Market Newsdesk

November 12, 2020 6:33 am

DarioHealth Reports Third Quarter 2020 Results

Ramp up of U.S. commercial sales and marketing infrastructure resulting in B2B2C pipeline growth

Continued transition to B2B2C digital therapeutics leader through agreements with Vitality Group and HMC Healthworks

Ended the quarter with cash and cash equivalents of $37 million

Appointed Eric Milledge as Chairman of newly established Scientific Advisory Board

Company to Host Conference Call and Webcast 9:00 am ET Today

PR Newswire

NEW YORK, Nov. 12, 2020 /PRNewswire/ — DarioHealth Corp. (Nasdaq: DRIO), a pioneer in the global digital therapeutics market, today reported financial results for the third quarter 2020 and provided a corporate and commercial update.

“During the third quarter we achieved 14.2% sequential growth in our revenues, but more importantly, we made significant strides in penetrating the multiple verticals within the Business-to-Business-to-Consumer (B2B2C) channel with our digital therapeutics solutions,” stated Erez Raphael, Chief Executive Officer of Dario. “Most notably, our recently announced partnership agreements with Vitality Group and HMC Healthworks provide access of our solutions to end users through their employers or benefits providers. We believe that our industry consumer engagement metrics and open architecture that allows for seamless integration with legacy systems are key differentiating factors relative to our competition that have resonated with customers and prospects alike.

“The execution of our multi-year, strategic plan has led to advanced late-stage contracting discussions with health plans, self-insured employers and providers. We are encouraged by the fact that we are pursuing multiple large opportunities, and we anticipate many of these agreements will close and launch in the near term. Furthermore, as our sales pipeline has grown during the third quarter, we believe that our ongoing investments in our U.S. commercial infrastructure have positioned Dario for a transformational year in 2021.”

“We ended the third quarter with $37 million in cash on the balance sheet after completing a successful $28.6 million financing in July,” Zvi Ben-David, Dario’s Chief Financial Officer added. “This is the largest cash position in the Company’s history. Our liquidity is sufficient to invest in research and development, expand our portfolio of chronic diseases and build the necessary sales and marketing infrastructure to drive further penetration of the B2B2C channel. We believe that we are funded to achieve our goals in the coming quarters.”

Q3 2020 Operations Update and Recent Highlights

Opening B2B2C Channels: Commercial Development & Strategic Collaborations

In October 2020, we announced inclusion in Vitality’s new Gateway Flex offering, allowing Dario’s digital therapeutics platform to be marketed to Vitality’s vast employer base that provides benefits solutions to 20 million people.
In September 2020, we announced a partnership agreement with HMC Healthworks that extends DarioHealth’s reach into HMC’s vast multi-employer client base through which HMC is currently managing more than one million members.
In July 2020, we entered the U.K. RPM market through an agreement with Williams Medical, making Dario’s RPM platform available to healthcare professionals throughout the U.K. and Ireland.

Clinical Evidence Development

In August 2020, we presented a poster at the Virtual Association of Diabetes Care and Education Specialists 2020 Annual Conference. The poster, entitled, “Impact of Digital Management on Clinical Outcome in Patients with Chronic Conditions: Diabetes and Hypertension,” details results from an observational study of 345 participants with hypertensive blood pressure at baseline who utilized the Dario digital therapeutics platform. The study found that Dario’s digital therapeutics platform helped drive improved blood pressure at three months and glycemic control at six months compared to baseline.

Corporate Developments

In September 2020, we appointed Eric Milledge as Chairman of Dario’s newly created Scientific Advisory Board (SAB). The SAB will work alongside the company’s research and development team and external partners to develop and implement the Dario’s strategic roadmap for its technology platform.
In July 2020, we appointed Dennis Matheis, President of Optima Health, a health plan with more than 850,000 members, to our Board of Directors, further supporting Dario’s ongoing transition to B2B2C.
In July 2020, we announced that we successfully raised gross proceeds of $28.6 million through a private placement of common shares and pre-funded warrants.

Third Quarter 2020 Results Summary

Financial Results for the Three Months Ended September 30, 2020:

Revenues for the third quarter ended September 30, 2020 were $2.04 million, a 14.2% sequential increase from second quarter ended June 30, 2020, and a 9.3% increase from $1.87 million in revenues in the third quarter ended September 30, 2019.

