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International Game Technology PLC Reports Third Quarter 2020 Results

– Consolidated revenue of $982 million driven by the strongest lottery same-store sales growth in seven quarters; sharp improvement from the second quarter across all major revenue sources

– Delivered $285 million in cash from operating activities and $220 million in free cash flow during the third quarter; reduced net debt by $46 million as reported and $228 million at constant currency during the third quarter

– Net loss of $128 million includes $149 million in foreign exchange losses, primarily non-cash; Adjusted net income was $54 million

– Solid lottery profit flow-through and benefit of cost-saving actions led to $354 million in Adjusted EBITDA

PR Newswire

LONDON, Nov. 11, 2020 /PRNewswire/ — International Game Technology PLC (“IGT”) (NYSE: IGT) today reported financial results for the third quarter ended September 30, 2020. Tomorrow, at 8:00 a.m. EST, management will host a conference call and webcast to present the results; access details are provided below.

“The resilience of our portfolio, particularly in lottery, and benefits from our swift cost reduction initiatives are on full display in our third quarter results,” said Marco Sala, CEO of IGT. “Strong player demand and a host of compelling new games, systems, and digital solutions led to a sharp, sequential improvement in our most important markets. We continue to monitor the evolution and impact of the pandemic around the world. With a simplified organization firmly in place, we are creating a leaner, stronger IGT.”

“Robust cash flow generation during the quarter and year-to-date periods have enabled us to improve our liquidity and reduce net debt,” said Max Chiara, CFO of IGT. “We are on track to achieve our 2020 temporary cost-reduction targets and have identified a number of initiatives that will enable us to deliver over $200 million of structural savings over the next two years. As a result, the improvement in our profitability should support our continued focus on reducing debt.”


Overview of Consolidated Third Quarter 2020 Results

Quarter Ended

Y/Y

Constant 

September 30,

Change

Currency

2020

2019

(%)

Change (%)


(In $ millions, unless otherwise noted)



GAAP Financials:

Revenue

    Global Lottery

570

552

3%

0%

    Global Gaming

412

601

(31)%

(34)%


Total revenue

982

1,153

(15)%

(17)%

Operating income (loss)

    Global Lottery

196

161

22%

17%

    Global Gaming

(8)

68

NA

NA

    Corporate support expense

(18)

(26)

33%

37%

    Other(1)

(42)

(49)

13%

13%

Total operating income

129

154

(16)%

(22)%

Net (loss) income attributable to IGT PLC

(128)

104

NA



Non-GAAP Financial Measures:

Adjusted net income attributable to IGT PLC

54

43

25%

Adjusted EBITDA

    Global Lottery

309

270

14%

10%

    Global Gaming

58

156

(63)%

(65)%

    Corporate support expense

(13)

(20)

32%

36%


Total Adjusted EBITDA

354

407

(13)%

(17)%

Net debt

7,243

7,354

(2)%


(1) Primarily includes purchase price amortization

Note: Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided at the end of this news release

Key Highlights:

  • Delivered $220 million in positive free cash flow in the quarter; generated $610 million in cash from operations and $384 million in free cash flow year-to-date
  • Robust player demand drives highest Global Lottery same-store sales growth and Adjusted EBITDA in seven quarters
  • Signed 2-year contract extension with New York Lottery
  • Recently awarded 7-year contracts with Poland and Nebraska Lotteries following competitive bid processes
  • Sharp, sequential improvement in Global Gaming revenue and profit following acute impact of the pandemic in the second quarter
  • 41% increase in Digital & Betting revenue; launched full-service, in-house U.S. sports betting trading team in the third quarter and recently established new partnerships with Boyd Gaming and the National Basketball Association (NBA)
  • Awarded three spots on Casino Journal’s esteemed “Top 20 Most Innovative Gaming Technology Products Awards,” the most of any gaming supplier
  • Cashless solutions gaining traction as Resort Wallet™ launched at Resorts World Catskills

Financial highlights:

Third quarter 2020 results reflect the continued, global impact of the COVID-19 pandemic, but at a lower level compared to the second quarter

Resilient consolidated revenue of $982 million, down 15% from the prior year

  • Global Lottery revenue of $570 million, up 3%, driven by double-digit growth in North America same-store sales
  • Global Gaming revenue totals $412 million, down 31% on pandemic-related closures and restrictions; positive sequential trends as casinos re-open and installed base is gradually reactivated

Operating income of $129 million, compared to $154 million in the prior year

  • Benefit of disciplined cost-saving actions
  • Global Lottery same-store sales growth translates into high profit flow-through
  • Contribution from Global Gaming impacted by $36 million higher bad debt and obsolescence charges, primarily due to the protracted pandemic slow-down in business activities

Net interest expense of $101 million compared to $103 million in the prior year

Benefit from income taxes of $27 million, compared to a provision for income taxes of $45 million, driven by lower pre-tax income and the tax impact of significant foreign exchange losses in the third quarter of 2020 versus significant foreign exchange gains in the prior-year period   

Net loss attributable to IGT was $128 million; adjusted net income attributable to IGT of $54 million compared to adjusted net income of $43 million in the prior year

  • Net loss includes $149 million in non-cash foreign exchange loss, primarily on Euro-denominated debt instruments

Net loss per diluted share of $0.62; adjusted net income per diluted share of $0.26 compared to adjusted net income per diluted share of $0.21 in the prior year

Adjusted EBITDA of $354 million compared to $407 million in the prior-year period

  • Benefit from previously mentioned cost-saving actions
  • Global Lottery achieves highest segment-level Adjusted EBITDA in seven quarters

Net debt of $7.24 billion compared to $7.38 billion at December 31, 2019; Net debt to LTM adjusted EBITDA of 5.72x up from 4.31x at December 31, 2019, due to pandemic’s impact on EBITDA in the first nine months of 2020


Cash and Liquidity Update

  • At September 30, 2020, liquidity totaled $2.55 billion, an improvement from the second quarter level on strong cash flow generation; comprised of $943 million in unrestricted cash and $1.61 billion available under revolving credit facilities


Conference Call and Webcast:

November 12, 2020, at 8:00 a.m. EST

Live webcast available under “News, Events & Presentations” on IGT’s Investor Relations website at www.IGT.com; replay available on the website following the live event

Dial-In Numbers

  • US/Canada toll-free dial-in number: +1 844 842 7999
  • Outside the US/Canada toll-free number: +1 612 979 9887
  • Conference ID/confirmation code: 9189642
  • A telephone replay of the call will be available for one week
    • US/Canada replay number: +1 855 859 2056
    • Outside the US/Canada replay number: +1 404 537 3406
    • ID/Confirmation code: 9189642

Note: Certain totals in the tables included in this press release may not add due to rounding


Comparability of Results

All figures presented in this news release are prepared under U.S. GAAP, unless noted otherwise. Adjusted figures exclude the impact of items such as purchase accounting, impairment charges, restructuring expense, foreign exchange, and certain one-time, primarily transaction-related items. Reconciliations to the most directly comparable U.S. GAAP measures are included in the tables in this news release. Constant currency changes for 2020 are calculated using the same foreign exchange rates as the corresponding 2019 period. Management uses non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, and to evaluate the Company’s financial performance. Management believes these non-GAAP financial measures reflect the Company’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of business trends. These constant currency changes and non-GAAP financial measures should however be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with U.S. GAAP.


About IGT

IGT (NYSE:IGT) is the global leader in gaming. We deliver entertaining and responsible gaming experiences for players across all channels and regulated segments, from Gaming Machines and Lotteries to Sports Betting and Digital. Leveraging a wealth of compelling content, substantial investment in innovation, player insights, operational expertise, and leading-edge technology, our solutions deliver unrivalled gaming experiences that engage players and drive growth. We have a well-established local presence and relationships with governments and regulators in more than 100 countries around the world, and create value by adhering to the highest standards of service, integrity, and responsibility. IGT has approximately 11,000 employees. For more information, please visit www.IGT.com.

Cautionary Statement Regarding Forward-Looking Statements
This news release may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning International Game Technology PLC and its consolidated subsidiaries (the “Company”) and other matters. These statements may discuss goals, intentions, and expectations as to future plans, trends, events, dividends, results of operations, or financial condition, or otherwise, based on current beliefs of the management of the Company as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as “aim,” “anticipate,” “believe,” “plan,” “could,” “would,” “should,” “shall”, “continue,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “will,” “possible,” “potential,” “predict,” “project” or the negative or other variations of them. These forward-looking statements speak only as of the date on which such statements are made and are subject to various risks and uncertainties, many of which are outside the Company’s control. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may differ materially from those predicted in the forward-looking statements and from past results, performance, or achievements. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) the factors and risks described in the Company’s annual report on Form 20-F for the financial year ended December 31, 2019 and other documents filed from time to time with the SEC, which are available on the SEC’s website at www.sec.gov and on the investor relations section of the Company’s website at www.IGT.com. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. You should carefully consider these factors and other risks and uncertainties that affect the Company’s business. Nothing in this news release is intended, or is to be construed, as a profit forecast or to be interpreted to mean that the financial performance of International Game Technology PLC for the current or any future financial years will necessarily match or exceed the historical published financial performance or International Game Technology PLC, as applicable. All forward-looking statements contained in this news release are qualified in their entirety by this cautionary statement. All subsequent written or oral forward-looking statements attributable to International Game Technology PLC, or persons acting on its behalf, are expressly qualified in their entirety by this cautionary statement.

Non-GAAP Financial Measures
Management supplements the reporting of financial information, determined under GAAP, with certain non-GAAP financial information. Management believes the non-GAAP information presented provides investors with additional useful information, but it is not intended to nor should it be considered in isolation or as a substitute for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. The Company encourages investors to review its financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

Consolidated Adjusted EBITDA represents net income (loss) (a GAAP measure) before income taxes, interest expense, foreign exchange gain (loss), other non-operating expenses, depreciation, impairment losses, amortization (service revenue, purchase accounting and non-purchase accounting) restructuring expenses, stock-based compensation, and certain other non-recurring items. Other non-recurring items are infrequent in nature and are not reflective of on-going operational activities. For the business segments, Adjusted EBITDA represents segment operating income (loss) before depreciation, amortization (service revenue, purchase accounting and non-purchase accounting) restructuring expenses, stock-based compensation, and certain other non-recurring items. Adjusted net (loss) income attributable to IGT PLC represents Net (loss) income attributable to IGT PLC before foreign exchange, purchase accounting depreciation and amortization, restructuring expenses, loss on extinguishment of debt and certain other non-recurring items. Adjusted Diluted EPS represents Adjusted net (loss) income attributable to IGT PLC per weighted-average number of common shares outstanding during the period that takes into consideration potential common shares outstanding deriving from the IGT PLC share-based payment awards, when inclusion is not antidilutive. Other non-recurring items are discrete, infrequent in nature and are not reflective of on-going operational activities. Management believes that the non-GAAP measures just mentioned are useful in providing period-to-period comparisons of the results of the Company’s ongoing operational performance.

Net debt is a non-GAAP financial measure that represents debt (a GAAP measure, calculated as long-term obligations plus short-term borrowings) minus cash and equivalents. Cash and cash equivalent are subtracted from the GAAP measure because they could be used to reduce the Company’s debt obligations. Management believes that net debt is a useful measure to monitor leverage and evaluate the balance sheet.

Free cash flow is a non-GAAP financial measure that represents cash flow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing  IGT’s  ability to fund its activities, including debt service and distribution of earnings to shareholders.

A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this release. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.

