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December 3, 2020 6:48 am

Express, Inc. Reports Third Quarter 2020 Results

Express, Inc. Reports Third Quarter 2020 Results

Third quarter comparable sales of negative 30%, largely resulting from continued steep declines in wear-to-work and occasion-based categories

Third quarter diluted loss per share of $1.39; adjusted diluted loss per share of $1.17

Ended quarter with $107 million in cash

Completed additional 10% corporate workforce reduction, which will reduce expense in 2021 by approximately $13 million

Digital strategy gains momentum; sequential quarterly demand and transaction improvement throughout 2020; third quarter transactions up 17% and conversion up 10% over prior year

COLUMBUS, Ohio–(BUSINESS WIRE)–
Fashion apparel retailer Express, Inc. (NYSE: EXPR), announced its financial results for the third quarter of 2020. These results, which cover the thirteen weeks ended October 31, 2020, are compared to the thirteen weeks ended November 2, 2019.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201203005218/en/

Express storefront at Easton Town Center in Columbus, Ohio. (Photo: Business Wire)

“In the third quarter, we continued to advance the EXPRESSway Forward strategy while taking decisive and appropriate action to manage our liquidity. Our eCommerce business continues to gain momentum and the new fashion product that fully reflects the Express Edit viewpoint is outpacing the balance of our assortment,” said Tim Baxter, Chief Executive Officer. “We have effectively managed that which was within our control, and as I look ahead, I am optimistic about our ability to deliver improved results and cautious about the continued uncertainty brought about by the current environment. Our strategy is the right one, the changes to our product presentation and brand positioning are the right ones, and our financial actions are the right ones. As we move into 2021, we remain focused on delivering our long-term goal of a mid-single digit operating margin and profitable growth.”

Subsequent to quarter end, the Company also completed a ten percent workforce reduction at its Columbus, Ohio corporate office to calibrate the organization to its improved operating model. These reductions are expected to result in $13 million in benefits in 2021, and are in addition to the $95 million cash tax benefit the Company expects to receive in the second quarter of 2021 as part of the CARES Act.

“Our streamlined go to market process and the implementation of our new inventory planning and management systems have already improved our efficiency and enabled us to operate with greater speed and agility,” said Tim Baxter, Chief Executive Officer. “Further reducing our workforce was a difficult decision, but was appropriate to calibrate the organization to the capabilities of this new operating model.”

Third Quarter 2020 Operating Results

Consolidated net sales decreased 34% to $322.1 million from $488.5 million in the third quarter of 2019, with consolidated comparable sales down 30%.
- Comparable retail sales, which includes both Express stores and eCommerce, decreased 33% compared to the third quarter of 2019.
- Comparable outlet sales decreased 20% versus the third quarter of 2019.
Gross margin was 4.3% of net sales compared to 28.2% in last year’s third quarter. The decrease was driven by the sales impact of COVID-19 and a $8.4 million non-cash impairment charge taken against certain long-lived store assets.
Selling, general, and administrative (SG&A) expenses were $124.9 million, 38.8% of net sales, versus $144.3 million, 29.5% of net sales, in last year’s third quarter. The decrease was driven primarily by the COVID-19 mitigation actions taken by the Company, a reduction in variable costs driven by the sales decline and the previously announced corporate restructuring.
Operating loss was $110.9 million compared to a loss of $6.7 million in the third quarter of 2019.
Income tax benefit was $21.5 million at an effective tax rate of 19.2%, compared to income tax benefit of $2.9 million at an effective tax rate of 48.1% in last year’s third quarter. The Company’s effective tax rate for the third quarter of 2020 was impacted primarily by the recording of a valuation allowance against the Company’s deferred tax assets.
Net loss was $90.3 million, or a loss of $1.39 per diluted share. On an adjusted basis, net loss was $76.2 million, or a loss of $1.17 per diluted share for the third quarter of 2020. The adjusted loss excludes the income tax benefit from the Coronavirus Aid Relief and Economic Security (CARES) Act of $8.0 million, as well as the negative non-cash impacts of the $16.0 million deferred tax asset valuation allowance and the $8.4 million pretax impairment charge mentioned above. This compares to a net loss of $3.1 million, or a loss of $0.05 per diluted share, in the third quarter of 2019. On an adjusted basis, net loss was $1.8 million, or a loss of $0.03 per diluted share, in the third quarter of 2019.

Third Quarter 2020 Balance Sheet Highlights

Cash and cash equivalents totaled $107.3 million versus $167.9 million at the end of the third quarter of 2019.
Capital expenditures totaled $13.6 million for the thirty-nine weeks ended October 31, 2020, compared to $20.5 million for the thirty-nine weeks ended November 2, 2019.
Inventory was $350.6 million at the end of the third quarter, up 1% compared to $345.9 million at the end of the prior year’s third quarter. The increase was primarily driven by continued pressure on sales from the pandemic, the Company’s decision to shift inventory from November to October in anticipation of an earlier start to the holiday shopping season, and certain product the Company plans to hold and send to its outlet stores.
Long-term debt was $165.0 million at the end of the third quarter.

COVID-19 Impact Mitigation Actions

The Company continued to aggressively pursue additional liquidity measures and now expects to realize approximately $550 million in liquidity benefits, of which approximately $440 million are expected to be realized in 2020. This is an increase from the previously announced $425 million. These benefits are the result of a number of actions taken to maintain liquidity throughout the COVID-19 pandemic. Examples of these actions include:

Accessed $165 million from its $250 million asset based credit facility
Identified cost savings of approximately $105 million to be realized in 2020, including the impact from our previously announced COVID-19 mitigation actions inclusive of a decrease in our variable costs as a result of the decline in sales
Cut second quarter inventory receipts by over $100 million
Lowered expected annual capital expenditures by approximately $27 million
Negotiated $25 million in rent abatements with a number of landlords
Anticipated cash benefits in 2020 from the CARES Act of approximately $20 million, including the expanded operating loss carry back, employer payroll tax credit and deferral provisions.

Liquidity benefits of $280 million were realized in the first half of the year and $115 million were realized in the third quarter. These benefits are incremental to the previously announced cost savings associated with The EXPRESSway Forward strategy.

The Company also announced an additional 10% workforce reduction at its Columbus, Ohio corporate office that is expected to result in $13 million in cost savings in 2021. Additionally, as previously communicated, the Company expects to receive a cash tax refund of approximately $95 million in the second quarter of 2021 as part of the CARES Act benefits. The Company is also pursuing additional financing to provide flexibility in managing its liquidity.

Fourth Quarter 2020 Guidance

Due to the uncertainty of the current environment, the Company will not provide guidance for the fourth quarter, with the exception of capital expenditures, which are expected to be in the range of $20 million to $23 million for the full year 2020.

Conference Call Information

A conference call to discuss third quarter 2020 results is scheduled for December 3, 2020 at 8:30 a.m. Eastern Time (ET). Investors and analysts interested in participating in the call are invited to dial (877) 683-0508 approximately ten minutes prior to the start of the call. The conference call will also be webcast live at www.express.com/investor and remain available for 90 days. A telephone replay of this call will be available at 12:00 p.m. ET on December 3, 2020 until 11:59 p.m. ET on December 10, 2020 and can be accessed by dialing (800) 585-8367 and entering the replay pin number 8242308*. In addition, an investor presentation of third quarter 2020 results will be available at www.express.com/investor at approximately 7:00 a.m. ET on December 3, 2020.

About Express, Inc.

Express is a modern, versatile, dual gender apparel and accessories brand that helps people get dressed for every day and any occasion. Launched in 1980 with the idea that style, quality and value should all be found in one place, Express has always been a brand of the now, offering some of the most important and enduring fashion trends. Express aims to Create Confidence & Inspire Self-Expression through a design & merchandising view that brings forward The Best of Now for Real Life Versatility.

The company operates over 500 retail and factory outlet stores in the United States and Puerto Rico, as well as an online store. Express, Inc. is traded on the NYSE under the symbol EXPR. For more information, please visit www.express.com.

Forward-Looking Statements

Certain statements are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statement that does not directly relate to any historical or current fact and include, but are not limited to (1) guidance and expectations, including statements regarding expected operating margins, comparable sales, effective tax rates, interest income, net income, diluted earnings per share, cash tax refunds, liquidity and capital expenditures, (2) statements regarding expected store openings, store closures, store conversions, and gross square footage, and (3) statements regarding the Company’s strategy, plans, and initiatives, including, but not limited to, results expected from such strategy, plans, and initiatives. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict, and significant contingencies, many of which are beyond the Company’s control. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are (1) changes in consumer spending and general economic conditions; (2) the COVID-19 impact and its continued impact on our business operations, store traffic, employee availability, financial condition, liquidity and cash flow; (3) our ability to operate our business efficiently, manage capital expenditures and costs, and obtain financing when required; (4) our ability to identify and respond to new and changing fashion trends, customer preferences, and other related factors; (5) fluctuations in our sales, results of operations, and cash levels on a seasonal basis and due to a variety of other factors, including our product offerings relative to customer demand, the mix of merchandise we sell, promotions, and inventory levels; (6) customer traffic at malls, shopping centers, and at our stores; (7) competition from other retailers; (8) our dependence on a strong brand image; (9) our ability to adapt to changing consumer behavior and develop and maintain a relevant and reliable omni-channel experience for our customers; (10) the failure or breach of information systems upon which we rely; (11) our ability to protect customer data from fraud and theft; (12) our dependence upon third parties to manufacture all of our merchandise; (13) changes in the cost of raw materials, labor, and freight; (14) supply chain or other business disruption, including as a result of the coronavirus; (15) our dependence upon key executive management; (16) our ability to execute our growth strategy, EXPRESSway Forward, including engaging our customers and acquiring new ones, executing with precision to accelerate sales and profitability, creating great product and reinvigorating our brand; (17) our substantial lease obligations; (18) our reliance on third parties to provide us with certain key services for our business; (19) impairment charges on long-lived assets; (20) claims made against us resulting in litigation or changes in laws and regulations applicable to our business; (21) our inability to protect our trademarks or other intellectual property rights which may preclude the use of our trademarks or other intellectual property around the world; (22) restrictions imposed on us under the terms of our asset-based loan facility, including restrictions on the ability to effect share repurchases; (23) changes in tax requirements, results of tax audits, and other factors that may cause fluctuations in our effective tax rate; (24) changes in tariff rates; and (25) natural disasters, extreme weather, public health issues, including pandemics, fire, acts of terrorism or war and other events that cause business interruption. Additional information concerning these and other factors can be found in Express, Inc.’s filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.