Revenues generated during the third quarter ended September 30, 2020 were derived mainly from the sales of our products and from the offering of our membership plans to our customers in the U.S.

At the end of the third quarter ended September 30, 2020, we accumulated deferred income of $1.28 million that we expect to recognize during the next four fiscal quarters.

Gross profit in the third quarter ended September 30, 2020 was $549,000, a decrease of $324,000, or 37%, compared to gross profit of $873,000 in the third quarter ended September 30, 2019. This decrease is mainly a result of a decrease in the average selling prices of our products in the third quarter ended September 30, 2020.

Total operating expenses for the third quarter ended September 30, 2020 were $7.15 million, an increase of $3.48 million, or 94.7%, compared with $3.7 million for the third quarter ended September 30, 2019. The increase in operating expenses was mainly due to the increase in marketing expenses and an increase in equity-based compensation to directors, employees and service providers.

Operating loss for the third quarter ended September 30, 2020 was $6.6 million, an increase of $3.8 million, or 136%, compared to a $2.8 million operating loss in the third quarter ended September 30, 2019. This increase was mainly due to the decrease in our gross profit and an increase in our operating expenses.

Net loss was $6.55 million, or $0.71 per common share, in the third quarter ended September 30, 2020, compared to a net loss of $2.8 million, or $1.11 per common share, in the third quarter ended September 30, 2019.

The company had cash and cash equivalents totaling $37 million at September 30, 2020.

Non-GAAP billings for the three months ended September 30, 2020 were $2.06 million, a 15.5% increase from $1.78 million reported in the three months ended September 30, 2019.

Non-GAAP adjusted net loss for the three months ended September 30, 2020 was $4.74 million, a 122% increase from a $2.14 million non-GAAP adjusted net loss for the three months ended September 30, 2019.

A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Financial Results for the Nine Months Ended September 30, 2020:

Revenue for the nine months ended September 30, 2020 was $5.5 million, a 4.6% decrease from $5.76 million for the nine months ended September 30, 2019. This decrease is mainly a result of a decrease in our direct to consumer revenues in the first six months of 2020 compared to the first six months of 2019. During the nine months ended September 30, 2020, we recorded an additional $62,000 as deferred revenues from revenues generated from our membership offering to our customers in the U.S.

Gross profit of $1.96 million was recorded for the nine months ended September 30, 2020, an increase of 11.8%, or $207,000, compared to gross profit of $1.76 million for the nine months ended September 30, 2019. This increase is mainly a result of an increase in revenues generated from our membership offering and a corresponding decrease in product sales.

Total operating expenses for the nine months ended September 30, 2020 were $22.8 million, an increase of $7.5 million, or 49.2%, compared with $15.3 million for the nine months ended September 30, 2019. The increase in operating expenses was mainly due to the increase in marketing expenses and an increase in equity-based compensation to directors, employees and service providers.

Operating loss for the nine months ended September 30, 2020 increased by $7.3 million to $20.8 million, compared to a $13.5 million operating loss for the nine months ended September 30, 2019. This increase is mainly a result from an increase in our equity-based compensation.

Net loss was $20.45 million for the nine months ended September 30, 2020 compared to a net loss of $13.56 million for the nine months ended September 30, 2019. The reason for the was mainly due to an increase in operating expenses.

Non-GAAP billings for the nine months ended September 30, 2020 were $5.56 million, a 12.3% decrease from $6.34 million in the nine months ended September 30, 2019.

Non-GAAP adjusted net loss for the nine months ended September 30, 2020 was $11.7 million, a 2.2% increase from a $11.5 million non-GAAP adjusted net loss for the nine months ended September 30, 2019.

Conference Call Details: Thursday, November 12, 9:00am EDT

Dial-in Number: 844-369-8770

International Dial-in: 862-298-0840

Conference ID: DarioHealth Third Quarter 2020 Earnings Call and Webcast

Webcast: https://www.webcaster4.com/Webcast/Page/2224/38235

Participants are asked to dial-in approximately 10 minutes prior to the start of the event. A replay of the call will be available approximately two hours after completion through November 26, 2020. To listen to the replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and use replay passcode 38235. The webcast replay will be available through February 12, 2021.

About DarioHealth Corp.

