Market Newsdesk

November 11, 2020 5:05 pm

Parkland Corporation Announces November 2020 Dividend

CALGARY, Alberta, Nov. 11, 2020 (GLOBE NEWSWIRE) — Parkland Corporation (“Parkland”) (TSX:PKI) announces that a dividend of $0.1012 per share will be paid on December 15, 2020 to shareholders of record on November 20, 2020. The dividend will be an ‘eligible dividend’ for Canadian income tax purposes. The ex-dividend date is November 19, 2020.

E
nhanced Dividend Reinvestment Plan

Parkland’s enhanced Dividend Reinvestment Plan (“Enhanced DRIP”) allows shareholders to reinvest their cash dividends to purchase additional Parkland shares from treasury at a 5% per share discount to the average of the daily volume weighted average trading prices during the Pricing Period. For further details on the Enhanced DRIP and the Pricing Period, please visit www.parkland.ca/en/investors/dividends.

Shareholders who wish to enroll in the Enhanced DRIP must do so prior to the November 19, 2020 ex-dividend date to reinvest this month’s dividend in Parkland shares at a discount.

Use of Funds

The Enhanced DRIP allows Parkland to retain amounts that would otherwise be paid to shareholders as dividends in cash, thereby incrementally raising equity capital which may be used by Parkland to, among other things, fund its capital program, fund acquisitions, build new locations and upgrade existing locations: all of which help contribute to Parkland’s growth and ability to execute on its strategy.

Enrolling

Shareholders who own their shares through a brokerage and who wish to participate in the Enhanced DRIP should ensure they are enrolled by checking their online brokerage portal or by calling their investment advisor.

Shareholders who hold certificates in their own name (registered shareholders) who wish to enroll can find out more from Computershare by calling 1-800-564-6253.

Copies of the Plan and the enrollment form are also available on Parkland’s website at http://www.parkland.ca/en/investors/dividend/.

For investors previously enrolled in the Premium Dividend™ component of Parkland’s Dividend Reinvestment Plan, please note this program ended in April 2016 and without further action you are now likely receiving the regular dividend.

Brokerage entitlement and corporate actions departments are encouraged to ensure that they have properly elected with Clearing and Depository Services Inc. (“CDS”) those shares that should participate in the enhanced Dividend Reinvestment Plan.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward looking statements”). When used in this news release, the words “expect’’, ‘‘will’’, ‘‘could’’, ‘‘would’’, “well positioned,” ‘‘pursue’’ and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, the uses by Parkland of the amount of cash dividends that are reinvested by shareholders in the Enhanced DRIP.

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities laws. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to: failure to achieve the anticipated benefits of acquisitions, general economic, market and business conditions, industry capacity, competitive action by other companies, refining and marketing margins, the ability of suppliers to meet commitments, actions by governmental authorities and other regulators including increases in taxes, changes and developments in environmental and other regulations, and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described under the headings “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” in Parkland’s current Annual Information Form, and under the headings “Forward-Looking Information” and “Risk Factors” in Parkland’s Management’s Discussion and Analysis for the most recently completed financial period, each as filed on SEDAR and available on Parkland’s website at www.parkland.ca.

About Parkland Corporation

Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves.

Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage and acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization.

FOR FURTHER INFORMATION

Investor Inquiries
Brad Monaco
Director, Capital Markets 
587-997-1447
[email protected]

Media Inquiries
Leroy McKinnon
Senior Specialist, Corporate Communications
403-567-2573
[email protected]

November 11, 2020 5:05 pm

LNG Industry Veteran Oscar Spieler Joins Delfin as Executive Chairman

LNG Industry Veteran Oscar Spieler Joins Delfin as Executive Chairman

HOUSTON–(BUSINESS WIRE)–
Today Delfin Midstream (“Delfin”) announced that Oscar Spieler has decided to join as Executive Chairman of the Board. Mr. Spieler has had a renowned executive career in the LNG, shipping, offshore energy, and green energy industries, including as CEO at Golar LNG (NASDAQ: GLNG), Frontline (NYSE: FRO) and Sea Production, and as Chairman of Quantafuel (QFUEL-ME). Mr. Spieler brings relevant expertise, having successfully led the development and execution of the first FLNG Vessel at Golar, delivering FLNG Hilli Episeyo under budget and putting it into commercial operation.

Delfin recently announced the completion of its FEED for a Newbuild FLNG vessel. The FEED results, together with the overall project development activities, enable the Company to execute the project for a total capital cost of around 550 $/tpa⁽¹⁾. The Company is also using its low-cost FLNG infrastructure and technology to develop additional projects in North America.

Commenting on his appointment, Oscar Spieler said: “Delfin has developed the most cost-efficient LNG export project in the continental U.S and combined with a FID threshold of just 2.0 to 2.5 mtpa makes Delfin unique in today’s challenging market. I am excited to join the Delfin team at this pivotal moment, as we take our next steps in bringing the project to FID. With the world transitioning to low-carbon energy over the coming decades, LNG is an undeniable part of the solution. The uniqueness of the Delfin cost structure, business model, technology and asset portfolio means we are capable of providing LNG buyers with low-carbon, low-cost solutions with significantly more commercial flexibility than land-based projects.”

Dudley Poston, CEO of Delfin, added: “We are delighted to welcome Oscar to the team. He brings a wealth of knowledge and expertise across the LNG value chain. Over the last decade Oscar has played key roles in the development of some of the most important innovations in the LNG industry: FLNG, merchant LNG shipping, FSRUs and small-scale LNG. Most importantly, he has demonstrated his success in ensuring the financing, commercialization, operations, execution and viability of each venture. Oscar’s experience and leadership will be invaluable as Delfin moves from the development phase to commercial operations.”

In 2018 Mr. Spieler joined Quantafuel as Chairman of the board, which in 2020 successfully started its first plastic-to-liquids plant and completed a successful IPO and private capital raise. Mr. Spieler has vast board experience both as chairman and/or director of multiple companies within the shipping, drilling and finance sectors, including Offshore Merchant Partners, Energy Drilling Ltd, Jasper Investments, Archer, Avenir LNG, North Atlantic Drilling and Sealift.

Mr. Spieler has a Master’s Degree in Naval Architecture and Engineering from the Norwegian University of Science and Technology. In addition to spending over 15 years in John Frederiksen’s Sea Tankers group of companies, Mr. Spieler spent 15 years at DNV in Norway and four years with Norwegian Tanker Operator Bergesen.

⁽¹⁾ Includes all costs up to start of commercial operations (incl. FLNG Vessel, disconnectable mooring system, pipeline connections, owner’s costs, transit, installation, commissioning, contingencies), excl. finance costs, on a nameplate capacity basis

About Delfin Midstream Inc.

Delfin Midstream Inc. (“Delfin”) is a leading LNG export infrastructure development company utilizing low-cost Floating LNG technology solutions. Delfin is the parent company of the Delfin LNG LLC (“Delfin LNG”) and Avocet LNG LLC. Delfin LNG is a brownfield Deepwater Port requiring minimal additional infrastructure investment to support up to four FLNG Vessels producing up to 13 million tonnes of LNG per annum. Delfin purchased the UTOS pipeline, the largest natural gas pipeline in the Gulf of Mexico, in 2014 and submitted its Deepwater Port license application in 2015. Delfin LNG received a positive Record of Decision from MARAD and approval from the Department of Energy for long-term exports of LNG to countries that do not have a Free Trade Agreement with the United States for up to 13 MTPA. Further information is available at www.delfinmidstream.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201111005893/en/

Dudley Poston, CEO, +1 713 824 1597

Wouter Pastoor, COO, +47 900 56 265

[email protected] or www.delfinmidstream.com

Media:

Dan Gagnier

Gagnier Communications

+1 646-569-5897

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Other Professional Services Other Energy Oil/Gas Natural Resources Human Resources Energy Professional Services Other Natural Resources

MEDIA:

November 11, 2020 5:04 pm

Martinrea International Inc. Reports Record Third Quarter Results and Declares Dividend

TORONTO, Nov. 11, 2020 (GLOBE NEWSWIRE) — Martinrea International Inc. (TSX : MRE), a diversified and global automotive supplier engaged in the design, development and manufacturing of highly engineered, value-added Lightweight Structures and Propulsion Systems, today announced the release of its financial results for the third quarter ended September 30, 2020 and that it has declared a quarterly cash dividend of $0.05 per share.

HIGHLIGHTS

Total sales of $971 million; production sales of $933 million
Record third quarter fully diluted net earnings per share of $0.57
Quarterly adjusted operating income⁽¹⁾ margin of 7.8%, above year-ago levels
Balance sheet ended the quarter strong, with a reduction in net debt during the quarter of over $100 million
Production volumes recovering more quickly than expected following the industry-wide COVID-19 shutdowns earlier this year
Strong fourth quarter anticipated
Dividend of $0.05 per share declared

OVERVIEW

Pat D’Eramo, President and Chief Executive Officer, stated: “Our third quarter performance was a record for the Company, and much improved over the previous quarter, as industry production volumes recovered more quickly than previously expected following the COVID-19 shutdowns. Demand in our key North American market remains strong and vehicle inventories remain low, particularly on truck, SUV and CUV platforms, where we are more heavily weighted. Looking at other markets, demand in China remains strong, while Europe is recovering, albeit at a more gradual pace. Operationally, we continue to perform well, as evidenced by our strong operating income margin during the quarter, which came in at 7.8%, or over 9% excluding our recently-acquired Martinrea Metalsa Group. Our focus on lean and operational excellence paid off during the quarter and we thank the team for their efforts and dedication during these challenging times. We are looking forward to a strong fourth quarter, based on anticipated volumes as we see them today, as OEMs continue to replenish currently low vehicle inventory levels. We expect fourth quarter production sales in the range of $900 million to $1.0 billion, and adjusted net earnings per share ⁽¹⁾ in the range of $0.46 to $0.54, including the recently-acquired assets from Metalsa, which has been a drag on earnings as we drive efficiencies, in particular in our new German facility. The integration of the newly-acquired business is going well and we expect its performance to improve as we execute on the roadmap in front of us. We are also happy to announce new business wins totalling $70 million in annualized sales, including $45 million in Propulsion Systems for FCA and General Motors, $10 million in lightweight structures for electric vehicle platforms with General Motors, and $15 million for a battery box for Volvo’s heavy-duty truck in our Industrial group. We are seeing the highest level of quoting activity in our Industrial Group since my time at Martinrea, and we see opportunities to grow this business. We also expect to see our first product with graphene in production in 2021, a graphene-enhanced brake line for one of our OEM customers. Our customer has tested and approved the product and is working with us to convert current production from standard brake lines to the more durable graphene-enhanced brake lines. We are big proponents of graphene and its potential applications, and we intend to capitalize on this potential through our investment in NanoXplore.”

Fred Di Tosto, Chief Financial Officer, stated: “We experienced a sharp rebound in our financial results during the third quarter, as the Company and our industry recovered following the COVID-19 shutdowns. Volumes were strong during the quarter and operating margins were above year-ago levels, driven by strength in our North American operations, reflective of volume and a positive sales mix, operating cost reductions, lower tooling sales and some benefit from government wage subsidies. Third quarter production sales, excluding the newly-acquired Martinrea Metalsa operations, were approximately flat year-over-year, with adjusted operating income⁽¹⁾ coming in at $75.6 million, up 9.4% year-over-year. We generated strong free cash flow ⁽¹⁾ during the quarter, which resulted in a reduction in net debt of over $100.0 million. Our net debt to adjusted EBITDA⁽¹⁾ ratio ended the quarter at 2.21x, and approximately 1.70x for bank covenant purposes, given the agreement we reached with our banking syndicate to eliminate Q2 adjusted EBITDA⁽¹⁾ from the covenant calculation. We believe we entered the COVID-19 driven downturn with a strong balance sheet which has ultimately allowed us to navigate our way through the COVID crisis with confidence. Our net debt at the end of the third quarter was essentially back to pre-COVID levels and we funded an acquisition during that time. A very good result from all accounts and reflective of the strength of the business. Overall, we are very pleased with our third quarter results. To be able to post year-over-year growth in adjusted operating income ⁽¹⁾, adjusted net earnings per share ⁽¹⁾, and free cash flow ⁽¹⁾ in the middle of a pandemic is an achievement of which we are all proud.”

Rob Wildeboer, Executive Chairman, stated: “From a macro perspective, our industry is recovering from the longest shutdown in its history at a pace few of us would have expected only a few short months ago. North American auto sales have now recovered close to pre-COVID volumes and are now at a sustainable level based on previous cycles. Strong demand, coupled with low inventories, sets the stage for a continued recovery in production in the months and years ahead. We believe some interesting trends are emerging that could support vehicle demand well into the future, including the perception of the vehicle as a safe, self-contained method of transportation, and an increase in demand for living space outside of large metropolitan areas. Overall, we think our future is bright, and not just from an industry recovery perspective. More importantly, we are an innovative company that invests in and develops leading-edge technology, as evidenced by our relationship with NanoXplore and development of new products, including graphene-enhanced brake lines. Our focus on innovation and our operational strength has enabled us to emerge from the COVID-19 crisis as a stronger and more competitive company. It’s in times like these that our focus on culture and our vision of making people’s lives better by being the best we can be in the products we make and the services we provide comes through for us. We want to thank our dedicated employees for their great service, as well as our shareholders, lenders, suppliers, customers and governments for their hard work and support.”

RESULTS OF OPERATIONS

All amounts in this press release are in Canadian dollars, unless otherwise stated; and all tabular amounts are in thousands of Canadian dollars, except earnings per share and number of shares.

Additional information about the Company, including the Company’s Management Discussion and Analysis of Operating Results and Financial Position for the third quarter ended September 30, 2020 (“MD&A”), the Company’s interim condensed consolidated financial statements for the third quarter ended September 30, 2020 (the “interim financial statements”) and the Company’s Annual Information Form for the year ended December 31, 2019, can be found at www.sedar.com.

OVERALL RESULTS

Results of operations may include certain unusual and other items that have been separately disclosed, where appropriate, in order to provide a clear assessment of the underlying Company results. In addition to IFRS measures, management uses non-IFRS measures in the Company’s disclosures that it believes provide the most appropriate basis on which to evaluate the Company’s results.

The following tables set out certain highlights of the Company’s performance for the three and nine months ended September 30, 2020 and 2019. Refer to the Company’s interim financial statements for the three and nine months ended September 30, 2020 for a detailed account of the Company’s performance for the periods presented in the tables below.

		Three months ended September 30, 2020			Three months ended September 30, 2019		$ Change		% Change
Sales	$	971,060		$	974,384		(3,324	)	(0.3	%)
Gross Margin		151,478			143,901		7,577		5.3	%
Operating Income		75,562			73,243		2,319		3.2	%
Net Income for the period		45,636			46,678		(1,042	)	(2.2	%)
Net Earnings per Share – Basic	$	0.57		$	0.57		–		–
Net Earnings per Share – Diluted	$	0.57		$	0.56		0.01		1.8	%
Non-IFRS Measures*
Adjusted Operating Income	$	75,562		$	69,044		6,518		9.4	%
% of Sales		7.8	%		7.1	%
Adjusted EBITDA		134,232			122,401		11,831		9.7	%
% of Sales		13.8	%		12.6	%
Adjusted Net Income		45,636			43,507		2,129		4.9	%
Adjusted Net Earnings per Share – Basic and Diluted	$	0.57		$	0.53		0.04		7.5	%

		Nine months ended September 30, 2020			Nine months ended September 30, 2019		$ Change		% Change
Sales	$	2,304,330		$	2,946,078		(641,748	)	(21.8	%)
Gross Margin		259,256			456,180		(196,924	)	(43.2	%)
Operating Income (Loss)		(38,598	)		214,008		(252,606	)	(118.0	%)
Net Income (Loss) for the period		(72,287	)		130,068		(202,355	)	(155.6	%)
Net Earnings (Loss) per Share – Basic	$	(0.90	)	$	1.57		(2.47	)	(157.3	%)
Net Earnings (Loss) per Share – Diluted	$	(0.90	)	$	1.56		(2.46	)	(157.7	%)
Non-IFRS Measures*
Adjusted Operating Income	$	57,844		$	236,476		(178,632	)	(75.5	%)
% of Sales		2.5	%		8.0	%
Adjusted EBITDA		233,779			394,021		(160,242	)	(40.7	%)
% of Sales		10.1	%		13.4	%
Adjusted Net Income		2,644			153,853		(151,209	)	(98.3	%)
Adjusted Net Earnings per Share – Basic	$	0.03		$	1.86		(1.83	)	(98.4	%)
Adjusted Net Earnings per Share – Diluted	$	0.03		$	1.85		(1.82	)	(98.4	%)

*

Non-IFRS Measures

The Company prepares its financial statements in accordance with International Financial Reporting Standards (“IFRS”). However, the Company considers certain non-IFRS financial measures as useful additional information in measuring the financial performance and condition of the Company. These measures, which the Company believes are widely used by investors, securities analysts and other interested parties in evaluating the Company’s performance, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. Non-IFRS measures include “Adjusted Net Income”, “Adjusted Net Earnings per Share (on a basic and diluted basis)”, “Adjusted Operating Income”, “Adjusted EBITDA”, “Free Cash Flow” and “Net Debt”. Please refer to the Company’s previously filed annual and interim MD&A of operating results and financial position for the fiscal year 2019 for a full reconciliation of IFRS to non-IFRS measures.