Schedule 1
Express, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)

	October 31, 2020			February 1, 2020			November 2, 2019
ASSETS
Current Assets:
Cash and cash equivalents	$	107,347		$	207,139		$	167,915
Receivables, net		12,657			10,824			12,199
Income tax receivable		112,014			3,000			5,449
Inventories		350,643			220,303			345,931
Prepaid rent		6,683			6,850			6,905
Other		24,397			22,573			27,938
Total current assets		613,741			470,689			566,337

Right of Use Asset, Net		855,116			1,010,216			1,043,874

Property and Equipment		990,300			979,639			991,550
Less: accumulated depreciation		(791,036	)		(731,309	)		(734,556	)
Property and equipment, net		199,264			248,330			256,994

Tradename/Domain Names/Trademarks		—			—			197,618
Deferred Tax Assets		—			54,973			6,379
Other Assets		3,950			6,531			6,712
TOTAL ASSETS	$	1,672,071		$	1,790,739		$	2,077,914

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Short-term lease liability	$	208,375		$	226,174		$	222,439
Accounts payable		239,624			126,863			221,721
Deferred revenue		30,005			38,227			32,394
Accrued expenses		158,597			76,211			93,504
Total current liabilities		636,601			467,475			570,058

Long-Term Lease Liability		776,838			897,304			936,547
Long-Term Debt		165,000			—			—
Other Long-Term Liabilities		32,812			19,658			22,307
Total Liabilities		1,611,251			1,384,437			1,528,912

Commitments and Contingencies

Total Stockholders’ Equity		60,820			406,302			549,002
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,672,071		$	1,790,739		$	2,077,914

Schedule 2
Express, Inc.
Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)

	Thirteen Weeks Ended						Thirty-Nine Weeks Ended
	October 31, 2020			November 2, 2019			October 31, 2020			November 2, 2019
Net Sales	$	322,061		$	488,483		$	778,039		$	1,412,469
Cost of Goods Sold, Buying and Occupancy Costs		308,115			350,810			854,357			1,025,795
GROSS PROFIT/(LOSS)		13,946			137,673			(76,318	)		386,674
Operating Expenses:
Selling, general, and administrative expenses		124,863			144,301			316,833			415,391
Other operating (income)/expense, net		(1	)		47			(662	)		(728	)
TOTAL OPERATING EXPENSES		124,862			144,348			316,171			414,663

OPERATING LOSS		(110,916	)		(6,675	)		(392,489	)		(27,989	)
Interest Expense/(Income), Net		936			(690	)		2,015			(2,185	)
Other Expense, Net		—			—			2,733			—
LOSS BEFORE INCOME TAXES		(111,852	)		(5,985	)		(397,237	)		(25,804	)
Income Tax Benefit		(21,503	)		(2,880	)		(45,068	)		(3,062	)
NET LOSS	$	(90,349	)	$	(3,105	)	$	(352,169	)	$	(22,742	)

EARNINGS PER SHARE:
Basic	$	(1.39	)	$	(0.05	)	$	(5.46	)	$	(0.34	)
Diluted	$	(1.39	)	$	(0.05	)	$	(5.46	)	$	(0.34	)

WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		64,868			66,438			64,515			66,845
Diluted		64,868			66,438			64,515			66,845

Schedule 3
Express, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

	Thirty-Nine Weeks Ended
	October 31, 2020			November 2, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(352,169	)	$	(22,742	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization		55,699			64,121
Loss on disposal of property and equipment		1			1,098
Impairment of property, equipment and lease assets		29,853			2,282
Equity method investment impairment		3,233			500
Share-based compensation		7,286			7,204
Deferred taxes		65,358			212
Landlord allowance amortization		(312	)		(1,782	)
Other non-cash adjustments		(500	)		(500	)
Changes in operating assets and liabilities:
Receivables, net		(1,833	)		5,169
Income tax receivable		(109,014	)		(3,950	)
Inventories		(130,340	)		(78,165	)
Accounts payable, deferred revenue, and accrued expenses		183,129			71,891
Other assets and liabilities		(1,993	)		(12,504	)
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES		(251,602	)		32,834

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(13,550	)		(20,503	)
NET CASH USED IN INVESTING ACTIVITIES		(13,550	)		(20,503	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Costs incurred in connection with debt arrangements		(382	)		(849	)
Proceeds from financing arrangements		167,634			—
Payments on lease financing obligations		—			(81	)
Repayments of financing arrangements		(1,293	)		—
Repurchase of common stock under share repurchase program		—			(13,603	)
Repurchase of common stock for tax withholding obligations		(599	)		(1,553	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		165,360			(16,086	)

NET DECREASE IN CASH AND CASH EQUIVALENTS		(99,792	)		(3,755	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		207,139			171,670
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	107,347		$	167,915

Schedule 4

Express, Inc.

Supplemental Information – Consolidated Statements of Income

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited)

The Company supplements the reporting of its financial information determined under United States generally accepted accounting principles (GAAP) with certain non-GAAP financial measures: adjusted net loss, adjusted operating loss, and adjusted diluted earnings per share. The Company believes that these non-GAAP measures provide additional useful information to assist stockholders in understanding its financial results and assessing its prospects for future performance. Management believes adjusted net loss, adjusted operating loss, and adjusted diluted earnings per share are important indicators of the Company’s business performance because they exclude items that may not be indicative of, or are unrelated to, the Company’s underlying operating results, and may provide a better baseline for analyzing trends in the business. In addition, adjusted diluted earnings per share is used as a performance measure in the Company’s long-term executive compensation program for purposes of determining the number of equity awards that are ultimately earned and adjusted operating loss is a metric used in our short-term cash incentive compensation plan. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for reported net loss, operating loss, or diluted earnings per share. These non-GAAP financial measures reflect an additional way of viewing the Company’s operations that, when viewed with the GAAP results and the below reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of the Company’s business. Management strongly encourages investors and stockholders to review the Company’s financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

	Thirteen Weeks Ended October 31, 2020
(in thousands, except per share amounts)	Operating Loss			Income Tax Impact		Net Loss			Diluted Earnings per Share			Weighted Average Diluted Shares Outstanding
Reported GAAP Measure	$	(110,916	)			$	(90,349	)	$	(1.39	)	64,868
Impairment of property, equipment and lease assets		8,370		(2,215	)		6,155			0.09
Valuation allowance on deferred taxes ^(a)		—		15,998			15,998			0.25
Tax impact of the CARES Act ^(b)		—		(7,996	)		(7,996	)		(0.12	)
Adjusted Non-GAAP Measure	$	(102,546	)			$	(76,192	)	$	(1.17	)

a.		Valuation allowance provided against incurred and forecasted 2020 losses and previously recognized deferred tax assets, less net operating losses utilized under the CARES Act.
b.		Income tax benefit primarily due to a net operating loss carryback under the CARES Act.

	Thirty-Nine Weeks Ended October 31, 2020
(in thousands, except per share amounts)	Operating Loss			Income Tax Impact		Net Loss			Diluted Earnings per Share			Weighted Average Diluted Shares Outstanding
Reported GAAP Measure	$	(392,489	)			$	(352,169	)	$	(5.46	)	64,515
Impairment of property, equipment and lease assets		29,853		(7,901	)		21,952			0.34
Equity method investment impairment ^(a)		—		(642	)		2,091			0.03
Valuation allowance on deferred taxes ^(b)		—		93,317			93,317			1.45
Tax impact of the CARES Act ^(c)		—		(36,553	)		(36,553	)		(0.57	)
Tax impact of executive departures ^(d)		—		111			111			—
Adjusted Non-GAAP Measure	$	(362,636	)			$	(271,251	)	$	(4.20	)

a.		Impairment before tax was $2.7 million and was recorded in other expense, net.
b.		Valuation allowance provided against incurred and forecasted 2020 losses and previously recognized deferred tax assets, less net operating losses utilized under the CARES Act.
c.		Income tax benefit primarily due to a net operating loss carryback under the CARES Act.
d.		Represents the tax impact related to the expiration of former executive non-qualified stock options.

	Thirteen Weeks Ended November 2, 2019
(in thousands, except per share amounts)	Operating Loss			Income Tax Impact			Net Loss			Diluted Earnings per Share			Weighted Average Diluted Shares Outstanding
Reported GAAP Measure	$	(6,675	)				$	(3,105	)	$	(0.05	)	66,438
Impact of executive departures		1,716		(401	)			1,315			0.02
Adjusted Non-GAAP Measure	$	(4,959	)				$	(1,790	)	$	(0.03	)


	Thirty-Nine Weeks Ended November 2, 2019
(in thousands, except per share amounts)	Operating Loss			Income Tax Impact			Net Loss			Diluted Earnings per Share			Weighted Average Diluted Shares Outstanding
Reported GAAP Measure	$	(27,989	)				$	(22,742	)	$	(0.34	)	66,845
Impairment of property, equipment and lease assets		2,282		(593	)			1,689			0.03
Impact of CEO departure		—		822		^(a)		822			0.01
Impact of executive departures		1,716		(401	)			1,315			0.02
Adjusted Non-GAAP Measure	$	(23,991	)				$	(18,916	)	$	(0.28	)

Represents the tax impact of the expiration of our former CEO’s non-qualified stock options.

Schedule 5
Express, Inc.
Real Estate Activity
(Unaudited)

Third Quarter 2020 – Actual				October 31, 2020 – Actual
Company-Operated Stores	Opened	Closed	Conversion	Store Count	Gross Square Footage
United States – Retail Stores	1	(1)	—	378
United States – Outlet Stores	—	(1)	—	214
TOTAL	1	(2)	—	592	5.0 million

Fourth Quarter 2020 – Projected				January 30, 2021 – Projected
Company-Operated Stores	Opened	Closed	Conversion	Store Count	Gross Square Footage
United States – Retail Stores	—	(15)	—	363
United States – Outlet Stores	—	(5)	—	209
TOTAL	—	(20)	—	572	4.9 million

Full Year 2020 – Projected				January 30, 2021 – Projected
Company-Operated Stores	Opened	Closed	Conversion	Store Count	Gross Square Footage
United States – Retail Stores	1	(19)	—	363
United States – Outlet Stores	1	(6)	—	209
TOTAL	2	(25)	—	572	4.9 million

View source version on businesswire.com: https://www.businesswire.com/news/home/20201203005218/en/

INVESTOR CONTACT

Dan Aldridge

VP, Investor Relations

[email protected]

(614) 474-4890

KEYWORDS: Ohio United States North America

INDUSTRY KEYWORDS: Fashion Retail

MEDIA:

Photo

Express storefront at Easton Town Center in Columbus, Ohio. (Photo: Business Wire)

December 3, 2020 6:48 am

Build-A-Bear Workshop, Inc. Reports Increase in Total Revenues and Delivers a $9.4 Million Improvement in Pre-Tax Profit With Third Quarter Fiscal 2020 Results

Build-A-Bear Workshop, Inc. Reports Increase in Total Revenues and Delivers a $9.4 Million Improvement in Pre-Tax Profit With Third Quarter Fiscal 2020 Results

Total revenues increased 6.1% to $74.7 million compared to the fiscal 2019 third quarter
Gross profit margin expanded 720 basis points compared to the fiscal 2019 third quarter
Delivered pre-tax income of $1.7 million compared to a pre-tax loss of $7.7 million in the fiscal 2019 third quarter
Ended the quarter with $25.8 million in cash and equivalents, an increase of $19.6 million compared to the fiscal 2019 third quarter with no borrowings on the Company’s asset-based credit facility

ST. LOUIS–(BUSINESS WIRE)–
Build-A-Bear Workshop, Inc. (NYSE:BBW) today reported results for the third quarter and 39 weeks ended October 31, 2020. The Company noted that the disciplined execution of its strategy, inclusive of the acceleration of its digital transformation initiatives, drove an increase in total revenues, expansion in gross profit margin and growth in pre-tax income for the fiscal 2020 third quarter, as compared to the fiscal 2019 third quarter. The Company achieved these results even as the COVID-19 pandemic continued to negatively impact its retail store operations inclusive of a significant decline in traffic, a 7% reduction in store operating days due to temporary store closures and a 25% reduction in operating hours during the third quarter.

