608

2,594

585

21,194

Net cash provided by operating activities

$ 12,806

$ 11,204

$ 22,046

$ 44,741

 

Cash flows from investing activities:

Purchases of property and equipment

(115)

(128)

(502)

(717)

Short-term deposits, net

(4,400)

(6,684)

10,534

(19,234)

Cash paid in connection with acquisitions, net of cash acquired

(20,186)

(1,200)

Obligation in connection with acquisitions

1,347

Net cash used in investing activities

$ (4,515)

$ (6,812)

$ (8,807)

$ (21,151)

 

Cash flows from financing activities:

Exercise of stock options and restricted share units

2,200

524

4,286

1,227

Payment made in connection with acquisition

(1,813)

Repayment of short-term loans

(12,500)

Repayment of convertible debt

(15,850)

Repayment of long-term loans

(2,084)

(2,083)

(8,333)

(8,332)

Net cash used in financing activities

$ (12,384)

$ (1,559)

$ (4,047)

$ (24,768)

 

Effect of exchange rate changes on cash and cash equivalents and restricted cash

90

77

81

(20)

Net increase (decrease) in cash and cash equivalents and restricted cash

(4,003)

2,910

9,273

(1,198)

Cash and cash equivalents and restricted cash at beginning of period

52,881

36,695

39,605

40,803

Cash and cash equivalents and restricted cash at end of period

$ 48,878

$ 39,605

$ 48,878

$ 39,605

PERION NETWORK LTD. AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

In thousands (except share and per share data)

 

Three months ended

 

Year ended

December 31,

 

December 31,

2020

 

2019

 

2020

 

2019

(Unaudited)

 

(Unaudited)

 

GAAP Net Income

$ 9,002

$ 5,887

$ 10,225

$ 12,893

Share based compensation

1,534

692

4,447

2,293

Amortization of acquired intangible assets

1,611

1,023

5,261

4,256

Retention and other related to M&A related expenses

2,147

1,438

7,159

2,381

Changes in FV of Earnout contingent consideration

(998)

(998)

Fair value revaluation of convertible debt and related derivative

89

Foreign exchange losses associated with ASC-842

475

45

422

699

Revaluation of acquisition related contingent consideration

175

620

Taxes on the above items

(159)

(231)

(503)

(979)

Non-GAAP Net Income

$ 13,787

$ 8,854

$ 26,633

$ 21,632

 
 

Non-GAAP Net Income

$ 13,787

$ 8,854

$ 26,633

$ 21,632

Taxes on income

(313)

1,285

(107)

2,624

Financial expense, net

796

692

1,596

2,682

Depreciation

1,064

1,384

4,662

5,455

Adjusted EBITDA

$ 15,334

$ 12,215

$ 32,784

$ 32,393

Non-GAAP diluted earnings per share

$ 0.45

$ 0.32

$ 0.91

$ 0.83

 

Shares used in computing non-GAAP diluted earnings per share

30,395,478

27,473,695

29,268,098

26,690,743

 

Contact Information:

Perion Network Ltd.

Rami Rozen, VP of Investor Relations

+972 (52) 5694441

[email protected]

Source: Perion Network Ltd.

KEYWORDS: United States North America Israel Middle East New York

INDUSTRY KEYWORDS: Technology Finance Marketing Advertising Communications Professional Services Audio/Video Software Data Management

MEDIA:

Logo
Logo

Grace Reports Fourth Quarter and Full-Year 2020 Results; Delivers Strong Finish to the Year and Provides 2021 Outlook


Fourth Quarter 2020 Highlights

  • Net sales of $470.2 million were up 12.1% sequentially versus the third quarter and down 6.8% versus the prior year
  • Delivered strong sequential improvement in gross margin (+120 bps) and Adjusted Gross Margin (+130 bps); both sales and gross margin are nearing pre-pandemic levels
  • Diluted EPS of $(0.66), down $0.24 versus the prior year; Adjusted EPS of $0.88 was down 32.8% versus the prior year but increased 57.1% sequentially from the third quarter
  • Adjusted EBIT of $96.2 million increased 38.2% sequentially versus the third quarter but was down 27.6% compared to the prior year


Full-Year 2020 Highlights

  • 2020 results reflect the economic impacts of the COVID-19 pandemic; 4Q20 was our strongest quarter of the year; our business fundamentals remain intact and we exited 2020 with positive momentum
  • Net sales of $1.73 billion were down 11.7% versus the prior year; lower sales volumes were partially offset by improved pricing across all businesses
  • Diluted EPS of $(0.03) compared to $1.89 a year ago, and Adjusted EPS of $2.64 compared to $4.38 a year ago
  • Strong operating cash flow of $349.6 million and Adjusted Free Cash Flow of $236.9 million reflecting strong execution of cash and cost management actions in response to the pandemic


Full-Year 2021 Outlook

  • Sales growth of 7% to 11%, reflecting a strong recovery in our end markets, especially in the second half of the year
  • Adjusted EBIT of $400 to $430 million, up 28% to 38%
  • Adjusted EPS of $3.63 to $3.93, up 38% to 49%
  • Adjusted Free Cash Flow of $240 to $260 million
  • Increased cash dividend per share 10% to $1.32 per share

(See Analysis of Operations and Notes for information on Non-GAAP financial measures; all results based on year-over-year comparison unless otherwise noted. We are unable to estimate the annual mark-to-market pension adjustment or future net income or diluted EPS.)

COLUMBIA, Md., Feb. 09, 2021 (GLOBE NEWSWIRE) — W. R. Grace & Co. (NYSE: GRA) today announced financial results for the fourth quarter and full-year 2020, summarized in the table below, and provided its 2021 financial outlook.

“Our team delivered a very strong finish to the year,” said Hudson La Force, Grace’s President and Chief Executive Officer. “Our fourth quarter sales, earnings, and cash flow were all at the high end of our expectations. We delivered these results by taking decisive actions early in 2020 and executing well throughout the year.”

“I’d like to thank Grace’s 4,000 employees around the world for their continued focus on health, safety, and meeting our customer commitments during the pandemic. I’m proud of how they managed in 2020, delivering impressive results in a once-in-a-century year.”

“Looking ahead to this year, our growth and profitability opportunities are strong. We exited 2020 with sales, gross margins, and cash flow nearing pre-pandemic levels, and we are planning for a strong recovery in 2021, especially in the second half of the year. We are encouraged by the vaccine rollout, though we are closely watching the level of COVID-19 cases and related economic indicators. We are well positioned to continue to capture growth as the recovery progresses.”

Fourth Quarter and Full-Year Consolidated Performance

Summary Financial Results – Total Grace              

(In $ millions, except per share amounts)
4Q20   4Q19   Change FY20   FY19   Change
Net sales 470.2   504.5   (6.8)% 1,729.8   1,958.1   (11.7)%
Net sales, constant currency

1
        (8.0
)
%
    (11.7
)
%
Net income (loss) (43.5)   (28.3)   (53.7)% (1.8)   126.3   (101.4)%
Net income margin (9.3)%   (5.6)%   (3.7) pts (0.1)%   6.5%   (6.6) pts
                     
Adjusted EBIT1 96.2   132.9   (27.6)% 312.2   473.1   (34.0)%
Adjusted EBIT margin1 20.5%   26.3%   (5.8) pts 18.0%   24.2%   (6.2) pts
                     
Diluted EPS ($0.66)   ($0.42)   (57.1)% ($0.03)   $1.89   (101.6)%
Adjusted EPS1 $0.88   $1.31   (32.8)% $2.64   $4.38   (39.7)%
Dividends per share $0.30   $0.27   11.1% $1.20   $1.08   11.1%
                     
            FY20   FY19   Change
Net cash provided by operating activities           349.6   392.1   (10.8)%
Adjusted Free Cash Flow1           236.9   247.2   (4.2)%
                     
            TTM 2020   TTM 2019   Change
Return on equity           (0.8)%   31.4%   (32.2) pts
Adjusted EBIT ROIC1           13.9%   20.2%   (6.3) pts

1

See Analysis of Operations and Notes for information on Non-GAAP financial measures.