The following tables provide a reconciliation of IFRS “Net Income (Loss)” to Non-IFRS “Adjusted Net Income”, “Adjusted Operating Income” and “Adjusted EBITDA”.

		Three months ended September 30, 2020			Three months ended September 30, 2019
Net Income	$	45,636		$	46,678
Unusual and Other Items (after-tax)*		–			(3,171	)
Adjusted Net Income	$	45,636		$	43,507

		Nine months ended September 30, 2020			Nine months ended September 30, 2019
Net Income (Loss)	$	(72,287	)	$	130,068
Unusual and Other Items (after-tax)*		74,931			23,785
Adjusted Net Income	$	2,644		$	153,853
Unusual and other items are explained in the “Adjustments to Net Income” section of this Press Release*

		Three months ended September 30, 2020		Three months ended September 30, 2019
Net Income	$	45,636	$	46,678
Income tax expense		18,636		16,129
Other finance expense – excluding Unusual and Other Items*		1,852		844
Share of loss of an associate		300		818
Finance expense		9,138		9,345
Unusual and Other Items (before-tax)*		–		(4,770	)
Adjusted Operating Income	$	75,562	$	69,044
Depreciation of property, plant and equipment and right-of-use assets		55,237		50,200
Amortization of intangible assets		3,196		4,104
Loss (gain) on disposal of property, plant and equipment		237		(947	)
Adjusted EBITDA	$	134,232	$	122,401

		Nine months ended September 30, 2020			Nine months ended September 30, 2019
Net Income (Loss)	$	(72,287	)	$	130,068
Income tax expense (benefit)		(86	)		52,156
Other finance expense – excluding Unusual and Other Items*		5,008			1,130
Share of loss of an associate		1,881			1,330
Finance expense		26,886			29,085
Unusual and Other Items (before-tax)*		96,442			22,707
Adjusted Operating Income	$	57,844		$	236,476
Depreciation of property, plant and equipment and right-of-use assets		166,044			146,931
Amortization of intangible assets		9,654			11,820
Loss (gain) on disposal of property, plant and equipment		237			(1,206	)
Adjusted EBITDA	$	233,779		$	394,021
Unusual and other items are explained in the “Adjustments to Net Income” section of this Press Release*

SALES

*Three months ended September 30, 2020 to three months ended September 30, 2019 comparison*

		Three months ended September 30, 2020			Three months ended September 30, 2019		$ Change		% Change
North America	$	739,489		$	780,989		(41,500	)	(5.3	%)
Europe		189,366			157,736		31,630		20.1	%
Rest of the World		46,999			37,727		9,272		24.6	%
Eliminations		(4,794	)		(2,068	)	(2,726	)	131.8	%
Total Sales	$	971,060		$	974,384		(3,324	)	(0.3	%)

The Company’s consolidated sales for the third quarter of 2020 decreased by $3.3 million or 0.3% to $971.1 million as compared to $974.4 million for the third quarter of 2019. The total decrease in sales was driven by a year-over-year decrease in North America, partially offset by increases in the Europe and Rest of the World operating segments.

Sales for the third quarter of 2020 in the Company’s North America operating segment decreased by $41.5 million or 5.3% to $739.5 million from $781.0 million for the third quarter of 2019. The operations acquired from Metalsa, results for which were consolidated with those of the Company effective March 2, 2020, contributed $29.7 million of year-over-year sales (including $0.4 million in tooling sales) to the North America operating segment. Excluding the acquired operations, third quarter sales in North America decreased year-over-year by $71.2 million or 9.1%. This decrease was due to a decrease in tooling sales of $100.3 million, which are typically dependent on the timing of tooling construction and final acceptance by the customer; partially offset by higher production volumes on General Motors pick-up truck and large SUV platform, which was negatively impacted by the United Auto Workers strike at General Motors during the third quarter of 2019, the continued production of ventilator stands for General Motors, and the impact of foreign exchange on the translation of U.S.-denominated production sales, which had a positive impact on overall sales for the third quarter of 2020 of approximately $11.8 million as compared to the third quarter of 2019. Overall third quarter OEM light vehicle production in North America was essentially flat year-over-year, despite the COVID-19 global pandemic.

Sales for the third quarter of 2020 in the Company’s Europe operating segment increased by $31.6 million or 20.1% to $189.4 million from $157.7 million for the third quarter of 2019. The operations acquired from Metalsa, results for which were consolidated with those of the Company effective March 2, 2020, contributed $53.5 million of year-over-year sales (including $5.8 million in tooling sales) to the Europe operating segment. Excluding the acquired operations, third quarter sales in Europe decreased year-over-year by $21.9 million or 13.9%. This decrease was due to overall lower industry volumes, primarily as a result of the COVID-19 pandemic; partially offset by an $8.4 million increase in tooling sales, and a $4.9 million positive foreign exchange impact from the translation of Euro-denominated production sales as compared to the third quarter of 2019.

Sales for the third quarter of 2020 in the Company’s Rest of the World operating segment increased by $9.3 million or 24.6% to $47.0 million from $37.7 million for the third quarter of 2019. The operations acquired from Metalsa, results for which were consolidated with those of the Company effective March 2, 2020, contributed $21.7 million of year-over-year sales to the Rest of the World operating segment. Excluding the acquired operations, third quarter sales in the Rest of the World decreased year-over-year by $12.4 million or 32.9%. This decrease was largely driven by lower year-over-year production volumes on the Cadillac CT6 vehicle platform in China, a $4.3 million decrease in tooling sales, and a $1.8 million negative foreign exchange impact from the translation of foreign-denominated production sales as compared to the third quarter of 2019.

Overall tooling sales, inclusive of the operations acquired from Metalsa, decreased by $90.0 million to $37.8 million for the third quarter of 2020 from $127.8 million for the third quarter of 2019.

*Nine months ended September 30, 2020 to nine months ended September 30, 2019 comparison*

		Nine months ended September 30, 2020			Nine months ended September 30, 2019		$ Change		% Change
North America	$	1,745,151		$	2,346,167		(601,016	)	(25.6	%)
Europe		449,251			513,742		(64,491	)	(12.6	%)
Rest of the World		120,665			91,526		29,139		31.8	%
Eliminations		(10,737	)		(5,357	)	(5,380	)	100.4	%
Total Sales	$	2,304,330		$	2,946,078		(641,748	)	(21.8	%)

The Company’s consolidated sales for the nine months ended September 30, 2020 decreased by $641.7 million or 21.8% to $2,304.3 million as compared to $2,946.1 million for the nine months ended September 30, 2019. The total decrease in sales was driven by decreases in the North America and Europe operating segments, partially offset by an increase in sales in the Rest of the World.

Sales for the nine months ended September 30, 2020 in the Company’s North America operating segment decreased by $601.1 million or 25.6% to $1,745.2 million from $2,346.2 million for the nine months ended September 30, 2019. The operations acquired from Metalsa, results for which were consolidated with those of the Company effective March 2, 2020, contributed $47.7 million of year-over-year sales (including $1.7 million in tooling sales) to the North America operating segment. Excluding the acquired operations, sales for the nine months ended September 30, 2020 in North America decreased year-over-year by $648.8 million or 27.7%. This decrease was due to overall lower industry volumes, primarily as a result of the impact of the COVID-19 pandemic, and a decrease in tooling sales of $152.6 million, which are typically dependent on the timing of tooling construction and final acceptance by the customer. These negative factors were partially offset by the impact of foreign exchange on the translation of U.S.-denominated production sales, which had a positive impact on overall sales for the nine months ended September 30, 2020 of approximately $23.0 million as compared to the corresponding period of 2019, and the launch of new programs during or subsequent to the nine months ended September 30, 2019, including the General Motors heavy duty truck, and the production of ventilator stands for General Motors.

Sales for the nine months ended September 30, 2020 in the Company’s Europe operating segment decreased by $64.5 million or 12.6% to $449.3 million from $513.7 million for the nine months ended September 30, 2019. The operations acquired from Metalsa, results for which were consolidated with those of the Company effective March 2, 2020, contributed $98.8 million of year-over-year sales (including $9.7 million in tooling sales) to the Europe operating segment. Excluding the acquired operations, sales for the nine months ended September 30, 2020 in Europe decreased year-over-year by $163.3 million or 31.8%. This decrease can be attributed to overall lower industry volumes, primarily as a result of the impact of the COVID-19 pandemic; lower pre-COVID year-over-year production related to certain light vehicle platforms, in particular with Daimler and Jaguar Land Rover; and a $2.8 million decrease in tooling sales. These negative factors were partially offset by the launch of new programs during or subsequent to the nine months ended September 30, 2019, namely an aluminum transmission for Volkswagen; and a $1.3 million positive foreign exchange impact from the translation of Euro-denominated production sales as compared to the corresponding period of 2019.

Sales for the nine months ended September 30, 2020 in the Company’s Rest of the World operating segment increased by $29.1 million or 31.8% to $120.7 million from $91.5 million for the nine months ended September 30, 2019. The operations acquired from Metalsa, results for which were consolidated with those of the Company effective March 2, 2020, contributed $48.8 million of year-over-year sales to the Rest of the World operating segment. Excluding the acquired operations, sales for the nine months ended September 30, 2020 in the Rest of the World decreased year-over-year by $19.7 million or 21.5%. This decrease was largely driven by COVID-19 related disruption, lower year-over-year production volumes on the Cadillac CT6 vehicle platform in China, a $3.9 million negative foreign exchange impact from the translation of foreign-denominated production sales as compared to the corresponding period of 2019, and a $0.4 million decrease in tooling sales.

Overall tooling sales, inclusive of the operations acquired from Metalsa, decreased by $144.4 million to $129.8 million for the nine months ended September 30, 2020 from $274.2 million for the nine months ended September 30, 2019.

GROSS MARGIN

*Three months ended September 30, 2020 to three months ended September 30, 2019 comparison*

		Three months ended September 30, 2020			Three months ended September 30, 2019		$ Change	% Change
Gross margin	$	151,478		$	143,901		7,577	5.3	%
% of Sales		15.6	%		14.8	%

The gross margin percentage for the third quarter of 2020 of 15.6% increased as a percentage of sales by 0.8% as compared to the gross margin percentage for the third quarter of 2019 of 14.8%. The increase in gross margin as a percentage of sales was generally due to a decrease in tooling sales which typically earn low margins for the Company; a positive sales mix; productivity and efficiency improvements at certain operating facilities; and the receipt of certain COVID-related government wage subsidies. These positive factors were partially offset by a negative impact on overall margin percentage from the operations acquired from Metalsa, results for which were consolidated with those of the Company effective March 2, 2020, and operational inefficiencies and other costs at certain facilities including upfront costs incurred in preparation of upcoming new programs.

*Nine months ended September 30, 2020 to nine months ended September 30, 2019 comparison*

		Nine months ended September 30, 2020			Nine months ended September 30, 2019		$ Change		% Change
Gross margin	$	259,256		$	456,180		(196,924	)	(43.2	%)
% of Sales		11.3	%		15.5	%

The gross margin percentage for the nine months ended September 30, 2020 of 11.3% decreased as a percentage of sales by 4.2% as compared to the gross margin percentage for the nine months ended September 30, 2019 of 15.5%. The decrease in gross margin as a percentage of sales was generally due to overall lower sales volume and corresponding lower utilization of assets, driven primarily by the impact of the COVID-19 pandemic; a negative impact on overall margin percentage from the operations acquired from Metalsa, results for which were consolidated with those of the Company effective March 2, 2020; and operational inefficiencies and other costs at certain facilities including upfront costs incurred in preparation of upcoming new programs. These negative factors were partially offset by productivity and efficiency improvements at certain operating facilities; the receipt of certain COVID-related government wage subsidies; and a decrease in tooling sales, which typically earn low margins for the Company. The sharp sales decline in April and May, as a result of the COVID-19 related shutdowns, coupled with a volatile restart and ramp-up of production in May and June with limited predictability had a significant impact on gross margin during the second quarter of 2020, despite major reductions in costs.

ADJUSTMENTS TO NET INCOME (LOSS)

Adjusted Net Income (Loss) excludes certain unusual and other items, as set out in the following tables and described in the notes thereto. Management uses Adjusted Net Income (Loss) as a measurement of operating performance of the Company and believes that, in conjunction with IFRS measures, it provides useful information about the financial performance and condition of the Company.

TABLE A

*Three months ended September 30, 2020 to three months ended September 30, 2019 comparison*

	Three months ended		Three months ended
	September 30, 2020		September 30, 2019			(a)-(b)
	(a)		(b)			Change

NET INCOME (A)	$	45,636	$	46,678		$	(1,042	)

Add Back – Unusual and Other Items:

Gain on derivative instruments (4)		–		(571	)		571
Net gain in the Company’s operating facility in Brazil (5)		–		(4,199	)		4,199


TOTAL UNUSUAL AND OTHER ITEMS BEFORE TAX		–	$	(4,770	)	$	4,770

Tax impact of above items		–		1,599			(1,599	)


TOTAL UNUSUAL AND OTHER ITEMS – AFTER TAX (B)		–	$	(3,171	)	$	3,171


ADJUSTED NET INCOME (A + B)	$	45,636	$	43,507		$	2,129


Number of Shares Outstanding – Basic (‘000)		80,189		82,593
Adjusted Basic Net Earnings Per Share	$	0.57	$	0.53
Number of Shares Outstanding – Diluted (‘000)		80,200		82,713
Adjusted Diluted Net Earnings Per Share	$	0.57	$	0.53

TABLE B

*Nine months ended September 30, 2020 to nine months ended September 30, 2019 comparison*

	Nine months ended			Nine months ended
	September 30, 2020			September 30, 2019			(a)-(b)
	(a)			(b)			Change

NET INCOME (LOSS) (A)	$	(72,287	)	$	130,068		$	(202,355	)

Add Back – Unusual and Other Items:

Transaction costs associated with the business acquired from Metalsa (recorded as SG&A) (1)		2,489			–			2,489
Impairment of assets (2)		85,783			18,502			67,281
Restructuring costs (3)		8,170			8,165			5
Loss on derivative instruments (4)		–			239			(239	)
Net gain in the Company’s operating facility in Brazil (5)		–			(4,199	)		4,199



TOTAL UNUSUAL AND OTHER ITEMS BEFORE TAX	$	96,442		$	22,707		$	73,735

Tax impact of above items		(21,511	)		1,078			(22,589	)


TOTAL UNUSUAL AND OTHER ITEMS – AFTER TAX (B)	$	74,931		$	23,785		$	51,146

ADJUSTED NET INCOME (A + B)	$	2,644		$	153,853		$	(151,209	)

Number of Shares Outstanding – Basic (‘000)		80,090			82,897
Adjusted Basic Net Earnings Per Share	$	0.03		$	1.86
Number of Shares Outstanding – Diluted (‘000)		80,090			83,054
Adjusted Diluted Net Earnings Per Share	$	0.03		$	1.85

(1) Transaction costs associated with the operations acquired from Metalsa (recorded as SG&A)

On March 2, 2020, the Company completed the acquisition of the structural components for passenger car operations of Metalsa S.A, de C.V. Included in SG&A expense are transaction costs related to the acquisition totaling $nil and $2.5 million for the three and nine months ended September 30, 2020, respectively.

(2) Impairment of assets

The significant reduction in volumes and industry production projections as a result of the COVID-19 global pandemic has negatively impacted the recoverable amount of certain of the Company’s production-related assets and has also changed the expected usage of certain other assets. As a result, during the second quarter of 2020, the Company completed an analysis of its asset base and concluded there existed certain indicators of impairment for specific assets and cash-generating units (CGUs). Accordingly, the Company tested these assets and CGUs for recoverability using projected sales and cash flows modelled from industry production projections. Based on the results of this testing, during the second quarter of 2020, the Company recorded impairment charges on property, plant and equipment, right-of-use assets, intangible assets and inventories across its three operating segments totaling $85.8 million, including specific assets that are no longer expected to be redeployed or transferred to other facilities. The charges related to assets and CGUs across various jurisdictions in the Company’s segments, including the United States, Slovakia, China and Brazil. Of the total impairment charge, $72.2 million was recognized in North America, $1.3 million in Europe, and $12.3 million in the Rest of the World. For the specific assets that are no longer expected to be redeployed or transferred, the impairment charges are based on the estimated salvage value of the assets. For the CGUs, the impairment charges were recorded where the carrying amount of the CGUs exceeded their estimated recoverable amounts.

During the second quarter of 2019, the Company recorded impairment charges on property, plant, equipment, right-of-use assets, intangible assets and inventories totaling $18.5 million related to an operating facility in China included in the Rest of the World operating segment. The impairment charges resulted from lower OEM production volumes on certain light vehicle platforms being serviced by the facility, representing a significant portion of the business, causing the Company to complete an analysis of strategic alternatives. The impairment charges were recorded where the carrying amount of the assets exceeded their estimated recoverable amounts, including consideration for where specific assets can be transferred to other facilities.

(3) Restructuring costs

Additions to the restructuring provision, recognized during the second quarter of 2020, totaled $8.2 million and represent employee-related severance resulting from a reduction in the Company’s workforce globally in response to the COVID-19 global pandemic. Of the total addition to the restructuring provision, $6.6 million relates to North America, $1.0 million to Europe and $0.6 million to the Rest of the World.

Additions to the restructuring provision, recognized during the second quarter of 2019, totaled $8.2 million and represent employee-related severance resulting from the right-sizing of operating facilities in the North America ($1.7 million) and Rest of the World ($6.5 million) operating segments.