Contact:

Phil O’Shaughnessy, Global Communications, toll free in U.S./Canada +1 (844) IGT-7452; outside U.S./Canada +1 (401) 392-7452
Francesco Luti, +39 3485475493; for Italian media inquiries
James Hurley, Investor Relations, +1 (401) 392-7190 

 



Select Performance and KPI data:

 (In $ millions, unless otherwise noted)


Q3’20


Q3’19


% Change


As Reported


% Change


GLOBAL LOTTERY


At Constant FX


Revenue


Service

   Operating and facilities management contracts

525

502

5%

1%

   Upfront license fee amortization

(52)

(48)

(7)%

0%

   Operating and facilities management contracts, net

474

454

4%

2%

   Other

76

66

15%

9%


Total service revenue


549


520


6%


3%


Product sales


20


33


(38)%


(38)%


Total revenue


570


552


3%


0%


Operating income


196


161


22%


17%


Adjusted EBITDA


309


270


14%


10%


Global same-store sales growth (%)

Instant ticket & draw games

10.6%

Multi-jurisdiction jackpots

(14.3)%


Total


8.7%


North America & Rest of world same-store sales growth (%)

Instant ticket & draw games

15.0%

Multi-jurisdiction jackpots

(14.3)%


Total


12.1%


Italy same-store sales growth (%)

Instant ticket & draw games


(3.5)%


Q3’20


Q3’19


% Change


As Reported


% Change


GLOBAL GAMING


At Constant FX


Revenue


Service

   Terminal

193

276

(30)%

(33)%

   Systems, software, and other

138

126

10%

6%


Total service revenue


331


402


(18)%


(21)%


Product sales

   Terminal

49

139

(64)%

(65)%

   Other

32

60

(47)%

(48)%


Total product sales revenue


81


199


(59)%


(60)%


Total revenue


412


601


(31)%


(34)%


Operating (loss) income


(8)


68


NA


NA


Adjusted EBITDA


58


156


(63)%


(65)%


Installed base units

Casino

48,280

51,592

(6)%

Casino – L/T lease (1)

1,102

—

NA

Italy VLT – Operator (B2C)

10,845

10,984

(1)%

Italy VLT – Supplier (B2B)

7,112

7,514

(5)%

Italy AWP

36,279

41,129

(12)%


Total installed base units


103,618


111,219


(7)%


Installed base units (by geography)

US & Canada

34,584

37,260

(7)%

Rest of world

14,798

14,332

3%

  Subtotal

49,382

51,592

(4)%

Italy

54,236

59,627

(9)%


Total installed base units


103,618


111,219


(7)%


Yields (by geography)(2), in absolute $

US & Canada

$26.79

$41.31

(35)%

Rest of world (ex-Italy)

$4.31

$8.04

(46)%


Total yields (ex-Italy)


$19.88


$32.06


(38)%


Global machine units sold

New/expansion

818

1,001

(18)%

Replacement

2,853

9,190

(69)%


Total machine units sold


3,671


10,191


(64)%


US & Canada machine units sold

New/expansion

667

791

(16)%

Replacement

2,007

4,150

(52)%


Total machine units sold


2,674


4,941


(46)%


(1) Excluded from yield calculations due to treatment as sales-type leases


(2) Excludes Casino L/T lease units due to treatment as sales-type leases


Q3’20


Q3’19


% Change


As Reported


% Change


GLOBAL GAMING (Continued)


At Constant FX


Rest of world machine units sold

New/expansion

151

210

(28)%

Replacement

846

5,040

(83)%


Total machine units sold


997


5,250


(81)%


Average Selling Price (ASP), in absolute $

US & Canada

13,800

14,800

(7)%

Rest of world

12,100

11,800

3%


Total ASP


13,300


13,300


0%


Gaming Systems Revenue


32


53


(41)%


Italy Wagers (€)


VLT (B2C)


940


1,324


(29)%


AWP


711


877


(19)%


Italy sports betting wagers (€)


237


227


5%


Italy sports betting payout (%)


83.0%


83.4%


0%


Q3’20


Q3’19


% Change


As Reported


% Change


CONSOLIDATED


At Constant FX


Revenue (by geography)

US & Canada

443

538

(18)%

(18)%

Italy

416

402

3%

(4)%

Rest of world

123

213

(42)%

(43)%


Total revenue


982


1,153


(15)%


(17)%


Digital & Betting Revenue (1)


104


74


41%


35%


(1) Included within consolidated revenue

 

 


International Game Technology PLC


Consolidated Statements of Operations



($ and shares in thousands, except per share amounts)



Unaudited

For the three months ended

For the nine months ended

September 30,

September 30,

2020

2019

2020

2019

Service revenue

880,133

921,712

2,223,772

2,892,774

Product sales

101,377

231,535

335,417

639,642


Total revenue

981,510

1,153,247

2,559,189

3,532,416

Cost of services

541,118

575,594

1,479,605

1,765,519

Cost of product sales

81,516

136,246

239,822

397,217

Selling, general and administrative

180,315

201,416

515,858

616,516

Research and development

48,039

68,804

140,111

200,305

Restructuring

(98)

16,152

46,955

21,853

Goodwill impairment

—

—

296,000

—

Other operating expense (income), net

2,118

1,153

3,721

(24,743)


Total operating expenses

853,008

999,365

2,722,072

2,976,667


Operating income (loss)

128,502

153,882

(162,883)

555,749

Interest expense, net

(101,023)

(102,551)

(297,284)

(309,480)

Foreign exchange (loss) gain, net

(149,403)

124,068

(153,427)

141,609

Other (expense) income, net

(7,031)

(308)

(39,791)

22,687


Total non-operating (expenses) income

(257,457)

21,209

(490,502)

(145,184)


(Loss) income before (benefit from) provision for income taxes

(128,955)

175,091

(653,385)

410,565

(Benefit from) provision for income taxes

(26,617)

44,530

(34,806)

160,522


Net (loss) income

(102,338)

130,561

(618,579)

250,043

Less: Net income attributable to non-controlling interests

25,652

26,998

37,315

101,370


Net (loss) income attributable to IGT PLC

(127,990)

103,563

(655,894)

148,673


Net (loss) income attributable to IGT PLC per common share – basic

(0.62)

0.51

(3.20)

0.73


Net (loss) income attributable to IGT PLC per common share – diluted

(0.62)

0.51

(3.20)

0.73


Weighted-average shares – basic

204,857

204,435

204,680

204,352


Weighted-average shares – diluted

204,857

204,528

204,680

204,532

 

 


International Game Technology PLC


Consolidated Balance Sheets



($ thousands)



Unaudited

September 30,

December 31,

2020

2019


Assets

Current assets:

Cash and cash equivalents

943,346

662,934

Restricted cash and cash equivalents

196,252

231,317

Trade and other receivables, net

828,459

1,006,127

Inventories

183,220

161,790

Other current assets

556,607

571,869


Total current assets

2,707,884

2,634,037

Systems, equipment and other assets related to contracts, net

1,180,511

1,307,940

Property, plant and equipment, net

129,636

146,055

Operating lease right-of-use assets

332,121

341,538

Goodwill

5,188,657

5,451,494

Intangible assets, net

1,672,750

1,836,002

Other non-current assets

1,779,807

1,927,524


Total non-current assets

10,283,482

11,010,553


Total assets

12,991,366

13,644,590


Liabilities and shareholders’ equity

Current liabilities:

Accounts payable

1,116,854

1,120,922

Current portion of long-term debt

374,656

462,155

Short-term borrowings

4

3,193

Other current liabilities

1,006,658

882,081


Total current liabilities

2,498,172

2,468,351

Long-term debt, less current portion

7,821,723

7,600,169

Deferred income taxes

272,555

366,822

Operating lease liabilities

305,805

310,721

Other non-current liabilities

372,428

413,549


Total non-current liabilities

8,772,511

8,691,261


Total liabilities

11,270,683

11,159,612


Commitments and contingencies


Shareholders’ equity

1,720,683

2,484,978


Total liabilities and shareholders’ equity

12,991,366

13,644,590

 

 


International Game Technology PLC


Consolidated Statements of Cash Flows



($ thousands)



Unaudited

For the three months ended

For the nine months ended

September 30,

September 30,

2020

2019

2020

2019


Cash flows from operating activities

Net (loss) income

(102,338)

130,561

(618,579)

250,043

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

Depreciation

102,578

106,020

300,826

315,291

Goodwill impairment

—

—

296,000

—

Amortization

65,624

69,960

201,581

207,161

Amortization of upfront license fees

54,229

50,695

155,576

154,630

Foreign exchange loss (gain), net

149,403

(124,068)

153,427

(141,609)

(Gain) loss on extinguishment of debt

(10)

2,336

28,267

11,964

Debt issuance cost amortization

5,451

5,481

15,748

17,004

Loss (gain) on sale of assets

389

(2,085)

455

(65,324)

Stock-based compensation

1,103

7,544

(10,703)

20,046

Deferred income taxes

(69,815)

(3,925)

(106,520)

2,590

Other non-cash items, net

2,621

17,339

5,125

48,731

Changes in operating assets and liabilities, excluding the effects of acquisitions:

Trade and other receivables

58,553

(32,513)

198,131

16,546

Inventories

(3,457)

23,073

(9,435)

23,875

Accounts payable

(17,984)

57,928

(23,646)

611

Other assets and liabilities

38,867

(111,362)

24,060

(72,854)


Net cash provided by operating activities

285,214

196,984

610,313

788,705


Cash flows from investing activities

Capital expenditures

(65,668)

(101,713)

(225,847)

(332,716)

Proceeds from sale of assets

1,272

35,314

6,457

100,743

Other

1,540

3,581

12,437

6,126


Net cash used in investing activities

(62,856)

(62,818)

(206,953)

(225,847)


Cash flows from financing activities

Principal payments on long-term debt

(579,175)

(431,518)

(959,275)

(1,264,647)

Payments in connection with extinguishment of debt

—

—

(25,000)

(8,598)

Payments of debt issuance costs

(1,863)

(18,853)

(21,479)

(24,787)

Net payments of short-term borrowings

(82,537)

(54,092)

(7,610)

(34,519)

Proceeds from long-term debt

—

550,050

895,896

1,397,025

Net receipts from financial liabilities

59,230

12,148

95,698

753

Dividends paid

—

(40,887)

(40,887)

(122,616)

Dividends paid – non-controlling interests

(44,516)

(6,290)

(135,892)

(135,684)

Return of capital – non-controlling interests

—

(9,985)

—

(80,384)

Capital increase – non-controlling interests

1,304

294

3,334

1,369

Other

(2,540)

(1,065)

(8,598)

(7,798)


Net cash used in financing activities

(650,097)

(198)

(203,813)

(279,886)

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

(427,739)

133,968

199,547

282,972

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

37,575

(27,343)

45,800

(31,091)

Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the period

1,529,762

657,033

894,251

511,777


Cash and cash equivalents and restricted cash and cash equivalents at the end of the period

1,139,598

763,658

1,139,598

763,658


Supplemental Cash Flow Information

Interest paid

(141,263)

(160,256)

(372,127)

(371,847)

Income taxes paid

(41,637)

(88,232)

(59,432)

(138,009)

 

 


International Game Technology PLC


Net Debt



($ thousands)



Unaudited

September 30,

December 31,

2020

2019

6.250% Senior Secured U.S. Dollar Notes due February 2022

1,004,662

1,491,328

4.750% Senior Secured Euro Notes due February 2023

989,909

948,382

5.350% Senior Secured U.S. Dollar Notes due October 2023

60,811

60,885

3.500% Senior Secured Euro Notes due July 2024

581,534

557,331

6.500% Senior Secured U.S. Dollar Notes due February 2025

1,091,210

1,089,959

3.500% Senior Secured Euro Notes due June 2026

871,151

835,105

6.250% Senior Secured U.S. Dollar Notes due January 2027

743,958

743,387

2.375% Senior Secured Euro Notes due April 2028

580,333

556,403

5.250% Senior Secured U.S. Dollar Notes due January 2029

743,004

—


Senior Secured Notes

6,666,572

6,282,780

Euro Term Loan Facility due January 2023

994,835

1,317,389

U.S. Dollar Revolving Credit Facility A due July 2024

160,316

—


Long-term debt, less current portion

7,821,723

7,600,169

4.750% Senior Secured Euro Notes due March 2020

—

434,789

5.500% Senior Secured U.S. Dollar Notes due June 2020

—

27,366

Euro Term Loan Facility due January 2023

374,656

—


Current portion of long-term debt

374,656

462,155

Short-term borrowings

4

3,193


Total debt

8,196,383

8,065,517

Less: Cash and cash equivalents

943,346

662,934

Less: Debt issuance costs, net – Euro Revolving Credit Facility B due July 2024

10,422

20,464


Net debt

7,242,615

7,382,119

Note: Net debt is a non-GAAP financial measure

 

 


International Game Technology PLC


Reconciliation of Non-GAAP Financial Measures



($ and shares in thousands, except per share amounts)



Unaudited

For the three months ended September 30, 2020

Operating

Global

Global

Segment

Corporate

Total

Lottery

Gaming

Total

and Other

IGT PLC

Net loss

(102,338)

Benefit from income taxes

(26,617)

Interest expense, net

101,023

Foreign exchange loss, net

149,403

Other non-operating expense, net

7,031

Operating income (loss)

195,766

(7,550)

188,216

(59,714)

128,502

Depreciation

51,248

51,007

102,255

323

102,578

Amortization – service revenue (1)

54,229

—

54,229

—

54,229

Amortization – non-purchase accounting

7,926

15,178

23,104

762

23,866

Amortization – purchase accounting

—

—

—

41,758

41,758

Restructuring

(52)

(428)

(480)

382

(98)

Stock-based compensation

81

71

152

951

1,103

Other (2)

—

—

—

2,118

2,118


Adjusted EBITDA


309,198


58,278


367,476


(13,420)


354,056

Cash flows from operating activities

285,214

Capital expenditures

(65,668)


Free Cash Flow


219,546

Net loss attributable to IGT PLC

(127,990)

Foreign exchange loss, net

149,403



Depreciation and amortization – purchase accounting

42,069

Restructuring

(98)

Gain on extinguishment of debt

(10)

Other (2)

2,118

Income tax impact on adjustments (3)

(11,167)


Adjusted net income attributable to IGT PLC


54,325

Weighted-average shares – diluted

204,857

Adjusted weighted-average shares – diluted (4)

205,013

Net loss attributable to IGT PLC per common share – diluted

(0.62)


Adjusted net income attributable to IGT PLC per common share – diluted


0.26


(1) Includes amortization of upfront license fees


(2) Primarily includes transaction-related costs


(3) Adjustments for income taxes are determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated


(4) Adjusted weighted-average shares – diluted includes shares that were excluded from the GAAP computation, due to the net loss as reported

 

 


International Game Technology PLC


Reconciliation of Non-GAAP Financial Measures



($ and shares in thousands, except per share amounts)



Unaudited

For the three months ended September 30, 2019

Operating

Global

Global

Segment

Corporate

Total

Lottery

Gaming

Total

and Other

IGT PLC

Net income

130,561

Provision for income taxes

44,530

Interest expense, net

102,551

Foreign exchange gain, net

(124,068)

Other non-operating expense, net

308

Operating income (loss)

160,820

68,025

228,845

(74,963)

153,882

Depreciation

50,099

55,160

105,259

761

106,020

Amortization – service revenue (1)