Fourth Quarter 2020

  • Fourth quarter sales of $470.2 million were down 6.8%, or down 8.0% on constant currency, versus the prior year. Higher sales in Materials Technologies (+6.0%), which were driven primarily by growth in pharma/consumer and coatings end-markets, were more than offset by lower sales in Catalysts Technologies (-10.6%). Sequentially, sales were up 12.1% led by higher refining catalysts sales volumes and continued strength in pharma/consumer end-markets. Catalysts Technologies (+14.1%) and Materials Technologies (+6.9%) were both up sequentially, and we are encouraged by the improving demand trends and positive momentum as we begin 2021.
  • Net loss of $43.5 million and Diluted EPS of ($0.66) includes a pre-tax non-cash pension mark-to-market adjustment of $94.6 million, or $1.09 per share. The adjustment is a result of lower discount rates, partially offset by better than expected return on assets.
  • Adjusted EBIT of $96.2 million decreased 27.6% and Adjusted EPS of $0.88 decreased 32.8% versus the prior year, including hurricane-related costs of approximately $8 million, or $0.09 per share. The year-ago period also included $8 million, or $0.09 per share, in business interruption insurance recoveries. Sequentially, Adjusted EBIT was up 38.2% and Adjusted EPS was up 57.1%.
  • Sequentially, gross margin of 38.5% was up 120 bps and Adjusted Gross Margin of 39.5% was up 130 bps versus the third quarter. The improvement in Adjusted Gross Margin was driven by higher sales and increased production volumes.

Full-Year 2020

  • Full-year sales of $1.73 billion were down 11.7%, reflecting the economic impacts of the COVID-19 pandemic, partially offset by improved pricing (+0.3%) across all businesses. Catalysts Technologies sales were down 15.1% for the year, as Refining Technologies (-17.9%) and Specialty Catalysts (-11.9%) were both significantly impacted by the pandemic. Materials Technologies (-0.7%) sales were down slightly for the year, with growth in pharma/consumer end-markets offset by weakness in chemical process end-markets.
  • Net loss of $1.8 million was down $128.1 million, and Diluted EPS of ($0.03) was down $1.92.
  • Adjusted EBIT of $312.2 million declined 34.0% and Adjusted EPS of $2.64 decreased 39.7%, including hurricane-related costs of approximately $19 million, or $0.21 per share.
  • Net cash from operations was $349.6 million and Adjusted Free Cash Flow was $236.9 million, reflecting strong execution of cash and cost management actions in response to the pandemic. During the year, we continued to proactively mitigate the impact of the pandemic by focusing on strong cash generation through improving working capital, lowering capital spending, and reducing operating costs.

Delivering on Our Strategic Initiatives

“Over the last five years, we have been actively repositioning our portfolio for faster growth,” continued La Force. “We pruned businesses, reduced SG&A and corporate costs, added strategic acquisitions, increased our capacity in high growth businesses, and significantly upgraded our global R&D, marketing and commercial capabilities.”

“Despite the recession in 2020, we maintained a steadfast focus on building a stronger Grace. In implementing our cash and cost reduction actions, we were careful to protect our growth investments, maintain our focus on technology leadership, and continue our commercial excellence and operating excellence initiatives. And, we further integrated sustainability into our strategy.”

“As we continue to execute our growth plan, we are also undertaking a review of potential strategic alternatives to maximize value for shareholders. The process remains active and we will continue to share updates as appropriate.”

Grace’s strategic framework for profitable growth includes four elements:

  • Invest to accelerate growth and extend our competitive advantages
  • Invest in great people to strengthen our high-performance culture
  • Execute the Grace Value Model to drive operating excellence
  • Acquire to build our technology and manufacturing capabilities for our customers

Fourth Quarter and Full-Year Segment Performance

Catalysts Technologies

Catalysts Technologies produces and sells catalysts and related products and technologies used in petrochemical, refining, and other chemical manufacturing applications.

Summary Financial Results – Catalysts Technologies            

(In $ millions)
4Q20   4Q19   Change   FY20   FY19   Change
Net sales 348.7   389.9   (10.6)%   1,271.4   1,496.7   (15.1)%
Net sales, constant currency

1
        (11.7
)
%
          (15.2
)
%
Gross margin 40.0%   43.0%   (3.0) pts   39.2%   42.8%   (3.6) pts
                       
Operating income 88.8   133.8   (33.6)%   309.6   466.4   (33.6)%
Operating margin 25.5%   34.3%   (8.8) pts   24.4%   31.2%   (6.8) pts

1

See Analysis of Operations and Notes for information on Non-GAAP financial measures.

Fourth Quarter 2020

  • Fourth quarter sales of $348.7 million were down 10.6%, or down 11.7% on constant currency, versus the prior year. Sales declined primarily due to lower sales volumes (-10.8%) and lower average price in the quarter (-0.9%). Certain Refining Technologies customers have temporarily switched to a lower performance catalyst as a result of the pandemic. Sequentially, Catalysts Technologies sales were up 14.1% versus the third quarter.
    • Specialty Catalysts sales were down 10.5% year over year, primarily due to order timing in the prior year. Sequentially, Specialty Catalysts sales were up 5.1% versus the third quarter.
    • Refining Technologies sales were down 10.7% versus the prior year. Sequentially, Refining Technologies sales were up 23.5% versus the third quarter. Global demand for transportation fuels and refinery operating rates have shown steady improvement over the last two quarters but remain below pre-pandemic levels. For the trailing twelve months, average FCC catalysts pricing improved approximately 20 bps.
  • Gross margin of 40.0% decreased 300 bps versus the prior year, primarily due to lower sales and production volumes, partially offset by lower raw materials and energy costs (+110 bps) and cost mitigation actions. Sequentially, gross margin improved 80 bps reflecting higher sales and increased production volumes.
  • Operating income of $88.8 million was down $45.0 million, or 33.6%, primarily due to lower gross profit, hurricane-related costs of approximately $8 million, and $6.3 million lower income from our ART joint venture, partially offset by lower operating expense. The year-ago period also included $8 million in business interruption insurance recoveries.

Full-Year 2020

  • Full-year sales of $1.27 billion were down 15.1%, or down 15.2% on constant currency. Lower sales volumes (-15.5%) were partially offset by improved pricing (+0.3%).
    • Specialty Catalysts sales were down 11.9%, primarily due to customer catalyst inventory draw downs resulting from the pandemic and order timing.
    • Refining Technologies sales were down 17.9%, reflecting significant impact from the pandemic on global demand for transportation fuels and refinery operating rates.
  • Gross margin of 39.2% decreased 360 bps, primarily due to lower sales and production volumes and inventory reductions, partially offset by lower raw materials and energy costs (+110 bps) and cost mitigation actions.
  • Operating income of $309.6 million was down $156.8 million, or 33.6% versus the prior year, primarily due to lower gross profit, hurricane-related costs of approximately $19 million, and $14.3 million lower income from our ART joint venture, partially offset by lower operating expenses.

Materials Technologies

Materials Technologies produces and sells specialty materials, which are either silica based or complex organic molecules, that can be used in pharma/consumer, coatings, and chemical process applications.

Summary Financial Results – Materials Technologies            

(In $ millions)
4Q20   4Q19   Change   FY20   FY19   Change
Net sales 121.5   114.6   6.0%   458.4   461.4   (0.7)%
Net sales, constant currency

1
        4.5
%
          (0.3
)
%
Gross margin 38.2%   35.1%   3.1 pts   33.6%   36.5%   (2.9) pts
                       
Operating income 29.1   23.6   23.3%   85.0   97.8   (13.1)%
Operating margin 24.0%   20.6%   3.4 pts   18.5%   21.2%   (2.7) pts

1

See Analysis of Operations and Notes for information on Non-GAAP financial measures.

Fourth Quarter 2020

  • Fourth quarter sales of $121.5 million were up 6.0%, or up 4.5% on constant currency, versus the prior year. Continued strength in pharma/consumer end-markets (+21.2%) and stronger demand in coatings (+10.8%) were partially offset by lower demand in chemical process end-markets (-12.2%). Sequentially, Materials Technologies sales were up 6.9% reflecting continued strength in pharma/consumer end-markets.
  • Gross margin of 38.2% increased 310 bps versus the prior year primarily due to higher sales and increased production volumes, favorable mix, lower raw materials and energy costs (+40 bps), and cost mitigation actions. Sequentially, gross margin improved 250 bps as a result of higher sales and increased production volumes, partially offset by unfavorable mix.
  • Operating income of $29.1 million was up $5.5 million, or 23.3% versus the prior year.