(4) Loss (gain)
on derivative instruments

Martinrea held warrants in NanoXplore Inc., a publicly listed graphene company on the TSX Venture Exchange under the ticker symbol GRA. The warrants represented derivative instruments and were fair valued at the end of each reporting period using the Black-Scholes-Merton valuation model, with the change in fair value recorded through profit or loss. Based on the fair value of the outstanding warrants as at September 30, 2019, a gain of $0.6 million was recognized for the three months ended September 30, 2019 and a loss of $0.2 million was recognized for the nine months ended September 30, 2019. All outstanding remaining warrants in NanoXplore expired in March 2020 unexercised.

(5) Net gain in the Company’s operating facility in Brazil

Included in income for the three months ended September 30, 2019 is a non-recurring benefit recognized in the Company’s operating facility in Brazil, included in the Rest of World operating segment. The benefit represents a $6.5 million recovery of previously paid local social security taxes, partially offset by a $2.3 million true-up of the facility’s claims and litigation provision related to certain employee-related matters. The benefit was recorded against selling, general and administrative expense.

NET INCOME (LOSS)


*Three months ended September 30, 2020 to three months ended September 30, 2019 comparison*

		Three months ended September 30, 2020		Three months ended September 30, 2019	$ Change		% Change
Net Income	$	45,636	$	46,678	(1,042	)	(2.2	%)
Adjusted Net Income	$	45,636	$	43,507	2,129		4.9	%
Net Earnings per Share
Basic	$	0.57	$	0.57
Diluted	$	0.57	$	0.56
Adjusted Net Earnings per Share
Basic and Diluted	$	0.57	$	0.53

Net income, before adjustments, for the third quarter of 2020 decreased by $1.0 million to $45.6 million from $46.7 million for the third quarter of 2019. The slight decrease was due largely to the unusual and other items recognized during the third quarter of 2019 as explained in Table A under “Adjustments to Net Income (Loss)”. Excluding these unusual and other items, adjusted net income for the third quarter of 2020 increased by $2.1 million to $45.6 million or $0.57 per share, on a basic and diluted basis, from $43.5 million or $0.53 per share, on a basic and diluted basis, for the third quarter of 2019.

Adjusted Net Income for the third quarter of 2020, as compared to the third quarter of 2019, was positively impacted by the following:

higher gross profit on essentially flat year-over-year sales as previously explained; and
a year-over-year decrease in research and development costs due primarily to a decrease in new product and process research and development activity in light of the COVID-19 pandemic.

These factors were partially offset by the following:

negative third quarter results from the operations acquired from Metalsa, results for which were consolidated with those of the Company effective March 2, 2020;
a year-over-year increase in SG&A expense, excluding adjustments, as previously explained; and
a higher effective tax rate on adjusted income due generally to the mix of earnings stemming from the addition of the assets acquired from Metalsa (29.0% for the third quarter of 2020 compared to 25.0% for the third quarter of 2019).

*Nine months ended September 30, 2020 to nine months ended September 30, 2019 comparison*

		Nine months ended September 30, 2020			Nine months ended September 30, 2019	$ Change		% Change
Net Income (Loss)	$	(72,287	)	$	130,068	(202,355	)	(155.6	%)
Adjusted Net Income	$	2,644		$	153,853	(151,209	)	(98.3	%)
Net Earnings (Loss) per Share
Basic	$	(0.90	)	$	1.57
Diluted	$	(0.90	)	$	1.56
Adjusted Net Earnings per Share
Basic	$	0.03		$	1.86
Diluted	$	0.03		$	1.85

Net Income (Loss), before adjustments, for the nine months ended September 30, 2020 decreased by $202.4 million to a net loss of $72.3 million from net income of $130.1 million for the nine months ended September 30, 2019 due to the lower year-over-year sales volume, due primarily to the impact of the COVID-19 pandemic, and certain unusual and other items incurred during the nine months ended September 30, 2020 and 2019 as explained in Table B under “Adjustments to Net Income (Loss)”. Excluding these unusual and other items, adjusted net income for the nine months ended September 30, 2020 decreased to $2.6 million or $0.03 per share, on a basic and diluted basis, from $153.9 or $1.86, on a basic basis, and $1.85 on a diluted basis, for the nine months ended September 30, 2019.

Adjusted Net Income for the nine months ended September 30, 2020, as compared to the nine months ended September 30, 2019, was negatively impacted by the following:

lower gross profit on lower year-over-year sales volume, as previously explained, due primarily to the impact of the COVID-19 pandemic;
negative year-to-date results from the operations acquired from Metalsa, results for which were consolidated with those of the Company effective March 2, 2020;
a net unrealized foreign exchange loss of $5.2 million for the nine months ended September 30, 2020 compared to a loss of $1.5 million for the nine months ended September 30, 2019; and
a higher effective tax rate on adjusted income due generally to the mix of earnings and tax impacts of the unusual and other items explained in Table B under “Adjustments to Net Income (Loss)” (89.0% for the nine months ended September 30, 2020 compared to 24.9% for the nine months ended September 30, 2019).

These factors were partially offset by the following:

a year-over-year decrease in SG&A expense, as previously discussed;
a year-over-year decrease in research and development costs due primarily to a decrease in new product and process research and development activity in light of the COVID-19 pandemic; and
a year-over-year decrease in finance expense on the Company’s long-term debt primarily as a result of lower borrowing rates.

DIVIDEND

A cash dividend of $0.05 per share has been declared by the Board of Directors payable to shareholders of record on December 31, 2020, on or about January 15, 2021.

ABOUT MARTINREA

Martinrea is a diversified and global automotive supplier engaged in the design, development and manufacturing of highly engineered, value-added Lightweight Structures and Propulsion Systems.

Martinrea operates in 57 locations in Canada, the United States, Mexico, Brazil, Germany, Slovakia, Spain, China, South Africa and Japan. Martinrea’s vision is making lives better by being the best supplier we can be in the products we make and the services we provide. For more information on Martinrea, please visit www.martinrea.com. Follow Martinrea on Twitter and Facebook.

CONFERENCE CALL DETAILS

A conference call to discuss the financial results will be held on Wednesday, November 11, 2020 at 5:30 p.m. (Toronto time) which can be accessed by dialing 416-641-6104 or toll free 800-952-5114 (participant code 4636275#). Please call 10 minutes prior to the start of the conference call.

A webcast of the Q3 slide presentation will be available in listen-only mode at the following link https://bell.media-server.com/mmc/p/c5aq96dh beginning at 5:30 p.m. (Toronto time). Please note that to participate in the question and answer session, the dial in numbers and participant code must be used.

There will also be a rebroadcast of the call available by dialing 905-694-9451 or toll free 800-408-3053 (conference id –4851137#). The rebroadcast will be available until December 5, 2020. The webcast presentation will be available for replay on the Martinrea website.

If you have any teleconferencing questions, please call Ganesh Iyer at 416-749-0314.

FORWARD-LOOKING INFORMATION

Special Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable Canadian securities laws including statements related to the growth or expectations of, improvements in, expansion of and/or guidance or outlook as to future revenue, sales, margin, gross margin, earnings, and earnings per share, adjusted earnings per share, adjusted net earnings per share, operating income margins, operating margins, adjusted operating income margins, volumes, the strength of the fourth quarter 2020 and future growth; the recovery of the automotive industry and various markets, emerging trends that could support vehicle demand; the strength of the Company, including post-COVID-19; anticipated program wins, pursuit of its strategies (including investing in and growing the business, including the industrial business; expected production in 2021 of a product with graphene; the intention to capitalize on the NanoXplore investment); the integration and expected performance of the assets acquired from Metalsa; the payment of dividends as well as other forward-looking statements. The words “continue”, “expect”, “anticipate”, “estimate”, “may”, “will”, “should”, “views”, “intend”, “believe”, “plan”, “outlook” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes are appropriate in the circumstances, such as expected sales and industry production estimates, current foreign exchange rates (FX), timing of product launches and operational improvements during the period and current Board approved budgets. Certain forward-looking financial assumptions are presented as non-IFRS information, and we do not provide reconciliation to IFRS for such assumptions. Many factors could cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors, some of which are discussed in detail in the Company’s most recent Management Discussion and Analysis and Annual Information Form and other public filings which can found at www.sedar.com:

North American and global economic and political conditions and epidemics or pandemics;
the highly cyclical nature of the automotive industry and the industry’s dependence on consumer spending and general economic conditions;
the Company’s dependence on a limited number of significant customers;
financial viability of suppliers;
the Company’s reliance on critical suppliers and on suppliers for components and the risk that suppliers will not be able to supply components on a timely basis or in sufficient quantities;
competition;
the increasing pressure on the Company to absorb costs related to product design and development, engineering, program management, prototypes, validation and tooling;
increased pricing of raw materials and commodities;
outsourcing and insourcing trends;
the risk of increased costs associated with product warranty and recalls together with the associated liability;
product development and technological change;
the Company’s ability to enhance operations and manufacturing techniques;
dependence on key personnel;
limited financial resources/uncertainty of future financing/banking;
risks associated with the integration of acquisitions;
risks associated with private or public investment in technology companies;
the risks associated with joint ventures;
costs associated with rationalization of production facilities;
launch and operational costs;
labour relations matters;
trade restrictions;
changes in governmental regulations or laws including any changes to trade;
litigation and regulatory compliance and investigations;
quote and pricing assumptions;
currency risk;
fluctuations in operating results;
internal controls over financial reporting and disclosure controls and procedures;
environmental regulation and climate change;
the impact of climate, political, social and economic risks, natural disasters and pandemics in the countries in which we operate or sell to, or from which we source production;
a shift away from technologies in which the Company is investing;
competition with low cost countries;
the Company’s ability to shift its manufacturing footprint to take advantage of opportunities in emerging markets;
risks of conducting business in foreign countries, including China, Brazil and other markets;
potential tax exposures;
a change in the Company’s mix of earnings between jurisdictions with lower tax rates and those with higher tax rates, as well as the Company’s ability to fully benefit from tax losses;
under-funding of pension plans;
the cost of post-employment benefits;
impairment charges;
cybersecurity threats;
the potential volatility of the Company’s share price; and
dividends.

These factors should be considered carefully, and readers should not place undue reliance on the Company’s forward-looking statements. The Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

The common shares of Martinrea trade on The Toronto Stock Exchange under the symbol “MRE”.

For further information, please contact:

Fred Di Tosto
Chief Financial Officer
Martinrea International Inc.
3210 Langstaff Road
Vaughan, Ontario L4K 5B2

Tel: 416-749-0314
Fax: 289-982-3001

___________________________________

¹ The Company prepares its financial statements in accordance with International Financial Reporting Standards (“IFRS”). However, the Company considers certain non-IFRS financial measures as useful additional information in measuring the financial performance and condition of the Company. These measures, which the Company believes are widely used by investors, securities analysts and other interested parties in evaluating the Company’s performance, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. Non-IFRS measures include “Adjusted Net Income”, “Adjusted Net Earnings per Share (on a basic and diluted basis)”, “Adjusted Operating Income”, “Adjusted EBITDA”, “Free Cash Flow” and “Net Debt”. A reconciliation of certain non-IFRS financial measures to measures determined in accordance with IFRS are contained in the Company’s Management Discussion and Analysis for the third quarter ended September 30, 2020.

Martinrea International Inc.
Interim Condensed Consolidated Balance Sheets
(in thousands of Canadian dollars) (unaudited)


	Note		September 30, 2020		December 31, 2019
ASSETS
Cash and cash equivalents		$	214,049	$	118,973
Trade and other receivables	3		672,870		560,976
Inventories	4		509,517		383,682
Prepaid expenses and deposits			21,844		25,846
Income taxes recoverable			31,163		16,783
TOTAL CURRENT ASSETS			1,449,443		1,106,260
Property, plant and equipment	5		1,591,823		1,541,895
Right-of-use assets	6		204,113		188,378
Deferred tax assets			191,185		165,890
Intangible assets	7		55,006		54,787
Investments	8		40,188		37,085
TOTAL NON-CURRENT ASSETS			2,082,315		1,988,035
TOTAL ASSETS		$	3,531,758	$	3,094,295

LIABILITIES
Trade and other payables	10	$	1,052,494	$	728,787
Provisions	11		5,100		8,584
Income taxes payable			24,329		7,477
Current portion of long-term debt	12		18,107		15,651
Current portion of lease liabilities	13		34,123		28,247
TOTAL CURRENT LIABILITIES			1,134,153		788,746
Long-term debt	12		870,258		765,922
Lease liabilities	13		190,282		174,105
Pension and other post-retirement benefits			74,933		63,789
Deferred tax liabilities			76,633		83,310
TOTAL NON-CURRENT LIABILITIES			1,212,106		1,087,126
TOTAL LIABILITIES			2,346,259		1,875,872

EQUITY
Capital stock	14		662,427		661,422
Contributed surplus			43,256		42,449
Accumulated other comprehensive income			147,813		89,107
Retained earnings			332,003		425,445
TOTAL EQUITY			1,185,499		1,218,423
TOTAL LIABILITIES AND EQUITY		$	3,531,758	$	3,094,295

Subsequent event (note 2)

Contingencies (note 20)

See accompanying notes to the interim condensed consolidated financial statements.

On behalf of the Board:

“Robert Wildeboer”	Director

“Terry Lyons”	Director

Martinrea International Inc.
Interim Condensed Consolidated Statements of Operations
(in thousands of Canadian dollars, except per share amounts) (unaudited)


			Three months ended			Three months ended			Nine months ended			Nine months ended
	Note		September 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019

SALES		$	971,060		$	974,384		$	2,304,330		$	2,946,078

Cost of sales (excluding depreciation of property, plant and equipment and right-of-use assets)			(768,280	)		(783,885	)		(1,890,680	)		(2,353,926	)
Depreciation of property, plant and equipment and right-of-use assets (production)			(51,302	)		(46,598	)		(154,394	)		(135,972	)
Total cost of sales			(819,582	)		(830,483	)		(2,045,074	)		(2,489,898	)
GROSS MARGIN			151,478			143,901			259,256			456,180

Research and development costs			(6,884	)		(10,086	)		(21,571	)		(28,159	)
Selling, general and administrative			(64,537	)		(57,381	)		(169,479	)		(176,024	)
Depreciation of property, plant and equipment and right-of-use assets (non-production)			(3,935	)		(3,602	)		(11,650	)		(10,959	)
Amortization of customer contracts and relationships			(323	)		(536	)		(964	)		(1,569	)
Gain (loss) on disposal of property, plant and equipment			(237	)		947			(237	)		1,206
Impairment of assets	9		–			–			(85,783	)		(18,502	)
Restructuring costs	11		–			–			(8,170	)		(8,165	)
OPERATING INCOME (LOSS)			75,562			73,243			(38,598	)		214,008

Share of loss of an associate	8		(300	)		(818	)		(1,881	)		(1,330	)
Finance expense (including interest on lease liabilities)	17		(9,138	)		(9,345	)		(26,886	)		(29,085	)
Other finance income (expense)	17		(1,852	)		(273	)		(5,008	)		(1,369	)
INCOME (LOSS) BEFORE INCOME TAXES			64,272			62,807			(72,373	)		182,224

Income tax (expense) benefit	15		(18,636	)		(16,129	)		86			(52,156	)
NET INCOME (LOSS) FOR THE PERIOD		$	45,636		$	46,678		$	(72,287	)	$	130,068


Basic earnings (loss) per share	16	$	0.57		$	0.57		$	(0.90	)	$	1.57
Diluted earnings (loss) per share	16	$	0.57		$	0.56		$	(0.90	)	$	1.56

See accompanying notes to the interim condensed consolidated financial statements.

Martinrea International Inc.
Interim Condensed Consolidated Statements of Comprehensive Income
(in thousands of Canadian dollars, except per share amounts) (unaudited)


		Three months ended			Three months ended			Nine months ended			Nine months ended
		September 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019

NET INCOME (LOSS) FOR THE PERIOD	$	45,636		$	46,678		$	(72,287	)	$	130,068
Other comprehensive income (loss), net of tax:
Items that may be reclassified to net income
Foreign currency translation differences for foreign operations		(14,770	)		(1,556	)		59,153			(51,479	)
Cash flow hedging derivative and non-derivative financial instruments:
Unrealized gain (loss) in fair value of financial instruments		1,977			(1,184	)		(1,267	)		2,336
Reclassification of loss to net income		324			240			831			1,033
Items that will not be reclassified to net income
Change in fair value of investments		–			–			–			(776	)
Transfer of unrealized gain on investments to retained earnings on change in accounting method		–			–			–			(4,314	)
Share of other comprehensive income (loss) of an associate		(82	)		(6	)		(11	)		18
Remeasurement of defined benefit plans		2,051			(3,763	)		(8,245	)		(8,187	)
Other comprehensive income (loss), net of tax		(10,500	)		(6,269	)		50,461			(61,369	)
TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD	$	35,136		$	40,409		$	(21,826	)	$	68,699

See accompanying notes to the interim condensed consolidated financial statements.

Martinrea International Inc.