DarioHealth Corp. (Nasdaq: DRIO) is a leading, global digital therapeutics company revolutionizing the way people with chronic conditions manage their health. By delivering evidence-based interventions that are driven by data, high-quality software and coaching, we empower individuals to make healthy adjustments to their daily lifestyle choices to improve their overall health. Our cross-functional team operates at the intersection of life sciences, behavioral science and software technology to deliver highly engaging therapeutic interventions. Dario is one of the highest-rated diabetes solutions in the market, and its user-centric MyDario™ mobile app is loved by tens of thousands of consumers around the globe. DarioHealth is rapidly moving into new chronic conditions and geographic markets, using a performance-based approach to improve the health of users managing chronic disease. To learn more about DarioHealth and its digital health solutions. For more information, visit https://www.dariohealth.com/.

Cautionary Note Regarding Forward-Looking Statements

This news release and the statements of representatives and partners of DarioHealth Corp. (the “Company”) related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as “plan,” “project,” “potential,” “seek,” “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate” or “continue” are intended to identify forward-looking statements. For example, the Company is using forward-looking statements in this press release when it discusses its belief that its consumer engagement metrics and open architecture are key differentiating factors relative to its competition that have resonated with customers and prospects alike, the growth of its sales pipeline, the belief that its ongoing investments in its U.S. commercial infrastructure have positioned Dario for a transformational year in 2021, that its liquidity is sufficient to invest in research and development, expand its portfolio of chronic diseases and build the necessary sales and marketing infrastructure to drive further penetration of the B2B2C channel and the belief that it is funded to achieve its goals in the coming quarters. Readers are cautioned that certain important factors may affect the Company’s actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. Factors that may affect the Company’s results include, but are not limited to, regulatory approvals, product demand, market acceptance, impact of competitive products and prices, product development, commercialization or technological difficulties, the success or failure of negotiations and trade, legal, social and economic risks, and the risks associated with the adequacy of existing cash resources. Additional factors that could cause or contribute to differences between the Company’s actual results and forward-looking statements include, but are not limited to, those risks discussed in the Company’s filings with the U.S. Securities and Exchange Commission. Readers are cautioned that actual results (including, without limitation, the timing for and results of the Company’s commercial and regulatory plans for Dario™ as described herein) may differ significantly from those set forth in the forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Non-GAAP Financial Measures

We have provided in this release financial information that has not been prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with peer companies, many of which present similar non-GAAP financial measures to investors.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables below.

Billings (non-GAAP). We define billings as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period and adjustment to the deferred revenue balance due to adoption of the new revenue recognition standard less any deferred revenue balances acquired from business combination(s) during the period. We consider billings to be a useful metric for management and investors because billings drive future revenue, which is an important indicator of the health and viability of our business. There are a number of limitations related to the use of billings instead of GAAP revenue. First, billings include amounts that have not yet been recognized as revenue and are impacted by the term of security and support agreements. Second, we may calculate billings in a manner that is different from peer companies that report similar financial measures. Management accounts for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with GAAP revenue.

Operating expenses (non-GAAP). Our presentation of non-GAAP operating expenses excludes stock-based compensation expenses. Due to varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company’s non-cash operating expenses, we believe that providing non-GAAP financial measures that exclude non-cash expense provides us with an important tool for financial and operational decision making and for evaluating our own core business operating results over different periods of time.

Net loss (non-GAAP). Our presentation of adjusted net loss excludes the effect of certain items that are non-GAAP financial measures. Adjusted net loss represents net loss determined under GAAP without regard to stock-based compensation expenses and depreciation of fixed assets. We believe these measures provide useful information to management and investors for analysis of our operating results.

DARIOHEALTH CORP.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands

	September 30,		December 31,
	2020		2019
	Unaudited
ASSETS

CURRENT ASSETS:
Cash and cash equivalents	$	36,907	$	20,395
Short-term restricted bank deposits		179		191
Trade receivables		543		672
Inventories		1,572		1,414
Other accounts receivable and prepaid expenses		629		267

Total current assets		39,830		22,939

NON-CURRENT ASSETS:
Deposits		20		17
Operating lease right of use assets		541		765
Long-term assets		176		200
Property and equipment, net		577		648

Total non-current assets		1,314		1,630

Total assets	$	41,144	$	24,569

DARIOHEALTH CORP.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except stock and stock data)

	September 30,		December 31,
	2020		2019
	Unaudited
LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:
Trade payables	$	1,999	$	1,656
Deferred revenues		1,285		1,223
Operating lease liabilities		285		317
Other accounts payable and accrued expenses		2,283		2,024