50,695

—

50,695

—

50,695

Amortization – non-purchase accounting

6,843

14,415

21,258

754

22,012

Amortization – purchase accounting

—

—

—

47,948

47,948

Restructuring

211

16,283

16,494

(342)

16,152

Stock-based compensation

1,582

2,126

3,708

3,836

7,544

Other (2)

—

432

432

2,391

2,823


Adjusted EBITDA


270,250


156,441


426,691


(19,615)


407,076

Cash flows from operating activities

196,984

Capital expenditures

(101,713)


Free Cash Flow


95,271

Net income attributable to IGT PLC

103,563

Foreign exchange gain, net

(124,068)



Depreciation and amortization – purchase accounting

48,580

Restructuring

16,152

Loss on extinguishment of debt

2,336

Other (2)

2,823

Income tax impact on adjustments (3)

(6,041)


Adjusted net income attributable to IGT PLC


43,345

Weighted-average shares – diluted

204,528

Adjusted weighted-average shares – diluted 

204,528

Net income attributable to IGT PLC per common share – diluted

0.51


Adjusted net income attributable to IGT PLC per common share – diluted


0.21


(1) Includes amortization of upfront license fees


(2) Primarily includes transaction-related costs


(3) Adjustments for income taxes are determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated

 

 


International Game Technology PLC


Reconciliation of Non-GAAP Financial Measures



($ and shares in thousands, except per share amounts)



Unaudited

For the nine months ended September 30, 2020

Operating

Global

Global

Segment

Corporate

Total

Lottery

Gaming

Total

and Other

IGT PLC

Net loss

(618,579)

Benefit from income taxes

(34,806)

Interest expense, net

297,284

Foreign exchange loss, net

153,427

Other non-operating expense, net

39,791

Operating income (loss)

446,965

(124,787)

322,178

(485,061)

(162,883)

Goodwill impairment

—

—

—

296,000

296,000

Depreciation

147,055

152,670

299,725

1,101

300,826

Amortization – service revenue (1)

155,576

—

155,576

—

155,576

Amortization – non-purchase accounting

22,006

46,726

68,732

2,341

71,073

Amortization – purchase accounting

—

—

—

130,508

130,508

Restructuring

5,332

35,430

40,762

6,193

46,955

Stock-based compensation

(3,713)

(5,063)

(8,776)

(1,927)

(10,703)

Other (2)

—

—

—

3,623

3,623


Adjusted EBITDA


773,221


104,976


878,197


(47,222)


830,975

Cash flows from operating activities

610,313

Capital expenditures

(225,847)


Free Cash Flow


384,466

Net loss attributable to IGT PLC

(655,894)

Foreign exchange loss, net

153,427

Goodwill impairment

296,000



Depreciation and amortization – purchase accounting

131,442

Restructuring

46,955

Loss on extinguishment of debt

23,250

Other (2)

3,623

Income tax impact on adjustments (3)

(49,430)


Adjusted net loss attributable to IGT PLC


(50,627)

Weighted-average shares – diluted

204,680

Adjusted weighted-average shares – diluted

204,680

Net loss attributable to IGT PLC per common share – diluted

(3.20)


Adjusted net loss attributable to IGT PLC per common share – diluted


(0.25)


(1) Includes amortization of upfront license fees


(2) Primarily includes transaction-related costs


(3) Adjustments for income taxes are determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated

 

 


International Game Technology PLC


Reconciliation of Non-GAAP Financial Measures



($ and shares in thousands, except per share amounts)



Unaudited

For the nine months ended September 30, 2019

Operating

Global

Global

Segment

Corporate

Total

Lottery

Gaming

Total

and Other

IGT PLC

Net income

250,043

Provision for income taxes

160,522

Interest expense, net

309,480

Foreign exchange gain, net

(141,609)

Other non-operating income, net

(22,687)

Operating income (loss)

542,913

239,940

782,853

(227,104)

555,749

Depreciation

147,461

165,490

312,951

2,340

315,291

Amortization – service revenue (1)

154,629

—

154,629

—

154,629

Amortization – non-purchase accounting

18,175

43,090

61,265

2,231

63,496

Amortization – purchase accounting

—

—

—

143,666

143,666

Restructuring

1,003

16,959

17,962

3,891

21,853

Stock-based compensation

3,854

5,088

8,942

11,104

20,046

Other (2)

—

432

432

2,296

2,728


Adjusted EBITDA


868,035


470,999


1,339,034


(61,576)


1,277,458

Cash flows from operating activities

788,705

Capital expenditures

(332,716)


Free Cash Flow


455,989

Net income attributable to IGT PLC

148,673

Foreign exchange gain, net

(141,609)



Depreciation and amortization – purchase accounting

145,562

Restructuring

21,853

Loss on extinguishment of debt

11,964

Other (2)

2,728

Income tax impact on adjustments (3)

(30,819)


Adjusted net income attributable to IGT PLC


158,352

Weighted-average shares – diluted

204,532

Adjusted weighted-average shares – diluted

204,532

Net income attributable to IGT PLC per common share – diluted

0.73


Adjusted net income attributable to IGT PLC per common share – diluted


0.77


(1) Includes amortization of upfront license fees


(2) Primarily includes transaction-related costs


(3) Adjustments for income taxes are determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated

 

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/international-game-technology-plc-reports-third-quarter-2020-results-301171346.html

SOURCE International Game Technology PLC

Posted on

Sundial Reports Third Quarter 2020 Financial Results

PR Newswire

CALGARY, AB, Nov. 11, 2020 /PRNewswire/ – Sundial Growers Inc. (NASDAQ: SNDL) (“Sundial” or the “Company”) reported its financial and operational results for the third quarter ended September 30, 2020. All financial information in this press release is reported in millions of Canadian dollars, unless otherwise indicated.

THIRD QUARTER 2020 FINANCIAL AND OPERATIONAL HIGHLIGHTS

  • Branded net cannabis sales increased to 77% of total cannabis sales from 69% in the previous quarter as Sundial continues to transition from reliance on wholesale to branded retail sales
  • Net cannabis revenue for the third quarter of 2020 was $12.9 million, a decrease of 36% over the second quarter of 2020 due primarily to focus on branded retail sales
  • Branded product average gross selling price for the quarter remained relatively stable at $5.53 per gram equivalent from $5.67 per gram equivalent in the previous quarter
  • Principal amount of debt outstanding decreased by $23 million during the third quarter. A total of $100 million of debt has been eliminated year to date and current cash on hand stands at $60 million
  • Cash used from operations decreased by 63% to $5.3 million for the quarter, not including the change in non-cash working capital, financing and investing activities, from $14.3 million during the previous quarter
  • Dried bulk cost per gram sold was $1.18, a decrease of 12% from the previous three months ended June 30, 2020. Management is working towards a target cash cost of $0.69 per gram
  • General and administrative costs were reduced by 7% from $7.7 million to $7.2 million in the third quarter of 2020 when compared to the previous three months ended June 30, 2020
  • Capital raises provided gross proceeds of $26.4 million during the quarter and $48.1 million subsequent to the end of the quarter
  • A total of $4.1 million was received under the Canada Emergency Wage Subsidy (CEWS)
  • Net loss was $71.4 million in the third quarter; adjusted EBITDA loss increased by 13% over the previous quarter to $4.4 million from $3.9 million
  • A property, plant, and equipment impairment provision of $60 million was recorded on the Olds facility and an inventory impairment provision of $19.9 million was recorded on dried cannabis and cannabis extracts

“While our third quarter revenue decreased, we are pleased with the demonstrated improvement in operating discipline, successful cost optimization initiatives and a material reduction of our debt,” said Zach George, Sundial’s CEO. “Following the announcement of our financial restructuring in June of this year, we have accelerated improvements in our operating practices targeting a sustainable cost structure and a simplified business model that will better enable us to focus on delighting consumers.”

“Having entered 2020 with a challenged capital structure, and a disparate business model, our team has moved aggressively to focus our operations and product portfolio to get the very best from our high-quality people and assets,” added Mr. George. “We faced some challenges with our cultivation processes this past quarter, but the modular nature of our indoor facility enabled Sundial to quickly adapt to rapidly evolving market conditions and consumer preferences in today’s Canadian cannabis market. We firmly believe that the changes we’ve made to the business these past four months will position Sundial for future success.”

THIRD QUARTER 2020 KEY FINANCIAL METRICS


Gross
Revenue


Net Revenue


Gross Margin (1)


Net Loss


Adj. EBITDA


Reported

15,525

12,865

2,606

(71,397)

(4,409)


% Change Q2 2020

-36%

-36%

-9%

-117%

-13%


% Change Q3 2019

-46%

-54%

-66%

16%

29%


(1) 

Gross margin before inventory impairment and fair value adjustments

THIRD QUARTER 2020 BUSINESS & OPERATIONAL HIGHLIGHTS

 The decrease in net revenue in the third quarter of 2020 can be attributed to:

  • Changes to the Company’s processes as it continues to adapt its cultivars to meet consumers’ expectations, including high THC potency
  • The Company’s decision to prioritize larger pack formats in flower during the early stages of COVID-19, resulted in a slower than expected ramp-up in pre-roll production. Demand for Sundial’s pre-roll products remains strong and capacity constraints have been removed, which should benefit product mix in subsequent quarters
  • Many provincial boards have adjusted their inventory stocking and re-ordering practices in response to short-term market demand and inventory management
  • Sundial underestimated on-hand inventory on certain SKUs at select customers, which resulted in smaller re-orders in the quarter as the Company continues to move through its inventory depletion

In response to these factors, Sundial is implementing critical changes that have enhanced the Company’s cultivation results:

  • The modular room design of Sundial’s facility has rapidly created a broad set of cultivation statistics. Since inception the company has completed over 600 harvests, including 243 in 2020 and 52 in the third quarter. Sundial has leveraged its data analytics capability to focus on key improvement areas within cultivation. Recently improved cultivation processes have led to Sundial’s highest average potency results since inception. Sundial expects to realize benefits from those products in early 2021
  • Sundial’s commitment to data and science-based decisions has also been supported by the restructuring of our cultivation teams. These changes will be vital to accelerate the momentum of improvements in quality, potency, and cost
  • Sundial acquired an expanded library of genetics to better serve evolving consumer preferences and cultivate higher potency products

GROSS MARGIN
Gross margin before inventory impairment and fair value adjustments for the three months ended September 30, 2020 was 20% compared to 14% for the three months ended June 30, 2020. The increase in the gross margin percentage of 6% was mainly due to efficiency gains realized through decreased cost of goods sold and one large LP order.

GROSS SELLING PRICE
Average gross selling price per gram equivalent of branded products was $5.53 per gram in the third quarter of 2020, including net provisions, compared to $5.67 per gram in the prior quarter.  Average gross selling price on branded products held firm despite price compression seen in the market and a decrease in vape sales. Average gross selling price for unbranded flower in the third quarter was $0.84 per gram down from $2.22 per gram. The decrease was due to the monetization of winterized oil, trim and shake inventory at a discounted price.  

REVENUE BY FORMATS
Sundial remains focused on delivering premium products with an emphasis on inhalable formats, including flower, pre-rolls and vape cartridges.  Gross revenue from vape cartridge sales was $3.6 million in the third quarter of 2020 representing a 43% decrease from the previous quarter. The decrease in vape sales was due in part by Sundial’s SKU increase in the segment along with significant price compressions. Gross revenue from dried flower sales was $11.6 million in the third quarter of 2020 representing a 28% decrease from the previous quarter. Gross revenue from oil sales was $319,000 in the third quarter of 2020 representing an 84% decrease from the previous quarter. The decrease in oil sales was due to a one-time bulk sale to a licensed producer. Sundial was under indexed in the pre-roll format and will increase production in the fourth quarter and into 2021 to meet consumer demand. Sundial is currently undertaking a proactive SKU optimization initiative to ensure top selling SKUs replace less popular products. The Company continues to diversify its product mix with plans for the addition of solventless extracts by the end of the fourth quarter of this year.

KILOGRAMS SOLD
The Company sold 5,819 kilogram equivalents of cannabis in the third quarter of 2020, a 3% decrease over the previous quarter sales of 5,997 kilogram equivalents.

NET BRANDED SALES
The Company continues to focus on increasing its sales to Provincial Boards through continued brand portfolio penetration coast-to-coast, the addition of new formats and supply chain optimization. Branded net cannabis sales in the third quarter of 2020 were $9.9 million compared to $14.0 million in the second quarter of 2020, a decrease of 29%.

COST OF GOODS SOLD PER GRAM EQUIVALENT
Cultivation costs per gram of bulk dried cannabis were $1.18 in the third quarter, compared to $1.34 in the previous quarter. Total cost of goods sold per gram including packaging, shipment and fulfillment costs for the three months ended September 30, 2020 was $1.76 compared to $2.89 for the previous quarter. The decrease of $1.13 per gram was mainly due to a bulk sale to an LP that had a low per gram cost. 

SALES, MARKETING AND GENERAL AND ADMINISTRATIVE EXPENSES
General and administrative costs were further reduced by 7% from $7.7 million to $7.2 million in the third quarter of 2020 when compared to the prior quarter. The reduction in the Company’s workforce to adjust to market conditions and a focused review of all spending resulted in this decline. Sundial is fully committed to investing in its brands, and as a result sales and marketing expenses increased to $1.1 million from $0.5 million in the previous quarter. These investments will continue to increase in upcoming quarters.