Interim Condensed Consolidated Statements of Changes in Equity
(in thousands of Canadian dollars) (unaudited)


										Accumulated
										other
				Capital			Contributed			comprehensive			Retained			Total
				stock			surplus			income			earnings			equity
BALANCE AT DECEMBER 31, 2018			$	680,157		$	42,016		$	158,395		$	270,981		$	1,151,549
Net income for the period				–			–			–			130,068			130,068
Compensation expense related to stock options				–			892			–			–			892
Dividends ($0.135 per share)				–			–			–			(11,126	)		(11,126	)
Exercise of employee stock options				2,036			(586	)		–			–			1,450
Repurchase of common shares				(8,708	)		–			–			(5,655	)		(14,363	)
Other comprehensive income (loss) net of tax
	Remeasurement of defined benefit plans			–			–			–			(8,187	)		(8,187	)
	Foreign currency translation differences			–			–			(51,479	)		–			(51,479	)
	Change in fair value of investments			–			–			(776	)		–			(776	)
	Transfer of unrealized gain on investments to retained earnings on change in accounting method			–			–			(4,314	)		4,314			–
	Share of other comprehensive income of an associate			–			–			18			–			18
	Cash flow hedging derivative and non-derivative financial instruments:
		Unrealized gain in fair value of financial instruments		–			–			2,336			–			2,336
		Reclassification of loss to net income		–			–			1,033			–			1,033
BALANCE AT SEPTEMBER 30, 2019				673,485			42,322			105,213			380,395			1,201,415
Net income for the period				–			–			–			51,153			51,153
Compensation expense related to stock options				–			303			–			–			303
Dividends ($0.045 per share)				–			–			–			(3,612	)		(3,612	)
Exercise of employee stock options				645			(176	)		–			–			469
Repurchase of common shares				(12,708	)		–			–			(6,897	)		(19,605	)
Other comprehensive income (loss) net of tax
	Remeasurement of defined benefit plans			–			–			–			4,406			4,406
	Foreign currency translation differences			–			–			(17,716	)		–			(17,716	)
	Share of other comprehensive loss of an associate			–			–			(44	)		–			(44	)
	Cash flow hedging derivative and non-derivative financial instruments:
		Unrealized gain in fair value of financial instruments		–			–			1,399			–			1,399
		Reclassification of loss to net income		–			–			255			–			255
BALANCE AT DECEMBER 31, 2019				661,422			42,449			89,107			425,445			1,218,423
Net loss for the period				–			–			–			(72,287	)		(72,287	)
Compensation expense related to stock options				–			1,812			–			–			1,812
Dividends ($0.15 per share)				–			–			–			(12,017	)		(12,017	)
Exercise of employee stock options				3,479			(1,005	)		–			–			2,474
Repurchase of common shares				(2,474	)		–			–			(893	)		(3,367	)
Other comprehensive income (loss) net of tax
	Remeasurement of defined benefit plans			–			–			–			(8,245	)		(8,245	)
	Foreign currency translation differences			–			–			59,153			–			59,153
	Share of other comprehensive loss of an associate			–			–			(11	)		–			(11	)
	Cash flow hedging derivative and non-derivative financial instruments:
		Unrealized loss in fair value of financial instruments		–			–			(1,267	)		–			(1,267	)
		Reclassification of loss to net income		–			–			831			–			831
BALANCE AT SEPTEMBER 30, 2020			$	662,427		$	43,256		$	147,813		$	332,003		$	1,185,499

See accompanying notes to the interim condensed consolidated financial statements.

Martinrea International Inc.

Interim Condensed Consolidated Statements of Cash Flows
(in thousands of Canadian dollars) (unaudited)

		Three months ended			Three months ended			Nine months ended			Nine months ended
		September 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019
CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES:
Net Income (loss) for the period	$	45,636		$	46,678		$	(72,287	)	$	130,068
Adjustments for:
Depreciation of property, plant and equipment and right-of-use assets		55,237			50,200			166,044			146,931
Amortization of customer contracts and relationships		323			536			964			1,569
Amortization of development costs		2,873			3,568			8,690			10,251
Impairment of assets (note 9)		–			–			85,783			18,502
Unrealized loss on foreign exchange forward contracts		2,214			627			2,533			368
Loss (gain) on warrants		–			(571	)		–			239
Finance expense (including interest on lease liabilities)		9,138			9,345			26,886			29,085
Income tax expense (benefit)		18,636			16,129			(86	)		52,156
Loss (gain) on disposal of property, plant and equipment		237			(947	)		237			(1,206	)
Deferred and restricted share units expense (benefit)		(236	)		1,833			226			3,761
Stock options expense		604			264			1,812			892
Share of loss of an associate		300			818			1,881			1,330
Pension and other post-retirement benefits expense		1,036			1,177			3,570			3,386
Contributions made to pension and other post-retirement benefits		(1,992	)		(1,616	)		(5,328	)		(4,249	)
		134,006			128,041			220,925			393,083
Changes in non-cash working capital items:
Trade and other receivables		(143,374	)		1,795			(1,792	)		(53,146	)
Inventories		(62,073	)		28,596			(84,780	)		27,309
Prepaid expenses and deposits		316			(2,137	)		6,730			(5,002	)
Trade, other payables and provisions		268,806			(38,097	)		158,959			7,076
		197,681			118,198			300,042			369,320

Interest paid		(8,895	)		(9,243	)		(27,375	)		(31,412	)
Income taxes paid		(10,262	)		(11,885	)		(24,473	)		(52,172	)
NET CASH PROVIDED BY OPERATING ACTIVITIES	$	178,524		$	97,070		$	248,194		$	285,736

FINANCING ACTIVITIES:
Increase in long-term debt (net of additions to deferred financing fees)		265			7,756			103,561			92,483
Repayment of long-term debt		(4,481	)		(3,811	)		(12,696	)		(27,193	)
Principal payments of lease liabilities		(8,606	)		(6,873	)		(23,885	)		(20,984	)
Dividends paid		(4,004	)		(3,724	)		(11,614	)		(11,265	)
Exercise of employee stock options		1,618			528			2,474			1,450
Repurchase of common shares		–			(11,899	)		(3,367	)		(38,234	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	$	(15,208	)	$	(18,023	)	$	54,473		$	(3,743	)

INVESTING ACTIVITIES:

Purchase of property, plant and equipment (excluding capitalized interest)*		(72,347	)		(57,431	)		(188,233	)		(217,877	)
Business acquisition (excluding cash acquired) (note 2)		–			–			(10,503	)		–
Capitalized development costs		(3,902	)		(2,624	)		(8,557	)		(8,056	)
Investment in NanoXplore Inc. (note 8)		–			(14,478	)		(5,000	)		(29,477	)
Proceeds on disposal of property, plant and equipment		42			4,774			308			5,489
Upfront recovery of development costs incurred		–			767			–			767
NET CASH USED IN INVESTING ACTIVITIES	$	(76,207	)	$	(68,992	)	$	(211,985	)	$	(249,154	)

Effect of foreign exchange rate changes on cash and cash equivalents		1,106			1,214			4,394			(1,592	)

INCREASE IN CASH AND CASH EQUIVALENTS		88,215			11,269			95,076			31,247
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		125,834			90,140			118,973			70,162
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	214,049		$	101,409		$	214,049		$	101,409

*As at September 30, 2020, $40,731 (December 31, 2019 – $49,120) of purchases of property, plant and equipment remain unpaid and are recorded in trade and other payables and provisions.

See accompanying notes to the interim condensed consolidated financial statements.

November 11, 2020 5:03 pm

Medicure Reports Financial Results for Quarter Ended September 30, 2020

PR Newswire

WINNIPEG, MB, Nov. 11, 2020 /PRNewswire/ – Medicure Inc. (“Medicure” or the “Company“) (TSXV:MPH) (OTC:MCUJF), a cardiovascular pharmaceutical company, today reported its results from operations for the quarter ended September 30, 2020.

Quarter Ended September 30, 2020 Highlights:

Recorded total net revenue from the sale of products of $3.5 million during the quarter ended September 30, 2020 compared to $5.5 million for the quarter ended September 30, 2019 and $2.7 million for the quarter ended June 30, 2020 and;
Recorded total net revenue from the sale of AGGRASTAT^® of $3.4 million during the quarter ended September 30, 2020 compared to $5.3 million for the quarter ended September 30, 2019 and $2.6 million for the quarter ended June 30, 2020 and;
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA¹) for the quarter ended September 30, 2020 was $4,000 compared to adjusted EBITDA of negative $319,000 for the quarter ended September 30, 2019 and $263,000 for the quarter ended June 30, 2020 and
Net loss for the quarter ended September 30, 2020 was $1.0 million compared to $599,000 for the quarter ended September 30, 2019 and net income of $19,000 for the quarter ending June 30, 2020;

Financial Results

The decrease in AGGRASTAT^® revenues when compared to the same periods in the previous year, as described above, is the result of decreases in the volume of the AGGRASTAT^® sold in 2020 when compared to 2019, due mainly to less procedures being performed, primarily as a result of the COVID-19 pandemic. In addition, the Company continues to experience pricing pressures from competitors which contributed to the decline in revenues from AGGRASTAT^®.

ZYPITAMAG^® contributed $105,000 of revenue for the three months ended September 30, 2020 compared to $78,000 for the three months ended September 30, 2019 and $371,000 for the nine months ended September 30, 2020 compared to $87,000 for the nine months ended September 30, 2019. With improved insurance coverage, the launch of a direct to patient online pharmacy program, including direct to patient marketing, the Company has seen some growth in interest in ZYPITAMAG^® during 2020. COVID-19 has provided some challenges with access to physicians, however the Company continues to pursue innovative marketing strategies to grow the usage of the product.

Additionally, sodium nitroprusside (SNP), which was first sold commercially during 2020, contributed $5,000 and $53,000, respectively, during the three and nine months ended September 30, 2020. The Company did not earn any revenues from ReDS^TMduring the three months ended September 30, 2020 compared to net revenue of $117,000 for the three months ended September 30, 2019. Revenues from ReDS^TMfor the nine months ended September 30, 2020 totaled $89,000 compared to net revenue of $272,000 for the nine months ended September 30, 2019.

Adjusted EBITDA for the three months ended September 30, 2020 was $4,000 compared to negative $319,000 for the three months ended September 30, 2019. The increase in adjusted EBITDA for the three months ended September 30, 2020 is the result of lower selling expenses, partially offset by lower revenues when compared to the same period in 2019.

Adjusted EBITDA for the nine months ended September 30, 2020 was negative $1.0 million compared to negative $1.9 million for the nine months ended September 30, 2019. The improvement in adjusted EBITDA for the nine months ended September 30, 2020 is the result of lower selling and research and development expenses, partially offset by lower revenues when compared to the same period in 2019.

During the three and nine months ended September 30, 2020, the Company recorded $404,000 and $729,000, respectively, in government assistance resulting from the Canada Emergency Wage Subsidy. The funding has been recorded as a reduction of the related salary expenditures with $311,000 and $559,000, respectively, recorded within selling expenses, $52,000 and $95,000, respectively, recorded within general and administrative expenses and $41,000 and $75,000, respectively, recorded within research and development expenses.

Net loss for the three months ended September 30, 2020 was $1.0 million or $0.10 per share compared to net loss of $599,000 or $0.04 per share for the three months ended September 30, 2019. The change in the net income for the three months ended September 30, 2020 is the result of lower revenues, partially offset by lower selling and research and development expenses and changes in foreign exchange gains and losses when compared to the three months ended September 30, 2019.

Net loss for the nine months ended September 30, 2020 was $2.5 million or $0.23 per share compared to $4.3 million or $0.28 per share for the nine months ended September 30, 2019. The change in the net loss for the nine months ended September 30, 2020 is the result of lower revenues and higher cost of goods sold primarily from increased amortization, partially offset by lower selling and research and development expenses and changes in foreign exchange gains and losses when compared to the nine months ended September 30, 2019.

At September 30, 2020, the Company had unrestricted cash totaling $11.9 million down from the $13.0 million of unrestricted cash held as of December 31, 2019. Cash flows used in operating activities for the nine months ended September 30, 2020 totaled $1.1 million compared to $10.9 million for the nine months ended September 30, 2019.

All amounts referenced herein are in Canadian dollars unless otherwise noted.

Notes

⁽¹⁾The Company defines EBITDA as “earnings before interest, taxes, depreciation, amortization and other income or expense” and Adjusted EBITDA as “EBITDA adjusted for non–cash and non-recurring items”. The terms “EBITDA” and “Adjusted EBITDA”, as it relates to the three and nine months ended September 30, 2020 and 2019 results prepared using IFRS, do not have any standardized meaning according to IFRS. It is therefore unlikely to be comparable to similar measures presented by other companies.

Conference Call Info:

Topic: Medicure’s Q3 2020 Results

Call date: Thursday, November 12, 2020

Time: 7:30 AM Central Time (8:30 AM Eastern Time)

Canada toll: 1 (416) 764-8659

North American toll-free: 1 (888) 664-6392

Passcode: not required

Webcast: This conference call will be webcast live over the internet and can be accessed from the Medicure investor relations page at the following link: http://www.medicure.com/investors

You may request international country-specific access information by e-mailing the Company in advance. Management will accept and answer questions related to the financial results and operations during the question-and-answer period at the end of the conference call. A recording of the call will be available following the event at the Company’s website.

About Medicure Inc.
Medicure is a pharmaceutical company focused on the development and commercialization of therapies for the U.S. cardiovascular market. The present focus of the Company is the marketing and distribution of AGGRASTAT^® (tirofiban hydrochloride) injection and ZYPITAMAG^® (pitavastatin) tablets in the United States, where they are sold through the Company’s U.S. subsidiary, Medicure Pharma Inc. For more information on Medicure please visit www.medicure.com.

To be added to Medicure’s e-mail list, please visit: http://medicure.mediaroom.com/alerts

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Information: Statements contained in this press release that are not statements of historical fact, including, without limitation, statements containing the words “believes”, “may”, “plans”, “will”, “estimates”, “continues”, “anticipates”, “intends”, “expects” and similar expressions, may constitute “forward-looking information” within the meaning of applicable Canadian and U.S. federal securities laws (such forward-looking information and forward-looking statements are hereinafter collectively referred to as “forward-looking statements”). Forward-looking statements, include estimates, analysis and opinions of management of the Company made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors which the Company believes to be relevant and reasonable in the circumstances. Inherent in forward-looking statements are known and unknown risks, uncertainties and other factors beyond the Company’s ability to predict or control that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements, and as such, readers are cautioned not to place undue reliance on forward-looking statements. Such risk factors include, among others, the Company’s future product revenues, expected future growth in revenues, stage of development, additional capital requirements, risks associated with the completion and timing of clinical trials and obtaining regulatory approval to market the Company’s products, the ability to protect its intellectual property, dependence upon collaborative partners, changes in government regulation or regulatory approval processes, and rapid technological change in the industry. Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about: general business and economic conditions; the impact of changes in Canadian-US dollar and other foreign exchange rates on the Company’s revenues, costs and results; the timing of the receipt of regulatory and governmental approvals for the Company’s research and development projects; the availability of financing for the Company’s commercial operations and/or research and development projects, or the availability of financing on reasonable terms; results of current and future clinical trials; the uncertainties associated with the acceptance and demand for new products and market competition. The foregoing list of important factors and assumptions is not exhaustive. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of factors, other than as may be required by applicable legislation. Additional discussion regarding the risks and uncertainties relating to the Company and its business can be found in the Company’s other filings with the applicable Canadian securities regulatory authorities or the US Securities and Exchange Commission, and in the “Risk Factors” section of its Form 20F for the year ended December 31, 2019.

AGGRASTAT® (tirofiban hydrochloride) is a registered trademark of Medicure International Inc.