Full-Year 2020

  • Full-year sales of $458.4 million were down 0.7%, or down 0.3% on constant currency. Lower sales volumes (-0.6%) were partially offset by improved pricing (+0.3%). Strength in pharma/consumer end-markets (+12.4%) was offset by weakness across chemical process end-markets (-9.9%). Coatings markets were down slightly (-1.6%) for the year, with demand rebounding in the second half of the year after pandemic-related weakness in the first half.
  • Gross margin of 33.6% decreased 290 bps, primarily due to lower production volumes and inventory reductions, partially offset by favorable mix, lower raw materials and energy costs (+90 bps), and cost mitigation actions.
  • Operating income of $85.0 million was down $12.8 million, or 13.1%.

Capital Allocation

  • Capital investments: For 2020, we invested $155.5 million to support growth, operating excellence, and other priorities. For 2021, we expect to invest $150-$160 million in capital expenditures.
  • M&A: Strategic bolt-on acquisitions remain important to our long-term growth strategy. We will remain disciplined as we seek to continue to diversify our portfolio towards markets with compelling growth, profitability, and cash flow characteristics.
  • Dividend: For 2020, we paid $80.1 million in cash dividends to shareholders, or an increase of 11% per share versus the prior year. For 2021, we increased our annual cash dividend 10%, from $1.20 per share to $1.32 per share. 2021 marks the fifth consecutive year of increases since initiating the dividend in 2016.
  • Share repurchase program: For 2020, we repurchased approximately 674,000 shares of Grace common stock for $40.4 million before temporarily suspending share repurchases on April 3. We expect to resume our share repurchase program in 2021 while continuing to prioritize reinvestment and reducing temporarily higher net leverage.

Full-Year 2021 Outlook

We are reinstating our annual outlook, with a wider range to account for the continued uncertainties related to the pandemic. As of February 9, 2021, our 2021 financial outlook is as follows:

Full-Year 2021 Outlook      

(In $ millions, except per share amounts)
  2021 Outlook YoY
Sales growth     7% – 11%
Adjusted EBIT1   $400 – $430 28% – 38%
Adjusted EPS1   $3.63 – $3.93 38% – 49%
Adjusted Free Cash Flow1   $240 – $260 1% – 10%
Note: We are unable to estimate the annual mark-to-market pension adjustment or future net income or diluted EPS.


1

See Analysis of Operations and Notes for information on Non-GAAP financial measures.

Our 2021 outlook assumes continued strength in Specialty Catalysts and Materials Technologies and a steady recovery in the demand for transportation fuels as the year progresses, with refining demand approaching pre-pandemic levels by the end of the year. Our outlook does not assume a double dip recession or a resurgence in the pandemic.

For the first quarter of 2021 we are planning for sales to be up 6-8% versus the prior year with adjusted EPS of $0.77-$0.80.

Investor Call

We will host an investor conference call and webcast to discuss these results today at 9:00 a.m. ET. The conference call audio and accompanying presentation slides will be available to interested parties via a simultaneous webcast and may be accessed from our website at http://investor.grace.com. Participants should access the webcast prior to the start of the call to register for the event and install and test any necessary software. The webcast will be archived on the company’s website for one year.

Those without access to the internet can participate by dialing +1 844.583.4545 (U.S.) or +1 825.312.2263 (International). The participant passcode is 2378256. Investors are advised to dial into the call at least 10 minutes early in order to register.

An audio replay will be available for one week after 1:00 p.m. ET on February 9. The replay will be accessible by dialing +1 800.585.8367 (U.S.) or +1 416.621.4642 (International) and entering the participant passcode 2378256.

About Grace

Built on talent, technology, and trust, Grace is a leading global specialty chemical company. The company’s two industry-leading business segments—Catalysts Technologies and Materials Technologies—provide innovative products, technologies, and services that enhance the products and processes of our customers around the world. With approximately 4,000 employees, Grace operates and/or sells to customers in over 60 countries. More information about Grace is available at grace.com.

Forward-Looking Statements

This announcement contains forward-looking statements, that is, information related to future, not past, events. Such statements generally include the words “believes,” “plans,” “intends,” “targets,” “will,” “expects,” “suggests,” “anticipates,” “outlook,” “continues,” or similar expressions. Forward-looking statements include, without limitation, statements regarding future: financial positions; results of operations; cash flows; financing plans; business strategy; operating plans; capital and other expenditures; impact of COVID-19 on Grace’s business; competitive positions; growth opportunities for existing products; benefits from new technology; benefits from cost reduction initiatives; succession planning; and markets for securities. For these statements, Grace claims the protections of the safe harbor for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act. Grace is subject to risks and uncertainties that could cause actual results or events to differ materially from its projections or that could cause other forward-looking statements to prove incorrect. Factors that could cause actual results or events to differ materially from those contained in the forward-looking statements include, without limitation: risks related to foreign operations, especially in areas of active conflicts and in emerging regions; the costs and availability of raw materials, energy and transportation; the effectiveness of Grace’s research and development and growth investments; acquisitions and divestitures of assets and businesses; developments affecting Grace’s outstanding indebtedness; developments affecting Grace’s pension obligations; legacy matters (including product, environmental, and other legacy liabilities) relating to past activities of Grace; its legal and environmental proceedings; environmental compliance costs (including existing and potential laws and regulations pertaining to climate change); the inability to establish or maintain certain business relationships; the inability to hire or retain key personnel; natural disasters such as storms and floods; fires and force majeure events; the economics of our customers’ industries, including the petroleum refining, petrochemicals, and plastics industries, and shifting consumer preferences; public health and safety concerns, including pandemics and quarantines; changes in tax laws and regulations; international trade disputes, tariffs, and sanctions; the potential effects of cyberattacks; and those additional factors set forth in Grace’s most recent Annual Report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, which have been filed with the Securities and Exchange Commission and are readily available on the internet at
www.sec.gov
. Grace’s reported results should not be considered as an indication of its future performance. Readers are cautioned not to place undue reliance on Grace’s projections and other forward-looking statements, which speak only as of the dates those projections and statements are made. Grace undertakes no obligation to release publicly any revisions to the projections and forward-looking statements contained in this announcement or the released results, or to update them to reflect events or circumstances occurring after the date of this announcement.



W. R. Grace & Co. and Subsidiaries

Consolidated Statements of Operations (unaudited)

  Three Months Ended

December 31,
  Year Ended

December 31,
(In millions, except per share amounts) 2020   2019   2020   2019
Net sales $ 470.2       $ 504.5       $ 1,729.8       $ 1,958.1    
Cost of goods sold 289.0       299.8       1,113.3       1,164.4    
Gross profit 181.2       204.7       616.5       793.7    
Selling, general and administrative expenses 71.8       75.3       282.9       299.0    
Research and development expenses 16.6       16.3       65.9       64.5    
Costs related to legacy matters 3.3       51.4       39.4       103.5    
Equity in earnings of unconsolidated affiliate (7.6 )     (13.9 )     (13.5 )     (27.8 )  
Restructuring and repositioning expenses 7.9       1.6       36.9       13.7    
Loss on early extinguishment of debt             39.4          
Interest expense and related financing costs 18.7       18.5       76.0       76.7    
Other (income) expense, net 101.1       83.8       89.0       80.6    
Total costs and expenses 211.8       233.0       616.0       610.2    
Income (loss) before income taxes (30.6 )     (28.3 )     0.5       183.5    
(Provision for) benefit from income taxes (10.3 )     0.2       (2.2 )     (56.8 )  
Net income (loss) (40.9 )     (28.1 )     (1.7 )     126.7    
Less: Net (income) loss attributable to noncontrolling interests (2.6 )     (0.2 )     (0.1 )     (0.4 )  
Net income (loss) attributable to W. R. Grace & Co. shareholders $ (43.5 )     $ (28.3 )     $ (1.8 )     $ 126.3    
Earnings Per Share Attributable to W. R. Grace & Co. Shareholders              
Basic earnings per share:              
Net income (loss) $ (0.66 )     $ (0.42 )     $ (0.03 )     $ 1.89    
Weighted average number of basic shares 66.2       66.7       66.3       66.8    
Diluted earnings per share:              
Net income (loss) $ (0.66 )     $ (0.42 )     $ (0.03 )     $ 1.89    
Weighted average number of diluted shares 66.2       66.7       66.3       66.9    
Dividends per common share $ 0.30       $ 0.27       $ 1.20       $ 1.08    

The Notes to the Financial Information are included as part of the Earnings Release.