In the fiscal 2020 third quarter (13 weeks ended October 31, 2020 compared to the 13 weeks ended November 2, 2019):

Total revenues were $74.7 million compared to $70.4 million in the fiscal 2019 third quarter, reflecting an 8.7% increase in net retail sales primarily driven by a 167% increase in e-commerce demand (orders generated online to be fulfilled from either the Company’s warehouse or its stores). This was partially offset by a $1.5 million decrease in commercial and international franchise revenues;
Gross profit margin expanded to 46.6%, a 720-basis point improvement compared to the fiscal 2019 third quarter;
Selling, general and administrative expenses (“SG&A”) were $33.1 million or 44.3% of total revenues, a 600-basis point improvement compared to the fiscal 2019 third quarter;
Pre-tax income increased $9.4 million to $1.7 million compared to a pre-tax loss of $7.7 million in the fiscal 2019 third quarter; and
Earnings before interest and taxes (“EBIT”) were $1.7 million, a $9.4 million improvement from the fiscal 2019 third quarter.

Sharon Price John, Build-A-Bear Workshop President and Chief Executive Officer, commented, “Fueled by consumer affinity for our brand, disciplined execution, and acceleration of our strategic digital transformation, the third quarter’s profitable results reflected improvements across a number of key financial metrics. We delivered an increase in total revenues including continued triple-digit e-commerce growth, expansion in gross profit margin and a reduction in expenses. And, while we are pleased to have sustained this positive momentum thus far in our fourth quarter, we remain appropriately cautious given the ongoing uncertainty of the pandemic and its potential impact.

“During this period of rapid change, we have relied on the experience and agility of our management team and organization to quickly adjust and pivot as circumstances evolve. Igniting the emotional connection that Build-A-Bear has with multi-generational consumers is a critical foundation as we focus on accelerating the execution of our stated strategy with the goal to drive profitable growth through the monetization of our brand equity beyond traditional retail. Specifically, we have made great strides with initiatives driving our digital transformation ranging from e-commerce to marketing while having a long runway of continued opportunities including new, brand-enhancing, entertainment plans. Even in these uncertain times, with the majority of the corporate headquarters continuing to work remotely, we have meaningfully evolved the company, favorably re-negotiated the vast majority of store leases, maintained a solid balance sheet with no borrowings on our credit facility and secured the liquidity required to support our business. At the same time, we have been able to enhance our infrastructure in order to further leverage the power of the Build-A-Bear brand through the diversification of profitable revenue streams with the goal of delivering long-term stakeholder value,” concluded Ms. John.

Additional Third Quarter 2020 Highlights (13 weeks ended October 31, 2020 compared to the 13 weeks ended November 2, 2019):

Net retail sales were $72.4 million compared to $66.6 million in the fiscal 2019 third quarter;
Income tax expense was $10,000, compared to an income tax benefit of $1.8 million in the fiscal 2019 third quarter; and
Net income was $1.7 million, or $0.11 per diluted share, compared to a net loss of $5.9 million, or $0.40 per share, in the fiscal 2019 third quarter.

Store Activity:

As of October 31, 2020, the Company had 358 corporately-managed stores. The Company noted that in the third quarter, its retail store operations were negatively impacted by COVID-related circumstances with a 7% reduction in store operating days due to temporary store closures and a 25% reduction in operating hours compared to the prior year’s period. Following the end of the quarter, the Company temporarily closed substantially all of its locations in the United Kingdom and Ireland complying with COVID-19 governmental mandates. The vast majority of these locations reopened on December 2, 2020 as restrictions were eased.

Separately, locations associated with the Company’s third-party retail model with relationships that include Carnival Cruise Lines, Great Wolf Lodge Resorts, Landry’s and Beaches Family Resorts as well as international franchise locations, were either closed or operated under restrictions due to COVID-19 for a portion or all of the third quarter.

Balance Sheet:

At quarter end, cash and cash equivalents were $25.8 million, an increase of $19.6 million compared to the end of the fiscal 2019 third quarter driven by improvement in the Company’s profitability. With the finalization of the renegotiation of store leases which resulted in a reduction in rents, payment deferrals and abatements, the Company noted that it is now current on substantially all of its rent payments. Total inventory at quarter-end was $51.5 million a decline of $14.7 million, or 22.2%, compared to the end of the fiscal 2019 third quarter. The Company noted that it is comfortable with the quality and composition of its inventory at quarter-end.

In the fiscal 2020 third quarter, capital expenditures were $0.7 million reflecting disciplined fiscal oversight during the pandemic, compared to $5.1 million in the fiscal 2019 third quarter. Depreciation and amortization was $3.2 million compared to $3.6 million in the fiscal 2019 third quarter.

Note Regarding Non-GAAP Financial Measures:

In this press release, the Company’s financial results are provided both in accordance with generally accepted accounting principles (GAAP) and using certain non-GAAP financial measures. In particular, the Company provides historic EBIT, income and income per diluted share adjusted to exclude certain costs and accounting adjustments, which are non-GAAP financial measures. These results are included as a complement to results provided in accordance with GAAP because management believes these non-GAAP financial measures help identify underlying trends in the Company’s business and provide useful information to both management and investors by excluding certain items that may not be indicative of the Company’s core operating results. These measures should not be considered a substitute for or superior to GAAP results. These non-GAAP financial measures are defined and reconciled to the most comparable GAAP measure later in this document.

Today’s Conference Call and Webcast:

Build-A-Bear will host a live conference call which can be accessed at (201) 493-6780 with access code Build-A-Bear at 9 a.m. ET today. The call will be broadcast simultaneously over the internet through the Company’s investor relations website, http://IR.buildabear.com. The call is expected to conclude by 10 a.m. ET.

A replay of the conference call webcast will be available in the investor relations website for one year. A telephone replay will be available beginning at approximately noon ET today until midnight ET on December 10, 2020. The telephone replay is available by calling (844) 512-2921. The access code is: 13713287.

About Build-A-Bear

Build-A-Bear is a multi-generational global brand focused on “adding a little more heart to life” appealing to a wide array of consumer groups who enjoy the personal expression in making their own “furry friends” to celebrate and commemorate life moments. The 500+ interactive brick-and-mortar retail locations provide guests of all ages an interactive entertaining experience, which often fosters a lasting and emotional brand connection. The company also offers an engaging e-commerce/digital purchasing activity called the “Bear-Builder” at www.buildabear.com. In addition, the company leverages its brand’s power and equity beyond retail through entertaining content, wholesale products and non-plush consumer product categories via licensing agreements with leading manufacturers. Build-A-Bear Workshop, Inc. (NYSE:BBW) posted total revenue of $338.5 million in fiscal 2019. For more information, visit the Investor Relations section of buildabear.com.

Forward-Looking Statements

This press release contains certain statements that are, or may be considered to be, “forward-looking statements” for the purpose of federal securities laws, including, but not limited to, statements that reflect our current views with respect to future events and financial performance. We generally identify these statements by words or phrases such as “may,” “might,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “intend,” “predict,” “future,” “potential” or “continue,” the negative or any derivative of these terms and other comparable terminology. All of the information concerning our future liquidity, future revenues, margins and other future financial performance and results, achievement of operating of financial plans or forecasts for future periods, sources and availability of credit and liquidity, future cash flows and cash needs, success and results of strategic initiatives and other future financial performance or financial position, as well as our assumptions underlying such information, constitute forward-looking information.

These statements are based only on our current expectations and projections about future events. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by these forward-looking statements, including those factors discussed under the caption entitled “Risks Related to Our Business” and “Forward-Looking Statements” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on April 16, 2020 and other periodic reports filed with the SEC which are incorporated herein.

All of our forward-looking statements are as of the date of this Press Release only. In each case, actual results may differ materially from such forward-looking information. We can give no assurance that such expectations or forward-looking statements will prove to be correct. An occurrence of or any material adverse change in one or more of the risk factors or other risks and uncertainties referred to in this Press Release or included in our other public disclosures or our other periodic reports or other documents or filings filed with or furnished to the SEC could materially and adversely affect our continuing operations and our future financial results, cash flows, available credit, prospects and liquidity. Except as required by law, the Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

All other brand names, product names, or trademarks belong to their respective holders.

BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(dollars in thousands, except share and per share data)

		13 Weeks			13 Weeks
		Ended			Ended
		October 31,	% of Total		November 2,		% of Total
		2020	Revenues ⁽¹⁾		2019		Revenues ⁽¹⁾
Revenues:
Net retail sales	$	72,368	96.9	$	66,575		94.6
Commercial revenue		1,858	2.5		2,560		3.6
International franchising		447	0.6		1,249		1.8
Total revenues		74,673	100.0		70,384		100.0
Cost of merchandise sold:
Cost of merchandise sold – retail ⁽¹⁾		38,715	53.5		40,284		60.5
Store asset impairment		162	0.2		—		0.0
Cost of merchandise sold – commercial ⁽¹⁾		782	42.1		1,412		55.2
Cost of merchandise sold – international franchising ⁽¹⁾		251	56.2		962		77.0
Total cost of merchandise sold		39,910	53.4		42,658		60.6
Consolidated gross profit		34,763	46.6		27,726		39.4

Selling, general and administrative expense		33,091	44.3		35,412		50.3
Interest (income) expense, net		2	0.0		8		0.0
(Loss) income before income taxes		1,670	2.2		(7,694	)	(10.9	)
Income tax expense		10	0.0		(1,821	)	(2.6	)
Net (loss) income	$	1,660	2.2	$	(5,873	)	(8.3	)

(Loss) Income per common share:
Basic	$	0.11		$	(0.40	)
Diluted	$	0.11		$	(0.40	)
Shares used in computing common per share amounts:
Basic		14,999,786			14,752,307
Diluted		15,220,432			14,752,307

(1)

Selected statement of operations data expressed as a percentage of total revenues, except cost of merchandise sold – retail, cost of merchandise sold – commercial and cost of merchandise sold – international franchising that are expressed as a percentage of net retail sales, commercial revenue and international franchising, respectively. Percentages will not total due to cost of merchandise sold being expressed as a percentage of net retail sales, commercial revenue or international franchising and immaterial rounding.

BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(dollars in thousands, except share and per share data)

		39 Weeks					39 Weeks
		Ended					Ended
		October 31,		% of Total			November 2,		% of Total
		2020		Revenues ⁽¹⁾			2019		Revenues ⁽¹⁾
Revenues:
Net retail sales	$	157,354		97.3		$	222,837		95.3
Commercial revenue		3,056		1.9			8,507		3.6
International franchising		1,240		0.8			2,616		1.1
Total revenues		161,650		100.0			233,960		100.0
Costs and expenses:
Cost of merchandise sold – retail ⁽¹⁾		102,300		65.0			126,722		56.9
Store asset impairment ⁽²⁾		7,044		4.5			—		—
Cost of merchandise sold – commercial⁽¹⁾		1,309		42.8			3,887		45.7
Cost of merchandise sold – international franchising⁽¹⁾		636		51.3			2,417		92.4
Total cost of merchandise sold		111,289		68.8			133,026		56.9
Consolidated gross profit		50,361		31.2			100,934		43.1

Selling, general and administrative expense		81,332		50.3			106,940		45.7
Interest expense, net		6		0.0			21		0.0
Income (loss) before income taxes		(30,977	)	(19.2	)		(6,027	)	(2.6	)
Income tax expense (benefit)		2,476		1.5			(126	)	(0.1	)
Net income (loss)	$	(33,453	)	(20.7	)	$	(5,901	)	(2.5	)

Income (loss) per common share:
Basic	$	(2.24	)			$	(0.40	)
Diluted	$	(2.24	)			$	(0.40	)
Shares used in computing common per share amounts:
Basic		14,923,304					14,697,592
Diluted		14,923,304					14,697,592

(1)

(2)

Due to the charges primarily in the 39 weeks ended October 31, 2020, a separate line item was disclosed and expressed as a percentage of net retail sales.

BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(dollars in thousands, except per share data)

	October 31,			February 1,			November 2,
	2020			2020			2019
ASSETS
Current assets:
Cash and cash equivalents	$	25,809		$	26,726		$	6,167
Inventories, net		51,501			53,381			66,205
Receivables, net		7,950			11,526			10,250
Prepaid expenses and other current assets		5,427			7,117			6,327
Total current assets		90,687			98,750			88,949

Operating lease right-of-use asset		109,757			126,144			135,810
Property and equipment, net		55,421			65,855			65,954
Deferred tax assets		–			3,411			3,203
Other assets, net		3,572			3,202			2,761
Total Assets	$	259,437		$	297,362		$	296,677

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	14,527		$	15,680		$	18,390
Accrued expenses		19,856			16,536			9,985
Operating lease liability short term		35,489			30,912			31,537
Gift cards and customer deposits		19,070			20,231			19,141
Deferred revenue and other		2,364			2,605			2,347
Total current liabilities		91,306			85,964			81,400

Operating lease liability long term		107,653			119,625			130,394
Deferred franchise revenue		866			1,325			1,289
Other liabilities		2,913			1,717			1,651

Stockholders’ equity:
Common stock, par value $0.01 per share		160			152			152
Additional paid-in capital		72,344			70,733			69,955
Accumulated other comprehensive loss		(12,277	)		(12,079	)		(11,927	)
Retained (deficit)/earnings		(3,528	)		29,925			23,763
Total stockholders’ equity		56,699			88,731			81,943
Total Liabilities and Stockholders’ Equity	$	259,437		$	297,362		$	296,677

BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Unaudited Selected Financial and Store Data
(dollars in thousands)

		13 Weeks			13 Weeks			39 Weeks			39 Weeks
		Ended			Ended			Ended			Ended
		October 31,			November 2,			October 31,			November 2,
		2020			2019			2020			2019

Other financial data:

Retail gross margin ($)⁽¹⁾	$	33,653		$	26,291		$	55,054		$	96,115
Retail gross margin (%) ⁽¹⁾		46.5	%		39.5	%		35.0	%		43.1	%
Capital expenditures ⁽²⁾	$	651		$	5,155		$	4,029		$	10,099
Depreciation and amortization	$	3,194		$	3,561		$	9,905		$	10,359

Store data⁽³⁾:
Number of corporately-managed retail locations at end of period
North America								306			315
Europe								51			55
Asia								1			1
Total corporately-managed retail locations								358			371

Number of franchised stores at end of period								77			104

Corporately-managed store square footage at end of period⁽⁴⁾
North America								712,387			719,277
Europe								76,173			78,786
Asia								1,750			1,750
Total square footage								790,310			799,813

(1)		Retail gross margin represents net retail sales less cost of merchandise sold – retail. Retail gross margin percentage represents retail gross margin divided by net retail sales. Store impairment is excluded from retail gross margin.
(2)		Capital expenditures represents cash paid for property, equipment, other assets and other intangible assets.
(3)		Excludes e-commerce. North American stores are located in the United States, Canada and Puerto Rico. In Europe, stores are located in the United Kingdom, Ireland and Denmark. In Asia, the store is located in China. Seasonal locations not included in store count.
(4)		Square footage for stores located in North America is leased square footage. Square footage for stores located in Europe is estimated selling square footage. Seasonal locations not included in the store count.

* Non-GAAP Financial Measures

BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Results
(dollars in thousands, except per share data)


	13 Weeks			13 Weeks			39 Weeks			39 Weeks
	Ended			Ended			Ended			Ended
	October 31,			November 2,			October 31,			November 2,
	2020			2019			2020			2019
Income (loss) before income taxes (pre-tax)	$	1,670		$	(7,694	)	$	(30,977	)	$	(6,027	)
Interest		2			8			6			21
Earnings before interest and taxes (EBIT)	$	1,672		$	(7,686	)	$	(30,971	)	$	(6,006	)


	13 Weeks			13 Weeks			39 Weeks			39 Weeks
	Ended			Ended			Ended			Ended
	October 31,			November 2,			October 31,			November 2,
	2020			2019			2020			2019
Income (loss) before income taxes (pre-tax)	$	1,670		$	(7,694	)	$	(30,977	)	$	(6,027	)
Income (loss) before income tax adjustments:
COVID-19 activity ⁽¹⁾		54			–			112			–
Impairment and other charges ⁽²⁾		78			–			7,628			(456	)
Foreign exchange losses (gains) ⁽³⁾		(68	)		(785	)		197			332
Adjusted income (loss) before income taxes (adjusted pre-tax)		1,734			(8,479	)		(23,040	)		(6,151	)


Income tax (expense) benefit		(10	)		1,821			2,476			(126	)
Tax adjustments:
Income tax impact: adjustments ⁽⁴⁾		(13	)		165			(1,667	)		26
Income tax impact: CARES Act ⁽⁵⁾		–			–			(773	)		–
Valuation allowance ⁽⁶⁾		–			–			3,272			–
Adjusted income tax (expense) benefit		(23	)		1,986			3,309			(100	)

Net (loss) income		1,660			(5,873	)		(33,453	)		(5,901	)
Adjustments		51			(620	)		8,770			(98	)
Adjusted net (loss) income	$	1,711		$	(6,493	)	$	(24,683	)	$	(5,999	)

Net (loss) income per diluted share (EPS)	$	0.11		$	(0.40	)	$	(2.24	)	$	(0.40	)

Adjusted net (loss) income per diluted share (adjusted EPS)	$	0.11		$	(0.44	)	$	(1.65	)	$	(0.41	)

(1)		Represents COVID-19 related expenses at our stores, warehouse, and headquarters.
(2)		Represents non-cash adjustments including estimated asset impairment charges related to store fixed assets and right-of-use operating lease assets and bad debt expense in the 13 and 39 weeks ending October 31, 2020 and November 2, 2019.
(3)		Represents the consolidated impact of foreign exchange rates on the re-measurement of balance sheet items not denominated in functional currency recorded under the provisions of U.S. GAAP and transactional gains and losses. This does not include any impact on margin associated with the translation of revenues or the foreign subsidiaries’ purchase of inventory in U.S. dollars.
(4)		Represents the aggregate tax impact of the pre-tax adjustments. As a result of the Company’s full, global valuation allowance as of May 2, 2020, the Company cannot realize an income tax benefit on these adjustments for first quarter of fiscal 2020.
(5)		Represents the impact of the technical correction related to qualified leasehold improvements resulting from the CARES Act occurring in the first quarter of fiscal 2020
(6)		Represents the valuation allowance recorded on its net deferred tax assets in North America in the first quarter of fiscal 2020.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201203005217/en/

Investors:

Voin Todorovic

Build-A-Bear Workshop

314.423.8000 x5221

Media:

Public Relations

[email protected]

KEYWORDS: Missouri United States North America

INDUSTRY KEYWORDS: Family Online Retail Retail Consumer Other Retail Children Specialty

MEDIA:

December 3, 2020 6:48 am

Berkshire Hathaway Inc. News Release

Berkshire Hathaway Inc. News Release

2021 Annual Meeting of Shareholders

OMAHA, Neb.–(BUSINESS WIRE)–
Berkshire Hathaway Inc. (BRK.A; BRK.B) –

The 2021 Berkshire Hathaway Inc. Annual Meeting of Shareholders will be held on May 1, 2021. Unfortunately, we do not currently believe it will be safe at that time to hold a meeting with nearly 40,000 attendees as we last did in 2019. Therefore, the format for the 2021 meeting will be very similar to the virtual meeting that we held earlier this year including worldwide streaming provided by Yahoo. Additional information regarding the 2021 meeting will be included in Berkshire’s 2020 Annual Report currently scheduled to be posted to the Internet on February 27, 2021 and in its proxy statement which will be posted on the internet in mid-March 2021.

We hope that the 2021 meeting will be the last time that shareholders are unable to attend in person. We look forward to 2022 when we expect to again host shareholders in Omaha at our usual large gala aka “Woodstock for Capitalists”.

Berkshire Hathaway and its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, retailing and services. Common stock of the company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201203005176/en/

Marc D. Hamburg

402-346-1400

KEYWORDS: United States North America Nebraska

INDUSTRY KEYWORDS: Manufacturing Professional Services Rail Fashion Transport Utilities Other Manufacturing Retail Insurance Energy Finance

MEDIA:

December 3, 2020 6:48 am

J.Jill, Inc. to Report Third Quarter Fiscal 2020 Results on December 10, 2020

J.Jill, Inc. to Report Third Quarter Fiscal 2020 Results on December 10, 2020

QUINCY, Mass.–(BUSINESS WIRE)–
J.Jill, Inc. (NYSE:JILL) today announced that its financial results for the third quarter fiscal 2020 will be released before market open on Thursday, December 10, 2020. The company will host a conference call at 8:00 a.m. Eastern Time to discuss the financial results.