NET LOSS
Net loss from continuing operations for the three months ended September 30, 2020 was $71.4 million compared to a net loss of $32.8 million for three months ended June 30, 2020. The net loss included impairment charges related to inventory ($19.9 million) and property, plant and equipment ($60.0 million) of $79.9 million.

ADJUSTED EBITDA 
Adjusted EBITDA from cannabis operations was a loss of $4.4 million for the three months ended September 30, 2020 compared to a loss of $3.9 million for the three months ended June 30, 2020. The increased loss was primarily due to lower net revenue and higher sales and marketing expense, partially offset by lower cost of sales and general and administrative expenses.

LIQUIDITY AND CAPITAL RESOURCES

Through a combination of cash repayments, asset dispositions, equity and equity-linked issuances and debt-for-equity conversions in 2020, Sundial has greatly improved its leverage and cash balance positions.

Highlights include:

  • Eliminated $100 million of debt in 2020 as of November 9, 2020. Net debt was reduced by $72 million
  • Reduced annualized debt service costs by $31 million through the June 5 restructuring
  • Raised gross cash proceeds of $93 million since the June 5 restructuring and received unrestricted government subsidies of $4.1 million, as of November 9, 2020
  • As of November 9, 2020, Sundial had $127 million of indebtedness outstanding, including $55 million aggregate principal amount of senior secured convertible notes and $72 million dollars of syndicated bank debt, 439 million common shares outstanding and an available cash balance of $60 million
  • The process of converting debt into equity has significantly improved the Company’s balance sheet, but has resulted in pressure on the trading price of Sundial’s common shares
  • Sundial’s shareholders have authorized the Board of Directors, subject to required regulatory and stock exchange approvals, to consolidate its outstanding common shares to ensure compliance with the Nasdaq’s continued listing standards, and to provide access to a broad universe of investors, access to equity capital and trading liquidity. Further details regarding a potential share consolidation will be announced at a later date

STRATEGIC AND ORGANIZATIONAL UPDATE

Sundial remains confident in its overall strategy of building sustainable, long-term shareholder value through reducing leverage, improving liquidity and cost of capital while optimizing the utilization and output of its production facilities.

  • Subsequent to the end of the quarter, Sundial significantly increased its investment in brands through sales and marketing initiatives, including launching a comprehensive holiday campaign in early November (Top Leaf, Sundial and Palmetto) as well as increased its sales capacity with the addition of new sales representatives from coast-to-coast
  • Subsequent to the quarter, Sundial renegotiated terms with an external manufacturing partner significantly reducing its costs by over 60% on those products. Sundial expects annual savings in excess of $2 million from this updated arrangement
  • Following the quarter end, Sundial has internalized some processing operations that were previously performed by an external manufacturing partner. Sundial expects annual savings in excess of $2 million from this change. The lower costs will enable Sundial to be more competitive with its vape offering
  • Following the quarter end, Sundial has undertaken an initiative to further simplify its supply chain and rationalize its SKUs across all brands and formats. The Company is taking a proactive approach with customers to limit SKU proliferation, and maximize shelf space and rate of sale with an optimized portfolio approach
  • Subsequent to the quarter end, Sundial entered a sales and distribution agreement with local company Choklat Inc. The new collaboration provides Sundial the opportunity to continue to expand its product portfolio and enter the edible market

STRATEGIC ALTERNATIVES REVIEW

While Sundial remains focused on its core strategy, the Company continues to review potential strategic alternatives to ensure that all opportunities to maximize value are explored. There is no assurance that this review will result in a transaction of any kind, and the Company does not intend to provide any update or additional comment on these matters until the Board approves a specific action or otherwise concludes the review.  

COVID-19 UPDATE

The Company continues to monitor daily developments in the COVID-19 pandemic and actions taken by government authorities. In accordance with the guidance of provincial and federal health officials to limit the risk and transmission of COVID-19, Sundial continues to implement mandatory self-quarantine policies, travel restrictions, enhanced cleaning and sanitation processes and frequency, and social distancing measures. Sundial believes that it can maintain safe operations with these pandemic-related procedures and protocols in place. The Company has not experienced a material impact on its production and processing activities to date related to COVID-19. 

NON-IFRS MEASURES 

Certain financial measures in this news release, including adjusted EBITDA, working capital and gross margin before fair value adjustments are non-IFRS measures. These terms are not defined by IFRS and, therefore, may not be comparable to similar measures provided by other companies. These non-IFRS financial measures should not be considered in isolation or as an alternative for measures of performance prepared in accordance with IFRS. 

ADJUSTED EBITDA 

Adjusted EBITDA is a non-IFRS measure which the Company uses to evaluate its operating performance. Adjusted EBITDA provides information to investors, analysts and others to aid in understanding and evaluating the Company’s operating results in a similar manner to its management team. Adjusted EBITDA is defined as net income (loss) before finance costs, depreciation and amortization, accretion expense, income tax recovery and excluding change in fair value of biological assets, change in fair value realized through inventory, unrealized foreign exchange gains or losses, share-based compensation expense, asset impairment, gain or loss on disposal of property, plant and equipment and certain one-time non-operating expenses, as determined by management. 

Q3 2020

Q2 2020

% Change

Q3 2019

% Change


Net loss from continuing operations

(71,397)

(32,827)

-117%

(85,487)

16%

Adjustments

—

Finance (income) costs

(18,197)

591

3179%

10,150

-279%

Loss on financial obligation

—

—

0%

59,583

-100%

Depreciation and amortization

1,480

1,277

16%

143

935%

Change in fair value of biological assets

(194)

1,756

-111%

(11,675)

98%

Change in fair value realized through inventory

2,447

6,213

-61%

5,875

-58%

Unrealized foreign exchange (gain) loss

(243)

583

142%

(229)

-6%

Share-based compensation

3,118

3,152

-1%

7,991

-61%

Asset impairment

60,000

—

0%

—

0%

Loss on disposition of PP&E

—

122

100%

19

-100%

Cost of sales non-cash component (1)

1,289

1,549

-17%

1,072

0%

Inventory obsolescence and impairment

19,897

10,026

98%

—

0%

Restructuring costs

1,108

2,363

-53%

—

0%

Transaction costs (2)

364

1,297

-72%

6,315

0%

Government subsidies

(4,081)

—

0%

—

0%


Adjusted EBITDA from continuing operations


(4,409)


(3,898)


-13%


(6,243)


29%


(1) 

Cost of sales non-cash component is comprised of depreciation expense


(2) 

Transaction costs are non-recurring costs related to financing

SUNDIAL CORPORATE VIDEO

Sundial launched its new corporate video available to watch on https://www.sndlgroup.com/investors/corporate-video  

CONFERENCE CALL 

Sundial will host a conference call and webcast at 10:30 a.m. EDT (8:30 a.m. MDT) on Thursday, November 12, 2020.    A current investor presentation will be available on http://sndlgroup.com/investors at that time.

CONFERENCE CALL ACCESS 
Callers may access the conference call via the following phone numbers:
Canada/USA Toll Free: 1-800-319-4610
International Toll: +1-604-638-5340
UK Toll Free: 0808-101-2791
Callers should dial in 5-10 minutes prior to the scheduled start time.

WEBCAST
To access the live webcast of the call, please visit the following link:
http://services.choruscall.ca/links/sundialgrowers20201112.html

REPLAY
A telephone replay will be available for one month. To access the replay dial:
Canada/USA Toll Free: 1-800-319-6413 or International Toll: +1-604-638-9010
When prompted, enter Replay Access Code: 5547 #
The webcast archive will be available for three months via the link provided above.

ABOUT SUNDIAL GROWERS INC. 

Sundial is a public company with Common Shares traded on Nasdaq under the symbol “SNDL”.

Sundial is a licensed producer that crafts cannabis using state-of-the-art indoor facilities. Our ‘craft-at-scale’ modular growing approach, award-winning genetics and experienced growers set us apart. 

Our Canadian operations cultivate small-batch cannabis using an individualized “room” approach, with 470,000 square feet of total space.  

Sundial’s brand portfolio includes Top Leaf, Sundial Cannabis, Palmetto and Grasslands. Our consumer-packaged goods experience enables us to not just grow quality cannabis, but also to create exceptional consumer and customer experiences.  

We are proudly Albertan, headquartered in Calgary, AB, with operations in Olds, AB, and Rocky View County, AB.  

Forward-Looking Information Cautionary Statement
  

This news release includes statements containing certain “forward-looking information” within the meaning of applicable securities law (“forward-looking statements”), including, but not limited to, statements regarding the Company’s cost-cutting initiatives, the cost savings expected to be achieved, the Company’s ability to obtain new financing and covenant relief, operational goals, demand for the Company’s products, the Company’s ability to achieve profitability, the development of the legal cannabis market, future financings and the maintenance of production levels. In particular, any failure or delay in obtaining new financing would have a material adverse effect on our liquidity and impair our ability to operate as a going concern.  In such a case, the Company would look to delay investments or capital expenditures and evaluate potential asset sales, but it could be forced to curtail operations or seek relief under bankruptcy or insolvency laws.  In addition, depending on the development of the cannabis market and the Company’s ability to capture any growth opportunities, future liquidity issues may continue to arise, which could have a material adverse effect on our business, results of operations and financial condition. Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “likely”, “outlook”, “forecast”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Please see “Item 3D Risk Factors” in the Company’s Annual Report on Form 20-F, which was filed with the Securities and Exchange Commission (“SEC”) on March 30, 2020, and the risk factors included in our other SEC filings for a discussion of the material risk factors that could cause actual results to differ materially from the forward-looking information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.  

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SOURCE Sundial Growers Inc.

Posted on

Hillenbrand Reports Fourth Quarter and Fiscal Year 2020 Results

PR Newswire

BATESVILLE, Ind., Nov. 11, 2020 /PRNewswire/ — 

Fiscal Fourth Quarter 2020 Highlights:

  • Record quarterly revenue of $694 million increased 43% over prior year driven by the acquisition of Milacron; organic revenue decreased 2% as Batesville growth of 8% was more than offset by a decrease of 6% in Advanced Process Solutions, formerly referred to as the Process Equipment Group
  • GAAP EPS of ($0.09) included non-cash impairment charges of $62 million; adjusted EPS1 of $0.92 increased 8% driven by the acquisition of Milacron and strong Batesville results
  • Record order backlog of $1.23 billion grew 43% year over year primarily driven by the acquisition of Milacron and large plastics projects in Advanced Process Solutions; organic backlog grew 14% year over year; total backlog increased 10% sequentially

Fiscal Year 2020 Highlights:

  • Record revenue of $2.52 billion increased 39% over prior year driven by the Milacron acquisition; organic revenue decreased 2%
  • GAAP EPS of ($0.82) included non-cash impairment charges of $145 million; adjusted EPS
    1
    of $3.19 increased 14% year over year
  • Exceeded targeted year-one synergy cost savings from the acquisition of Milacron; on track to deliver $75 million in annual run-rate cost savings by year three
  • Record cash flow from operations of $355 million increased $176 million compared to the prior year; net leverage decreased to 2.7x
  • Fiscal Q1 2021 guidance: adjusted EPS
    1
    expected to be $0.65 to $0.75

Hillenbrand, Inc. (NYSE: HI) reported results today for the fourth quarter and full fiscal year, which ended September 30, 2020.


Changes to Segment Names

During the fourth quarter of fiscal 2020, the Company changed the name of the Milacron segment to Molding Technology Solutions and the name of the Process Equipment Group segment to Advanced Process Solutions, in order to better reflect the nature of business activities, end-market exposure and future opportunities of the segments.


Fourth Quarter Results

Revenue of $694 million grew 43% compared to the prior year primarily driven by the acquisition of Milacron. Revenue decreased 2% organically as Batesville growth of 8% was more than offset by a decrease of 6% in Advanced Process Solutions. Excluding the impact of foreign currency exchange, total revenue increased 41%.

Net loss of $7 million, or ($0.09) per share, decreased $0.48 per share compared to the prior year, primarily as a result of non-cash impairment charges of $62 million related to the Company’s TerraSource Global and flow control businesses, which were recently identified for divestiture as announced in August 2020, and an increase in tax expense associated with domestic tax on foreign income inclusion and taxes on distributions from foreign subsidiaries.

Adjusted net income of $69 million, or $0.92 per share1, increased $0.07, or 8%, year over year, mainly driven by the acquisition of Milacron and strong Batesville performance. The adjusted effective tax rate was 32.1%, an increase of 560 basis points from the prior year, driven by increased distributions from foreign subsidiaries.

Adjusted EBITDA of $141 million increased 62% over the prior year, primarily due to the Milacron acquisition, which contributed $51 million, and an increase of $5 million from Batesville. Adjusted EBITDA margin of 20.3% expanded 240 basis points compared to a year ago. On an organic basis, adjusted EBITDA increased 4%, and adjusted EBITDA margin increased 110 basis points driven by margin expansion in Advanced Process Solutions and Batesville.

Hillenbrand generated cash flow from operations of $235 million in the quarter, an increase of $165 million year over year. All three reportable segments contributed to the improvement. During the quarter, the Company returned nearly $16 million to shareholders in the form of quarterly dividends and paid down $159 million of debt. Net debt at the end of the quarter was $1.3 billion, and the net debt to adjusted EBITDA ratio was 2.7x, an improvement of 1.1x from December 31, 2019, and a sequential improvement of 0.6x. The Company had nearly $1.2 billion of liquidity and no near-term debt maturities.