W. R. Grace & Co. and Subsidiaries

Consolidated Statements of Cash Flows (unaudited)

  Year Ended

December 31,
(In millions) 2020   2019
OPERATING ACTIVITIES      
Net income (loss) $ (1.7 )     $ 126.7    
Reconciliation to net cash provided by (used for) operating activities:      
Depreciation and amortization 105.0       100.3    
Equity in earnings of unconsolidated affiliate (13.5 )     (27.8 )  
Dividends received from unconsolidated affiliate 20.0          
Costs related to legacy matters 39.4       103.5    
Cash paid for legacy matters (21.0 )     (19.3 )  
Provision for income taxes 2.2       56.8    
Cash paid for income taxes (56.0 )     (52.8 )  
Income tax refunds received 9.6       10.5    
Defined benefit pension expense 109.0       104.3    
Cash paid under defined benefit pension arrangements (17.2 )     (15.8 )  
Stock compensation expense 10.7       14.6    
Loss on early extinguishment of debt 39.4          
Loss on disposal of assets 23.2       4.2    
Changes in assets and liabilities, excluding effect of currency translation and acquisitions:      
Trade accounts receivable 59.7       (18.7 )  
Inventories 62.0       (30.1 )  
Accounts payable (9.3 )     28.0    
Deferred revenue (7.4 )     (5.3 )  
All other items, net (4.5 )     13.0    
Net cash provided by (used for) operating activities 349.6       392.1    
INVESTING ACTIVITIES      
Capital expenditures (155.5 )     (194.1 )  
Business acquired, net of cash acquired (2.0 )     (22.8 )  
Other investing activities (18.3 )     6.8    
Net cash provided by (used for) investing activities (175.8 )     (210.1 )  
FINANCING ACTIVITIES      
Borrowings under credit arrangements 15.9       13.0    
Repayments under credit arrangements (49.9 )     (24.2 )  
Proceeds from issuance of bonds 750.0          
Repayments of bonds (700.0 )        
Cash paid related to early extinguishment of debt (37.9 )        
Cash paid for debt financing costs (7.9 )        
Cash paid for repurchases of common stock (40.4 )     (29.8 )  
Proceeds from exercise of stock options       19.1    
Dividends paid to shareholders (80.1 )     (72.6 )  
Other financing activities (7.6 )     (4.9 )  
Net cash provided by (used for) financing activities (157.9 )     (99.4 )  
Effect of currency exchange rate changes on cash and cash equivalents 7.4       (0.7 )  
Net increase (decrease) in cash and cash equivalents 23.3       81.9    
Cash, cash equivalents, and restricted cash beginning of period 282.9       201.0    
Cash, cash equivalents, and restricted cash, end of period $ 306.2       $ 282.9    

The Notes to the Financial Information are included as part of the Earnings Release.



W. R. Grace & Co. and Subsidiaries

Consolidated Balance Sheets (unaudited)

  December 31,
(In millions, except par value and shares) 2020   2019
ASSETS      
Current Assets      
Cash and cash equivalents $ 304.5       $ 282.5    
Restricted cash and cash equivalents 1.7       0.4    
Trade accounts receivable, less allowance of $2.2 (2019—$13.3) 264.1       307.0    
Inventories 253.8       309.9    
Other current assets 51.2       235.1    
Total Current Assets 875.3       1,134.9    
Properties and equipment, net of accumulated depreciation and amortization of $1,550.1 (2019—$1,497.0) 1,208.8       1,143.8    
Goodwill 562.7       556.9    
Technology and other intangible assets, net 320.8       342.8    
Deferred income taxes 567.1       517.6    
Investment in unconsolidated affiliate 175.5       181.9    
Other assets 55.3       54.7    
Total Assets $ 3,765.5       $ 3,932.6    
LIABILITIES AND EQUITY      
Current Liabilities      
Debt payable within one year $ 15.3       $ 23.1    
Accounts payable 262.1       302.3    
Other current liabilities 281.9       419.7    
Total Current Liabilities 559.3       745.1    
Debt payable after one year 1,975.1       1,957.3    
Unfunded defined benefit pension plans 522.3       434.6    
Underfunded defined benefit pension plans 126.7       85.2    
Other liabilities 347.6       308.2    
Total Liabilities 3,531.0       3,530.4    
Equity      
Common stock issued, par value $0.01; 300,000,000 shares authorized; outstanding: 66,190,410 (2019—66,735,913) 0.7       0.7    
Paid-in capital 473.2       477.9    
Retained earnings 648.8       730.5    
Treasury stock, at cost: shares: 11,266,223 (2019—10,720,720) (920.6 )     (892.2 )  
Accumulated other comprehensive income (loss) 29.3       78.8    
Total W. R. Grace & Co. Shareholders’ Equity 231.4       395.7    
Noncontrolling interests 3.1       6.5    
Total Equity 234.5       402.2    
Total Liabilities and Equity $ 3,765.5       $ 3,932.6    

The Notes to the Financial Information are included as part of the Earnings Release.



W. R. Grace & Co. and Subsidiaries

Analysis of Operations (unaudited)

  Three Months Ended December 31,   Year Ended December 31,
(In millions, except per share amounts) 2020   2019   % Change   2020   2019   % Change
Net sales:                      
Catalysts Technologies $ 348.7   $ 389.9   (10.6)%   $ 1,271.4   $ 1,496.7   (15.1)%
Materials Technologies 121.5   114.6   6.0%   458.4   461.4   (0.7)%
Total Grace net sales $ 470.2   $ 504.5   (6.8)%   $ 1,729.8   $ 1,958.1   (11.7)%
Net sales by region:                      
North America $ 136.7   $ 159.9   (14.5)%   $ 508.4   $ 597.8   (15.0)%
Europe Middle East Africa 202.3   187.3   8.0%   721.0   791.6   (8.9)%
Asia Pacific 102.8   130.0   (20.9)%   413.5   475.4   (13.0)%
Latin America 28.4   27.3   4.0%   86.9   93.3   (6.9)%
Total net sales by region $ 470.2   $ 504.5   (6.8)%   $ 1,729.8   $ 1,958.1   (11.7)%
Performance measures:                      
Adjusted EBIT(A)(B):                      
Catalysts Technologies segment operating income $ 88.8   $ 133.8   (33.6)%   $ 309.6   $ 466.4   (33.6)%
Materials Technologies segment operating income 29.1   23.6   23.3%   85.0   97.8   (13.1)%
Corporate costs (17.5
)
  (20.0)   12.5%   (68.0
)
  (72.7)   6.5%
Certain pension costs(C) (4.2
)
  (4.5)   6.7%   (14.4
)
  (18.4)   21.7%
Adjusted EBIT 96.2   132.9   (27.6)%   312.2   473.1   (34.0)%
Pension MTM adjustment and other related costs, net (94.6
)
  (85.9)       (94.6
)
  (85.9)    
Loss on early extinguishment of debt         (39.4
)
     
Costs related to legacy matters (3.3
)
  (51.4)       (39.4
)
  (103.5)    
Restructuring and repositioning expenses (10.4
)
  (1.6)       (36.9
)
  (13.7)    
Inventory write-offs and disposal costs (0.9
)
        (20.7
)
  (3.6)    
Third-party acquisition-related costs (1.4
)
  (0.9)       (5.2
)
  (3.6)    
Taxes and interest included in equity in earnings of unconsolidated affiliate (0.1
)
  1.4       (0.7
)
  0.1    
Benefit plan adjustment   (5.0)         (5.0)    
Interest expense, net (18.7
)
  (18.0)   (3.9)%   (74.9
)
  (74.8)   (0.1)%
(Provision for) benefit from income taxes (10.3
)
  0.2   NM   (2.2
)
  (56.8)   96.1%
Net income (loss) attributable to W. R. Grace & Co. shareholders $ (43.5
)
  $ (28.3)   (53.7)%   $ (1.8
)
  $ 126.3   (101.4)%
Diluted EPS $ (0.66
)
  $ (0.42)   (57.1)%   $ (0.03
)
  $ 1.89   (101.6)%
Adjusted EPS(A) $ 0.88   $ 1.31   (32.8)%   $ 2.64   $ 4.38   (39.7)%

The Notes to the Financial Information are included as part of the Earnings Release.