Investors and analysts interested in listening to the call are invited to dial (866) 393-4306 or (734) 385-2616 if calling internationally. Please dial in approximately 10 minutes prior to the start of the call and reference Conference ID 8692056 when prompted. A live audio webcast of the conference call will be available online at http://investors.jjill.com/Investors-Relations/News-Events/events.

A taped replay of the conference call will be available approximately two hours following the live call and can be accessed both online and by dialing (855) 859-2056 or (404) 537-3406. The pin number to access the telephone replay is 8692056. The telephone replay will be available until Thursday, December 17, 2020.

About J.Jill, Inc.

J.Jill is a premier omnichannel retailer and nationally recognized women’s apparel brand committed to delighting customers with great wear-now product. The brand represents an easy, thoughtful and inspired style that reflects the confidence of remarkable women who live life with joy, passion and purpose. J.Jill offers a guiding customer experience through about 275 stores nationwide and a robust e-commerce platform. J.Jill is headquartered outside Boston. For more information, please visit www.jjill.com or http://investors.jjill.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201203005148/en/

Investor Relations:

Caitlin Churchill

ICR, Inc.

[email protected]

203-682-8200

Media:

Chris Gayton

J.Jill, Inc.

[email protected]

617-689-7916

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS: Fashion Online Retail Retail Consumer Department Stores Women

MEDIA:

Logo

December 3, 2020 6:48 am

Safe-T Group Engages MZ Group to Lead Strategic Investor Relations and Shareholder Communication Program

HERZLIYA, Israel, Dec. 03, 2020 (GLOBE NEWSWIRE) —
Safe-T® Group Ltd. (NASDAQ, TASE: SFET), a provider of Secure Access solutions for on-premise and hybrid cloud environments, has engaged investor relations specialists MZ Group (MZ) to lead a comprehensive strategic investor relations and financial communications program across all key markets.

MZ Group will work closely with Safe-T management to develop and execute a complete capital markets strategy designed to increase the company’s visibility throughout the investment community. The campaign will highlight how Safe-T is empowering organizations to easily and dynamically allow the secure access of users for on-premise and hybrid cloud environments to private apps, business-critical services and networks with maximum business continuity and minimal risk.

Gary Guyton, Managing Director at MZ North America, will advise Safe-T in all facets of corporate and financial communications, including the coordination of roadshows and investment conferences across key cities and building brand awareness with financial and social media outlets.

Greg Falesnik, Chief Executive Officer of MZ North America, commented: “Today, secure application, file and internet access for employees and users, has become a critical requirement for enterprises. Growth of the global software defined perimeter (SDP) industry has been driven by the rising need for policy-based security architecture to reduce network complexities and the increasing demand for cloud-based applications. This trend was enlarged by the massive realignment brought about this year as companies responded to the coronavirus pandemic by enabling or transitioning entirely to remote work-from-home, a development that emphasized the need for secure remote access. Safe-T has positioned the company as the most comprehensive solution supplier for organizations worldwide. We look forward to sharing their story with our wide network of institutional investors and family offices.”

Gary Guyton added: “Safe-T has seen industry-wide adoption from dozens of global partners for its unique ZoneZero™ solutions by companies seeking to implement Zero Trust security, which maintains strict external access controls which do not trust any user by default. ZoneZero is the only Zero Trust Network Access (ZTNA) solution in the market which unifies all access scenarios for internal and external users. Safe-T has re-designed its ZTNA solution to create the first ever Perimeter Access Orchestration Fabric (PAOF), incorporating the following modules: Safe-T ZoneZero SDP – a client-less ZTNA module for non-VPN users; Safe-T ZoneZero VPN – first ever ZTNA for existing VPNs; and Safe-T ZoneZero MFA – first ever client-less ZTNA for internal users. Taken together, Safe-T offers true secure and transparent access for all entities to internal applications and data. Supporting all access use cases faced by organizations in one platform has been virtually impossible until recently, but is now a reality with Safe-T and the ZoneZero.”

“2020 has been a transitional year for the Company as we made steadfast progress on our goals and business strategy,” said Shachar Daniel, CEO of Safe-T Group. “We are leveraging our legacy SDE product line and the fast growth in our IP proxy business to focus on the long-term growth of our innovative cybersecurity product line, ZoneZero. To this end, we’ve accelerated market awareness and deployed ZoneZero with global partners, including multiple Asian channels ready to market it to their own customers. This progress was done concurrent with our 65% revenue increase in the first nine months of 2020 over 2019. Looking ahead to 2021, we expect to continue ramping revenues and profit margins and develop additional capabilities for our customers. We look forward to working closely with the entire team at MZ Group to communicate our value proposition to the broader investment community, building long-term value for our shareholders.”

For more information on Safe-T, please visit the Company’s investor relations website at www.safe-t.com. To schedule a conference call with management, please email your request to [email protected] or call Gary Guyton at 469-778-7844.

About MZ Group

MZ North America is the US division of MZ Group, a global leader in investor relations and corporate communications. MZ North America was founded in 1996 and provides full scale Investor Relations to both private and public companies across all industries. Supported by our exclusive one‐stop‐shop approach, MZ works with top management to support the clients’ business strategy in six integrated product and service categories: 1) IR Consulting & Outreach – full service investor relations and roadshow services; 2) ESG Consulting – reporting technology platform and audit and reporting guidance; 3) SPAC Advisory – providing critical and timely guidance through business combination; 4) Financial & Social Media – lead generation and social media relations; 5) Market Intelligence – real time ownership monitoring; 6) Technology Solutions – webhosting, webcasting, distribution services, conference calls, CRM, and board portals. MZ North America has a global footprint with offices located in New York, Chicago, San Diego, Aliso Viejo, Austin, Minneapolis, Taipei and São Paulo. For more information, please visit www.mzgroup.us.

About Safe-T®

Safe-T Group Ltd. (Nasdaq, TASE: SFET) is a provider of Zero Trust Access solutions which mitigate attacks on enterprises’ business-critical services and sensitive data, while ensuring uninterrupted business continuity.

Safe-T’s cloud and on-premises solutions ensure that an organization’s access use cases, whether into the organization or from the organization out to the internet, are secured according to the “validate first, access later” philosophy of Zero Trust. This means that no one is trusted by default from inside or outside the network, and verification is required from everyone trying to gain access to resources on the network or in the cloud.

Safe-T’s wide range of access solutions reduce organizations’ attack surface and improve their ability to defend against modern cyberthreats. As an additional layer of security, our integrated business-grade global proxy solution cloud service enables smooth and efficient traffic flow, interruption-free service, unlimited concurrent connections, instant scaling and simple integration with our services.

With Safe-T’s patented reverse-access technology and proprietary routing technology, organizations of all size and type can secure their data, services and networks against internal and external threats.

At Safe-T, we empower enterprises to safely migrate to the cloud and enable digital transformation.

Safe-T’s solutions on AWS Marketplace is available here

For more information about Safe-T, visit www.safe-t.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. For example, Safe-T is using forward-looking statements in this press release when it discusses the advantages and growth of its solutions, trends in the SDP market, the potential of the relationship with MZ, expectations to continue ramping revenues and margins and develop additional capabilities for customers, future communications with the investment community, and building long-term value for shareholders. Because such statements deal with future events and are based on Safe-T’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of Safe-T could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading “Risk Factors” in Safe-T’s annual report on Form 20-F filed with the Securities and Exchange Commission (“SEC”) on March 31, 2020, and in any subsequent filings with the SEC. Except as otherwise required by law, Safe-T undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.

SAFE-T CONTACT

Maya Meiri
M: +972(0)52 3259171
[email protected]

Investor Relations Contact
Gary Guyton
MZ Group – MZ North America
469-778-7844
[email protected]
www.mzgroup.us

December 3, 2020 6:48 am

Lands’ End Announces Third Quarter Fiscal 2020 Results

Strong Global eCommerce revenue and profit

growth

Global eCommerce grew revenue 19.6% compared to

the

same period last year

Net Income of $7.2 million,

doubling

Net Income of $3.6 million in the same period last year

Adjusted EBITDA increases 52.3% to $28.6 million compared to

the

same period last year

DODGEVILLE, Wis., Dec. 03, 2020 (GLOBE NEWSWIRE) — Lands’ End, Inc. (NASDAQ: LE) today announced financial results for the third quarter ended October 30, 2020.

Fiscal
Third
Quarter Fi
nancial
Highlights:

For the third quarter, net revenue increased 5.9% to $360.0 million, compared to $340.0 million in the third quarter last year.
- Global eCommerce net revenue increased 19.6% for the third quarter, driven by US eCommerce increasing 13.9% and International eCommerce growing 50.7% as compared to the prior period.
- Outfitters net revenue declined 25.6% as Outfitters continues to be negatively impacted by the COVID-19 pandemic.
Gross margin increased approximately 10 basis points to 45.4% as compared to 45.3% in the prior period. Gross margin benefited from improved promotional strategies and continued use of analytics, offset by increased shipping costs and surcharges as well as sales mix from third-party business.
Selling and administrative expenses decreased $0.5 million to $134.9 million or 37.5% of net revenue, compared to $135.4 million or 39.8% of net revenue, in the third quarter of last year. The approximately 230 basis point decrease was driven by strong control of operating expenses and structural costs.
Net income was $7.2 million or $0.22 per diluted share, as compared to net income of $3.6 million or $0.11 per diluted share in the third quarter of fiscal 2019.
Adjusted EBITDA increased 52.3% to $28.6 million in the third quarter of fiscal 2020 compared to $18.8 million in the third quarter of fiscal 2019.

Jerome Griffith, Chief Executive Officer and President, stated, “We were very pleased with our third quarter performance. Our teams executed at an exceptional level to achieve strong results despite the challenges created by COVID-19. The investments we put toward leveraging data analytics to inform our strategies around product, eCommerce and marketing continued to pay dividends in driving growth in new customers and strong retention rates. We have also made great strides in driving improved profitability. To that end, in addition to once again generating double-digit growth in our global eCommerce business, we delivered 52% Adjusted EBITDA growth in the third quarter. This performance underscores the momentum behind the Lands’ End brand and the progress we are making in delivering long-term profitable growth.”

Fiscal Third Quarter Business Highlights:

Successfully launched Lands’ End product on Kohls.com and in 150 Kohl’s stores on September 30, 2020. Based on strong early results, the Company plans to expand the Lands’ End assortment and increase the number of points of distribution to 300 Kohl’s stores in 2021.
Completed the refinancing of the Company’s term loan on September 9, 2020, with the closing of a $275.0 million Term Loan Facility and an increase in its asset-based senior secured credit facility to a maximum of $275.0 million in borrowings.

Balance Sheet and Cash Flow Highlights

Cash and cash equivalents were $56.1 million as of October 30, 2020, compared to $15.9 million as of November 1, 2019.