“Our fourth quarter financial results, including outstanding free cash flow, represent a strong finish to our fiscal year in a very challenging environment.  Our teams prioritized safety and executed exceptionally well, managing costs while positioning the businesses to capitalize on opportunities going forward.  Results were stronger than we anticipated as orders rebounded at Molding Technology Solutions, and Batesville again delivered strong margins on higher volume. We continued to leverage the Hillenbrand Operating Model across the enterprise as a catalyst for growth and margin improvement,” said Joe Raver, President and Chief Executive Officer of Hillenbrand. “We believe that we are well positioned heading into fiscal 2021, especially considering our record backlog and the significant progress we’ve made in building momentum with the Milacron integration. In addition, the process for the portfolio actions we announced in August is going well as we pursue the long-term benefits of a more focused portfolio. While the current business environment remains unpredictable, we’re focused on managing the things we can control and executing against our strategic initiatives to drive profitable growth over the long term.”


Advanced Process Solutions

Advanced Process Solutions fourth quarter revenue of $330 million decreased 6% compared to the same period in the prior year but improved by 17% sequentially versus the third quarter. Excluding the impact of foreign currency exchange, revenue decreased 9% year over year. Revenue was lower primarily as a result of general demand softness across industrial end markets. Adjusted EBITDA margin of 20.6% increased 160 basis points, primarily driven by pricing, productivity improvements and cost containment actions, partially offset by cost inflation. Record order backlog of $988 million at the end of the fourth quarter increased 14% over the prior year. Backlog increased 5% sequentially compared to the third quarter.


Molding Technology Solutions

Molding Technology Solutions revenue of $217 million for the quarter decreased 1% on a pro forma basis year over year and improved 17% sequentially as the segment delivered its best top line performance of the year.  Adjusted EBITDA of $51 million increased 20% year over year, and adjusted EBITDA margin of 23.3% increased 410 basis points driven by productivity improvements, synergies, and cost containment actions. Order backlog of $243 million increased 54% year over year, driven by growth in injection molding, extrusion equipment and hot runner orders. Order backlog increased 31% sequentially. For purposes of this earnings release and comparative purposes only, all prior year comparisons for Molding Technology Solutions are made on a pro forma basis and exclude the Cimcool business, which the Company divested in March of this year.



Batesville



Batesville fourth quarter revenue of $147 million grew 8% compared to the prior year and 5% sequentially, driven by higher burial casket volume. Adjusted EBITDA margin of 24.3% was 170 basis points higher than the prior year, mainly driven by operating leverage, productivity gains, and cost containment actions, which more than offset cost inflation.


Fiscal Year 2020 Results

Hillenbrand’s revenue of $2.52 billion for fiscal 2020 increased 39%. Excluding the impact of foreign currency exchange, revenue increased 40%. The acquisition of Milacron contributed 41%, and Batesville revenue increased 4% for the year with the estimated increased volume associated with the COVID-19 pandemic. Advanced Process Solutions revenue of $1.23 billion decreased 4%, or 3% excluding the impact of foreign currency, as general weakness in industrial demand was partially offset by favorable pricing.

Net loss of $60 million resulted in GAAP loss per share of $0.82. The loss was driven by $145 million of non-cash impairment charges, primarily on businesses identified for divestiture as part of our portfolio simplification. On an adjusted basis, net income of $235 million resulted in adjusted earnings per share of $3.191, an increase of 14%. Adjusted EBITDA increased 57% to $464 million and, as a percentage of revenue, was 18.5%, 220 basis points higher than the prior year. The adjusted EBITDA margin increase was primarily driven by margin expansion in Advanced Process Solutions and Batesville, as well as the addition of the higher margin Molding Technology Solutions product lines. Advanced Process Solutions adjusted EBITDA margin of 19.1% increased 160 basis points, and Batesville adjusted EBITDA margin of 23.0% increased 160 basis points. Operating cash flow for the year was $355 million, an increase of $176 million, and free cash flow of $319 million was approximately 136% of adjusted net income for the year.

Hillenbrand’s effective tax rate was (189%) in 2020 compared to 28.6% in 2019. The tax rate was negative for the year primarily related to the Company reporting a net loss for the year, while being in a taxable position for income tax purposes. The taxable position was primarily driven by nondeductible impairment charges and taxable gains from the sale of the Cimcool business. The adjusted effective tax rate of 27.8% increased 100 basis points compared to 26.8% in 2019, primarily due to taxes associated with foreign earnings distributions.


Other Notable Items

In October, Hillenbrand appointed Pete Dyke as Senior Vice President and Chief Human Resource Officer (CHRO). Mr. Dyke is responsible for driving Hillenbrand’s Human Resources strategy and talent management practices across the enterprise. Mr. Dyke was most recently CHRO at Innovative Water Care, a global specialty chemicals company. Prior to that, he served in Human Resources leadership positions at Luxfer Holdings PLC, Pentair PLC, and General Electric Company. 


Fiscal First Quarter 2021 Outlook

Hillenbrand is providing guidance for the fiscal first quarter 2021. Given the continued uncertainties regarding the duration and severity of the COVID-19 pandemic, the Company has provided the following outlook, on the assumption that a gradual stabilization of the global economy continues, with no increase in pandemic-related disruptions.

  • Total revenue expected to decrease 1% – 4% year over year
    • Advanced Process Solutions revenue expected to decrease 12 – 15%
    • Molding Technology Solutions expected to increase 2% – 5% on a pro forma basis
    • Batesville revenue expected to increase 12% – 15%
  • Adjusted EPS1 of $0.65 – $0.75

1 As previously noted, beginning with fiscal third quarter 2020 results, the Company updated adjusted EPS to exclude after-tax acquisition-related intangible amortization. The Company believes reporting adjusted EPS in this manner better reflects its core operating results and offers greater consistency and transparency. A full reconciliation between GAAP and adjusted measures is included at the end of this release.

Conference Call Information
Date/Time: Thursday, November 12, 8:00 a.m. ET
Online registration: http://www.directeventreg.com/registration/event/9256319
Conference call ID number: 9256319
Webcast link: https://ir.hillenbrand.com (archived through Friday, December 11, 2020)

Replay – Conference Call
Date/Time: Available until midnight ET, Thursday, November 26, 2020
Replay ID number: 9256319
Dial-In for U.S. and Canada: 1-855-859-2056
Dial-In for International: +1-404-537-3406

Hillenbrand’s financial statements on Form 10-K are expected to be filed on November 12, 2020 before market open and will be made available on the Company’s website (https://ir.hillenbrand.com).

In addition to the financial measures prepared in accordance with United States generally accepted accounting principles (GAAP), this earnings release also contains non-GAAP operating performance measures. These non-GAAP measures are referred to as “adjusted” measures and exclude the following items:

  • business acquisition, disposition, and integration costs;
  • restructuring and restructuring related charges;
  • impairment charges;
  • inventory step-up charges;
  • intangible asset amortization;
  • debt financing activities related to the acquisition of Milacron;
  • net loss on divestiture of Cimcool;
  • COVID-19 pandemic-related costs;
  • the related income tax impact for all of these items; and
  • the interaction of tax benefits and expenses related to the foreign income inclusion tax provisions and certain tax carryforward attributes associated with the acquisition of Milacron and divestiture of Cimcool, including the tax provisions related to the imposition of tax on Global Intangible Low-Taxed Income (GILTI) earned by certain foreign subsidiaries, the Foreign Derived Intangible Income Deduction (FDII), and the Base Erosion and Anti-Abuse Tax (BEAT) and their impact on loss carryforward attributes.

In consideration of the Milacron acquisition, beginning with the quarter ended June 30, 2020, the Company has reported adjusted EPS results that exclude after-tax acquisition-related intangible amortization, in addition to backlog amortization excluded in previous periods.  Prior year periods have been restated to conform to the presentation in the current year periods.  The Company believes reporting adjusted EPS in this manner better reflects its core operating results and offers greater consistency and transparency.

Refer to the Reconciliation of Non-GAAP Measures for further information on these adjustments.  Non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP.

Hillenbrand uses this non-GAAP information internally to make operating decisions and believes it is helpful to investors because it allows more meaningful period-to-period comparisons of ongoing operating results. The information can also be used to perform trend analysis and to better identify operating trends that may otherwise be masked or distorted by items such as the above excluded items. Hillenbrand believes this information provides a higher degree of transparency.

An important non-GAAP measure Hillenbrand uses is adjusted earnings before interest, income tax, depreciation, and amortization (“adjusted EBITDA”). A part of Hillenbrand’s strategy is to pursue acquisitions that strengthen or establish leadership positions in key markets. Given that strategy, it is a natural consequence to incur related expenses, such as amortization from acquired intangible assets and additional interest expense from debt-funded acquisitions. Accordingly, we use adjusted EBITDA, among other measures, to monitor business performance. Adjusted EBITDA is not a recognized term under U.S. GAAP and therefore does not purport to be an alternative to net (loss) income.  Further, Hillenbrand’s measure of adjusted EBITDA may not be comparable to similarly titled measures of other companies.

Organic growth, a non-GAAP measure, is defined as total sales growth less the sales of companies acquired in the past twelve months. Hillenbrand uses organic growth and organic revenue to assess performance of its reportable segments and the Company in total without the impact of recent acquisitions.  Hillenbrand believes that such measures are useful to investors as it provides a supplemental period-to-period comparison.

Another important non-GAAP operational measure used is backlog.  Backlog is not a term recognized under GAAP; however, it is a common measurement used in industries with extended lead times for order fulfillment (long-term contracts), like those in which our Advanced Process Solutions and Molding Technology Solutions reportable segments compete.  Backlog represents the amount of consolidated revenue that we expect to realize on contracts awarded to the Advanced Process Solutions and Molding Technology Solutions reportable segments.  For purposes of calculating backlog, 100% of estimated revenue attributable to consolidated subsidiaries is included.  Backlog includes expected revenue from large systems and equipment, as well as replacement parts, components, and service. The length of time that projects remain in backlog can span from days for replacement parts or service to approximately 18 to 24 months for larger system sales within the Advanced Process Solutions reportable segment. The majority of the backlog within the Molding Technology Solutions reportable segment is expected to be fulfilled within the next twelve months. Backlog includes expected revenue from the remaining portion of firm orders not yet completed, as well as revenue from change orders to the extent that they are reasonably expected to be realized.  We include in backlog the full contract award, including awards subject to further customer approvals, which we expect to result in revenue in future periods.  In accordance with industry practice, our contracts may include provisions for cancellation, termination, or suspension at the discretion of the customer.

Hillenbrand expects that future revenue associated with the Advanced Process Solutions and Molding Technology Solutions reportable segments will be influenced by backlog because of the lead time involved in fulfilling engineered-to-order equipment for customers. Although backlog can be an indicator of future revenue, it does not include projects and parts orders that are booked and shipped within the same quarter. The timing of order placement, size, extent of customization, and customer delivery dates can create fluctuations in backlog and net revenue. Revenue attributable to backlog may also be affected by foreign exchange fluctuations for orders denominated in currencies other than U.S. dollars.

Hillenbrand calculates the foreign currency impact on net revenue in order to better measure the comparability of results between periods. We calculate the foreign currency impact by translating current year results at prior year foreign exchange rates. This information is provided because exchange rates can distort the underlying change in sales, either positively or negatively.

See below for a reconciliation from GAAP operating performance measures to the most directly comparable non-GAAP (adjusted) performance measures.  Given that there is no GAAP financial measure comparable to backlog, a quantitative reconciliation is not provided. In addition, forward-looking adjusted earnings per share for the first quarter of fiscal 2021 excludes potential charges or gains that may be recorded during the fiscal year, including among other things, items described above in connection with other “adjusted” measures. Hillenbrand thus also does not attempt to provide reconciliations of forward-looking non-GAAP earnings guidance to the comparable GAAP measure, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K, because the impact and timing of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of Hillenbrand’s financial performance.

 


Hillenbrand, Inc.