W. R. Grace & Co. and Subsidiaries

Analysis of Operations (unaudited) (continued)

  Three Months Ended December 31,   Year Ended December 31,
(In millions) 2020   2019   % Change   2020   2019   % Change
Adjusted profitability performance measures(A)(B)(C):                    
Gross Margin:                      
Catalysts Technologies 40.0
%
  43.0%   (3.0) pts   39.2
%
  42.8%   (3.6) pts
Materials Technologies 38.2
%
  35.1%   3.1 pts   33.6
%
  36.5%   (2.9) pts
Adjusted Gross Margin 39.5
%
  41.2%   (1.7) pts   37.7
%
  41.4%   (3.7) pts
Inventory write-offs and disposal costs (0.2
)
%
  —%   (0.2) pts   (1.2
)
%
  (0.2)%   (1.0) pts
Pension in cost of goods sold (0.8
)
%
  (0.6)%   (0.2) pts   (0.9
)
%
  (0.7)%   (0.2) pts
Total Grace 38.5
%
  40.6%   (2.1) pts   35.6
%
  40.5%   (4.9) pts
Adjusted EBIT:                      
Catalysts Technologies $ 88.8   $ 133.8   (33.6)%   $ 309.6   $ 466.4   (33.6)%
Materials Technologies 29.1   23.6   23.3%   85.0   97.8   (13.1)%
Corporate, pension, and other (21.7
)
  (24.5)   11.4%   (82.4
)
  (91.1)   9.5%
Total Grace $ 96.2   $ 132.9   (27.6)%   $ 312.2   $ 473.1   (34.0)%
Depreciation and amortization:                      
Catalysts Technologies depreciation and amortization $ 22.5   $ 20.5   9.8%   $ 85.3   $ 81.9   4.2%
Depreciation and amortization included in equity in earnings of unconsolidated affiliate 1.4   0.1   NM   3.3   0.5   NM
Catalysts Technologies 23.9   20.6   16.0%   88.6   82.4   7.5%
Materials Technologies 4.3   3.5   22.9%   15.0   14.2   5.6%
Corporate 1.1   1.0   10.0%   4.7   4.2   11.9%
Adjusted Depreciation and Amortization 29.3   25.1   16.7%   108.3   100.8   7.4%
Depreciation and amortization included in equity in earnings of unconsolidated affiliate (1.4
)
  (0.1)   NM   (3.3
)
  (0.5)   NM
Total Grace $ 27.9   $ 25.0   11.6%   $ 105.0   $ 100.3   4.7%
Adjusted EBITDA:                      
Catalysts Technologies $ 112.7   $ 154.4   (27.0)%   $ 398.2   $ 548.8   (27.4)%
Materials Technologies 33.4   27.1   23.2%   100.0   112.0   (10.7)%
Corporate, pension, and other (20.6
)
  (23.5)   12.3%   (77.7
)
  (86.9)   10.6%
Total Grace $ 125.5   $ 158.0   (20.6)%   $ 420.5   $ 573.9   (26.7)%
Adjusted EBIT margin:                      
Catalysts Technologies 25.5
%
  34.3%   (8.8) pts   24.4
%
  31.2%   (6.8) pts
Materials Technologies 24.0
%
  20.6%   3.4 pts   18.5
%
  21.2%   (2.7) pts
Total Grace 20.5
%
  26.3%   (5.8) pts   18.0
%
  24.2%   (6.2) pts
Net income margin (9.3
)
%
  (5.6)%   (3.7) pts   (0.1
)
%
  6.5%   (6.6) pts
Adjusted EBITDA margin:                      
Catalysts Technologies 32.3
%
  39.6%   (7.3) pts   31.3
%
  36.7%   (5.4) pts
Materials Technologies 27.5
%
  23.6%   3.9 pts   21.8
%
  24.3%   (2.5) pts
Total Grace 26.7
%
  31.3%   (4.6) pts   24.3
%
  29.3%   (5.0) pts

The Notes to the Financial Information are included as part of the Earnings Release.



W. R. Grace & Co. and Subsidiaries

Analysis of Operations (unaudited) (continued)

  Year Ended December 31,
(In millions) 2020   2019
Cash flow measure(A):      
Net cash provided by (used for) operating activities $ 349.6     $ 392.1  
Capital expenditures (155.5
)
    (194.1)  
Free Cash Flow 194.1     198.0  
Cash paid for legacy matters 21.0     19.3  
Cash paid for repositioning 10.7     16.8  
Cash paid for third-party acquisition-related costs 5.1     2.9  
Cash paid for restructuring 3.1     10.2  
Cash paid related to modification of debt 2.6      
Other items 0.3      
Adjusted Free Cash Flow $ 236.9     $ 247.2  

  Four Quarters Ended

December 31,
(In millions) 2020   2019
Calculation of Adjusted EBIT Return On Invested Capital (trailing four quarters):      
Net income (loss) attributable to W. R. Grace & Co. shareholders $ (1.8
)
    $ 126.3  
Adjusted EBIT 312.2     473.1  
Reconciliation to Adjusted Invested Capital:      
Total equity 234.5     402.2  
Debt 1,990.4     1,980.4  
Underfunded and unfunded pension plans 649.0     519.8  
Liabilities related to legacy matters 224.1     206.7  
Cash, cash equivalents, and restricted cash (306.2
)
    (282.9)  
Net income tax assets (555.3
)
    (501.6)  
Other items 13.7     19.7  
Adjusted Invested Capital $ 2,250.2     $ 2,344.3  
       
GAAP Return on Equity (0.8) %   31.4 %
Adjusted EBIT ROIC 13.9 %   20.2 %

The Notes to the Financial Information are included as part of the Earnings Release.



W. R. Grace & Co. and Subsidiaries

Analysis of Operations (unaudited)

  Three Months Ended December 31,
  2020   2019
(In millions, except per share amounts) Pre-

Tax
  Tax
Effect
  After-

Tax
  Per

Share
  Pre-

Tax
  Tax
Effect
  After-

Tax
  Per

Share
Diluted EPS             $ (0.66
)
                $ (0.42)  
Pension MTM adjustment and other related costs, net $ 94.6   $ 22.6   $ 72.0   1.09     $ 85.9   $ 24.0   $ 61.9   0.93  
Restructuring and repositioning expenses 10.4   3.5   6.9   0.10     1.6   0.4   1.2   0.02  
Costs related to legacy matters 3.3   0.2   3.1   0.05     51.4   11.1   40.3   0.60  
Third-party acquisition-related costs 1.4   0.3   1.1   0.02     0.9   0.2   0.7   0.01  
Inventory write-offs and disposal costs 0.9   (0.1
)
  1.0   0.02            
Loss on early extinguishment of debt   (0.3
)
  0.3              
Benefit plan adjustment           5.0   1.1   3.9   0.06  
Discrete tax items     (17.0
)
  17.0   0.26         (8.4)   8.4   0.13  
Income tax expense related to historical tax attributes(D)                 1.4   (1.4)   (0.02)  
Adjusted EPS(A)             $ 0.88                 $ 1.31  

  Year Ended December 31,
  2020   2019
(In millions, except per share amounts) Pre-

Tax
  Tax
Effect
  After-

Tax
  Per

Share
  Pre-

Tax
  Tax
Effect
  After-

Tax
  Per

Share
Diluted EPS             $ (0.03
)
                $ 1.89  
Pension MTM adjustment and other related costs, net $ 94.6   $ 22.6   $ 72.0   1.09     $ 85.9   $ 24.0   $ 61.9   0.93  
Loss on early extinguishment of debt 39.4   9.5   29.9   0.45            
Costs related to legacy matters 39.4   9.5   29.9   0.45     103.5   25.2   78.3   1.17  
Restructuring and repositioning expenses 36.9   8.7   28.2   0.43     13.7   3.0   10.7   0.16  
Inventory write-offs 20.7   5.0   15.7   0.24     3.6     3.6   0.05  
Third-party acquisition-related costs 5.2   1.3   3.9   0.06     3.6   0.9   2.7   0.04  
Benefit plan adjustment           5.0   1.1   3.9   0.06  
Discrete tax items     3.1   (3.1
)
  (0.05
)
        3.6   (3.6)   (0.05)  
Income tax expense related to historical tax attributes(D)                 (8.6)   8.6   0.13  
Adjusted EPS(A)             $ 2.64                 $ 4.38  

The Notes to the Financial Information are included as part of the Earnings Release.