Condensed Consolidated Interim Statements of Financial Position (expressed in thousands of Canadian dollars, except per share amounts) (unaudited)
	September 30, 2020		December 31, 2019
Assets
Current assets:
Cash and cash equivalents	$	11,871	$	12,965
Accounts receivable	6,206		10,216
Inventories	6,202		6,328
Prepaid expenses	1,233		1,855
Total current assets	25,512		31,364
Non–current assets:
Property, plant and equipment	1,058		1,282
Intangible assets	8,048		9,599
Other assets	27		39
Total non–current assets	9,133		10,920
Total assets	$	34,645	$	42,284
Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities	$	5,462	$	9,384
Current portion of royalty obligation	716		872
Current portion of acquisition payable	667		649
Income taxes payable	474		517
Current portion of lease obligation	263		240
Total current liabilities	7,582		11,662
Non–current liabilities
Royalty obligation	725		1,176
Acquisition payable	1,158		1,655
Lease obligation	684		849
Total non–current liabilities	2,567		3,680
Total liabilities	10,149		15,342
Equity:
Share capital	84,232		85,364
Warrants	1,949		1,949
Contributed surplus	8,267		8,028
Accumulated other comprehensive income	(5,790)		(5,751)
Deficit	(64,162)		(62,648)
Total Equity	24,496		26,942
Total liabilities and equity	$	34,645	$	42,284

Condensed Consolidated Interim Statements of Net Loss and Comprehensive Loss (expressed in thousands of Canadian dollars, except per share amounts) (unaudited)
	Three months ended September 30, 2020		Three months ended September 30, 2019		Nine months ended September 30, 2020		Nine months ended September 30, 2019

Revenue, net	$	3,549	$	5,519	$	9,235	$	16,700
Cost of goods sold	1,363		1,496		4,381		3,887
Gross profit	2,186		4,023		4,854		12,813

Expenses
Selling	923		3,349		3,963		10,796
General and administrative	1,264		1,044		2,834		2,748
Research and development	737		976		1,693		3,078
	2,924		5,369		8,490		16,622


Finance (income) costs:
Finance (income) expense, net	99		(116)		(208)		(488)
Foreign exchange (gain) loss, net	210		(601)		(936)		1,093
	309		(717)		(1,144)		605
Net loss before income taxes	$	(1,047)	$	(629)	$	(2,492)	$	(4,414)
Income tax recovery
Current	–		(30)		–		(102)
Net loss	$	(1,047)	$	(599)	$	(2,492)	$	(4,312)
Other comprehensive (loss) income:
Item that may be reclassified to profit or loss
Exchange differences on translation of foreign subsidiaries	(272)		195		(39)		(1,293)

Item that will not be reclassified to profit or loss:
Revaluation of investment in Sensible Medical at FVOCI	–		(212)		–		(456)
Other comprehensive loss, net of tax	(272)		(17)		(39)		(1,749)
Comprehensive loss	$	(1,319)	$	(616)	$	(2,531)	$	(6,061)

Loss per share
Basic	$	(0.10)	$	(0.04)	$	(0.23)	$	(0.28)
Diluted	$	(0.10)	$	(0.04)	$	(0.23)	$	(0.28)

Condensed Consolidated Interim Statements of Cash Flows (expressed in thousands of Canadian dollars, except per share amounts) (unaudited)
For the nine months ended September 30	2020		2019
Cash (used in) provided by:
Operating activities:
Net loss for the period	$	(2,492)	$	(4,312)
Adjustments for:
Current income tax recovery	–		(102)
Amortization of property, plant and equipment	224		382
Amortization of intangible assets	1,838		667
Share–based compensation	239		280
Write-down of inventories	311		578
Finance income, net	(208)		(488)
Unrealized foreign exchange (gain) loss	(476)		7
Change in the following:
Accounts receivable	4,022		(655)
Inventories	(185)		(4,610)
Prepaid expenses	622		750
Accounts payable and accrued liabilities	(4,589)		(3,350)
Interest received, net	26		1,609
Income taxes paid	(57)		(477)
Royalties paid	(326)		(1,133)
Cash flows used in operating activities	(1,051)		(10,854)
Investing activities:
Investment in Sensible Medical	–		(6,337)
Redemption of short-term investments	–		47,747
Acquisition of property, plant and equipment	–		(186)
Acquisition of intangible assets	–		(13,660)
Cash flows from investing activities	–		27,564
Financing activities:
Purchase of common shares under normal course issuer bid	(154)		(4,145)
Exercise of stock options	–		20
Cash flows used in financing activities	(154)		(4,125)
Foreign exchange gain (loss) on cash held in foreign currency	111		(1,023)
(Decrease) increase in cash and cash equivalents	(1,094)		11,562
Cash and cash equivalents, beginning of period	12,965		24,139
Cash and cash equivalents, end of period	$	11,871	$	35,701

View original content:http://www.prnewswire.com/news-releases/medicure-reports-financial-results-for-quarter-ended-september-30-2020-301171347.html

SOURCE Medicure Inc.

November 11, 2020 5:03 pm

Harmony Biosciences Appoints Mark Graf And Eric Motley To Its Board Of Directors

PR Newswire

PLYMOUTH MEETING, Pa. and CHICAGO, Nov. 11, 2020 /PRNewswire/ — Harmony Biosciences Holdings, Inc. (“Harmony”) (Nasdaq: HRMY), a pharmaceutical company dedicated to developing and commercializing innovative therapies for patients living with rare neurological disorders who have unmet medical needs, today announced the appointment of Mark Graf and Eric Motley to the Company’s Board of Directors. Mark Graf is an executive with deep financial expertise as well as an experienced board member with a strong background in corporate governance. Eric Motley is an expert in human capital development who has advised previous government, not-for-profit and private sector organizations as an organizational development executive, in addition to his governance experience on corporate and philanthropic boards.

“The wealth of financial, management and governance expertise Mark and Eric bring adds to the depth and breadth of Harmony’s board,” said Jeff Aronin, Harmony Founder and Chairman, and Paragon Biosciences Chairman and CEO. “Their insights will be invaluable to help oversee the strategic growth of Harmony as a public company. We are honored to have them join our Board.”

Before retiring in 2019, Mark Graf spent over eight years as the Chief Financial Officer of Discover Financial Services and was a core member of the firm’s Executive Committee. In addition to all aspects of financial management, he was responsible for managing the company’s $110 billion balance sheet, corporate development and investor relations. He was named the #1 Chief Financial Officer in the consumer financial services sector by the readers of Institutional Investor magazine every year from 2014 through 2019.

Prior to joining Discover, Mark spent five years in the private equity realm. Most recently, he was an Investment Advisor at Aquiline Capital Partners, a private equity firm specializing in investments in financial services and financial technology enterprises. Prior to Aquiline, he briefly served as a Partner at Barrett Ellman Stoddard Capital Partners and he served as Chief Financial Officer of Fifth Third Bancorp from 2004 to 2006 and was its Corporate Treasurer from 2001 to 2004. He also served in various roles at AmSouth Bancorporation from 1994 to 2001.

Mark brings a strong background in corporate governance and qualifies as an audit committee financial expert. Mark holds a Bachelor of Science in Economics from the University of Pennsylvania’s Wharton School.

Eric Motley is a senior management, talent, and organizational development executive with 20 years of experience assisting government, not-for-profit, and private sector organizations with building high-performing teams. Currently, Eric is an Executive Vice President and the Corporate Secretary at the Aspen Institute, a global, non-partisan public policy organization, based in Washington, DC. He previously served as Director of the Henry Crown Fellowship Program, recognized by many as one of the most prestigious leadership development programs in the United States.

Eric served at the White House for over four years, eventually as a Special Assistant to President George W. Bush, working in the Office of Presidential Personnel, where he managed the appointment process for over 1,200 presidentially appointed advisory board and commission positions.

Eric also has strong governance experience through his work with corporate and philanthropic boards. He earned his undergraduate degree from Samford University, and received his master and doctorate degrees at the University of St. Andrews in Scotland.

About Harmony Biosciences
Harmony Biosciences is a commercial stage pharmaceutical company headquartered in Plymouth Meeting, PA and Chicago, IL. The company was established by Paragon Biosciences, LLC, and is focused on providing novel treatment options for people living with rare, neurological disorders who have unmet medical needs. For more information on Harmony Biosciences, please visit the company’s website: www.harmonybiosciences.com.

Harmony Biosciences Media Contact:

Nancy Leone

215-891-6046
[email protected]

Harmony Biosciences Investor Contact:

Lisa Caperelli

484-539-9736
[email protected]

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SOURCE Harmony Biosciences

November 11, 2020 5:03 pm

KORE Mining Drills 31.3 Meters of 3.2 g/t Gold Including 14.3 Meters of 6.4 g/t Gold in Large 215 Meter Step-Out at FG Gold Project

PR Newswire

Investor Webinar Thursday November 12 at 8:30AM EST

VANCOUVER, BC, Nov. 11, 2020 /PRNewswire/ – KORE Mining Ltd. (TSXV: KORE) (OTCQX: KOREF) (“KORE” or the “Company“) announces that drill hole FG-20-377 intercepted 31.3 meters of 3.2 g/t gold, including 14.3 meters of 6.4 g/t gold, starting at 369 meters downhole in the Lower Zone of the FG Gold Project (“Project” or “FG Gold“) in the Cariboo Region of British Columbia. This news release reports assays from drill hole FG-20-377, part of the 15-hole, 5,746 meter summer drill program at FG Gold with assays from 14 additional holes pending.

Highlights

Extends Lower Zone discovery 215 meters down-dip with:

31.3 meters of 3.2 g/t gold at 369 meters downhole including:

14.3 meters of 6.4 g/t gold at 386 meters downhole including
1.0 meters of 61.2 g/t gold at 387 meters downhole
5.8 meters of 4.2 g/t gold at 394 meters downhole

Opens underground potential for FG Gold with 3.6 kilometers of mineralized strike
Assays pending for 14 additional holes over 1,780 meters of lateral strike length

10 of 14 holes intersect the newly discovered Lower Zone
7 of 14 holes intersect quartz veins containing visible gold

Remains underexplored along a 20-kilometer trend, providing many opportunities for resource expansion and new discoveries on-strike and downdip

KORE CEO Scott Trebilcock comments, “The large downdip step-out announced today in FG Gold’s Lower Zone, 31.3 meters of 3.2 g/t gold including 14.3 meters of 6.4 g/t gold, demonstrates FG Gold’s underground potential. The step-out extends the Lower Zone discovery to 300 meters downdip from the historic drilling. With 3.6 kilometers of shallow mineralized strike, all open at depth, this underground discovery could have a profound impact of the size and grade of the deposit. KORE has ten more holes intersecting this newly discovered Lower Zone with assays pending in the weeks ahead.”

Investor Webinar

KORE is hosting an investor webinar to discuss the results on Thursday, November 12, 2020 at 8:30AM Eastern Time (5:30AM Pacific Time). Click HERE to register for the webinar.

The cross-section in Figure 1 show the 215 meters step-out from the June 10, 2020 Lower Zone discovery intercept of 3.9 g/t over 10 meters at 237 meters, bringing the total downdip extent of the Lower Zone to 300 meters. Assays are pending for 14 holes in which 10 intersected the newly discovered Lower Zone, as shown in the long section in Figure 2. The other four holes in the program were drilled below historic drilling along strike from the main zone, bringing the strike length tested by Kore to date since the beginning of 2020 to ~1,800 meters. All hole locations are shown in Figure 3 in plan map. Drilling continues with 2,000 additional meters planned at FG Gold and Gold Creek through mid-December.

The district scale of the FG Gold project is shown in Figure 4. The 20-kilometer district trend traces the mineralized stratigraphy around the regional syncline. Shallow historic drilling averaged only 93 meters deep, leaving the mineralization open at depth and along almost the entire trend. Figure 5 is a regional cross-section that shows the host rock potential at depth and connection to a potential porphyritic intrusion.

Exploration Program Details

Fifteen large diameter (HQ) oriented core drill holes for a total of 5,746 meters were completed from June to October 2020 as described in the news release disseminated October 22^nd, 2020. The drill program was designed to step-out up to 200 meters downdip and continue nearly 2 kilometer along strike. The program is targeting the continuation of known gold-mineralized [orogenic] quartz veins further down-dip and along strike within prospective and un-tested regions of the targeted [phyllite] host rock.

Assays from hole FG-20-377 are reported in this release with all other hole assays pending. A plan map of the drill collars and traces is included in Figure 3 including the location of the cross section, Figure 1, and a long section, Figure 2.

The full table of results are included below. Detailed core logs and photos are available on KORE’s website.

Due to coarse visible gold, metallic screening assays provide a much more representative sample versus conventional fire assays. Historical drilling and assays had limited and sporadic metallic screen analyses which may have underestimated historical gold grades. See below for more details on metallic screens.

Detailed Discussion of Results

Structural analysis and re-interpretation of historical drilling carried out prior to initiation of 2020 drilling by KORE highlighted significant potential for expanding high grade gold zones below the extents of historic drilling. 2020 drilling was designed to test the hypothesis that high grade gold zones correlating to plunge lines within both limb and hinge zones, and are extendable both at depth and along strike. Gold-bearing quartz vein swarms appear to be correlated with high-deformation areas and hinge/limb areas of locally folded strata. The orientation [azimuth] of the drilling was intended to delineate potential continuous ‘mineral-shoots’ within the mineralized zones.

A continuation of the shallowly drilled upper zone is intersected in hole FG-20-377 with 0.71g/t gold from 130.36 to 143.17 meters. This intersection is ~150 meters down-dip from the nearest intersection. The Lower Zone, discovered in hole FG-20-369, appears to be a corridor of quartz-vein hosted gold mineralization below and sub-parallel to the upper zone. While it does appear to extend to surface, at this stage, grade appears to increase with depth. Summer-Fall program drill holes FG-20-376 to FG-20-386 are drilled across four complete cross sections over a strike of ~650 meters designed to cross both upper and lower zones to allow for correlation both down-dip and along strike of both the upper and lower zones. Holes FG-20-387 to FG-20-390 test for lateral and down-dip mineralization in areas below sparse historic drilling. KORE drilling in 2020 tests over 1780 meters of strike length below the limits of historic drilling.

To date, the results from the 2020 drilling program are very encouraging to KORE. Early results indicate that the Company is finding further, high grade mineralized zones well outside of historic drilling, providing greater confidence in the structural interpretation and geologic model of the FG gold deposit.

Detailed Drill Hole Assays Tables for KORE Holes on Figure 1

Hole FG-20-369 (previously reported)

	From (meters)	To (meters)	Width* (meters)	Gold (g/t)	Zone
Intercept	29.0	240.0	211.0	0.9	Upper and Lower
including	22.0	54.0	32.0	3.0	Upper
including	29.0	51.5	22.5	4.0
including	29.0	30.0	1.0	42.5
including	102.5	118.0	15.5	0.7	Upper
including	192.5	213.5	21.0	0.9	Lower
And	237.0	247.0	10.0	3.9	Lower
and including	239.0	240.0	1.0	33.9

Hole FG-20-371 (previously reported)

From
(meters)

(meters)

Width*
(meters)

Gold (g/t)

Zone

Intercept

91.0

116.0

25.0

0.6

Upper

Hole FG-20-377

	From (meters)	To (meters)	Width (meters)	Gold (g/t)	Zone
Intercept*	130.36	143.17	12.81	0.71	Upper
Intercept**	369	400.35	31.35	3.22	Lower
Including	386	400.35	14.35	6.44	Lower
Including	387	388	1.0	61.2	Lower
Including	394	399.75	5.75	4.16	Lower

* KORE has not been able to determine true width yet due to complexity of the vein structures within the mineralized zones. KORE’s current drill program is designed to better understand the geometry and how the mineralized zones are related. The orientation of individual quartz veins within the mineralized zones are quite variable. Reported widths are drill indicated core length and not true width, for the reasons above. Average grades are calculated with un-capped gold assays, as insufficient drilling has been completed to determine capping levels for higher grade gold intercepts

** Drilling data on the Lower Zone is currently limited and the true thickness and orientation of the zone is not firmly known. However, based on current data, it is estimated that FG-20-377 intercept represents ~65%-75% of the true thickness of the zone

Hole FG-20-376

Assays are pending on hole FG-20-376 however, zones of increased vein density occur where predicted. It is anticipated that these zones correlate to the nearby mineralized zones from both holes FG-20-369 and FG-20-377. Visible gold is observed at 238.75 meters in one of these vein corridors.

Hole location data is included at the end of this release.

Details of Metallic Screen Assaying

Metallic screen assays are often used in exploration when coarse or visible gold is present in the core as is the case at the FG Gold Project. Traditionally, fire assays are undertaken on 30-50 grams of pulverised sample. The metallic screen fire assay uses a larger sample (1 kilogram in KORE’s case), with screening (to -106 micron) to separate coarse gold particles from fine material. After screening, two samples of the fine fraction are analysed using the traditional fire assay method. The fine fraction is expected to be reasonably homogenous. The entire coarse fraction is assayed to determine the contribution of the coarse gold. This method helps reduce the erratic assay results often seen in the higher-grade zones found in “nuggety” gold deposits such as the FG Gold Project. All assays are performed at accredited independent commercial assay labs.

Regional Geology

The FG Gold property straddles the boundary between the Omineca and Intermontane tectonics belts of the Canadian Cordillera. The eastward emplacement of the Intermontane Belt onto the Omineca Belt along the Eureka Thrust Fault caused widespread regional metamorphism and structural deformation of both Belts. The regional scale, northwest trending, shallowly plunging, Eureka Syncline is the dominant resulting structure in the project area. Rocks in the core of the Eureka Syncline are comprised of basalt, augite porphyry flows, tuffs and volcanic breccias metamorphosed to a low grade; they are structurally emplaced onto metavolcanic and sedimentary rocks of the Quesnel Terrane. The Quesnel Terrane is recognized for its prevalence of copper, gold and molybdenum mines and showings such as those at Highland Valley, Boss Mountain, QR and Mount Polley.

Property Geology

The FG Gold property is centrally located over the Eureka Syncline, strategically encompassing two limbs and the hinge zone of a gold-bearing meta-sedimentary rock unit of the Quesnel Terrane. The gold-bearing rock, a ‘knotted’ phyllite, is the host rock for gold mineralization over the 3 kilometers strike length of the Resource Area (see Figure 4). Surface mapping and geophysical inversion of airborne electromagnetic (EM) data suggests the knotted phyllite has a strike length of over 20 kilometers with potentially thickened regions occurring in the Eureka Syncline hinge zone (Kusk Zone Target) (see Figure 4).

Gold mineralization occurs in and is associated with development of quartz – Fe carbonate – muscovite – pyrite vein stockwork. The stockwork is best developed in the knotted phyllite unit. Stockwork zones locally concentrate in zones greater than 10 meters wide and are dominantly stratabound. Fe-carbonate alteration and carbonate porphyroblasts development within the knotted phyllite unit is observed to extend well outside immediate areas of veining.

About the FG Gold Project

The FG Gold project consists of 35 claims, totaling 13,008 hectares, in the eastern Cariboo region of central British Columbia, approximately 100 kilometers east of Williams Lake. The project is at low elevation and accessible by forestry roads. FG Gold hosts an orogenic gold deposit on the northeast limb of the Eureka syncline. The southwest limb and hinge zone are underexplored. The Project also hosts copper-gold porphyry mineralization at the Nova Zone, discovered by KORE in 2018. Figure 4 highlights the 20 kilometers trend of host rock expression at surface.