Consolidated Statements of Operations (Unaudited)

(in millions, except per share data)


Three Months Ended
September 30,


Year Ended
September 30, 2020


2020


2019


2020


2019

Net revenue

$

693.7

$

485.8

$

2,517.0

$

1,807.3

Cost of goods sold

453.2

310.9

1,703.7

1,184.3

Gross profit

240.5

166.7

813.3

623.0

Operating expenses

126.3

104.5

538.2

379.7

Amortization expense

16.7

7.5

71.9

32.5

Impairment charges

62.3

—

144.8

—

Interest expense

22.1

11.3

77.4

27.4

Other (expense) income, net

(1.3)

(6.8)

0.5

(6.7)

Income (loss) before income taxes

11.8

36.6

(18.5)

176.7

Income tax expense

17.2

10.6

34.9

50.5

Consolidated net income (loss)

(5.4)

26.0

(53.4)

126.2

Less: Net income attributable to noncontrolling interests

1.7

1.3

6.7

4.8

Net (loss) income attributable to Hillenbrand

$

(7.1)

$

24.7

$

(60.1)

$

121.4

Net (loss) income attributable to Hillenbrand — per share of common stock:

Basic (loss) earnings per share

$

(0.09)

$

0.39

$

(0.82)

$

1.93

Diluted (loss) earnings per share

$

(0.09)

$

0.39

$

(0.82)

$

1.92

Weighted average shares outstanding (basic)

75.1

63.0

73.4

62.9

Weighted average shares outstanding (diluted)

75.1

63.2

73.4

63.3

Cash dividends per share

$

0.2125

$

0.2100

$

0.8500

$

0.8400

 


Condensed Consolidated Statements of Cash Flows

(in millions)


Year Ended September 30,


2020


2019

Net cash provided by operating activities

$

354.8

$

178.9

Net cash used in investing activities

(1,295.9)

(51.2)

Net cash provided by financing activities

854.9

217.5

Effect of exchange rate changes on cash and cash equivalents

(1.4)

(2.3)


Net cash flows

(87.6)

342.9


Cash, cash equivalents, and restricted cash:

At beginning of period

399.4

56.5

At end of period

$

311.8

$

399.4

 


Reconciliation of Non-GAAP Measures

(in millions, except per share data)


Three Months Ended
September 30,


Year Ended
September 30, 2020


2020


2019


2020


2019

Net (loss) income attributable to Hillenbrand

$

(7.1)

$

24.7

$

(60.1)

$

121.4

Impairment charges (1)

62.3

—

144.8

—

Business acquisition, disposition, and integration costs (2)

9.9

11.7

77.2

16.6

Restructuring and restructuring-related charges (3)

2.6

7.0

9.3

10.6

Inventory step-up (4)

—

—

40.7

0.2

Intangible asset amortization (5)

16.7

7.5

71.9

32.5

Net loss on divestiture (6)

0.5

—

3.5

—

Debt financing activities (7)

0.4

5.6

2.7

5.6

Loss on settlement of interest rate swaps

—

6.4

—

6.4

Other (8)

0.2

—

2.6

—

Tax effect of adjustments (9)

(25.7)

(9.3)

(86.0)

(18.0)

Tax adjustments (10)

9.4

—

28.0

1.8

 Adjusted net income attributable to Hillenbrand

$

69.2

$

53.6

$

234.6

$

177.1

 Diluted (loss) earnings per share

$

(0.09)

$

0.39

$

(0.82)

$

1.92

Impairment charges (1)

0.83

—

1.97

—

Business acquisition, disposition, and integration costs (2)

0.13

0.19

1.05

0.26

Restructuring and restructuring-related charges (3)

0.03

0.11

0.12

0.17

Inventory step-up (4)

—

—

0.55

—

Intangible asset amortization (5)

0.22

0.12

0.98

0.51

Net loss on divestiture (6)

0.01

—

0.05

—

Debt financing activities (7)

0.01

0.09

0.04

0.09

Loss on settlement of interest rate swaps

—

0.10

—

0.10

Other (8)

—

—

0.04

—

Tax effect of adjustments (9)

(0.34)

(0.15)

(1.17)

(0.28)

Tax adjustments (10)

0.12

—

0.38

0.03

 Adjusted diluted earnings per share

$

0.92

$

0.85

$

3.19

$

2.80

_______________________________________


(1) 

Hillenbrand recorded $82.5 of impairment charges related to goodwill and certain intangible assets within both the Advanced Process Solutions and Molding Technology Solutions reportable segments during the second quarter of 2020 and $62.3 of non-cash charges (including a goodwill impairment charge and a valuation adjustment) related to assets held for sale within the Advanced Process Solutions reportable segment during the fourth quarter of 2020.


(2) 

Business acquisition, disposition, and integration costs during 2020 and 2019 primarily included expenses for the settlement of outstanding Milacron share-based equity awards, professional fees, and severance and employee-related costs in connection with the acquisition and integration of Milacron. The remaining costs incurred during 2020 were primarily related to professional fees and other transaction costs in connection with the divestiture of Cimcool, while the remaining costs incurred during 2019 primarily included professional fees.


(3) 

Restructuring and restructuring-related charges primarily included severance costs, unrelated to the acquisition and integration of Milacron, during 2020 and 2019.


(4) 

Represents the non-cash charges related to the fair value adjustment of inventories acquired in connection with the acquisitions of Milacron and BM&M during 2020 and 2019, respectively.


(5) 

Intangible assets relate to our acquisition activities and are amortized over their useful lives. The amortization of acquired intangible assets is reported separately in our Consolidated Statements of Operations as amortization expense. The amortization of acquired intangible assets does not impact the core performance of our business operations since this amortization does not directly relate to the sale of our products or services.


(6) 

Hillenbrand recorded a pre-tax net loss on the divestiture of Cimcool during 2020.


(7) 

Debt financing activities during 2020 primarily included the net interest expense on our $375.0 senior unsecured notes prior to completing the Milacron acquisition, along with certain other Milacron acquisition financing costs. Debt financing activities during 2019 included the amortization of deferred financing costs incurred for the senior unsecured bridge facility.


(8) 

Other primarily included incremental expenses directly attributable to the COVID-19 pandemic, such as costs for sanitary supplies, bad debt expense, and transportation costs, during 2020.


(9) 

Represents the tax effect of the adjustments previously identified above. 


(10) 

During 2020, tax adjustments included the impact from the discrete recognition of tax expense on the divestiture of Cimcool and certain tax items related to the acquisition of Milacron, including the tax effect of Milacron carryforward tax attributes adversely impacting domestic taxes associated with the Tax Cuts and Jobs Act of 2017 (the “Tax Act”), the revaluation of deferred tax balances in connection with enacted statutory tax rate reductions in certain foreign jurisdictions, and the tax effect of nondeductible acquisition expenses. During 2019, tax adjustments include the revaluation of the deferred tax balances, the tax on unremitted foreign earnings, and change in deferred tax liability as a result of revising our permanent reinvestment assertion on earnings of foreign subsidiaries driven by the Tax Act.

 


Three Months Ended
September 30,


Year Ended
September 30, 2020


Shares used in computing non-GAAP per share amounts:


2020


2019


2020


2019

GAAP Weighted average shares outstanding (diluted)

75.1

63.2

73.4

63.3

Non-GAAP dilutive shares excluded from GAAP EPS calculation (1)

0.2

—

0.1

—

Pro forma weighted average shares outstanding (diluted)

75.3

63.2

73.5

63.3

__________________________________


(1) 

Due to the occurrence of a net loss on a GAAP basis for the three months and year ended September 30, 2020, potentially dilutive securities were excluded from the calculation of GAAP earnings per share, as they would have an anti-dilutive effect. However, as net income was earned on a non-GAAP basis, these shares have a dilutive effect on adjusted EPS and are included here.

 


Three Months Ended
September 30,


Year Ended
September 30, 2020


2020


2019


2020


2019

Adjusted diluted EPS

$

0.92

$

0.85

$

3.19

$

2.80

Intangible asset amortization (excluding backlog amortization)

(0.22)

(0.12)

(0.84)

(0.47)

Tax effect

0.06

0.03

0.23

0.12

Pro forma adjusted diluted EPS (1)

$

0.76

$

0.76

$

2.58

$

2.45

________________________________


(1) 

As previously noted, beginning with 2020 fiscal third quarter results, the Company updated adjusted EPS to exclude all after-tax acquisition-related intangible amortization (in prior periods, only backlog amortization was excluded). This table reconciles adjusted EPS based on the current methodology to adjusted EPS as it was historically reported.

 


Three Months Ended
September 30,


Year Ended
September 30, 2020


2020


2019


2020


2019

Adjusted EBITDA:

Advanced Process Solutions

$

68.0

$

66.7

$

234.5

$

223.3

Molding Technology Solutions

50.6

—

147.0

—

Batesville

35.7

30.6

127.1

114.2

Corporate

(13.4)

(10.5)

(44.2)

(42.2)

Less:

Interest income

(0.7)

(0.4)

(3.2)

(1.1)

Interest expense

22.1

11.3

77.4

27.4

Income tax expense

17.2

10.6

34.9

50.5

Depreciation and amortization

32.2

14.2

130.6

58.5

Impairment charges

62.3

—

144.8

—

Business acquisition, disposition, and integration costs

9.9

11.7

77.2

16.6

Restructuring and restructuring-related charges

2.6

7.0

9.3

10.6

Inventory step-up

—

—

40.7

0.2

Loss on settlement of interest rate swap

—

6.4

—

6.4

Net loss on divestiture

0.5

—

3.5

—

Other

0.2

—

2.6

—

Consolidated net (loss) income

$

(5.4)

$

26.0

$

(53.4)

$

126.2

 


Year Ended
September 30, 2020

Net cash provided by operating activities

$

354.8

Less:

Capital expenditures

(35.9)

Free cash flow

$

318.9

Adjusted net income attributable to Hillenbrand

$

234.6

Free cash flow to adjusted net income conversion rate

136

%


Forward-Looking Statements

Throughout this earnings release, we make a number of “forward-looking statements” that are within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, and that are intended to be covered by the safe harbor provided under these sections. As the words imply, these are statements about future sales, earnings, cash flow, results of operations, uses of cash, financings, share repurchases, ability to meet deleveraging goals, and other measures of financial performance or potential future plans or events, strategies, objectives, beliefs, prospects, assumptions, expectations, and projected costs or savings or transactions of the Company that might or might not happen in the future, as contrasted with historical information. Forward-looking statements are based on assumptions that we believe are reasonable, but by their very nature are subject to a wide range of risks. If our assumptions prove inaccurate or unknown risks and uncertainties materialize, actual results could vary materially from Hillenbrand’s (the “Company”) expectations and projections.

Words that could indicate that we are making forward-looking statements include the following:

intend

believe

plan

expect

may

goal

would

project

become

pursue

estimate

will

forecast

continue

could

anticipate

target

impact

promise

improve

progress

potential

should

encourage

This is not an exhaustive list, but is intended to give you an idea of how we try to identify forward-looking statements. The absence of any of these words, however, does not mean that the statement is not forward-looking.

Here is the key point: Forward-looking statements are not guarantees of future performance, and our actual results could differ materially from those set forth in any forward-looking statements. Any number of factors, many of which are beyond our control, could cause our performance to differ significantly from what is described in the forward-looking statements. These factors include, but are not limited to: the impact of contagious diseases such as the COVID-19 pandemic and the societal, governmental, and individual responses thereto, including supply chain disruption, loss of contracts and/or customers, erosion of some customers’ credit quality, downgrades of the Company’s credit quality, closure or temporary interruption of the Company’s or suppliers’ manufacturing facilities, travel, shipping and logistical disruptions, loss of human capital or personnel, and general economic calamities;  risks that the integration of Milacron disrupts current operations or poses potential difficulties in employee retention or otherwise affects financial or operating results; the ability to recognize the benefits of the acquisition of Milacron or any other acquisition or disposition, including potential synergies and cost savings or the failure of the Company or any acquired company to achieve its plans and objectives generally; impairment charges to goodwill and other identifiable intangible assets; the risk of business disruptions associated with information technology, cyber-attacks, or catastrophic losses affecting infrastructure; competition in the industries in which we operate, including on price or from nontraditional sources in the death care industry; impacts of decreases in demand or changes in technological advances, laws, or regulation on the revenues that we derive from the plastics industry; our reliance upon employees, agents, and business partners to comply with laws in many countries and jurisdictions; the impact of the significant amount of indebtedness of the Company and its ability to meet its de-leveraging goals;  the ability of the Company to comply with financial or other covenants in its debt agreements; global market and economic conditions, including those related to the financial markets; our level of international sales and operations; cyclical demand for industrial capital goods; continued fluctuations in mortality rates and increased cremations; the dependence of our business units on relationships with several large customers and providers; the impact to the Company’s effective tax rate of changes in the mix of earnings or tax laws and certain other tax-related matters; involvement in claims, lawsuits and governmental proceedings related to operations; ; uncertainty in the United States political environment or global trade policy; adverse foreign currency fluctuations; increased costs or unavailability of raw materials or certain outsourced services; labor disruptions; increasing competition for highly skilled and talented workers; and the effect of certain provisions of the Company’s governing documents and Indiana law that could decrease the trading price of the Company’s common stock Shareholders, potential investors, and other readers are urged to consider these risks and uncertainties in evaluating forward-looking statements and are cautioned not to place undue reliance on the forward-looking statements. For a more in-depth discussion of these and other factors that could cause actual results to differ from those contained in forward-looking statements, see the discussions under the heading “Risk Factors” in Part I, Item 1A of Hillenbrand’s Form 10-K for the year ended September 30, 2020, to be filed with the Securities and Exchange Commission (“SEC”) on November 12, 2020 before the market open. The forward-looking information in this release speaks only as of the date covered by this release, and we assume no obligation to update or revise any forward-looking information.

About Hillenbrand
Hillenbrand (www.Hillenbrand.com) is a global diversified industrial company with businesses that serve a wide variety of industries around the world. We pursue profitable growth and robust cash generation to drive increased value for our shareholders. Hillenbrand’s portfolio includes industrial businesses such as Coperion, Milacron Injection Molding & Extrusion, and Mold-Masters, in addition to Batesville, a recognized leader in the death care industry in North America. Hillenbrand is publicly traded on the NYSE under “HI.”

 

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SOURCE Hillenbrand, Inc.

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Newest ComEd Program Provides Bill Assistance to Struggling Small Businesses During Pandemic

Newest ComEd Program Provides Bill Assistance to Struggling Small Businesses During Pandemic

Small-Business Assistance Programs offers one-time grants and flexible payment options

CHICAGO–(BUSINESS WIRE)–
With many restaurants, bars, retailers and other small businesses across northern Illinois struggling to stay open during the COVID-19 pandemic, ComEd today announced a new bill-assistance program to help eligible small businesses facing financial difficulties.

“Small and family-owned businesses are the backbone of our communities. When they struggle, our neighborhoods struggle.” said ComEd CEO Joe Dominguez. “By offering a new bill-assistance option targeting small and family-owned businesses, we hope to do our part to ensure that the businesses that we all love and depend upon continue to be a part of our lives.”