W. R. Grace & Co. and Subsidiaries

Notes to the Financial Information

(A)   In the above, Grace presents financial information in accordance with U.S. generally accepted accounting principles (U.S. GAAP), as well as the non-GAAP financial information described below. Grace believes that this non-GAAP financial information provides useful supplemental information about the performance of its businesses, improves period-to-period comparability and provides clarity on the information management uses to evaluate the performance of its businesses. In the above charts, Grace has provided reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP. These non-GAAP financial measures should not be considered as a substitute for financial measures calculated in accordance with U.S. GAAP, and the financial results calculated in accordance with U.S. GAAP and reconciliations from those results should be evaluated carefully. Grace defines these non-GAAP financial measures as follows:

  • Adjusted EBIT means net income attributable to W. R. Grace & Co. shareholders adjusted for interest income and expense; income taxes; costs related to legacy matters; restructuring and repositioning expenses and asset impairments; pension costs other than service and interest costs, expected returns on plan assets, and amortization of prior service costs/credits; gains and losses on sales and exits of businesses, product lines, and certain other investments; third-party acquisition-related costs and the amortization of acquired inventory fair value adjustment; gains and losses on modification or extinguishment of debt; the effects of these items on equity in earnings of unconsolidated affiliate; and certain other items that are not representative of underlying trends.
  • Adjusted EBITDA means Adjusted EBIT adjusted for depreciation and amortization and depreciation and amortization included in equity in earnings of unconsolidated affiliate (collectively, Adjusted Depreciation and Amortization). Grace uses Adjusted EBITDA for its calculation of net leverage, a non-GAAP financial measure, which means Gross debt, less cash divided by Adjusted EBITDA.
  • Adjusted EBIT Return on Invested Capital means Adjusted EBIT (on a trailing four quarters basis) divided by Adjusted Invested Capital, which means equity adjusted for debt; underfunded and unfunded defined benefit pension plans; liabilities related to legacy matters; cash, cash equivalents, and restricted cash; net income tax assets; and certain other assets and liabilities.
  • Adjusted Gross Margin means gross margin adjusted for pension-related costs included in cost of goods sold, the amortization of acquired inventory fair value adjustment, and write-offs of inventory related to exits of businesses and product lines and significant manufacturing process changes.
  • Adjusted EPS means diluted EPS adjusted for costs related to legacy matters; restructuring and repositioning expenses and asset impairments; pension costs other than service and interest costs, expected returns on plan assets, and amortization of prior service costs/credits; gains and losses on sales and exits of businesses, product lines, and certain other investments; third-party acquisition-related costs and the amortization of acquired inventory fair value adjustment; gains and losses on modification or extinguishment of debt; certain other items that are not representative of underlying trends; and certain discrete tax items and income tax expense related to historical tax attributes.
  • Adjusted Free Cash Flow means net cash provided by or used for operating activities minus capital expenditures plus cash flows related to legacy matters; cash paid for restructuring and repositioning; capital expenditures related to repositioning; cash paid for third-party acquisition-related costs; cash flows related to debt modification; accelerated payments under defined benefit pension arrangements; and certain other items that are not representative of underlying trends.
  • The change in net sales on a constant currency basis, which we sometimes refer to as “Net Sales, constant currency,” means the period-over-period change in net sales calculated using the foreign currency exchange rates that were in effect during the previous comparable period.
  • Organic sales growth means the period-over-period change in net sales excluding the sales growth attributable to acquisitions.

“Legacy matters” include legacy (i) product, (ii) environmental, and (iii) other liabilities, relating to past activities of Grace.

In the 2020 first quarter, the definition of Adjusted EBIT was modified to adjust for the effects of interest and taxes on equity in earnings of unconsolidated affiliate. The definition of Adjusted EBITDA was modified to adjust for the effects of depreciation and amortization on equity in earnings of unconsolidated affiliate. We made these changes to provide clarity about the impacts of these items on our equity in earnings of unconsolidated affiliate and to improve consistency in our application of non-GAAP financial measures. Previously reported amounts were revised to conform to the current presentation.

Adjusted EBIT, Adjusted EBITDA (and net leverage based upon Adjusted EBITDA), Adjusted EBIT Return on Invested Capital, Adjusted Gross Margin, Adjusted EPS, Adjusted Free Cash Flow, Net Sales, constant currency, and Organic sales growth do not purport to represent income or liquidity measures as defined under U.S. GAAP, and should not be considered as alternatives to such measures as an indicator of Grace’s performance or liquidity.

Grace uses Adjusted EBIT as a performance measure in significant business decisions and in determining certain incentive compensation. Grace uses Adjusted EBIT as a performance measure because it provides improved period-to-period comparability for decision making and compensation purposes, and because it better measures the ongoing earnings results of its strategic and operating decisions by excluding the earnings effects of legacy matters; restructuring and repositioning activities; certain acquisition-related items; and certain other items that are not representative of underlying trends.

Grace uses Adjusted EBITDA, Adjusted EBIT Return on Invested Capital, Adjusted Gross Margin, and Adjusted EPS as performance measures and may use these measures in determining certain incentive compensation. Grace uses Adjusted EBITDA in its calculation of net leverage. Grace uses Adjusted EBIT Return on Invested Capital in making operating and investment decisions and in balancing the growth and profitability of operations. Grace uses the change in net sales on a constant currency basis as a performance measure to compare current period financial performance to historical financial performance by excluding the impact of foreign currency exchange rate fluctuations that are not representative of underlying business trends and are largely outside of its control. Grace uses Organic sales growth to measure its businesses’ sales performance, excluding the impacts of acquisitions.

Grace uses Adjusted Free Cash Flow as a liquidity measure to evaluate its ability to generate cash to support its ongoing business operations, to invest in its businesses, and to provide a return of capital to shareholders. Grace also uses Adjusted Free Cash Flow as a performance measure in determining certain incentive compensation.

Adjusted EBIT, Adjusted EBITDA, Adjusted EBIT Return on Invested Capital, Adjusted Gross Margin, Adjusted EPS, Adjusted Free Cash Flow, Net Sales, constant currency, and Organic sales growth do not purport to represent income measures as defined under U.S. GAAP, and should not be used as alternatives to such measures as an indicator of Grace’s performance. These measures are provided to investors and others to improve the period-to-period comparability and peer-to-peer comparability of Grace’s financial results, and to ensure that investors and others understand the information Grace uses to evaluate the performance of its businesses. They distinguish the operating results of Grace’s current business base from the costs of Grace’s legacy matters; restructuring and repositioning activities; and certain other items. These measures may have material limitations due to the exclusion or inclusion of amounts that are included or excluded, respectively, in the most directly comparable measures calculated and presented in accordance with U.S. GAAP and thus investors and others should review carefully the financial results calculated in accordance with U.S. GAAP.

Adjusted EBIT has material limitations as an operating performance measure because it excludes costs related to legacy matters, and may exclude income and expenses from restructuring, repositioning, and other activities, which historically have been material components of Grace’s net income. Adjusted EBITDA also has material limitations as an operating performance measure because it excludes the impact of depreciation and amortization expense. Grace’s business is substantially dependent on the successful deployment of capital, and depreciation and amortization expense is a necessary element of our costs. Grace compensates for the limitations of these measurements by using these indicators together with net income as measured under U.S. GAAP to present a complete analysis of our results of operations. Adjusted EBIT and Adjusted EBITDA should be evaluated together with net income and net income attributable to Grace shareholders, measured under U.S. GAAP, for a complete understanding of Grace’s results of operations.

Grace is unable without unreasonable efforts to estimate the annual mark-to-market pension adjustment or future net income or diluted EPS. Without the availability of this significant information, Grace is unable to provide reconciliations for certain forward-looking information set forth in the Outlook, above.

(B)   Grace’s segment operating income includes only Grace’s share of income from consolidated and unconsolidated joint ventures.

(C)   Certain pension costs include only ongoing costs recognized quarterly, which include service and interest costs, expected returns on plan assets, and amortization of prior service costs/credits. Catalysts Technologies and Materials Technologies segment operating income and corporate costs do not include any amounts for pension expense. Other pension related costs including annual mark-to-market adjustments and actuarial gains and losses are excluded from Adjusted EBIT. These amounts are not used by management to evaluate the performance of Grace’s businesses and significantly affect the peer-to-peer and period-to-period comparability of our financial results. Mark-to-market adjustments and actuarial gains and losses relate primarily to changes in financial market values and actuarial assumptions and are not directly related to the operation of Grace’s businesses.