Net cash used in operations was $26.1 million for the 39 weeks ended October 30, 2020, compared to $125.0 million for the 39 weeks ended November 1, 2019.

Inventories, net, was $499.8 million as of October 30, 2020, and $499.9 million as of November 1, 2019.

As of October 30, 2020 the Company had $155.0 million of borrowings and $104.7 million of availability under its asset-based senior secured credit facility. Additionally, as of October 30, 2020, the Company had $275.0 million of Term Loan Facility debt.

Outlook

Jim Gooch, Chief Operating Officer and Chief Financial Officer, stated, “We are pleased to have refinanced our term loan during the third quarter, in a very difficult debt market. We believe the strong momentum in our business, along with our enhanced financial flexibility, positions us optimally to continue to execute our long-term growth strategies, as we continue to navigate the continued challenges of the COVID-19 pandemic. While we are encouraged by the continued resilience and performance of our global eCommerce business, the fourth quarter has gotten off to a slow start in the US, due to the impact of unseasonably warm weather on our heavy outerwear category.”

For the fourth quarter of fiscal 2020 the Company now expects:

Net revenue to be between $500.0 million and $520.0 million.
Net income to be between $13.5 million and $17.5 million, and diluted earnings per share to be between $0.41 and $0.53.
Adjusted EBITDA in the range of $38.0 million to $43.0 million.

Conference Call

The Company will host a conference call on Thursday, December 3, 2020, at 8:30 a.m. ET to review its third quarter financial results and related matters. The call may be accessed through the Investor Relations section of the Company’s website at http://investors.landsend.com or by dialing (866) 753-5836.

About Lands’ End, Inc.

Lands’ End, Inc. (NASDAQ:LE) is a leading uni-channel retailer of casual clothing, accessories, footwear and home products. We offer products online at www.landsend.com, on third party online marketplaces and through retail locations. We are a classic American lifestyle brand with a passion for quality, legendary service and real value, and seek to deliver timeless style for women, men, kids and the home.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding the Company’s assessment of the momentum behind the Lands’ End brand and of the progress it is making toward delivering long-term profitable growth; the Company’s assessment of its ability to execute its long-term growth strategies and the expected benefits of those strategies; plans to expand the assortment of Lands’ End products available in Kohl’s and the number of Kohl’s stores carrying Lands’ End product; and the Company’s outlook and expectations as to net revenue, net income, earnings per share and Adjusted EBITDA for the fourth quarter of fiscal 2020. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: the impact of COVID-19 on operations, customer demand and the Company’s supply chain, as well as its consolidated results of operation, financial position and cash flows; the Company may be unsuccessful in implementing its strategic initiatives, or its initiatives may not have their desired impact on its business; the Company’s ability to offer merchandise and services that customers want to purchase; changes in customer preference from the Company’s branded merchandise; the Company’s results may be materially impacted if tariffs on imports to the United States increase and it is unable to offset the increased costs from current or future tariffs through pricing negotiations with its vendor base, moving production out of countries impacted by the tariffs, passing through a portion of the cost increases to the customer, or other savings opportunities; customers’ use of the Company’s digital platform, including customer acceptance of its efforts to enhance its eCommerce websites, including the Outfitters website; customer response to the Company’s marketing efforts across all types of media; the Company’s maintenance of a robust customer list; the Company’s retail store strategy may be unsuccessful; the Company’s relationship with Kohl’s may not develop as planned or have its desired impact; the Company’s dependence on information technology and a failure of information technology systems, including with respect to its eCommerce operations, or an inability to upgrade or adapt its systems; fluctuations and increases in costs of raw materials; impairment of the Company’s relationships with its vendors; the Company’s failure to maintain the security of customer, employee or company information; the Company’s failure to compete effectively in the apparel industry; legal, regulatory, economic and political risks associated with international trade and those markets in which the Company conducts business and sources its merchandise; the Company’s failure to protect or preserve the image of its brands and its intellectual property rights; increases in postage, paper and printing costs; failure by third parties who provide the Company with services in connection with certain aspects of its business to perform their obligations; the Company’s failure to timely and effectively obtain shipments of products from its vendors and deliver merchandise to its customers; reliance on promotions and markdowns to encourage customer purchases; the Company’s failure to efficiently manage inventory levels; unseasonal or severe weather conditions; the adverse effect on the Company’s reputation if its independent vendors do not use ethical business practices or comply with applicable laws and regulations; assessments for additional state taxes; incurrence of charges due to impairment of goodwill, other intangible assets and long-lived assets; the impact on the Company’s business of adverse worldwide economic and market conditions, including economic factors that negatively impact consumer spending on discretionary items; potential indemnification liabilities to Sears Holdings pursuant to the separation and distribution agreement in connection with the Company’s separation from Sears Holdings; the ability of the Company’s principal shareholders to exert substantial influence over the Company; potential liabilities under fraudulent conveyance and transfer laws and legal capital requirements; and other risks, uncertainties and factors discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2020, and subsequent Quarterly Reports on Form 10-Q, as well as in the Company’s Current Report on Form 8-K dated June 2, 2020. The Company intends the forward-looking statements to speak only as of the time made and does not undertake to update or revise them as more information becomes available, except as required by law.

CONTACTS

Lands’ End, Inc.
James Gooch
Chief Operating Officer and Chief Financial Officer
(608) 935-9341

Investor Relations:
ICR, Inc.
Jean Fontana
(646) 277-1214
[email protected]

-Financial Tables Follow-

LANDS’ END, INC.

Condensed
Consolidated Balance Sheets

(Unaudited)

(in thousands, except per share data)	October 30, 2020			November 1, 2019			January 31, 2020 *
ASSETS
Current assets
Cash and cash equivalents	$	56,137		$	15,859		$	77,148
Restricted cash		2,135			1,830			2,149
Accounts receivable, net		34,238			38,125			50,953
Inventories, net		499,759			499,855			375,670
Prepaid expenses and other current assets		52,731			47,538			39,458
Total current assets		645,000			603,207			545,378
Property and equipment, net		149,342			155,051			157,665
Operating lease right-of-use asset		36,699			31,380			38,665
Goodwill		106,700			110,000			110,000
Intangible asset, net		257,000			257,000			257,000
Other assets		5,413			5,204			4,921
TOTAL ASSETS	$	1,200,154		$	1,161,842		$	1,113,629
LIABILITIES AND STOCKHOLDERS ’ EQUITY
Current liabilities
Current borrowings on ABL Facility	$	—		$	80,000		$	—
Short-term portion of long-term debt		13,750			5,150			5,150
Accounts payable		174,061			174,312			158,436
Lease liability – current		5,359			6,344			5,864
Other current liabilities		147,903			103,396			114,116
Total current liabilities		341,073			369,202			283,566
Long-term borrowings on ABL Facility		155,000			—			—
Long-term debt, net		248,700			379,606			378,657
Lease liability – long-term		39,169			30,971			39,841
Deferred tax liabilities		65,800			56,109			57,651
Other liabilities		5,487			5,469			5,532
TOTAL LIABILITIES		855,229			841,357			765,247
Commitments and contingencies
STOCKHOLDERS ’ EQUITY
Common stock, par value $0.01 authorized: 480,000 shares; issued and outstanding: 32,608, 32,373 and 32,382, respectively		326			324			324
Additional paid-in capital		366,959			358,648			360,656
(Accumulated deficit) Retained earnings		(8,701	)		(25,126	)		390
Accumulated other comprehensive loss		(13,659	)		(13,361	)		(12,988	)
TOTAL STOCKHOLDERS’ EQUITY		344,925			320,485			348,382
TOTAL LIABILITIES AND STOCKHOLDERS ’ EQUITY	$	1,200,154		$	1,161,842		$	1,113,629

^*Derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2020.

LANDS’ END, INC.

Condensed
Consolidated Statements of Operations

(Unaudited)

	13 Weeks Ended						39 Weeks Ended
(in thousands, except per share data)	October 30, 2020			November 1, 2019			October 30, 2020			November 1, 2019
Net revenue	$	359,982		$	340,023		$	889,073		$	900,723
Cost of sales (excluding depreciation and amortization)		196,527			185,848			496,041			497,589
Gross profit		163,455			154,175			393,032			403,134

Selling and administrative		134,890			135,417			352,164			374,521
Depreciation and amortization		9,627			8,076			27,791			23,101
Other operating expense (income), net		255			(225	)		7,913			(99	)
Operating income		18,683			10,907			5,164			5,611
Interest expense		9,005			6,121			19,232			20,190
Other (income) expense, net		(250	)		(166	)		910			(1,640	)
Income (loss) before income taxes		9,928			4,952			(14,978	)		(12,939	)
Income tax expense (benefit)		2,752			1,346			(5,887	)		(6,713	)
NET INCOME (LOSS)	$	7,176		$	3,606		$	(9,091	)	$	(6,226	)
NET INCOME (LOSS) PER COMMON SHARE
Basic:	$	0.22		$	0.11		$	(0.28	)	$	(0.19	)
Diluted:	$	0.22		$	0.11		$	(0.28	)	$	(0.19	)

Basic weighted average common shares outstanding		32,605			32,371			32,551			32,333
Diluted weighted average common shares outstanding		33,248			32,398			32,551			32,333

Use and Definition of Non-GAAP Financial Measures

Adjusted EBITDA – In addition to our Net income, for purposes of evaluating operating performance, we use an Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”), which is adjusted to exclude certain significant items as set forth below. Our management uses Adjusted EBITDA to evaluate the operating performance of our business, as well as for executive compensation metrics, for comparable periods. Adjusted EBITDA should not be used by investors or other third parties as the sole basis for formulating investment decisions as it excludes several important cash and non-cash recurring items.

The methods used by the Company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies.

While Adjusted EBITDA is a non-GAAP measurement, management believes that it is an important indicator of operating performance, and useful to investors, because:

EBITDA excludes the effects of financings, investing activities and tax structure by eliminating the effects of interest, depreciation and income tax.
Other significant items, while periodically affecting our results, may vary significantly from period to period and have a disproportionate effect in a given period, which affects comparability of results. We have adjusted our results for these items to make our statements more comparable and therefore more useful to investors as the items are not representative of our ongoing operations.
- For the 13 weeks ended October 30, 2020 and the 39 weeks ended October 30, 2020 we excluded the impacts of corporate restructuring which includes the severance for the reduction in corporate staff in the second quarter of fiscal 2020.
- For the 39 weeks ended October 30, 2020 we excluded the impacts of impairment including goodwill impairment and long-lived asset impairment.
- For the 13 weeks and 39 weeks ended October 30, 2020 and November 1, 2019 we excluded the impacts of gain or loss on property and equipment as management considers the gains or losses on asset valuation to result from investing decisions rather than ongoing operations.