Total current liabilities		5,852		5,220

OPERATING LEASE LIABILITIES		258		455

STOCKHOLDERS’ EQUITY
Common Stock of $0.0001 par value – Authorized: 160,000,000 shares at September 30, 2020 (unaudited) and December 31, 2019; Issued and Outstanding: 7,892,308 and 2,235,649 shares at September 30, 2020 (unaudited) and December 31, 2019, respectively)		–		–
Preferred Stock of $0.0001 par value – Authorized: 5,000,000 shares at September 30, 2020 (unaudited) and December 31, 2019; Issued and Outstanding: 15,879 and 21,375 shares at September 30, 2020 (unaudited) and December 31, 2019, respectively		–		–
Additional paid-in capital		168,618		129,039
Accumulated deficit		(133,584)		(110,145)

Total stockholders’ equity		35,034		18,894

Total liabilities and stockholders’ equity	$	41,144	$	24,569


DARIOHEALTH CORP.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
U.S. dollars in thousands (except stock and stock data)

	Three months ended September 30				Nine months ended September 30
	2020		2019		2020		2019
	Unaudited				Unaudited
Revenues	$	2,042	$	1,868	$	5,496	$	5,761
Cost of revenues		1,493		995		3,532		4,004

Gross profit		549		873		1,964		1,757

Operating expenses:
Research and development	$	954	$	859	$	3,010	$	2,852
Sales and marketing		3,635		1,865		10,334		8,804
General and administrative		2,562		948		9,459		3,625

Total operating expenses		7,151		3,672		22,803		15,281

Operating loss		(6,602)		(2,799)		(20,839)		(13,524)

Total financial expenses (income), net		(52)		6		(391)		39
								–
Net loss	$	(6,550)	$	(2,805)	$	(20,448)	$	(13,563)

Deemed dividend	$	930	$	–	$	2,991	$	–

Net loss attributable to holders of Common Stock	$	(7,480)	$	(2,805)	$	(23,439)	$	(13,563)

Net loss per Common Stock:

Basic and diluted net loss per Common Stock	$	(0.71)	$	(1.11)	$	(2.95)	$	(5.52)
Weighted average number of shares of Common Stock used in computing basic and diluted net loss per Common Stock)		7,328,420		2,536,513		4,856,115		2,455,092

DARIOHEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands

	Nine months ended September 30,
	2020		2019
	Unaudited
Cash flows from operating activities:
Net loss	$	(20,448)	$	(13,563)
Adjustments required to reconcile net loss to net cash used in operating activities:
Stock-based compensation, common stock, and stock instead of cash compensation to directors, employees, consultants, and service providers		8,988		1,928
Depreciation		140		138
Change in operating lease right of use assets		224		160
Decrease (increase) in trade receivables		129		(351)
Decrease (increase) in accounts receivables and prepaid expenses and long-term assets		(338)		199
Increase in inventories		(158)		(96)
Increase (decrease) in trade payables		343		(1,168)
Increase (decrease) in other accounts payable and accrued expenses		311		(580)
Increase in deferred revenues		62		575
Change in operating lease liabilities		(229)		(115)

Net cash used in operating activities		(10,976)		(12,873)

Cash flows from investing activities:
Investment in deposit		(4)		(8)
Purchase of property and equipment		(69)		(79)

Net cash used in investing activities		(73)		(87)

Cash flows from financing activities:
Proceeds from issuance of Common Stock, warrants and warrant exercises, net of issuance costs		27,548		6,558

Net cash provided by financing activities		27,548		6,558

Increase (decrease) in cash, cash equivalents and short-term restricted bank deposits		16,499		(6,402)
Cash, cash equivalents and short-term restricted bank deposits at beginning of the period		20,535		11,126

Cash, cash equivalents and short-term restricted bank deposits at end of the period	$	37,034	$	4,724

Reconciliation of Revenue to Billing (Non-GAAP)
U.S. dollars in thousands

	Three Months Ended S eptember 30,		Nine Months Ended September 30,
	2020	2019	2020	2019

GAAP Revenue	$2,042	$1,868	$5,496	$5,761
Add:
Change in Deferred Revenue	$15	$(87)	$62	$575