(D)   Grace’s historical tax attribute carryforwards (net operating losses and tax credits) unfavorably affected its tax expense with respect to certain provisions of the Tax Cuts and Jobs Act of 2017. To normalize the effective tax rate, an adjustment was made to eliminate the tax expense impact associated with the historical tax attributes.

NM – Not Meaningful

Media Relations

Caitlin Leopold
+1 410.531.8870
[email protected] 
Investor Relations

Jason Hershiser
+1 410.531.8835
[email protected] 
 

 



InspireMD Appoints Leading Interventional Cardiologist Chris Metzger, M.D. as Principal Investigator for CGuard Registration Trial in the United States

TEL AVIV, Israel, Feb. 09, 2021 (GLOBE NEWSWIRE) — InspireMD, Inc. (NYSE American: NSPR), developer of the CGuard™ Embolic Prevention System (EPS) for the prevention of stroke caused by carotid artery disease, announced today the appointment of Chris Metzger, M.D., system chair of clinical research at Ballad Health System in Eastern Tennessee as the principal investigator for its planned FDA registration trial for CGuard EPS.

“InspireMD is extremely fortunate to have Chris Metzger enthusiastically agree to shepherd the CGuard clinical trial. Chris is an extremely skilled, high volume cardiovascular and carotid stent operator. He is also a highly regarded mentor and educator. His vast clinical trial experience will bring strong leadership to this landmark FDA study,” stated Gary Roubin, M.D., Ph.D., InspireMD Director and internationally renowned interventional cardiologist recognized for his pioneering work in carotid stenting and embolic and protection devices.

Dr. Metzger currently serves as medical director of the Interventional and Diagnostic Catheterization Labs at Holston Valley Medical Center and medical director of clinical research at Ballard Health Systems, both located in Eastern Tennessee and Southwestern Virginia. Dr. Metzger is widely published and has participated in more than 100 clinical studies, in most of which he served as principal investigator.

“Following a close review of the extensive European experience and clinical outcomes, I’m looking forward to participating in the upcoming U.S. pivotal trial for CGuard. There remains a significant need to address stroke prevention in the United States and based on CGuard’s protective MicroNet technology, I’m intrigued with the potential for success here,” commented Dr. Metzger.

“The appointment of Chris Metzger as our principal investigator is an important step toward the initiation of our pivotal clinical trial for CGuard in the United States. We are confident that connecting the study to such a well-respected and experienced practitioner will help guide the continued development and execution of the study to a successful conclusion, reflective of the results we have seen internationally. We are grateful to Dr. Metzger for his collaboration and look forward to providing updates on the trial’s development,” added Marvin Slosman, CEO of InspireMD.

About the CGuard® EPS

The CGuard® Embolic Protection System is an advanced platform solution designed to deliver the flexibility of the traditional open-cell stent with advanced protection from peri-procedural and post-procedural embolic events caused by plaque prolapse through the stent strut that can lead to stroke. CGuard’s unique MicroNet® technology mitigates the prolapse and associated embolization and has shown superior clinical outcomes for patients against alternative carotid stent types, conventional and next-generation double-layer stents, as well as invasive procedures such as endarterectomy, a major surgical procedure. InspireMD’s CGuard™ has created a new dimension in the protected treatment of carotid artery disease and has the potential to establish a new standard of care for the management of carotid artery disease and stroke prevention.

About InspireMD, Inc.
InspireMD seeks to utilize its proprietary MicroNet® technology to make its products the industry standard for carotid stenting by providing outstanding acute results and durable, stroke-free, long-term outcomes. For more information, visit www.inspiremd.com. InspireMD routinely posts information that may be important to investors in the Investors section of its website.

Forward-looking Statements

This press release contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) market acceptance of our existing and new products, (ii) negative clinical trial results or lengthy product delays in key markets, (iii) an inability to secure regulatory approvals for the sale of our products, (iv) the impact of the COVID-19 pandemic on our manufacturing, sales, business plan and the global economy, (v) intense competition in the medical device industry from much larger, multinational companies, (vi) product liability claims, (vii) product malfunctions, (viii) our limited manufacturing capabilities and reliance on subcontractors for assistance, (ix) insufficient or inadequate reimbursement by governmental and other third party payers for our products, (x) our efforts to successfully obtain and maintain intellectual property protection covering our products, which may not be successful, (xi) legislative or regulatory reform of the healthcare system in both the U.S. and foreign jurisdictions, (xii) our reliance on single suppliers for certain product components, (xiii) the fact that we will need to raise additional capital to meet our business requirements in the future and that such capital raising may be costly, dilutive or difficult to obtain and (xiv) the fact that we conduct business in multiple foreign jurisdictions, exposing us to foreign currency exchange rate fluctuations, logistical and communications challenges, burdens and costs of compliance with foreign laws and political and economic instability in each jurisdiction. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

Investor Contacts:

Craig Shore
Chief Financial Officer
InspireMD, Inc.
888-776-6804
[email protected]



Armada Hoffler Properties Increases First Quarter 2021 Cash Dividend over 36% on Common Shares

Company Also Announces Quarterly Cash Dividend on Preferred Stock

VIRGINIA BEACH, Va., Feb. 09, 2021 (GLOBE NEWSWIRE) — Armada Hoffler Properties, Inc. (NYSE: AHH) announced that its Board of Directors declared a cash dividend of $0.15 per common share for the first quarter of 2021. This represents a 36% increase over the prior quarter’s cash dividend. The first quarter cash dividend will be payable on April 8, 2021 to stockholders of record on March 31, 2021. The first quarter cash dividend will be payable on April 8, 2021 to stockholders of record on March 31, 2021.

The Board of Directors also declared a cash dividend of $0.421875 per share on its 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock payable on April 15, 2021 to stockholders of record on April 1, 2021.

“We appreciate the confidence the Board has shown by substantially increasing the first quarter dividend,” said Louis Haddad, President & CEO. “We look forward to discussing the results of this past year as well as our outlook for 2021 during our conference call and webcast later this week.”

At 8:30 a.m. EST on Thursday, February 11, 2021, senior management will host a conference call and webcast to discuss its outlook for 2021 as well as financial results for the quarter and year ended December 31, 2020. To listen to the call, dial 877-407-3982 (domestic) or 201-493-6780 (international) approximately 10 minutes prior to the start time of the call. The conference call will also be available through the investors page of the Company’s website, ArmadaHoffler.com.

About Armada Hoffler Properties, Inc.

Armada Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust (“REIT”) with over four decades of experience developing, building, acquiring, and managing high-quality, institutional-grade office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to developing and building properties for its own account, the Company also provides development and general contracting construction services to third-party clients. Founded in 1979 by Daniel A. Hoffler, the Company has elected to be taxed as a REIT for U.S. federal income tax purposes. For more information, visit ArmadaHoffler.com.

Contact:

Michael P. O’Hara
Armada Hoffler Properties, Inc.
Chief Financial Officer, Treasurer, and Secretary
Email: [email protected]
Phone: (757) 366-6684



GBT Tokenize Corp Evaluating qTerm Applications for Hotel Industry

SAN DIEGO, Feb. 09, 2021 (GLOBE NEWSWIRE) — GBT Technologies Inc. (OTC PINK: GTCH) (“GBT” or the “Company”) with GBT Tokenize Corp (GBT/Tokenize) commenced evaluating the adaptation of its qTerm device to the hotel industry. This special version of the device will be called ‘Hotel Health Watcher’ and will include additional features that are hotel related. GBT/Tokenize is assessing whether these features can be integrated into the device.

GBT/Tokenize’s qTerm is aimed to measure human vitals with a touch of a finger. qTerm first release will include body temperature, blood oxygen and heart rate vitals. The next release is planned to include blood pressure measurement. GBT is assessing the feasibility of incorporating the qTerm into Hotel related circuitries that will be integrated within the device in order to open hotel doors and other facilities in the hotel. A private, secured radio communication will transmit the data to the hotel’s system and/or via mobile application. The ‘Hotel Health Watcher’ version would be accompanied by a special version smartphone app and synchronized web application to keep a history and provide analytics for guests and management. It will provide a geographical location and proximity alert to assist with potential health risks inside and outside the hotel. This type of device will be further evaluated to adapt to similar service applications like conference halls, hospitals, secured work sites, retirement homes and similar. The device will be a health watcher in real time, helping maintain safe traveling and lodging environment worldwide.