The 20 kilometer trend is defined by gold in soils and geophysics that traces the mineralized rock group around the regional syncline. The Project has only been shallowly drilled where the mineralized rock group comes to surface. Past drilling averages only 93 meters deep into a steeply plunging sedimentary host rock. Mineralization is open at depth and along almost the entire trend. Figure 5 is a regional cross-section that shows the host rock potential at depth and potential connection to the Project’s porphyritic intrusion.

FG Gold is part of KORE’s 1,000 square kilometer South Cariboo Gold District which hosts 110 kilometers of the Eureka thrust structural trend (“Trend“) that drives gold mineralization in the District. The Trend is highly prospective for orogenic gold deposits, some of largest in the world, and includes KORE’s Gold Creek Project. The Cariboo region is accessible with local power, well developed road network and skilled local labour from multiple current and past operating mines.

The previous drilling targeted stratigraphic controls on mineralization and did not penetrate into the bulk of the host-rock structure. Drilling was largely done with reverse circulation (“RC”) drilling and narrow core to generate shallow bulk-disseminated gold intercept models. Within the current resource there appears to be mineralized corridors or chutes that are open at depth in the host rock.

The current resource at the FG Gold project is as follows:

Classification	Size (tonnes)	Grade (g/t)	Au (oz)	Au Cutoff (g/t)
Measured	5,600,000	0.812	145,000	0.50
Indicated	9,570,000	0.755	231,000	0.50
Inferred	27,493,000	0.718	634,900	0.50

More information on the FG Gold Project and resource is available in the “NI 43-101 Technical Report, Frasergold Exploration Project, Cariboo Mining Division, BC” dated July 20, 2015 by K.V. Campbell of ERSi Earth Resource Surveys Inc. and G.H. Giroux of Giroux Consultants Ltd. technical report filed under Kore’s Profile on SEDAR at www.sedar.com and on KORE’s website at www.koremining.com.

About KORE

KORE is 100% owner of a portfolio of advanced gold exploration and development assets in California and British Columbia. KORE is supported by strategic investors Eric Sprott; and insiders, together with the management and Board, own approximately 64% of the basic shares outstanding.

On behalf of KORE Mining Ltd

“Scott Trebilcock”
Chief Executive Officer
(888) 407-5450

QA/QC and Qualified Person

Once the drill core was received from the drill site, individual samples were determined, logged for geological attributes, sawn in half, labelled, and bagged for assay submittal. The remaining drill core was then stored at a secure site in Horsefly, BC. The Company inserted quality control samples at regular intervals within the sample stream which included blanks, preparation duplicates, and standard reference materials with all sample shipments intended to monitor laboratory performance. Sample shipment was conducted under a chain of custody procedure.

Drill core samples were submitted to Bureau Veritas’ analytical facility in Vancouver, British Columbia for preparation and analysis. Sample preparation included drying and weighing the samples, crushing the entire sample, and pulverizing 250 grams. Analysis for gold was by method FA450: 50g fire assay fusion with atomic absorption (AAS) finish with a lower limit of 0.005 ppm and upper limit of 10 ppm. Gold assays greater than 10ppm are automatically analysed by method FA550: 50g fire assay fusion with a gravimetric fusion. Metallic screen techniques were employed to assay gold mineralized zones thought to contain coarse gold. Approximately 1000 grams of coarse reject material are pulverized and screened. Two splits of the fine fraction are assayed, as well as all material that does not pass through the screen (the coarse fraction). The final gold assay reported is a weighted average of the coarse and fine fractions.

Bureau Veritas is accredited to the ISO/IEC 17025 standard for gold assays, and all analytical methods include quality control materials at set frequencies with established data acceptance criteria. Parameters for Bureau Veritas’ internal and Kore’s external blind quality control samples were acceptable for the analyses returned.

Technical information with respect to the Project contained in this news release has been reviewed and approved by Michael J. Tucker, P.Geo, who is KORE’s VP Exploration and is a qualified person under National Instrument 43-101 responsible for the technical matters of this news release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding Forward-Looking Information

This news release contains forward-looking statements relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the future plans and objectives of the Company are forward-looking statements. Such
forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business. Management believes that these assumptions are reasonable. Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information.

Such factors include, among others: risks related to exploration and development activities at the Company’s projects, and factors relating to whether or not mineralization extraction will be commercially viable;
risks related to mining operations and the hazards and risks normally encountered in the exploration, development and production of minerals, such as unusual and unexpected geological formations, rock falls, seismic activity, flooding and other conditions involved in the extraction and removal of materials; uncertainties regarding regulatory matters, including obtaining permits and complying with laws and regulations governing exploration, development, production, taxes, labour standards, occupational health, waste disposal, toxic substances, land use, environmental protection, site safety and other matters, and the potential for existing laws and regulations to be amended or more stringently implemented by the relevant authorities; uncertainties regarding estimating mineral resources, which estimates may require revision (either up or down) based on actual production experience; risks relating to fluctuating metals prices and the ability to operate the Company’s projects at a profit in the event of declining metals prices and the need to reassess feasibility of a particular project that estimated resources will be recovered or that they will be recovered at the rates estimated; risks related to title to the Company’s properties, including the risk that the Company’s title may be challenged or impugned by third parties; the ability of the Company to access necessary resources, including mining equipment and crews, on a timely basis and at reasonable cost; competition within the mining industry for the discovery and acquisition of properties from other mining companies, many of which have greater financial, technical and other resources than the Company, for, among other things, the acquisition of mineral claims, leases and other mineral interests as well as for the recruitment and retention of qualified employees and other personnel; access to suitable infrastructure, such as roads, energy and water supplies in the vicinity of the Company’s properties; and risks related to the stage of the Company’s development, including
risks relating to limited financial resources, limited availability of additional financing and potential dilution to existing shareholders; reliance on its management and key personnel; inability to obtain adequate or any insurance; exposure to litigation or similar claims; currently unprofitable operations; risks regarding the ability of the Company and its management to manage growth; and potential conflicts of interest.

In addition to the above summary, additional risks and uncertainties are described in the “Risks” section of the Company’s management discussion and analysis for the year ended December 31, 2019 prepared as of April 27, 2020 available under the Company’s issuer profile on www.sedar.com.

Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.

There is no certainty that all or any part of the mineral resource will be converted into mineral reserve. It is uncertain if further exploration will allow improving the classification of the Indicated or Inferred mineral resource. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

Cautionary Note Regarding Mineral Resource Estimates:

Information regarding mineral resource estimates has been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of United States Securities and Exchange Commission (“SEC”) Industry Guide 7. In October 2018, the SEC approved final rules requiring comprehensive and detailed disclosure requirements for issuers with material mining operations. The provisions in Industry Guide 7 and Item 102 of Regulation S-K, have been replaced with a new subpart 1300 of Regulation S-K under the United States Securities Act and will become mandatory for SEC registrants after January 1, 2021. The changes adopted are intended to align the SEC’s disclosure requirements more closely with global standards as embodied by the Committee for Mineral Reserves International Reporting Standards (CRIRSCO), including Canada’s NI 43-101 and CIM Definition Standards. Under the new SEC rules, SEC registrants will be permitted to disclose “mineral resources” even though they reflect a lower level of certainty than mineral reserves. Additionally, under the New Rules, mineral resources must be classified as “measured”, “indicated”, or “inferred”, terms which are defined in and required to be disclosed by NI 43-101 for Canadian issuers and are not recognized under SEC Industry Guide 7. An “Inferred Mineral Resource” has a lower level of confidence than that applying to an “Indicated Mineral Resource” and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of “Inferred Mineral Resources” could be upgraded to “Indicated Mineral Resources” with continued exploration. Accordingly, the mineral resource estimates and related information may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements under the United States federal laws and the rules and regulations thereunder, including SEC Industry Guide 7.

Drill Hole Locations

Location, azimuth, dip and lengths for drill holes in this news release are listed in the following table:

HoleID	East	North	Elevation	Length	Azimuth	Dip
FG-20-369	665196	5797758	1525	250	231	-55
FG-20-371	665189	5797779	1525	181	228	-68
FG-20-376	665102	5797706	1567	361.5	225	-75
FG-20-377	665102	5797706	1567	439.5	225	-55

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SOURCE Kore Mining

November 11, 2020 5:03 pm

OTC Markets Group Reports Third Quarter 2020 Results

Delivering Continued Revenue and Earnings Growth

PR Newswire

NEW YORK, Nov. 11, 2020 /PRNewswire/ —

Third Quarter 2020 Highlights:

Gross revenues of $17.7 million for the quarter, up 13% versus the prior year quarter
Operating income of $5.5 million for the quarter, up 16% versus the prior year quarter
Net income of $4.5 million for the quarter, up 11%, driving a 12% increase in GAAP diluted EPS to $0.37
Announcing special dividend of $0.65 per share, and fourth quarter dividend of $0.15 per share
19 graduates to a national securities exchange during the quarter
In the context of the continuing COVID-19 pandemic, remaining focused on safeguarding our colleagues and serving our clients while continuing to drive towards our long-term strategic goals
During the third quarter, hosted six Virtual Investor Conferences, with 85 companies participating, reaching more than 6,000 investors
In September 2020, introduced our Blue Sky Data Product, a premium offering designed to provide a comprehensive view of compliance data on state “Blue Sky” secondary trading rules
On September 16, 2020, the SEC published a Final Rulemaking amending Rule 15c2-11 under the Exchange Act, under which OTC Link ATS, in its capacity as a Qualified Interdealer Quotation System, will review company information availability to determine whether a security is eligible for public quoting

OTC Markets Group Inc. (OTCQX: OTCM), operator of the OTCQX^® Best Market, the OTCQB^® Venture Market and the Pink^® Open Market for 11,000 U.S. and global securities, today announced its financial results for the third quarter of 2020.

“Our people have, again, risen to the challenge this quarter, keeping our markets operating reliably, connecting and serving our broker-dealer subscribers and meeting the needs of the diverse spectrum of issuers that rely on our public markets. I am grateful for their dedication and commitment to delivering results for all of our stakeholders,” said R. Cromwell Coulson, President and Chief Executive Officer. “We remain well-positioned to continue to invest and innovate, to better serve our clients’ needs, and to seize new opportunities, while always remaining true to our core values and our mission.”

“Our business has continued to perform well, despite the challenging macroeconomic conditions. In our OTC Link business, continued volatility drove strong growth in transaction-based revenues. In our Market Data business, the impact of price increases as well as robust user growth drove significant quarter over quarter revenue gains. After a couple of difficult quarters, our Corporate Services business saw a rebound in sales and delivered modest quarter over quarter revenue growth,” said Bea Ordonez, Chief Financial Officer. “We are pleased to report 13% growth in top line revenues and 16% growth in operating income, and remain committed to continuing to deliver value for our shareholders and to the subscribers and issuers we serve.”

Third Quarter 2020 compared to Third Quarter 2019


	Three Months Ended September 30,
(in thousands, except shares and per share data)	2020	2019	% change	$ change
OTC Link	$ 3,816	$ 2,989	28%	827
Market data licensing	7,172	6,085	18%	1,087
Corporate services	6,759	6,682	1%	77
Gross revenues	17,747	15,756	13%	1,991
Net revenues	17,058	15,154	13%	1,904
Revenues less transaction-based expenses	16,444	14,935	10%	1,509
Operating expenses	10,966	10,211	7%	755
Income from operations	5,478	4,724	16%	754
Operating profit margin	32.1%	31.2%
Income before provision for income taxes	5,443	4,750	15%	693
Net income	$ 4,459	$ 4,020	11%	439

Diluted earnings per share	$ 0.37	$ 0.33	12%
Adjusted diluted earnings per share	$ 0.55	$ 0.48	15%
Weighted-average shares outstanding, diluted	11,620,153	11,691,106	(1%)

Financial Highlights

Gross revenues increased $2.0 million, or 13%, to $17.7 million.
OTC Link revenues increased $827 thousand, or 28%, with increased trading volumes across U.S. equity markets and the impact of additional subscribers driving a significant increase in transactional revenues on our OTC Link ECN.
Market Data Licensing delivered a $1.1 million, or 18%, increase in revenues, with price increases for professional subscribers effective for 2020, combined with a 7% quarter over quarter increase in reported usage driving a 20% increase in pro-user revenues. Increased retail participation in U.S. equities markets helped drive a 45% increase in the number of non-professional users of our market data at period end, delivering a 64% increase in related revenues.
Corporate Services revenues grew at 1% versus the prior year quarter, with revenues from our Disclosure & News Service^® product and our Virtual Investor Conferences^® (“VIC”) business up 7% and 183%, respectively. These increases were partially offset by a 4% and 2% decrease in revenue from our OTCQB market and OTCQX market, respectively. On the OTCQX market, a rebound in sales in the third quarter drove an increase in the number of companies on the market at the quarter end, while the average number of companies on the market for the quarter lagged the prior year period, resulting in a slight contraction in quarter over quarter revenues. On the OTCQB market, a lower starting point at the beginning of 2020 and a pronounced drop in first quarter sales contributed to contraction in the number of companies on the market, which was only partially offset by a rebound in sales in both the second and third quarters of 2020.
Operating expenses increased 7%, to $11.0 million, primarily due to an 8% increase in compensation costs, a 54% increase in occupancy costs and a 20% increase in professional fees.
Net income increased 11% to $4.5 million, driven by the 15% increase in operating income, partially offset by a 2.7 percentage point increase in our effective tax rate in the quarter, a result of a decrease in the amount of excess tax benefits realized in the quarter from share-based compensation
Adjusted EBITDA, which excludes non-cash stock-based compensation expense, increased 15%, to $6.6 million, or $0.55 per adjusted diluted share.

Business Developments and News

In the aggregate, the COVID-19 pandemic did not have a material adverse effect on our financial results for the third quarter, with strong growth in transaction-based revenues in our OTC Link business and the impact of price increases and user growth in our Market Data Licensing business line offsetting weaker results in our Corporate Services business.
We have continued to operate our businesses with the majority of our employees working remotely, and plan to continue to operate predominantly remotely at least through the end of 2020.
Considerable uncertainty still surrounds the likely trajectory of the COVID-19 pandemic and its impact on the macroeconomic environment, and the full scope and extent of the potential impact to our business is dependent on a number of highly uncertain factors. Factors that could affect the scope and extent of the potential impact are discussed in more detail in the Risk Factors sections of our 2019 Annual Report and our 2020 first quarter report, as well as the Trends sections of our quarterly reports for the first, second and third quarters of 2020.
On September 16, 2020, the SEC published a Final Rulemaking amending Rule 15c2-11 under the Exchange Act. Rule 15c2-11 governs the ability of broker-dealers to publish quotations in interdealer quotation systems, such as our OTC Link ATS. OTC Link LLC and OTC Link ATS, our broker-dealer subscribers, and companies quoted on our markets must comply with the amended rule on or before September 26, 2021. OTC Link ATS, in its capacity as a Qualified Interdealer Quotation System, will review company information availability to determine whether a security is eligible for public quoting. We plan to devote significant technology, compliance, legal, personnel and other resources towards compliance with the rule.
The initial phase of Consolidated Audit Trail (“CAT”) reporting obligations applicable to OTC Link LLC and its broker-dealer subscribers began on June 22, 2020. We continue to engage with FINRA, the SEC and others, to define the scope of CAT reporting obligations related to OTC equity securities. As the next phases of the CAT plan become effective through 2021, the applicable CAT reporting requirements are likely to result in increased compliance and technology costs that may be material.
In September 2020, we introduced our Blue Sky Data Product, a premium offering designed to provide a comprehensive view of compliance data on state “Blue Sky” secondary trading rules for more than 16,000 OTC equity securities and 80,000 OTC corporate fixed income securities.
We have continued to devote internal resources to growing our VIC business. Against the backdrop of restrictions on travel and a global business environment that continues to adopt online and virtual workflows, we see the VIC offering as an important tool for issuers to communicate and engage with their investor base. During the third quarter, we hosted six VICs, with 85 companies participating, reaching more than 6,000 investors.
As of November 1, 2020, the OTCQX market is exempt from state Blue Sky laws regarding secondary trading in 37 states and the OTCQB market is exempt in 33 states.
We have seen increased transactional volume on our OTC Link ECN, a result of the active U.S. equities market environment as well as continued growth in our subscriber base, with 72 subscribers connected to our OTC Link ECN as of November 1, 2020.

Dividend Declaration – Quarterly and Special Cash Dividend

OTC Markets Group announced today that its Board of Directors authorized and approved a special cash dividend of $0.65 per share of Class A Common Stock and a quarterly cash dividend of $0.15 per share of Class A common stock. The special dividend is payable on December 9, 2020 to our stockholders of record on November 25, 2020. The ex-dividend date is November 24, 2020. The quarterly dividend is payable on December 23, 2020 to our stockholders of record on December 9, 2020. The ex-dividend date is December 8, 2020.

Stock Buyback Program

The Company is authorized to purchase shares from time to time on the open market and through block trades, in compliance with applicable law. The Company did not repurchase any shares during the third quarter of 2020.

On March 4, 2020, the Board of Directors refreshed the Company’s stock repurchase program, giving the Company authorization to repurchase up to 300,000 shares of the Company’s Class A common stock. As of September 30, 2020, there are 300,000 shares remaining to be purchased under our plan.

Non-GAAP Financial Measures

In addition to disclosing results prepared in accordance with GAAP, the Company also discloses certain non-GAAP results of operations, including adjusted EBITDA and adjusted diluted earnings per share that either exclude or include amounts that are described in the reconciliation table of GAAP to non-GAAP information provided at the end of this release. Non-GAAP financial measures do not replace and are not superior to the presentation of GAAP financial results but are provided to improve overall understanding of the Company’s current financial performance. Management believes that this non-GAAP information is useful to both management and investors regarding certain additional financial and business trends related to the operating results. Management uses this non-GAAP information, along with GAAP information, in evaluating its historical operating performance.