Reconciliation
of
Non-GAAP Financial Information to GAAP

(Unaudited)

	13 Weeks Ended
	October 30, 2020						November 1, 2019
(in thousands)	$ ’ s			% of Net revenue			$ ’ s			% of Net revenue
Net income	$	7,176			2.0	%	$	3,606			1.1	%
Income tax expense		2,752			0.8	%		1,346			0.4	%
Other income, net		(250	)		(0.1	)%		(166	)		(0.0	)%
Interest expense		9,005			2.5	%		6,121			1.8	%
Operating income		18,683			5.2	%		10,907			3.2	%
Depreciation and amortization		9,627			2.7	%		8,076			2.4	%
Other operating expense (income)		132			0.0	%		(206	)		(0.1	)%
Corporate restructuring		16			0.0	%		—			—
Loss (gain) on property and equipment		107			0.0	%		(19	)		(0.0	)%
Adjusted EBITDA	$	28,565			7.9	%	$	18,758			5.5	%

	39 Weeks Ended
	October 30, 2020						November 1, 2019
(in thousands)	$ ’ s			% of Net revenue			$ ’ s			% of Net revenue
Net loss	$	(9,091	)		(1.0	)%	$	(6,226	)		(0.7	)%
Income tax benefit		(5,887	)		(0.7	)%		(6,713	)		(0.7	)%
Other expense (income), net		910			0.1	%		(1,640	)		(0.2	)%
Interest expense		19,232			2.2	%		20,190			2.2	%
Operating income		5,164			0.6	%		5,611			0.6	%
Depreciation and amortization		27,791			3.1	%		23,101			2.6	%
Other operating expense		132			0.0	%		—			—
Corporate restructuring		2,941			0.3	%		—			—
Goodwill and long-lived asset impairment		3,844			0.4	%		—			—
Loss (gain) on property and equipment		994			0.1	%		(99	)		(0.0	)%
Adjusted EBITDA	$	40,866			4.6	%	$	28,613			3.2	%

Fiscal 2020 Guidance	13 Weeks Ended
(in millions)	January 29, 2021
Net income	$	13.5	–	$	17.5
Depreciation, interest, other income, taxes and other adjustments		24.5	–		25.5
Adjusted EBITDA	$	38.0	–	$	43.0

LANDS’ END, INC.

Condensed
Consolidated Statem
ents of Cash Flows

(Unaudited)

	39 Weeks Ended
(in thousands)	October 30, 2020			November 1, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(9,091	)	$	(6,226	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		27,791			23,101
Amortization of debt issuance costs		2,291			1,293
Loss (gain) on property and equipment		994			(99	)
Stock-based compensation		6,743			6,632
Deferred income taxes		7,979			(1,899	)
Goodwill impairment		3,300			—
Other		326			1,837
Change in operating assets and liabilities:
Inventories		(123,811	)		(178,016	)
Accounts payable		20,104			50,173
Other operating assets		1,138			(14,755	)
Other operating liabilities		36,172			(6,992	)
Net cash used in operating activities		(26,064	)		(124,951	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment		(25,638	)		(28,487	)
Net cash used in investing activities		(25,638	)		(28,487	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowing under ABL Facility		230,000			95,000
Payments of borrowings under ABL Facility		(75,000	)		(15,000	)
Proceeds from issuance of Term Loan Credit Agreement		266,750			—
Payments of Term Loan Facility		(385,388	)		(103,863	)
Payment of debt issuance costs		(5,080	)		—
Payments of employee withholding taxes on share-based compensation		(438	)		(713	)
Net cash provided by (used in) financing activities		30,844			(24,576	)
Effects of exchange rate changes on cash, cash equivalents and restricted cash		(167	)		350
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		(21,025	)		(177,664	)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD		79,297			195,353
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$	58,272		$	17,689
SUPPLEMENTAL CASH FLOW DATA
Unpaid liability to acquire property and equipment	$	2,620		$	5,494
Income taxes paid, net of refunds	$	257		$	3,225
Interest paid	$	11,334		$	18,455
Lease liabilities arising from obtaining Operating lease right-of-use assets	$	3,525		$	12,083

December 3, 2020 6:34 am

3M to Advance Operating Model, Improve Cost Structure, and Accelerate Innovation

Enhanced operations and marketing capabilities position company to better capitalize on global trends

PR Newswire

ST. PAUL, Minn., Dec. 3, 2020 /PRNewswire/ — As the global economy shifts in the wake of the COVID-19 pandemic, 3M (NYSE: MMM) is advancing its operating model, streamlining its business, and focusing on global trends where the company will apply science to life in new ways to drive sustainable growth.

“The COVID-19 pandemic has advanced the pace of change and disrupted end markets around the world, increasing the need for companies to adapt faster,” said Mike Roman, 3M chairman and chief executive officer. “At the same time, we are seeing significant opportunities from our new operating model which we launched at the start of the year. As a result, we are taking further actions to streamline our operations, positioning us to deliver greater growth and productivity as global markets emerge from the pandemic.”

In January 2020, 3M launched a new global operating model – a significant step in the company’s transformation – which has evolved the way 3M works, enabling the company to be more customer focused and responsive, helping 3M to lead during the pandemic.

With the actions 3M is announcing today, the company will further enhance its operations and marketing capabilities. In operations, 3M will eliminate redundancies and better use analytics to drive additional efficiencies. In marketing, 3M will build on its success in utilizing data insights, accelerating global marketing programs, and activating digital engagements with customers.

3M will be better positioned to take advantage of global market trends in e-commerce, personal safety, health care, automotive electrification, and home improvement. At the same time, the company plans to de-prioritize investments in end markets where growth is slower.

Restructuring and Expected Annual Savings

3M is planning to initiate restructuring actions that will impact all business groups, functions and geographies. As a result, the company expects to take a total pre-tax charge of $250 to $300 million, with $120 to $150 million in the fourth quarter of 2020. The remainder of the pre-tax charge is currently anticipated to be incurred primarily in the second half of 2021. 3M anticipates annual pre-tax savings of $200 to $250 million from these actions, with $75 to $100 million of pre-tax savings in 2021.

The restructuring is expected to impact approximately 2,900 positions globally.

Upcoming Event

3M will participate in the Credit Suisse 8th Annual Virtual Industrials Conference today, Dec. 3, 2020. Mike Roman, chairman and chief executive officer, and Monish Patolawala, senior vice president and chief financial officer, will speak at 8:10 a.m. EST.

Forward-Looking Statements
This news release contains forward-looking information about 3M’s financial results and estimates and business prospects that involve substantial risks and uncertainties. You can identify these statements by the use of words such as “anticipate,” “estimate,” “expect,” “aim,” “project,” “intend,” “plan,” “believe,” “will,” “should,” “could,” “target,” “forecast” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance or business plans or prospects. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economic, political, regulatory, international trade and other external conditions and other factors beyond the Company’s control, including natural and other disasters or climate change affecting the operations of the Company or its customers and suppliers; (2) risks related to public health crises such as the global pandemic associated with the coronavirus (COVID-19); (3) foreign currency exchange rates and fluctuations in those rates; (4) liabilities related to certain fluorochemicals, including lawsuits concerning various PFAS-related products and chemistries, and claims and governmental regulatory proceedings and inquiries related to PFAS in a variety of jurisdictions; (5) legal and regulatory proceedings and legal compliance risks involving the Company and/or third parties, including significant developments that could occur in the legal and regulatory proceedings described in the Company’s Annual Report on Form 10-K for the year ended Dec. 31, 2019, and any subsequent quarterly reports on Form 10-Q (the “Reports”); (6) competitive conditions and customer preferences; (7) the timing and market acceptance of new product offerings; (8) materials vulnerability and the availability and cost of purchased components, compounds, raw materials and energy (including oil and natural gas and their derivatives) due to shortages, increased demand or supply interruptions, manufacturing site disruptions (including those caused by natural and other disasters and other events); (9) problems or delays with the phased implementation of a global enterprise resource planning (ERP) system, or security breaches and other disruptions to the Company’s information technology infrastructure; (10) the impact of acquisitions, strategic alliances, divestitures and other unusual events resulting from portfolio management actions and other evolving business strategies, and possible organizational restructuring; (11) operational execution, including scenarios where the Company generates fewer productivity improvements than estimated; (12) financial market risks that may affect the Company’s funding obligations under defined benefit pension and postretirement plans; and (13) the Company’s credit ratings and its cost of capital. Changes in such assumptions or factors could produce significantly different results. A further description of these factors is located in the Reports under “Cautionary Note Concerning Factors That May Affect Future Results” and “Risk Factors” in Part I, Items 1 and 1A (Annual Report) and in Part I, Item 2 and Part II, Item 1A (Quarterly Reports), as updated by applicable Current Reports on Form 8-K. The information contained in this news release is as of the date indicated. The Company assumes no obligation to update any forward-looking statements contained in this news release as a result of new information or future events or developments.

About 3M
At 3M, we apply science in collaborative ways to improve lives daily as our employees connect with customers all around the world. Learn more about 3M’s creative solutions to global challenges at www.3M.com or on Twitter @3M or @3MNews.

Contacts

Investor Contacts:

Bruce Jermeland, 651-733-1807
Or
Tony Riter, 651-733-1141

Media Contact:

Stephen Sanchez, 651-737-5967

View original content:http://www.prnewswire.com/news-releases/3m-to-advance-operating-model-improve-cost-structure-and-accelerate-innovation-301185373.html

SOURCE 3M

December 3, 2020 6:34 am

Trimble and SiriusXM Establish Alliance to Deliver Trimble RTX GNSS Corrections via Satellite Radio for Autonomous Vehicles

Together Industry Leaders Expect to Advance Autonomy Adoption by Offering Cost-Effective Precise Positioning Solution for a Majority of New Cars Sold in the U.S. and Canada

PR Newswire

SUNNYVALE, Calif., Dec. 3, 2020 /PRNewswire/ — Trimble (NASDAQ: TRMB) and Sirius XM Connected Vehicles Services Inc., a subsidiary of Sirius XM Holdings Inc. (NASDAQ: SIRI), announced today that Trimble RTX^® GNSS corrections are being transmitted through the SiriusXM^® satellite radio network. As a result, new cars sold in the contiguous U.S. and Canada equipped with SiriusXM’s Gen8 satellite chipset will be able to receive RTX GNSS corrections enabling high-accuracy positioning—a key component of autonomous on-road applications.

With the simple addition of the Trimble RTX Auto™ software library, any new vehicle that receives SiriusXM broadcasts with a Gen8 satellite chipset can leverage a positioning solution ideal for Advanced Driving Assistance Systems (ADAS), Autonomous Driving (AD) and Vehicle-to-Everything (V2X) applications.

Since the SiriusXM hardware is already installed in most new vehicles, automotive OEMs can avoid the cost of additional hardware to receive GNSS positioning corrections.

“We are excited to add Trimble RTX Corrections to our suite of Connected Vehicle services,” said John Jasper, senior vice president for SiriusXM Connected Vehicle Services. “By delivering this service over our satellite broadcast network, automakers can access relevant location correction data throughout the contiguous U.S. and portions of Canada to facilitate ADAS, AD and V2X applications without the need to access a cellular network.”