ComEd’s Small Business Assistance Program provides eligible small-business customers that are past due on their energy bills with a one-time grant equal to 30 percent of their total ComEd balance (up to $1,000) for a limited time. Customers whose electric service has not been disconnected can then set up their remaining balance due on a payment plan of up to six months.

Small-business customers can visitComEd.com/SmallBizAssistanceor call 1-877-4-COMED-1 (1-877-426-6331) tolearn more or apply for the Small Business Assistance Program.

Earlier this week, ComEd announced its new Helping Hand program to provide more immediate aid to eligible residential customers most in need during the ongoing COVID-19 pandemic. For a limited time, this financial-assistance program provides an additional one-time grant of up to $300 to help reduce past-due balances of income-eligible customers.

Assistance through the Helping Hand program is administered directly through ComEd, which expedites the verification process so that customers can receive grants more quickly. Residential customers can apply for Helping Hand grants at ComEd.com/PaymentAssistance.

Assistance Options to Help Residential Customers

Helping Hand and the Small Business Assistance Program are the latest in a number of assistance options ComEd has developed since the pandemic to help customers, including a $18 million bill-payment assistance program for residential customers announced earlier this summer.

ComEd has continued the suspension of service disconnections for low-income customers and those who express a financial hardship through March 31, 2021. For other customers, it’s important that they continue to stay current to avoid higher past-due balances into the spring that will be harder to address.

ComEd’s bill-assistance programs also include flexible payment options, financial assistance for past-due balances and usage alerts for current bills. Any customer who is experiencing a hardship or difficulty with their electric bill should call ComEd immediately at 1-800-334-7661 (1-800-EDISON-1), Monday through Friday from 7 a.m. to 7 p.m. to learn more and enroll in a program.

ComEd also offers usage alerts and energy-management tips to help customers manage energy use to save money now and on future energy bills. For information, visit ComEd.com/OnlineTools.

ComEd is a unit of Chicago-based Exelon Corporation (NASDAQ: EXC), a Fortune 100 energy company with approximately 10 million electricity and natural gas customers – the largest number of customers in the U.S. ComEd powers the lives of more than 4 million customers across northern Illinois, or 70 percent of the state’s population. For more information visit ComEd.com and connect with the company on Facebook, Twitter, Instagram and YouTube.

ComEd Media Relations

312-394-3500

KEYWORDS: United States North America Illinois

INDUSTRY KEYWORDS: Oil/Gas Energy Professional Services Small Business Utilities

MEDIA:

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Primo Water North America Proudly Recognizes its International Bottled Water Association Award Winners for 2020

PR Newswire

TAMPA, Fla., Nov. 11, 2020 /PRNewswire/ – Primo Water Corporation (NYSE: PRMW) (TSX: PRMW) (the “Company” or “Primo”), a leading provider of water direct to consumers and water filtration services in North America and Europe as well as a leading provider of water dispensers, spring and purified bottled water, and self-service refill drinking water in the U.S. and Canada, today announced that the International Bottled Water Association (IBWA) has awarded Primo Water North America employees Tom Condon, Director of Technical Services, with the IBWA/Kristin Safran Directors’ Award, Jon Cleaver, Route Sales Representative, with the Route Salesperson of the Year Award, and Monika Morgan, Plant Manager, with the Plant Manager of the Year Award at the association’s virtual 2020 IBWA Annual Business Conference and Trade Show on November 9, 2020.

Created in 2006, the IBWA Directors’ Award recognizes members whose advocacy, commitment, and actions on behalf of IBWA—and the bottled water industry—have achieved clear and measurable results for both IBWA and the bottled water industry as a whole. Tom Condon is responsible for the design and troubleshooting of water processing equipment, spring water source evaluations, and technical improvement of processes and controls at Primo Water North America. Tom has also served on and contributed to several other IBWA committees and sub-committees, including the Virus/Microbial Subcommittee, Packaging Subcommittee, Audit Program Evaluation Team, Gray Areas Task Force, and Pilot Plant Task Force, among many others. He was instrumental in assisting the association in addressing complex technical and regulatory issues.

“We feel incredibly fortunate to benefit from the depth of knowledge from team members like Tom,” said Dave Muscato, President of Primo Water North America. “With more than 40 years of experience in the bottled water industry, Tom has brought his expertise to every aspect of our processes and controls to ensure that our spring water is sourced in a sustainable manner and that our customers receive the highest quality water solutions and products. I can’t think of a more deserving individual for this award.”

When it comes to customer service in the bottled water industry, nobody exemplifies it better than route salespeople. They are truly on the front lines every day serving our customers – which is why the IBWA recognizes outstanding performance in this critical industry category. The determination of the award is based on performance in multiple areas, including revenue, volume, serve rate, stops per day, customers per route and penetration, among other categories. Jon Cleaver offers and sells the Company’s full portfolio of products and consistently looks for opportunities to increase revenue on his route. A top performer in all sales initiatives, Jon is very proactive and strives to anticipate customers’ needs.

Muscato commented, “Jon has a great rapport with his customers, managers and peers. With his calm demeanor, courtesy and professionalism, he is quick to participate in huddle discussions and share the knowledge he has accumulated as a 13-year Alhambra veteran. Jon treats his route as if it were his personally-owned small company, taking full accountability for all aspects of the business. He is a vocal leader, promoter of a strong safety culture, and an invaluable asset in the Sacramento branch.”

The IBWA Plant Manager of the Year Award recognizes the hard work and dedication that plant managers exemplify for their companies and the bottled water industry. A plant manager makes a tremendous impact in achieving business goals and objectives. Monika Morgan manages both the Kent, Washington and Portland, Oregon plants and she has helped the Kent plant win the IBWA Excellence in Manufacturing Award for 12 consecutive years. In 2019, Kent was named in the top three large plants for quality and earned the best internal audit score for large plants, with 100% completion of follow-ups. Kent more than doubled on-time shipments in 2019 and rose to 95% in 2020.

Muscato added, “Monika is an exemplary member of our team and has become an influential and innovative leader at Primo Water North America. Since joining the Company as a production operator, Monika has held roles of increasing responsibility in production and quality during her 22 years with us and continues to demonstrate her commitment to Primo and our customers. It’s the plant manager who ensures, on a daily basis, that our bottled water is a safe product for our customers. Her significant experience, varied background and track record of driving results make her one of the most effective facility leaders in our organization.”

ABOUT PRIMO WATER NORTH AMERICA

Primo Water North America, a wholly-owned subsidiary of Primo Water Corporation, is a U.S.-based company providing bottled water, break room supplies, and equipment and services for water filtration systems. They provide products to over a million homes, offices, restaurants, food service organizations, convenience stores, and retail locations across the country. Among its best-known bottled water brands are Alhambra®, Crystal Rock®, Crystal Springs®, Deep Rock®,  Hinckley Springs®,  Kentwood Springs®, Mount Olympus®, Nursery® Water, Sierra Springs®, Sparkletts®. Learn more at https://www.water.com/.

ABOUT PRIMO WATER CORPORATION

Primo Water Corporation is a leading pure-play water solutions provider in North America, Europe and Israel and generates approximately $2.1 billion in annual revenue. Primo operates largely under a recurring razor/razorblade revenue model. The razor in Primo’s revenue model is its industry leading line-up of sleek and innovative water dispensers, which are sold through major retailers and online at various price points or leased to customers. The dispensers help increase household penetration which drives recurring purchases of Primo’s razorblade offering. Primo’s razorblade offering is comprised of Water Direct, Water Exchange, and Water Refill. Through its Water Direct business, Primo delivers sustainable hydration solutions across its 21-country footprint direct to the customer’s door, whether at home or to commercial businesses. Through its Water Exchange and Water Refill businesses, Primo offers pre-filled and reusable containers at over 13,000 locations and water refill units at approximately 22,000 locations, respectively. Primo also offers water filtration units across its 21-country footprint representing a top five position.

Primo’s water solutions expand consumer access to purified, spring and mineral water to promote a healthier, more sustainable lifestyle while simultaneously reducing plastic waste and pollution. Primo is committed to its water stewardship standards and is proud to partner with the International Bottled Water Association (IBWA) in North America as well as with Watercoolers Europe (WE), which ensure strict adherence to safety, quality, sanitation and regulatory standards for the benefit of consumer protection.

Primo is headquartered in Tampa, Florida (USA). For more information, visit www.primowatercorp.com.

ABOUT THE INTERNATIONAL BOTTLED WATER ASSOCIATION (IBWA)

The International Bottled Water Association (IBWA) is the authoritative source of information about all types of bottled waters, including spring, mineral, purified, artesian, and sparkling. Founded in 1958, IBWA’s membership includes U.S. and international bottlers, distributors and suppliers. IBWA is committed to working with the U.S. Food and Drug Administration (FDA), which regulates bottled water as a packaged food product, to set comprehensive and stringent standards for safe, high-quality bottled water products.

In addition to FDA regulations, IBWA member bottlers must adhere to the IBWA Bottled Water Code of Practice, which mandates additional standards and practices that in some cases are more stringent than federal and state regulations. A key feature of the IBWA Bottled Water Code of Practice is a mandatory annual plant inspection by an independent, third-party organization.

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SOURCE Primo Water Corporation

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Meredith Corporation Board Of Directors Elects Thomas Harty Chairman and Elizabeth Tallett Lead Independent Director

PR Newswire

DES MOINES, Iowa, Nov. 11, 2020 /PRNewswire/ — The Meredith Corporation (NYSE:MDP) Board of Directors announced several actions following its Annual Shareholders Meeting today:

Thomas H. Harty Elected Chairman and Elizabeth E. Tallett Elected Lead Independent Director

Harty, a member of Meredith Corporation’s Board of Directors since 2017, will also retain his post as President and Chief Executive Officer. Harty joined Meredith in 2004 as Vice President of its Magazine Group and was named National Media Group President in 2010. He became President and Chief Operating Officer of Meredith Corp. in 2016 and its Chief Executive Officer in 2018. Harty succeeds Stephen M. Lacy, who is retiring from Meredith’s Board after 16 years of service as a Director.

“On behalf of the Board of Directors and the Meredith family, I would like to thank Steve for the 22 years of relentless passion, dedication and commitment to excellence he delivered in service of Meredith Corporation,” said Vice Chairman Mell Meredith Frazier.

Tallett has been a member of the Meredith Board since 2008. In her new role, she will collaborate with Chairman Harty and Vice Chairman Frazier on setting agendas for Board meetings, including executive sessions; facilitate discussion among the independent directors on key issues outside of Board meetings; and provide advice and counsel to the Board as requested.

“Liz brings broad board and independent director experience to Meredith, supported by a career focused on operational and strategic leadership roles at large and complex organizations in the consumer products and biopharmaceutical industries,” said Harty. “We look forward to working together with Liz in her expanded board role at Meredith.”

Tallett currently serves as Chair of Anthem Inc. and is a member of the boards at Moderna Inc., Qiagen Inc., and Principal Financial Group. She was Lead Independent Director at Principal until this year, and previously served in that role at Coventry Health Care Inc. Tallett’s previously held senior management positions include principal of Hunter Partners, President and Chief Executive Officer of Transcell Technologies Inc., President of Centocor Pharmaceuticals, and she was a member of the Executive Committee of Parke-Davis. Tallett earned a dual first-class honors degree in mathematics and economics from Nottingham University.


Elizabeth E. Tallett, Donald C. Berg and Gregory Coleman Elected to New Board Terms

Tallett was elected to serve as a Class III Director with a term expiring in 2022. Berg and Coleman were elected to serve as Class I Directors with terms expiring in 2023.

Beth J. Kaplan Elected Chairman of Meredith’s Human Resource and Compensation Committee

Kaplan joins Mell Meredith Frasier (Nominating/Governance) and Donald C. Berg (Audit) as Meredith Board Committee chairs.

Four Shareholder Proposals Approved

Meredith shareholders approved four proposals, all of which were supported by the Board. These were:

  • Approval of Advisory Resolution on Executive Compensation Discussion & Analysis
  • Amendment & Restatement to Meredith Corporation Employee Stock Purchase Plan
  • Ratification of Appointment of Independent Registered Public Accounting Firm
  • Amendment to Restated Articles of Incorporation


ABOUT MEREDITH CORPORATION

Meredith Corporation (MDP: NYSE), a leading media company for nearly 120 years, produces service journalism that engages audiences with essential, inspiring and trusted content. We reach consumers where they are across multiple platforms including digital, video, print, and broadcast television. Meredith’s National Media Group reaches nearly 95 percent of all U.S. women and more than 190 million unduplicated American consumers every month through such iconic brands as PEOPLE, Better Homes & Gardens, Allrecipes, Southern Living, and REAL SIMPLE. Meredith’s premium digital network reaches more than 150 million consumers each month. The company is the No. 1 U.S. magazine operator with 36 million subscribers, and the No. 2 global licensor with robust brand licensing activities that include a Better Homes & Gardens partnership with Walmart. Meredith’s Local Media Group portfolio includes 17 television stations reaching 11 percent of U.S. households and 30 million viewers. Meredith’s portfolio is concentrated in large, fast-growing markets, with seven stations in the nation’s Top 25 markets, including Atlanta, Phoenix, St. Louis and Portland, and 13 stations in the Top 50.