Third Quarter 2020 Conference Call and Webcast

The Company will host a conference call and webcast on Thursday, November 12, 2020, at 8:30 a.m. Eastern Time, during which management will discuss the financial results in further detail. The conference call and replay of the conference call may be accessed as follows:

Dial-in Numbers: (877) 665-5564 (Domestic); (470) 495-9522 (International)

Conference ID: 7098115
Call Replay Numbers (Available until November 26, 2020): 855-859-2056 (Domestic); 404-537-3406 (International); Replay PIN Number: 7098115
Participants can access the conference via Internet webcast at the following link (available until November 11, 2021:

https://edge.media-server.com/mmc/p/4zh97jms
The earnings release, transcript of the earnings call and presentation will also be available in the Investor Relations section of the corporate website at www.otcmarkets.com/investor-relations/overview.

OTC Markets Group’s Quarterly Report for the period ended September 30, 2020 is available publicly at www.otcmarkets.com.

About OTC Markets Group Inc.

OTC Markets Group Inc. (OTCQX: OTCM) operates the OTCQX^® Best Market, the OTCQB^® Venture Market and the Pink^® Open Market for 11,000 U.S. and global securities. Through OTC Link^® ATS and OTC Link ECN, we connect a diverse network of broker-dealers that provide liquidity and execution services. We enable investors to easily trade through the broker of their choice and empower companies to improve the quality of information available for investors.

To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com.

OTC Link ATS and OTC Link ECN are SEC regulated ATSs, operated by OTC Link LLC, member FINRA/SIPC.

Subscribe to the OTC Markets RSS Feed

Investor Contact:

Bea Ordonez

Chief Financial Officer
Phone: 212-220-2215
Email: [email protected]

OTC MARKETS GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share information)
(Unaudited)

	Three Months Ended September 30,
	2020	2019
OTC Link	$ 3,816	$ 2,989
Market data licensing	7,172	6,085
Corporate services	6,759	6,682
Gross revenues	17,747	15,756
Redistribution fees and rebates	(689)	(602)
Net revenues	17,058	15,154
Transaction-based expenses	(614)	(219)
Revenues less transaction-based expenses	16,444	14,935
Operating expenses
Compensation and benefits	7,052	6,533
IT Infrastructure and information services	1,642	1,650
Professional and consulting fees	586	489
Marketing and advertising	138	256
Occupancy costs	877	569
Depreciation and amortization	441	384
General, administrative and other	230	330
Total operating expenses	10,966	10,211
Income from operations	5,478	4,724
Other income (expense)
Interest income	–	26
Other income (expense), net	(35)	–
Income before provision for income taxes	5,443	4,750
Provision for income taxes	984	730
Net income	$ 4,459	$ 4,020

Net income per share
Basic	$ 0.38	$ 0.35
Diluted	$ 0.37	$ 0.33

Basic weighted average shares outstanding	11,390,479	11,353,189
Diluted weighted average shares outstanding	11,620,153	11,691,106

Non-GAAP Reconciliation

	2020	2019
Net Income	$ 4,459	$ 4,020
Excluding:
Interest Income	–	(26)
Provision for income taxes	984	730
Depreciation and amortization	441	384
Stock-based compensation expense	717	617
Adjusted EBITDA	$ 6,601	$ 5,725

Adjusted diluted earnings per share	$ 0.55	$ 0.48

Note: We use non-GAAP financial measures of operating performance. Non-GAAP measures do not replace and are not superior to the presentation of our GAAP financial results, but are provided to improve overall understanding of the Company’s current financial performance.


OTC MARKETS GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share information)
(Unaudited)

	September 30,	December 31,
	2020	2019
Assets
Current assets
Cash	$ 28,647	$ 28,217
Accounts receivable, net of allowance for doubtful accounts of $165 and $168	5,802	5,157
Prepaid income taxes	568	318
Prepaid expenses and other current assets	1,417	1,338
Total current assets	36,434	35,030
Property and equipment, net	5,666	6,418
Operating lease right-of-use assets	15,143	16,018
Deferred tax assets, net	214	771
Goodwill	251	251
Intangible assets, net	40	40
Long-term restricted cash	1,561	1,561
Other assets	312	266
Total Assets	$ 59,621	$ 60,355

Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$ 718	$ 321
Accrued expenses and other current liabilities	8,772	9,154
Income taxes payable	183	99
Deferred revenue	10,922	15,815
Total current liabilities	20,595	25,389
Income tax reserve	757	1,764
Operating lease liabilities	14,708	15,529
Total Liabilities	36,060	42,682
Commitments and contingencies
Stockholders’ equity
Common stock – par value $0.01 per share
Class A – 14,000,000 authorized, 12,305,638 issued, 11,669,004 outstanding at
September 30, 2020; 12,189,022 issued, 11,655,326 outstanding at December 31, 2019	123	122
Additional paid-in capital	20,146	18,042
Retained earnings	15,409	8,106
Treasury stock – 636,634 shares at September 30, 2020 and 533,696 shares at December 31, 2019	(12,117)	(8,597)
Total Stockholders’ Equity	23,561	17,673
Total Liabilities and Stockholders’ Equity	$ 59,621	$ 60,355

View original content to download multimedia:http://www.prnewswire.com/news-releases/otc-markets-group-reports-third-quarter-2020-results-301171323.html

SOURCE OTC Markets Group Inc.

November 11, 2020 5:03 pm

Matson To Present At Stephens Annual Investment Conference

PR Newswire

HONOLULU, Nov. 11, 2020 /PRNewswire/ — Matson, Inc. (NYSE: MATX) announced today that Matt Cox, Chairman and Chief Executive Officer, and Joel Wine, Senior Vice President and Chief Financial Officer, will present an overview of the Company and respond to questions at the Stephens Annual Investment Conference to be held virtually on November 18, 2020.

Matson will provide access to the presentation slides on its website on November 18, 2020. Access to the slides will be available on www.matson.com, under Investors.

About the Company
Founded in 1882, Matson (NYSE: MATX) is a leading provider of ocean transportation and logistics services. Matson provides a vital lifeline to the domestic non-contiguous economies of Hawaii, Alaska, and Guam, and to other island economies in Micronesia. Matson also operates two premium, expedited services from China to Long Beach, California, provides service to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Dutch Harbor to Asia. The Company’s fleet of owned and chartered vessels includes containerships, combination container and roll-on/roll-off ships and custom-designed barges. Matson Logistics, established in 1987, extends the geographic reach of Matson’s transportation network throughout the continental U.S. Its integrated, asset-light logistics services include rail intermodal, highway brokerage, warehousing, freight consolidation, Asia supply chain services, and forwarding to Alaska. Additional information about the Company is available at www.matson.com.

Investor Relations inquiries:

Lee Fishman

Matson, Inc.

510.628.4227

[email protected]

News Media inquiries:

Keoni Wagner

Matson, Inc.

510.628.4534

[email protected]

View original content to download multimedia:http://www.prnewswire.com/news-releases/matson-to-present-at-stephens-annual-investment-conference-301171233.html

SOURCE Matson, Inc.

November 11, 2020 5:03 pm

Spin Master Reports Q3 2020 Financial Results

PR Newswire

Delivers Solid Financial Performance

Operational Improvement Milestones Achieved Ahead of Schedule

TORONTO, Nov. 11, 2020 /PRNewswire/ – Spin Master Corp. (“Spin Master” or the “Company”) (TSX: TOY) (www.spinmaster.com), a leading global children’s entertainment company, today announced its financial results for the third quarter ended September 30, 2020. The Company’s full Management’s Discussion and Analysis (“MD&A”) for the three and nine months ended September 30, 2020 is available on SEDAR (www.sedar.com) and posted on the Company’s web site at www.spinmaster.com/financial-info.php.

“This quarter we showed continued progress on many fronts,” said Ronnen Harary, Spin Master’s Co-CEO. “We launched one of our strongest Fall lines ever, with many of our toys making retailers’ top toy lists and in the quarter we grew both Gross Product Sales and Revenue while managing through the uncertain conditions arising from COVID-19. In September, we premiered our first-ever straight-to-streaming entertainment franchise Mighty Express and also saw significant growth in our Toca Boca digital games business driven by increased engagement and new content. Thanks to the dedication and tenacity of our team members globally, we are very well positioned for the holiday season with strong POS momentum globally for our products, lean retail inventories and continued consumer demand within the toy category.”

“Our efforts to manage costs and improve our profitability continue to show progress,” added Mark Segal, Spin Master’s Chief Financial Officer. “Our team achieved key milestones on our operational improvement goals well ahead of schedule and we are well positioned to execute our plan. During the quarter, we have reduced our inventory levels and improved our net working capital and liquidity position. With a diversified portfolio of brands, entertainment franchises and digital games across our global platform and a very solid financial base, we remain focused on investing to create long term value.”

Q3 2020 Financial Highlights as compared to the same period in 2019

Revenue of US$571.6 million increased by 4.3% from US$548.1 million. In Constant Currency¹ terms, revenue increased by 3.5%.
Gross Product Sales¹ increased by 0.7% to US$587.4 million from US$583.3 million. Increases in Boys Action & Construction, Activities, Games & Puzzles and Plush, as well as Outdoor were offset by declines in Remote Control & Interactive Characters and Pre-School & Girls. In Constant Currency¹ terms, Gross Product Sales¹increased by 0.2%.
Gross Product Sales¹ increased by 15.6% in Europe and declined 2.6% North America and 10.8% in Rest of World. International Gross Product Sales¹ were 38.3% of total Gross Product Sales¹, compared to 36.2%.
Other revenue increased by 80.9% to US$48.3 million. Growth was driven by strong digital games revenue, primarily from the Toca Life World platform, as well as higher television distribution revenue, partially offset by lower royalty income from products marketed by third parties using Spin Master’s owned intellectual property.
Sales Allowances¹increased by US$2.2 million to US$64.1 million. As a percentage of Gross Product Sales¹, Sales Allowances¹ increased 0.3% to 10.9% from 10.6%, primarily driven by a change in geographic mix due to higher sales in Europe relative to North America.
Gross profit was US$277.9 million, representing 48.6% of revenue, compared to US$286.9 million or 52.3% of revenue. The decrease in gross margin was primarily due to product mix, the sale of inventory arising from the operational challenges experienced in Q4 2019 as well as an increase in freight-related expenses. The decrease was partially offset by higher other revenue.
Selling, general and administrative expenses (“SG&A”)² increased 3.4%. The increase was a result of higher administrative, selling and distribution expenses, partially offset by lower marketing costs. As a percentage of revenue, SG&A² was 27.9% compared to 28.1%.
Net income was US$86.8 million or earnings per share of US$0.83 (diluted), compared to US$92.2 million or US$0.89 (diluted).
Adjusted Net Income¹ was US$95.1 million or adjusted earnings per share of US$0.91 (diluted), compared to US$93.3 million or US$0.91 (diluted).
Adjusted EBITDA¹ was US$139.9 million compared to US$150.2 million. Adjusted EBITDA Margin¹ was 24.5% compared to 27.4%.
Free Cash Flow¹ was US$108.3 million compared to US$128.6 million. Including changes in working capital, Free Cash Flow¹ was US$96.0 million compared to US$86.5 million.
As at September 30th, 2020, the Company had cash on hand of US$207.3 million. During the quarter, the Company repaid in full the balance of US$300.0 million previously outstanding on its Credit Facility.
On October 27, 2020, the Company announced it reached an agreement to acquire London-based Rubik’s Brand Ltd, which owns the rights to the Rubik’s Cube, for $50.0 million. The transaction is expected to close on January 4, 2021.

Q3 2020 Gross Product Sales ¹ by Business Segment (US$ millions)
	Q3 2020	Q3 2019	$ Change	% Change
Activities, Games & Puzzles and Plush	$172.5	$152.4	20.1	13.2	%
Remote Control & Interactive Characters	$88.6	$117.3	(28.7)	(24.5)	%
Boys Action & Construction	$131.6	$103.2	28.4	27.5	%
Pre-School & Girls	$182.4	$204.0	(21.6)	(10.6)	%
Outdoor	$12.3	$6.4	5.9	92.2	%
Gross Product Sales¹	$587.4	$583.3	4.1	0.7	%
Sales Allowances¹	$(64.1)	$(61.9)	(2.2)	3.6	%
Net Sales¹	$523.3	$521.4	1.9	0.4	%
Other Revenue	$48.3	$26.7	21.6	80.9	%
Revenue	$571.6	$548.1	23.5	4.3	%

Q3 2020 Gross Product Sales¹ by Business Segment as compared to the same period in 2019

Gross Product Sales¹were US$587.4 million, an increase of US$4.1 million or 0.7%, with a favourable foreign exchange impact of US$3.2 million or 0.6%. Excluding the impact of foreign exchange, Gross Product Sales¹ increased by US$0.9 million or 0.2%. The increase was driven by Boys Action & Construction, Activities, Games & Puzzles and Plush and Outdoor, offset by declines in Remote Control & Interactive Characters and Pre-School & Girls.

Gross Product Sales¹ in Activities, Games & Puzzles and Plush increased by US$20.1 million or 13.2% to US$172.5 million. The increase was driven primarily by Kinetic Sand, the Games & Puzzles portfolio, Cool Maker,Rainbow Jellies and Orbeez, partially offset by declines in GUND and Bunchems.

Gross Product Sales¹ in Remote Control & Interactive Characters decreased by US$28.7 million or 24.5% to US$88.6 million, primarily due to lower sales of Owleez and Hatchimals, partially offset by increases in Monster Jam RC and Ninja Bots.

Gross Product Sales¹ in Boys Action & Construction increased by US$28.4 million or 27.5% to US$131.6 million. The increase was primarily driven by DC licensed products, Present Pets and Tech Deck, offset in part by declines in DreamWorks Dragons, Boxer and Bakugan.

Gross Product Sales¹ in Pre–School & Girls decreased by US$21.6 million or 10.6% to US$182.4 million. The decrease was driven primarily by declines in PAW Patrol, Twisty Petz, Candylocks and Awesome Blossems, offset in part by higher sales of Pre Cool.

Gross Product Sales¹ in Outdoor increased by US$5.9 million or 92.2% to US$12.3 million.

Financial Highlights for Nine Months Ended September 30, 2020 as compared to the same period in 2019

Revenue of US$1,080.0 million decreased 2.5% from US$1,108.1 million. In Constant Currency¹terms, revenue decreased by 2.5%.
Gross Product Sales¹decreased by US$28.6 million or 2.5% to US$1,111.9 million. In Constant Currency¹terms, Gross Product Sales¹ decreased by 2.4%.
Gross Product Sales¹decreased by 0.9% in North America and 24.8% in Rest of World and increased by 6.3% in Europe. International Gross Product Sales¹ represented 36.1% of total Gross Product Sales¹ compared to 37.1%.
Other revenue increased by US$12.7 million or 14.8% to US$98.7 million, driven by higher digital games revenue from Toca Boca and Sago Mini offset in part by lower royalty income from products marketed by third parties using Spin Master’s owned intellectual property.
Sales Allowances¹ increased by US$12.2 million to US$130.6 million. As a percentage of Gross Product Sales¹, Sales Allowances¹ were 11.7% compared to 10.4%, primarily driven by an increase in non-compliance charges arising from operational issues in Q4 2019 and growth in Europe, which has a higher Sales Allowance¹ rate structure.
Gross profit decreased to US$486.9 million, representing 45.1% of revenue compared to US$558.9 million or 50.4% of revenue. The decline in gross margin was primarily due to product mix, the sale of inventory arising from the operational challenges experienced in Q4 2019, an increase in freight-related expenses, higher Sales Allowances¹ and supplier liabilities as a result of realigning inventory as part of the Company’s ongoing operational improvement initiatives. These decreases were partially offset by an increase in other revenue.
SG&A² increased US$8.7 million or 2.1%. The increase in SG&A² was driven by higher distribution and administrative expenses, offset by lower marketing expenses.
Net income was US$45.2 million or earnings per share of US$0.43 (diluted), compared to US$81.5 million or US$0.79 (diluted).
Adjusted Net Income¹ was US$38.8 million or adjusted earnings per share of US$0.37 (diluted), compared to US$100.6 million or US$0.98 (diluted).
Adjusted EBITDA¹ was US$129.1 million compared to US$212.3 million. Adjusted EBITDA Margin¹ was 12.0% compared to 19.2%.
Free Cash Flow¹ decreased to US$23.6 million compared to US$107.3 million. Including changes in working capital, Free Cash Flow increased by $84.4 million to US$108.4 million compared to US$24.0 million.

September 30, 2020 Year to Date Gross Product Sales¹ by Business Segment (US$ millions)
	2020	2019	$ Change		% Change
Activities, Games & Puzzles and Plush	$346.1	$295.6	$	50.5	17.1	%
Remote Control & Interactive Characters	$142.0	$192.8	$	(50.8)	(26.3)	%
Boys Action & Construction	$235.2	$216.6	$	18.6	8.6	%
Pre-School & Girls	$313.2	$363.8	$	(50.6)	(13.9)	%
Outdoor	$75.4	$71.7	$	3.7	5.2	%
Gross Product Sales¹	$1,111.9	$1,140.5	$	(28.6)	(2.5)	%
Sales Allowances	$(130.6)	$(118.4)	$	(12.2)	10.3	%
Net Sales¹	$981.3	$1,022.1	$	(40.8)	(4.0)	%
Other Revenue	$98.7	$86.0	$	12.7	14.8	%
Revenue	$1,080.0	$1,108.1	$	(28.1)	(2.5)	%

September 30, 2020 Year to Date Gross Product Sales¹ by Business Segment as compared to the same period in 2019

Gross Product Sales¹ were US$1,111.9 million, a decrease of US$28.6 million or 2.5%, with an unfavourable foreign exchange impact of US$1.3 million or 0.1%. The decrease was driven by Remote Control & Interactive Characters and Pre-School & Girls, offset by increases in Activities, Games & Puzzles and Plush, Boys Action & Construction and Outdoor.