This type of functionality is expected to enable safer lodging around the world and to, in turn, increase trust in hotels thus improving the global industry’s economy. The following short video demonstrate the potential abilities of the device if and once “adopted” by the hotel industry: https://youtu.be/xuguU2hdgyg

“qTerm device can be implemented as an accessory for a wide variety of applications and we start to evaluate its potential contribution to safer traveling and lodging. Especially nowadays when people would like to travel for business or pleasure we believe that qTerm can assist keeping them safe and healthy. Due to the device’s small size, shape and miniature electronics it is easy to integrate additional circuitry that are related to wide variety of applications. One of them is for the hotel industry. We will evaluate making qTerm a smart hotel room key, conference room key and even elevator opener. We envision that each hotel’s guest will receive a qTerm device upon checking-in which will be his/her room key in addition to providing vitals measurements. Upon checking in vitals will be taken and sent to the hotel’s main database and to the guest mobile application. In case of health alert, the guest and the hotel management will be able to take precautions and safety measures. In addition, the device could act as a personal proximity alert within the premise and outside helping to maintain safe environment and assist with pandemic spread. The device’s AI system could be structured to provide analytics for the guests and the hotel management about the entire premise health status, maintaining a “green” hotel that can be published in the hotel’s web site and information center. Guests will be able to choose their stay in “green” hotels worldwide. The device can become an essential accessory in many types of services among them are conference halls, hospitals, secured work places, retirement home and similar. We believe that qTerm can become a significant health watcher in many domains of our daily lives helping our community to keep healthy and enjoyable life.” Stated Danny Rittman the Company’s CTO.

About Us

GBT Technologies, Inc. (OTC PINK: GTCH) (“GBT”) (http://gbtti.com) isa development stage company which considers itself a native of Internet of Things (IoT), Artificial Intelligence (AI) and Enabled Mobile Technology Platforms used to increase IC performance. GBT has assembled a team with extensive technology expertise and is building an intellectual property portfolio consisting of many patents. GBT’s mission, to license the technology and IP to synergetic partners in the areas of hardware and software. Once commercialized, it is GBT’s goal to have a suite of products including smart microchips, AI, encryption, Blockchain, IC design, mobile security applications, database management protocols, with tracking and supporting cloud software (without the need for GPS). GBT envisions this system as a creation of a global mesh network using advanced nodes and super performing new generation IC technology. The core of the system will be its advanced microchip technology; technology that can be installed in any mobile or fixed device worldwide. GBT’s vision is to produce this system as a low cost, secure, private-mesh-network between any and all enabled devices. Thus, providing shared processing, advanced mobile database management and sharing while using these enhanced mobile features as an alternative to traditional carrier services.

Forward-Looking Statements

Certain statements contained in this press release may constitute “forward-looking statements”. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors as disclosed in our filings with the Securities and Exchange Commission located at their website (http://www.sec.gov). In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic conditions, governmental and public policy changes, the Company’s ability to raise capital on acceptable terms, if at all, the Company’s successful development of its products and the integration into its existing products and the commercial acceptance of the Company’s products. The forward-looking statements included in this press release represent the Company’s views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of the press release.

Contact:
Dr. Danny Rittman, CTO
[email protected]



Husky Energy Files 2020 Q4 and Annual Financials

CALGARY, Alberta, Feb. 09, 2021 (GLOBE NEWSWIRE) — Husky Energy Inc., a wholly-owned subsidiary of Cenovus Energy Inc., will be filing today its 2020 fourth quarter and annual audited consolidated financial statements, Management’s Discussion & Analysis and Annual Information Form with Canadian securities regulatory authorities. These documents will be available on SEDAR at sedar.com and on the Husky website at huskyenergy.com. Husky will also be filing today its Annual Report on Form 40-F for the year ended December 31, 2020 with the United States Securities and Exchange Commission. This document will be available on EDGAR at sec.gov and on the Husky website.

Investor and Media Inquiries:

Jenna Pickering, Investor Relations
403-750-1882

Kim Guttormson, Media
403-298-7088

 



KOHO Launches Credit Building to Level the Playing Field for Canadians Striving to Grow Their Credit Score

TORONTO, Feb. 09, 2021 (GLOBE NEWSWIRE) — The Canadian FinTech KOHO continues to disrupt the personal finance space, announcing today the launch of their first Credit Building product. KOHO Credit Building reports all activity to TransUnion®, one of the two major reporting bureaus in Canada.

For many Canadians, the current credit building marketplace is comprised of expensive products that lack transparency. KOHO’s Credit Building is a simple and affordable solution that helps users take control of their credit narrative for only 7$/month. A small installment loan is issued and reported monthly, generating a positive credit history. There are no additional fees, no compounding debt and no gimmicks – just another KOHO product built on user feedback.

“Historically, the options for building credit are expensive, murky or both, especially for middle-class Canadians,” stated CEO of KOHO, Daniel Eberhard. “We think our approach to credit building is a new form factor. It’s simple, affordable and transparent. We’re really proud of it.”

KOHO has experienced amazing growth over the past year as more Canadians turn to more transparent banking tools amidst global economic challenges. KOHO’s attention to their users’ financial needs has helped them create a product roadmap that continues to deliver on their promise to make banking simple and accessible for everyone.

About KOHO

KOHO is a new era of banking on a mission to make the financial system accessible and intuitive to everyone. KOHO offers a full-service account with no hidden fees. The account comes with a prepaid Visa card that earns cash back on every purchase, and an integrated app that helps users spend smart and save more.

For media inquiries, please contact:

Brittany Bell


[email protected]


For more information, please visit www.koho.ca



Jiayin Group Inc. Announces Changes in Management

SHANGHAI, China, Feb. 09, 2021 (GLOBE NEWSWIRE) — Jiayin Group Inc. (“Jiayin” or the “Company”) (NASDAQ: JFIN), a leading fintech platform in China, today announced that Mr. Jiong Feng has resigned from his position as the Company’s Chief Technology Officer due to personal reasons, effective from February 8, 2021. Mr. Dinggui Yan, the Founder, Director and Chief Executive Officer, expressed appreciation for Mr. Feng’s contributions to the development of the Company on behalf of the board of directors and management team of the Company.

The Company has appointed Mr. Chongxian Bai, the current Vice President of Technology Operations, as the new Chief Technology Officer, effective from February 8, 2021.

Mr. Chongxian Bai has over 15 years of technology leadership experience in internet, virtual reality and financial services. He joined Jiayin in 2013 and led the development of the microservices architecture and information security system, which provided efficient and stable technical support for the Company. Prior to joining the Company, Mr. Bai had held senior technology roles at well-known foreign companies such as Toshiba, NEC, and IBM since 2004. Mr. Bai graduated from Beijing University of Chemical Technology, majoring in electronic information engineering.

About Jiayin Group Inc.

Jiayin Group Inc. is a leading fintech platform in China committed to facilitating effective, transparent, secure and fast connections between investors and borrowers, whose needs are underserved by traditional financial institutions. The origin of the business of the Company can be traced back to 2011. The Company operates a highly secure and open platform with a comprehensive risk management system and a proprietary and effective risk assessment model which employs advanced big data analytics and sophisticated algorithms to accurately assess the risk profiles of potential borrowers.

Safe Harbor / Forward-Looking Statements

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. Potential risks and uncertainties include, but are not limited to, those relating to the Company’s ability to retain existing investors and borrowers and attract new investors and borrowers in an effective and cost-efficient way, the Company’s ability to increase the investment volume and loan origination of loans volume facilitated through its marketplace, effectiveness of the Company’s credit assessment model and risk management system, PRC laws and regulations relating to the online individual finance industry in China, general economic conditions in China, and the Company’s ability to meet the standards necessary to maintain listing of its ADSs on the Nasdaq Stock Market or other stock exchange, including its ability to cure any non-compliance with the continued listing criteria of the Nasdaq Stock Market. All information provided in this press release is as of the date hereof, and the Company undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by the Company is included in the Company’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.

For more information, please contact:

In China:

Jiayin Group

Ms. Shelley Bei Bai
Email: [email protected]

or

The Blueshirt Group

Ms. Susie Wang
Email: [email protected]

In the U.S.:

Ms. Julia Qian
Email: [email protected]