 

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SOURCE Meredith Corporation

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Skillz to Participate in J.P. Morgan’s Global Technology, Media, and Telecom in Asia Virtual Conference

PR Newswire

SAN FRANCISCO, Nov. 11, 2020 /PRNewswire/ — Skillz Inc. (“Skillz”), the leading mobile games platform connecting players in fair, fun, and meaningful competition, today announced that its CEO and founder, Andrew Paradise, will participate at J.P. Morgan’s virtual Global Technology, Media, and Telecom in Asia Conference being held November 16-18, 2020.

Paradise will be participating in a panel titled “How Esports are Reshaping the Gaming Landscape in Asia and Globally” on November 16, 2020, at 10:15am HKT / November 15, 2020, at 6:15pm PST.

Access to a live audio webcast of the discussion in listen-only mode will be available through the “Investors” section of the Skillz website at www.skillz.com. A replay of the webcast will be archived on the company’s website.

About Skillz Inc.


Skillz
 is the leading mobile games platform that connects players in fair, fun, and meaningful competition. The Skillz platform helps developers build multi-million dollar franchises by enabling social competition in their games. Leveraging its patented technology, Skillz hosts billions of casual esports tournaments for millions of mobile players worldwide, and distributes millions in prizes each month. Skillz has earned recognition as one of Fast Company’s Most Innovative Companies, CNBC’s Disruptor 50, Forbes’ Next Billion-Dollar Startups, and the #1 fastest-growing company in America on the Inc. 5000. On September 2, 2020, Skillz entered into a business combination agreement with Flying Eagle Acquisition Corp. (NYSE: FEAC, FEAC.U and FEAC WS). Upon the closing of the transaction, the combined company intends to change its name to Skillz and trade on the NYSE under the ticker symbol “SKLZ.” www.skillz.com 

Contacts
For Skillz PR: [email protected]
For Skillz IR: [email protected] 

Source: Skillz Inc.

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SOURCE Skillz Inc.

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RiverNorth Opportunities Fund, Inc. Announces Final Results of Rights Offering

PR Newswire

DENVER, Nov. 11, 2020 /PRNewswire/ — RiverNorth Opportunities Fund, Inc. (NYSE: RIV) (the “Fund”) is pleased to announce the successful completion of its transferable rights offering (the “Offering”) and the final results thereof. The Fund will issue a total of 575,706 new common shares as a result of the Offering, which closed on November 6, 2020 (the “Expiration Date”).

The subscription price of $14.08 per share in the Offering was established on the Expiration Date based upon a formula equal to 95% of the Fund’s reported net asset value per share on the Expiration Date.  Gross proceeds received by the Fund, before any expenses of the Offering, are expected to total approximately $8.1 million.

This press release shall not constitute an offer to sell or constitute a solicitation of an offer to buy. Investors should read the prospectus supplement and accompanying prospectus and consider the investment objective, risks, fees and expenses of the Fund carefully before investing. To obtain a copy of the prospectus supplement and accompanying prospectus or the Fund’s annual report or semi-annual report, each of which contains this and other information about the Fund, visit www.rivernorthcef.com or call 855.830.1222. Please read them carefully before investing.

RiverNorth Opportunities Fund, Inc.

The investment objective of the Fund is total return consisting of capital appreciation and current income. The Fund had approximately $140.3 million of net assets and 9.4 million shares of common stock outstanding as of September 30, 2020.

The Fund is a closed-end fund and does not continuously issue stock for sale as open-end mutual funds do. The Fund is trading in the secondary market. Investors wishing to buy or sell stock need to place orders through an intermediary or broker. The share price of a closed-end fund is based on the market value. ALPS Advisors, Inc. is the investment adviser to the Fund. RiverNorth Capital Management, LLC is the investment sub-adviser to the Fund. RiverNorth is not affiliated with ALPS or any of its affiliates.

About SS&C Technologies

SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 18,000 financial services and healthcare organizations, from the world’s largest companies to small and mid-market firms, rely on SS&C for expertise, scale and technology. Additional information about SS&C (Nasdaq: SSNC) is available at www.ssctech.com.

About ALPS Advisors

ALPS Advisors, Inc., a wholly-owned subsidiary of SS&C Technologies, Inc., is a leading provider of investment products for advisors and institutions. Headquartered in Denver, CO with over $12.14 billion under management as of September 30, 2020, ALPS Advisors is an open architecture boutique investment manager offering portfolio building blocks, active insight and an unwavering drive to guide clients to investment outcomes across sustainable income, thematic and alternative growth strategies. For more information, visit www.alpsfunds.com/.

RiverNorth Capital Management, LLC

RiverNorth is an investment management firm founded in 2000 that specializes in opportunistic strategies in niche markets where the potential to exploit inefficiencies is greatest. RiverNorth is the manager to multiple registered and private funds.

ALPS Portfolio Solutions Distributor, Inc., FINRA Member.

ALPS Portfolio Solutions Distributor, Inc., ALPS Distributors, Inc. and ALPS Advisors, Inc. are affiliated.

NOT FDIC INSURED | May Lose Value | No Bank Guarantee

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SOURCE RiverNorth Opportunities Fund, Inc

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Biohaven Pharmaceuticals Inaugural Partner Of National Ataxia Foundation’s Drug Development Collaborative

– National Ataxia Foundation (NAF) Drug Development Collaborative to cultivate resources that facilitate research and development of new potential treatments for Ataxia, a set of severe and debilitating neurodegenerative diseases

– Biohaven Pharmaceuticals, the first industry sponsor of the Collaborative, is currently conducting a Phase 3 clinical trial of troriluzole for Spinocerebellar Ataxia (SCA)

– NAF is a membership-supported non-profit organization dedicated to providing programs and services for Ataxia families, supporting Ataxia research and the search for a cure

PR Newswire

NEW HAVEN, Conn., Nov. 11, 2020 /PRNewswire/ — Biohaven Pharmaceutical Holding Company Ltd. (NYSE: BHVN), a commercial-stage biopharmaceutical company with a portfolio of innovative, best-in-class therapies to improve the lives of patients with debilitating neurological and neuropsychiatric diseases including spinocerebellar ataxia, today announced its partnership with the National Ataxia Foundation (NAF) to help the nonprofit organization launch the NAF Drug Development Collaborative. As the first pharmaceutical industry member to commit support, Biohaven’s partnership will help NAF accelerate the development of new treatments for Ataxia.

Melissa Wolfe Beiner, M.D., Director of Research and Development and Clinical Lead for the Ataxia program at Biohaven, commented, “Biohaven is extremely pleased to be the first industry partner to join this important consortium. We are deeply committed to the Ataxia community, as demonstrated by our longstanding partnership with NAF and leading neurologists in the ataxia field from around the world. Together with NAF and our industry peers, we will foster a collaborative environment in which scientists, physicians, and patient advocates can come together to advance novel treatments for people suffering from these debilitating neurodegenerative disorders.”

With its launch officially announced on November 5, the NAF Drug Development Collaborative will assemble members of the pharmaceutical industry around the common goal of accelerating the development of new treatments for Ataxia, a group of progressive neurodegenerative diseases for which no specific treatment or cure is available.  The industry consortium will apply its collective expertise to harness shared opportunities and tackle challenges of drug development through initiatives such as natural history and biosample data collection, development of biomarkers, validation of disease rating scales, refinement of clinical trial design, exploration of patient-reported outcomes and other data critical to the development and approval of safe and effective therapies.

Andrew Rosen, NAF Executive Director, stated, “Biohaven has been a true partner to NAF throughout their therapy development process.  They have been so willing to share insights with us, and in turn, we have done everything we can to provide communications channels to our members and help recruit patients for their clinical trials.  As the first member of the NAF Drug Development Collaborative, Biohaven has once again shown their leadership in the Ataxia space.”

Biohaven is currently enrolling participants in a Phase 3 clinical trial assessing the efficacy and safety of troriluzole in Spinocerebellar Ataxia at 21 sites across the United States.  More information about Biohaven’s clinical trial in SCA patients can be found at www.clinicaltrials.gov [NCT03701399] and at https://www.scatrial.org/.   

About Spinocerebellar Ataxia (SCA)

Hereditary Spinocerebellar Ataxias are potentially fatal, rare and severely debilitating neurodegenerative disorders affecting the cerebellum. They are characterized clinically by progressive ataxia symptoms, including difficulties with balance, speech, and coordination, and are attributed to various autosomal dominant genetic mutations. There are currently no FDA-approved treatments and no cure for SCA. 

About Troriluzole

Troriluzole is a new chemical entity that modulates glutamate, the most abundant excitatory neurotransmitter in the human body. Troriluzole is thought to normalize synaptic glutamate levels, which are deregulated in a range of neurological and neuropsychiatric diseases. Troriluzole is believed to increase cycling of glutamate by increasing expression and function of excitatory amino acid transporters (i.e., EAAT2) located on glial cells and 2) decreasing presynaptic glutamate release. More information about troriluzole can be found at the Biohaven’s website www.biohavenpharma.com/science-pipeline/glutamate/troriluzole.

About Biohaven
Biohaven is a commercial-stage biopharmaceutical company with a portfolio of innovative, best-in-class therapies to improve the lives of patients with debilitating neurological and neuropsychiatric diseases, including rare disorders. Biohaven’s neuroinnovation portfolio includes FDA-approved NURTEC™ ODT (rimegepant) for the acute treatment of migraine and a broad pipeline of late-stage product candidates across three distinct mechanistic platforms: CGRP receptor antagonism for the acute and preventive treatment of migraine; glutamate modulation for spinocerebellar ataxia, obsessive-compulsive disorder and Alzheimer’s disease; and myeloperoxidase (MPO) inhibition for multiple system atrophy and amyotrophic lateral sclerosis. More information about Biohaven is available at www.biohavenpharma.com.

About the National Ataxia Foundation (NAF)

NAF is a nonprofit organization established in 1957 to help persons with Ataxia and their families. The Foundation’s primary purpose is to support Ataxia research, provide vital programs and services for Ataxia families, and help in the search for a cure.  NAF is the only organization in the United States dedicated to the disease that serves all types of Ataxia.  NAF works closely with the world’s leading Ataxia researchers, promoting exchanges of ideas and innovation in Ataxia discovery.

Forward-Looking Statements

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The use of certain words, including “believe”, “continue”, “may”, “will” and similar expressions, are intended to identify forward-looking statements. These forward-looking statements involve substantial risks and uncertainties, including statements that are based on the current expectations and assumptions of Biohaven’s management about troriluzole as a possible treatment for Spinocerebellar Ataxia, statements about expected study enrollments and completions, and expected future regulatory filings and approvals. Factors that could affect these forward-looking statements include those related to: Biohaven’s ability to effectively develop troriluzole, complying with applicable U.S. regulatory requirements, the expected timing, commencement and outcomes of Biohaven’s planned and ongoing clinical trials, the timing of planned interactions and filings with the FDA, the timing and outcome of expected regulatory filings, the potential commercialization of Biohaven’s product candidates, the potential for Biohaven’s product candidates to be first in class or best in class therapies and the effectiveness and safety of Biohaven’s product candidates. Various important factors could cause actual results or events to differ materially from those that may be expressed or implied by our forward-looking statements. Additional important factors to be considered in connection with forward-looking statements are described in the “Risk Factors” section of Biohaven’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission on February 26, 2020, and Biohaven’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, filed with the Securities and Exchange Commission on November 9, 2020. The forward-looking statements are made as of this date and Biohaven does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Biohaven Contact

Dr. Vlad Coric
Chief Executive Officer
[email protected]

NURTEC is a trademark of Biohaven Pharmaceutical Ireland DAC.

 

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SOURCE Biohaven Pharmaceutical Holding Company Ltd.

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Protagonist Therapeutics to Participate in the Jefferies Virtual 2020 London Healthcare Conference

PR Newswire

NEWARK, Calif., Nov. 11, 2020 /PRNewswire/ — Protagonist Therapeutics, Inc. (NASDAQ:PTGX) today announced that Dinesh V. Patel, Ph.D., President and Chief Executive Officer, will participate in a fireside chat at the upcoming Jefferies Virtual 2020 London Healthcare Conference.

Presentation details:
Date: Tuesday, Nov. 17, 2020
Time: 5:35 p.m. GMT (12:35 p.m. EST)

A live and archived webcast of the event will be available at https://wsw.com/webcast/jeff141/ptgx/1873875 and in the Investors section of the Protagonist Therapeutics website at http://investors.protagonist-inc.com/.

About Protagonist Therapeutics, Inc.

Protagonist Therapeutics is a clinical stage biopharmaceutical company that utilizes a proprietary technology platform to discover and develop novel peptide-based therapeutics to address significant unmet medical needs and transform existing treatment paradigms for patients. The Company currently has three clinical-stage assets. PTG-300 is an injectable hepcidin mimetic in development for the treatment of polycythemia vera and other blood disorders. PTG-200 is an orally delivered, gut-restricted, interleukin-23 receptor specific antagonist peptide in development for the treatment of inflammatory bowel disease, with Crohn’s disease as the initial indication. In addition to PTG-200, two oral peptide interleukin-23 receptor antagonist candidates from a collaboration with Janssen Biotech, Inc., are in development and have been selected for advancement into clinical studies. PN-943 is an orally delivered, gut-restricted alpha-4-beta-7 integrin specific antagonist peptide in development for the treatment of inflammatory bowel disease, with ulcerative colitis as the initial targeted indication.

Protagonist is headquartered in Newark, California. For further information, please visit http://www.protagonist-inc.com.

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SOURCE Protagonist Therapeutics, Inc.