Gross Product Sales¹ in Activities, Games & Puzzles and Plush increased by US$50.5 million or 17.1% to US$346.1 million, primarily driven by Kinetic Sand, the Games & Puzzles portfolio, Rainbow Jellies and Orbeez, offset in part by declines in GUND and Bunchems.

Gross Product Sales¹ in Remote Control & Interactive Characters decreased by US$50.8 million or 26.3% to US$142.0 million, due to declines in Hatchimals, Owleez and Juno, partially offset by higher sales of Monster Jam RC and Ninja Bots.

Gross Product Sales¹ in Boys Action & Construction increased by US$18.6 million or 8.6% to US$235.2 million, due to DC licensed products, Present Pets and Tech Deck, partially offset by declines in DreamWorks Dragons, Boxer, Bakugan, Meccano and Fugglers.

Gross Product Sales¹ in Pre–School & Girls decreased by US$50.6 million or 13.9% to US$313.2 million, driven by declines in PAW Patrol, Twisty Petz, Candylocks, Awesome Blossems and Off the Hook, offset in part by higher sales of Pre Cool.

Gross Product Sales¹ in Outdoor increased by US$3.7 million or 5.2% to US$75.4 million.

Outlook

Spin Master continues to focus on driving long-term growth. Its principle strategies include:

Innovate using our global internal and external research and development network;
Developing evergreen global entertainment and digital toys properties;
Increasing international sales in developed and emerging markets; and
Leveraging the Company’s global platform through strategic acquisitions.

On March 19, 2020 Spin Master withdrew its 2020 outlook, which was previously provided on March 4, 2020. Given the uncertain environment associated with COVID-19, the company has elected to continue to suspend providing guidance until circumstances warrant.

Conference call

Ronnen Harary, Chairman and Co-Chief Executive Officer and Mark Segal, Executive Vice President and Chief Financial Officer will host a conference call to discuss these results on Thursday, November 12, 2020 at 9:30 a.m. (ET).

The call-in numbers for participants are (647) 427-7450 or (888) 231-8191. A live webcast of the call will be accessible via Spin Master’s website at: http://www.spinmaster.com/events.php. Following the call, both an audio recording and transcript of the call will be archived on the same website page.

About Spin Master

Spin Master Corp. (TSX:TOY) is a leading global children’s entertainment company creating exceptional play experiences through a diverse portfolio of innovative toys, entertainment franchises and digital toys and games. Spin Master is best known for award-winning brands PAW Patrol®, Bakugan®, Kinetic Sand®, Air Hogs®, Hatchimals® and GUND®, and is the toy licensee for other popular properties. Spin Master Entertainment creates and produces compelling multiplatform content, stories and endearing characters through its in-house studio and partnerships with outside creators, including the preschool success PAW Patrol and 10 other television series, which are distributed in more than 160 countries. The Company has an established digital presence anchored by the Toca Boca® and Sago Mini® brands, which combined have more than 25 million monthly active users. With over 1,800 employees in 28 offices globally, Spin Master distributes products in more than 100 countries. For more information visit spinmaster.com or follow on Instagram, Facebook and Twitter @spinmaster.

Non-IFRS Financial Measures

In addition to using financial measures prescribed under IFRS, references are made in this Press Release to “EBITDA”, “Adjusted EBITDA”, “Adjusted EBITDA Margin”, “Adjusted Net Income”, “Free Cash Flow”, “Gross Product Sales”, “Constant Currency”, “Sales Allowances” and “Net Sales” which are non-IFRS financial measures. Non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers.

EBITDA is calculated as net earnings before finance costs, income tax expense (recovery) and depreciation and amortization.

Adjusted EBITDA is calculated as EBITDA excluding normalization adjustments, non-recurring items that do not necessarily reflect the Company’s underlying financial performance. Normalization adjustments include restructuring costs, foreign exchange gains or losses, and equity-settled share based compensation expenses. Adjusted EBITDA is used by management as a measure of the Company’s profitability.

Adjusted Net Income is calculated as net income excluding adjustments, as defined above, in addition to a one-time tax recovery and the corresponding impact these items have on income tax expense (recovery). Management uses Adjusted Net Income to measure the underlying financial performance of the business on a consistent basis over time.

Constant Currency represents Revenue and Gross Product Sales results that are presented excluding the impact from changes in foreign currency exchange rates. The current period and prior period results for entities reporting in currencies other than the US dollar are translated using consistent exchange rates, rather than using the actual exchange rate in effect during the respective periods. The difference between the current period and prior period results using the consistent exchange rates reflects the changes in the underlying performance results, excluding the impact from fluctuations in foreign currency exchange rates.

Free Cash Flow is calculated as cash flows provided by/used in operating activities before changes in net working capital and after cash flows used in investing activities before cash used in license, brand and business acquisitions. Management uses the Free Cash Flow metric to analyze the cash flow being generated by the Company’s business.

Gross Product Sales represent sales of the Company’s products to customers, excluding the impact of Sales Allowances. As Sales Allowances are generally not associated with individual products, the Company uses changes in Gross Product Sales to provide meaningful comparisons across product category and geographical segment results to highlight trends in Spin Master’s business. For a reconciliation of Gross Product Sales to Revenue, please see the table “Q3 2020 Gross Product Sales by Business Segment” in this Press Release.

Sales Allowances represent marketing and sales credits requested by customers relating to factors such as cooperative advertising, contractual discounts, negotiated discounts, customer audits, volume rebates, defective products and costs incurred by customers to sell the Company’s products and are recorded as a reduction to Gross Product Sales. Management uses Sales Allowances to identify and compare the cost of doing business with individual retailers, different geographic markets and amongst various distribution channels.

Net Sales represents Gross Product Sales less Sales Allowances. Management uses Net Sales to evaluate the Company’s total net revenue generating capacity compared to internal targets and as a measure of Company performance.

Management believes the non-IFRS measures defined above are important supplemental measures of operating performance and highlight trends in the core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management believes that these measures allow for assessment of the Company’s operating performance and financial condition on a basis that is more consistent and comparable between reporting periods. The Company believes that lenders, securities analysts, investors and other interested parties frequently use these non-IFRS financial measures in the evaluation of issuers.

		Three Months Ended Sep 30
(in US$ millions, except percentages)		2020	2019	$ Change	% Change
Reconciliation of Non-IFRS Financial Measures
Net income		86.8	92.2	(5.4)	(5.9)	%
	Income tax expense	14.7	33.0	(18.3)	(55.5)	%
	Finance costs	2.6	3.2	(0.6)	(18.8)	%
	Depreciation and amortization	26.4	22.2	4.2	18.9	%
EBITDA¹		130.5	150.6	(20.1)	(13.3)	%
Normalization adjustments:
	Restructuring expense²	1.4	0.3	1.1	366.7	%
	Foreign exchange loss (gain)³	5.1	(4.1)	9.2	(224.4)	%
	Share based compensation⁴	2.9	3.4	(0.5)	(14.7)	%
Adjusted EBITDA¹		139.9	150.2	(10.3)	(6.9)	%
	Income tax expense	14.7	33.0	(18.3)	(55.5)	%
	Finance costs	2.6	3.2	(0.6)	(18.8)	%
	Depreciation and amortization	26.4	22.2	4.2	18.9	%
	Tax effect of adjustments⁵	1.1	(1.5)	2.6	(173.3)	%
Adjusted Net Income¹		95.1	93.3	1.8	1.9	%

Cash provided by operations		117.2	106.4	10.8	10.2	%
Changes in net working capital		12.3	42.1	(29.8)	(70.8)	%
Cash provided by operations before net working capital changes		129.5	148.5	(19.0)	(12.8)	%
Cash used in investing activities		(20.2)	(29.3)	9.1	(31.1)	%
Plus:
Cash used for license, brand and business acquisitions		(1.0)	9.4	(10.4)	n.m.
Free Cash Flow¹		108.3	128.6	(20.3)	(15.8)	%

1) See “Non-IFRS Financial Measures”.
2) Restructuring expense primarily relates to personnel related costs.
3) Includes foreign exchange losses (gains) generated by the translation of monetary assets/liabilities denominated in a currency other than the functional currency of the applicable entity and losses (gains) related to the Company’s hedging programs.
4) Related to non-cash expenses associated with subordinate voting shares granted to equity participants at the time of the IPO, share option expense and long-term incentive plan (“LTIP”).
5) Tax effect of adjustments (Footnotes 2-4). Adjustments are tax effected at the effective tax rate of the given period.

		Nine Months Ended Sep 30
(in US$ millions, except percentages)		2020	2019	$ Change	% Change
Reconciliation of Non-IFRS Financial Measures
Net income		45.2	81.5	(36.3)	(44.5)	%
	Income tax (recovery) expense	(31.4)	28.2	(59.6)	(211.3)	%
	Finance costs	8.7	8.5	0.2	2.4	%
	Depreciation and amortization	75.4	68.4	7.0	10.2	%
EBITDA¹		97.9	186.6	(88.7)	(47.5)	%
Adjustments:
	Restructuring expense²	4.8	8.1	(3.3)	(40.7)	%
	Foreign exchange loss³	17.1	5.9	11.2	189.8	%
	Share based compensation⁴	9.3	11.7	(2.4)	(20.5)	%
Adjusted EBITDA¹		129.1	212.3	(83.2)	(39.2)	%
	Income tax (recovery) expense	(31.4)	28.2	(59.6)	(211.3)	%
	Finance costs	8.7	8.5	0.2	2.4	%
	Depreciation and amortization	75.4	68.4	7.0	10.2	%
	One-time income tax recovery⁵	33.3	—	33.3	n.m.
	Tax effect of adjustments⁶	4.3	6.6	(2.3)	(34.8)	%
Adjusted Net Income¹		38.8	100.6	(61.8)	(61.4)	%

Cash provided by operating activities		172.6	87.6	85.0	97.0	%
Changes in net working capital		(84.8)	83.3	(168.1)	(201.8)	%
Cash provided by operating activities before net working capital changes		87.8	170.9	(83.1)	(48.6)	%
Cash used in investing activities		(65.6)	(73.0)	7.4	(10.1)	%
Plus:
Cash used for license, brand and business acquisitions		1.4	9.4	(8.0)	(85.1)	%
Free Cash Flow¹		23.6	107.3	(83.7)	(78.0)	%

1) See “Non-IFRS Financial Measures”.
2) Restructuring expense primarily relates to personnel related costs. Restructuring expense in the current period includes costs related to changes in senior leadership.
3) Includes foreign exchange losses generated by the translation of monetary assets/liabilities denominated in a currency other than the functional currency of the applicable entity and losses related to the Company’s hedging programs.
4) Related to expenses associated with subordinate voting shares granted to equity participants at the time of the IPO, share option expense and LTIP.
5) One-time income tax recovery relates to internal transfer of intangible property of $33.3 million.
6) Tax effect of adjustments (Footnotes 2-4). Adjustments are tax effected at the effective tax rate of the given period.

Forward-Looking Statements

Certain statements, other than statements of historical fact, contained in this Press Release constitute “forward-looking information” within the meaning of certain securities laws, including the Securities Act (Ontario), and are based on expectations, estimates and projections as of the date on which the statements are made in this Press Release. The words “plans”, “expects”, “projected”, “estimated”, “forecasts”, “anticipates”, “indicative”, “intend”, “guidance”, “outlook”, “potential”, “prospects”, “seek”, “strategy”, “targets” or “believes”, or variations of such words and phrases or statements that certain future conditions, actions, events or results “will”, “may”, “could”, “would”, “should”, “might” or “can”, or negative versions thereof, “be taken”, “occur”, “continue” or “be achieved”, and other similar expressions, identify statements containing forward-looking information. Statements of forward-looking information in this Press Release include, without limitation, statements with respect to: the Company’s intentions to issue guidance in the future; future growth expectations; financial position, cash flows and financial performance; drivers for such growth; the resolution of logistics problems; the program to achieve operational efficiencies; the successful execution of its strategies for growth; the creation of long term shareholder value; the impacts of the COVID-19 pandemic on the Company; the completion and timing of the proposed acquisition; and consumer demand and the seasonality of financial results and performance.

Forward-looking statements are necessarily based upon management’s perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by management as of the date on which the statements are made in this Press Release, are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in the forward-looking statements ultimately being incorrect. In addition to any factors and assumptions set forth above in this Press Release, the material factors and assumptions used to develop the forward-looking information include, but are not limited to: ability of factories to manufacture products, including labour size and allocation, tooling, raw material and component availability, ability to shift between product mix, and customer acceptance of delayed delivery dates; that the program designed to gain operational efficiencies will achieve the desired results; that the steps taken will create long term shareholder value; the expanded use of advanced technology, robotics and innovation the Company applies to its products will have a level of success consistent with its past experiences; the Company will continue to successfully secure broader licenses from third parties for major entertainment properties consistent with past practices; the expansion of sales and marketing offices in new markets will increase the sales of products in that territory; the Company will be able to successfully identify and integrate strategic acquisition opportunities; the Company will be able to maintain its distribution capabilities; the Company will be able to leverage its global platform to grow sales from acquired brands; the Company will be able to recognize and capitalize on opportunities earlier than its competitors; the Company will be able to continue to build and maintain strong, collaborative relationships; the Company will maintain its status as a preferred collaborator; the culture and business structure of the Company will support its growth; the current business strategies of the Company will continue to be desirable on an international platform; the Company will be able to expand its portfolio of owned branded intellectual property and successfully license it to third parties; use of advanced technology and robotics in the Company’s products will expand; access of entertainment content on mobile platforms will expand; fragmentation of the market will continue to create acquisition opportunities; the Company will be able to maintain its relationships with its employees, suppliers and retailers; the Company will continue to attract qualified personnel to support its development requirements; and the Company’s key personnel will continue to be involved in the Company products and entertainment properties will be launched as scheduled and that the risk factors noted in this Press Release, collectively, do not have a material impact on the Company.

By its nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. Known and unknown risk factors, many of which are beyond the control of the Company, could cause actual results to differ materially from the forward-looking information in this Press Release. Such risks and uncertainties include, without limitation, the magnitude and length of economic disruption as a result of the COVID-19 pandemic, there can be no assurance that the proposed acquisition will occur, and the terms of the proposed acquisition could be modified, restructured or terminated; and the factors discussed in the Company’s disclosure materials, including the Annual MD&A and the Company’s most recent Annual Information Form, filed with the securities regulatory authorities in Canada and available under the Company’s profile on SEDAR (www.sedar.com) These risk factors are not intended to represent a complete list of the factors that could affect the Company and investors are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements.

There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.

View original content:http://www.prnewswire.com/news-releases/spin-master-reports-q3-2020-financial-results-301171335.html

SOURCE Spin Master Corp.

November 11, 2020 5:03 pm

Bright Scholar Announces US$50 million Share Repurchase Program

PR Newswire

FOSHAN, China, Nov. 11, 2020 /PRNewswire/ — Bright Scholar Education Holdings Limited (“Bright Scholar” or the “Company”) (NYSE: BEDU), a global premier education service company, today announced that its board of directors (the “Board”) has approved a US$50 million share repurchase program, effective from November 20, 2020 and expiring on November 19, 2021.

Under the share repurchase program, the Company may repurchase up to US$50 million worth of its outstanding American depositary shares (“ADSs”) representing its Class A ordinary shares within the 12 months, subject to market conditions. The Company may periodically repurchase its ADSs for cash in open market purchases, in compliance with applicable federal securities laws. In addition, the share repurchase program may be modified, suspended or terminated by the Board any time without prior notice. The number of ADSs repurchased and the timing of repurchases will depend on a number of factors, including without limitation, price, trading volume and general market conditions, along with the Company’s working capital requirements, general business conditions and other factors. Repurchases under the share repurchase program will be funded from the Company’s existing cash and cash equivalents or future cash provided by operating activities.

About Bright Scholar Education Holdings Limited

Bright Scholar is a global premier education service company, dedicated to providing quality international education to global students and equipping them with the critical academic foundation and skillsets necessary to succeed in the pursuit of higher education. Bright Scholar also complements its international offerings with Chinese government-mandated curriculum for students who wish to maintain the option of pursuing higher education in China. As of August 31, 2020, Bright Scholar operated 81 schools across ten provinces in China and eight schools overseas, covering the breadth of K-12 academic needs of its students. In the fiscal year ended August 31, 2020, Bright Scholar had an average of 51,825 students enrolled at its schools.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, the Company’s business plans and development, which can be identified by terminology such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control, which may cause the Company’s actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

IR Contact:

GCM Strategic Communications
Email: [email protected]

Media Contact:
Email: [email protected]
Phone: +86-757-6683-2507

View original content:http://www.prnewswire.com/news-releases/bright-scholar-announces-us50-million-share-repurchase-program-301170713.html

SOURCE Bright Scholar Education Holdings Ltd.