Trimble RTX is a trusted precise-positioning technology of choice for car manufacturers and their suppliers, and was the first solution adopted for production use in passenger vehicles. RTX technology is a critical component of General Motors’ Super Cruise™ system—the first hands-free driving assistance system for the highway. To date, Super Cruise and Trimble RTX have enabled over 5 million miles of hands-free driving on America’s roadways.

Ideal for automotive applications, the RTX Auto software library is Automotive Safety Integrity Level B (ASIL-B) certified and developed using the Automotive SPICE process maturity framework (Software Process Improvement and Capability Determination – ISO 15504). The RTX network operation is certified according to ISO 20000 standards, providing further peace of mind for any industry deploying safety-critical applications. No other precise positioning solution offers the same level of performance, reliability, versatility and coverage worldwide.

Trimble RTX technology provides real-time, multi-constellation correction of GNSS observations to provide significantly more precise position estimates. Standard GPS signals can drift up to 25 feet, which could cause incorrect lane identification. When used in conjunction with high-definition maps, cameras, radar and inertial sensors, Trimble RTX provides lane-level positioning performance for semi-autonomous and autonomous vehicles.

“The alliance with SiriusXM provides an expansive distribution pipeline for Trimble RTX into new passenger vehicles,” said Patricia Boothe, senior vice president of Trimble’s Autonomy Sector. “OEMs now have an easy, cost-efficient alternative to bring high-precision GNSS into their vehicles. Together, Trimble and SiriusXM are helping to accelerate the adoption of real-time positioning in connected vehicles, ultimately supporting safety-critical V2X applications.”

About SiriusXM

SiriusXM Connected Vehicles Services Inc., a subsidiary of Sirius XM Holdings Inc. (NASDAQ: SIRI), delivers a broadly adopted connected vehicle platform in North America. SiriusXM Connected Vehicle Services can be found in many makes and models from various manufacturers, and give customers access to a suite of safety, security, and convenience services including automatic crash notification, enhanced roadside assistance, remote door unlock, remote start, stolen vehicle recovery assistance, turn-by-turn navigation, integration with smart home devices and more. For more, visit: www.siriusxmcvs.com.

About Trimble Autonomy

Trimble Autonomy is developing solutions and services that enable the next generation of autonomous functionality to improve productivity and safety. Trimble has been at the forefront of positioning innovation for over 35 years, providing autonomous solutions for off-road machines such as tractors and haulers. Positioning is the foundation for helping transform how the world leverages autonomy through a robust suite of solutions, which include GPS/GNSS, truthing, inertial, dead-reckoning, machine control, sensor fusion and more. For more, visit: https://positioningservices.trimble.com/industries/automotive.

About Trimble

Trimble is transforming the way the world works by delivering products and services that connect the physical and digital worlds. Core technologies in positioning, modeling, connectivity and data analytics enable customers to improve productivity, quality, safety and sustainability. From purpose-built products to enterprise lifecycle solutions, Trimble software, hardware and services are transforming industries such as agriculture, automotive, construction, geospatial and transportation. For more information about Trimble (NASDAQ: TRMB), visit: www.trimble.com.

GTRMB

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SOURCE Trimble

December 3, 2020 6:34 am

Shift4 Payments Announces Upsizing and Pricing of Offering of $600.0 Million of Convertible Notes Offering

Shift4 Payments Announces Upsizing and Pricing of Offering of $600.0 Million of Convertible Notes Offering

ALLENTOWN, Pa.–(BUSINESS WIRE)–
Shift4 Payments, Inc. (“Shift4”) (NYSE: FOUR), a leading independent provider of integrated payment processing and technology solutions, today announced that it has upsized and priced an offering of $600.0 million aggregate principal amount of 0.00% convertible senior notes due 2025 (the “Notes”). The offering size was increased from the previously announced offering size of $400.0 million aggregate principal amount of Notes. The issuance and sale of the Notes are scheduled to settle on December 7, 2020, subject to customary closing conditions. Shift4 also granted the initial purchasers of the Notes an option to purchase, for settlement within a period of 13 days from, and including, the date the Notes are first issued, up to an additional $90.0 million aggregate principal amount of the Notes. The Notes are being offered in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act.

The Notes will be senior, unsecured obligations of Shift4 and will not bear regular interest, and the principal amount of the Notes will not accrete. The Notes will mature on December 15, 2025, unless earlier repurchased, redeemed or converted. Before September 15, 2025, noteholders will have the right to convert their Notes only upon the occurrence of certain events. From and after September 15, 2025, noteholders may convert their Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Shift4 will settle conversions by paying or delivering, as applicable, cash, shares of its Class A common stock (“Class A common stock”) or a combination of cash and shares of its Class A common stock, at Shift4’s election. The initial conversion rate is 12.4262 shares of Class A common stock per $1,000 principal amount of Notes, which represents an initial conversion price of approximately $80.48 per share of Class A common stock. The initial conversion price represents a premium of approximately 45.0% over the public offering price in the concurrent public offering of Class A common stock described below. The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events.

The Notes will be redeemable, in whole or in part, for cash at Shift4’s option at any time, and from time to time, on or after December 20, 2023 and on or before the 40th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of Shift4’s Class A common stock exceeds 130% of the conversion price for a specified period of time. The redemption price will be equal to the principal amount of the Notes to be redeemed, plus accrued and unpaid special interest, if any, to, but excluding, the redemption date.

If certain events that constitute a “fundamental change” occur, then, subject to a limited exception, noteholders may require Shift4 to repurchase their Notes at a cash repurchase price equal to the principal amount of the Notes to be repurchased, plus accrued and unpaid special interest, if any, to, but excluding, the applicable repurchase date.

Shift4 intends to use the net proceeds of the offering for general corporate purposes.

Shift4 also announced today the pricing of a concurrent underwritten public offering of approximately 8,000,000 shares of Shift4’s Class A common stock by certain selling stockholders at a public offering price of $55.50 per share. Certain selling stockholders also granted the underwriters of that offering a 30-day option to purchase up to an additional 1,200,000 shares of Shift4’s Class A common stock. Nothing contained herein shall constitute an offer to sell or the solicitation of an offer to buy the Class A common stock. The offering of Notes is not contingent upon the concurrent public offering of Class A common stock, and the concurrent public offering of Class A common stock is not contingent upon the offering of Notes.

The offer and sale of the Notes and any shares of Class A common stock issuable upon conversion of the Notes have not been, and will not, be registered under the Securities Act or any other securities laws, and the Notes and any such shares cannot be offered or sold except to persons reasonably believed to be qualified institutional buyers in reliance on the exemption from registration provided by Rule 144A under the Securities Act.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, the Notes or any shares of Class A common stock issuable upon conversion of the Notes, nor shall there be any sale of the Notes or any such shares, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offers of the Notes will be made only by means of a private offering memorandum.

There can be no assurances that the offering of the Notes will be completed as described herein or at all.

About Shift4 Payments:

Shift4 Payments (NYSE: FOUR) is a leading provider of integrated payment processing and technology solutions, delivering a complete omnichannel ecosystem that extends beyond payments to include a wide range of commerce-enabling services. The company’s technologies help power over 350 software providers in numerous industries, including hospitality, retail, F&B, ecommerce, lodging, gaming, and many more. With over 7,000 sales partners, the company securely processed more than $200 billion in payments volume for over 200,000 businesses in 2019. For more information, visit shift4.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201203005465/en/

Investor Relations:

Sloan Bohlen

610.596.4475

[email protected]

Media:

James McCusker

[email protected]

Nate Hirshberg

Vice President, Marketing

Shift4 Payments

[email protected]

KEYWORDS: Pennsylvania United States North America

INDUSTRY KEYWORDS: Professional Services Online Retail Retail Technology Software Finance Banking

MEDIA:

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December 3, 2020 6:34 am

Shift4 Payments Announces Pricing of Secondary Offering of Class A Common Stock

Shift4 Payments Announces Pricing of Secondary Offering of Class A Common Stock

ALLENTOWN, Pa.–(BUSINESS WIRE)–
Shift4 Payments, Inc. (“Shift4”) (NYSE: FOUR), a leading independent provider of integrated payment processing and technology solutions, today announced the pricing of the underwritten public offering of 8,000,000 shares of Shift4’s Class A common stock by certain selling stockholders (the “Secondary Offering”), at a price to the public of $55.50 per share. The underwriters will also have a 30-day option to purchase up to an additional 1,200,000 shares of Shift4’s Class A common stock from the selling stockholders. The Secondary Offering is expected to close on December 7, 2020, subject to customary closing conditions.

Shift4 is not selling any shares of Class A common stock in the Secondary Offering, will not receive any proceeds from the sale of shares by the selling stockholders and will not bear any offering expenses.

Goldman Sachs & Co. LLC, Credit Suisse and Citigroup are serving as lead joint book-running managers. BofA Securities, Morgan Stanley, RBC Capital Markets and Evercore ISI are acting as joint book-running managers. Raymond James, Truist Securities, Wolfe Capital Markets and Advisory, Citizens Capital Markets, Scotiabank, TD Securities and Telsey Advisory Group are acting as co-managers.

A registration statement relating to the Secondary Offering was declared effective by the Securities and Exchange Commission on December 2, 2020. The Secondary Offering is being made only by means of a prospectus. Copies of the final prospectus relating to the Secondary Offering, when available, may be obtained from Goldman Sachs & Co. LLC, Attn: Prospectus Department, 200 West Street, New York NY 10282 (Tel: 1-866-471-2526, email to [email protected], from Credit Suisse Securities (USA) LLC, Attn: Prospectus Department, 6933 Louis Stephens Drive, Morrisville, North Carolina 27560 (Tel: 800-221-1037 or email to [email protected]) or from Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (Tel: 800-831-9146 or email to: [email protected]).

Shift4 also announced today the pricing of a concurrent offering of $600.0 million aggregate principal amount of 0.00% convertible senior notes due 2025 (the “Notes”) in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act. The offering size was increased from the previously announced offering size of $400.0 million aggregate principal amount of Notes. Shift4 also granted the initial purchasers of that offering an option to purchase up to an additional $90.0 million aggregate principal amount of the Notes. Nothing contained herein shall constitute an offer to sell or the solicitation of an offer to buy the Notes. The offering of Notes is not contingent upon the Secondary Offering, and the Secondary Offering is not contingent upon the offering of Notes.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Shift4 Payments:

View source version on businesswire.com: https://www.businesswire.com/news/home/20201203005463/en/

Investor Relations:

Sloan Bohlen

610.596.4475

[email protected]

Media:

James McCusker

[email protected]

Nate Hirshberg

Vice President, Marketing

Shift4 Payments

[email protected]

KEYWORDS: United States North America Pennsylvania

INDUSTRY KEYWORDS: Finance Banking Professional Services Technology Software

MEDIA:

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