Billings (Non-GAAP)	$2,057	$1,781	$5,558	$6,336

Reconciliation of Operating Loss, Net Loss and Operating Expenses to Adjusted
Operating Loss, Net Loss and Operating Expenses (Non-GAAP)
U.S. dollars in thousands

Three months ended September 30, 2020

	GAAP		Stock-Based Compensation Expenses		Depreciation of Fixed Assets and Deferred Inventory		Non-GAAP
Cost of Revenues	$	1,493	$	(4)	$	(29)	$	1,460
Gross Profit		549		4		29		582

Research and development		954		(145)		(6)		803
Sales and Marketing		3,635		(518)		(9)		3,108
General and Administrative		2,562		(1,143)		(4)		1,415
Total Operating Expenses		7,151		(1,806)		(19)		5,326
Operating Loss	$	(6,602)	$	1,810	$	48	$	(4,744)
Financing income		(52)						(52)
Net Loss	$	(6,550)	$	1,810	$	48	$	(4,692)

Three months ended September 30, 2019


	GAAP		Stock-Based Compensation Expenses		Depreciation of Fixed Assets		Non-GAAP
Cost of Revenues	$	995	$	(25)	$	(28)	$	942
Gross Profit		873		25		28		926

Research and development		859		(87)		(6)		766
Sales and Marketing		1,865		(136)		(9)		1,720
General and Administrative		948		(370)		(2)		576
Total Operating Expenses		3,672		(593)		(17)		3,062
Operating Loss	$	(2,799)	$	618	$	45	$	(2,136)
Financing expenses		6						6
Net Loss	$	(2,805)	$	618	$	45	$	(2,142)

Nine months ended September 30, 2020

	GAAP		Stock-Based Compensation Expenses		Depreciation of Fixed Assets		Non-GAAP
Cost of Revenues	$	3,532	$	(24)	$	(87)	$	3,421
Gross Profit		1,964		24		87		2,075

Research and development		3,010		(591)		(18)		2,401
Sales and Marketing		10,334		(2,267)		(25)		8,042
General and Administrative		9,459		(6,106)		(10)		3,343
Total Operating Expenses		22,803		(8,964)		(53)		13,786
Operating Loss	$	(20,839)	$	8,988	$	140	$	(11,711)
Financing income		(391)						(391)
Net Loss	$	(20,448)	$	8,988	$	140	$	(11,320)

Nine months ended September 30, 2019

	GAAP		Stock-Based Compensation Expenses		Depreciation of Fixed Assets		Non-GAAP
Cost of Revenues	$	4,004	$	(82)	$	(85)	$	3,837
Gross Profit		1,757		82		85		1,924

Research and development		2,852		(198)		(18)		2,636
Sales and Marketing		8,804		(231)		(28)		8,545
General and Administrative		3,625		(1,417)		(7)		2,201
Total Operating Expenses		15,281		(1,846)		(53)		13,382
Operating Loss	$	(13,524)	$	1,928	$	138	$	(11,458)
Financing expenses		6		–		–		6
Net Loss	$	(13,530)	$	1,928	$	138	$	(11,464)

DarioHealth Corporate Contact:
Claudia Levi
Content & Communications Manager
[email protected]
+1-347-767-4220

Media Inquiries:

Investor Relations Contact:
Chuck Padala
[email protected]
+1-646-627-8390

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SOURCE DarioHealth Corp.

November 12, 2020 6:33 am

BorgWarner Declares Quarterly Dividend

PR Newswire

AUBURN HILLS, Mich., Nov. 12, 2020 /PRNewswire/ — On November 11, 2020, the board of directors of BorgWarner Inc. (NYSE: BWA) declared a quarterly cash dividend of $0.17 per share of common stock. The dividend is payable on December 15, 2020 to shareholders of record on December 1, 2020.

BorgWarner Inc. (NYSE: BWA) is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Building on its original equipment expertise, BorgWarner also brings market leading product and service solutions to the global aftermarket. With manufacturing and technical facilities in 99 locations in 24 countries, the company employs approximately 48,000 worldwide. For more information, please visit borgwarner.com.

View original content to download multimedia:http://www.prnewswire.com/news-releases/borgwarner-declares-quarterly-dividend-301171367.html

SOURCE BorgWarner

November 12, 2020 6:33 am

Zhongchao Inc. and Takeda Pharmaceutical Expand Scope of Cooperation in China

PR Newswire

SHANGHAI, Nov. 12, 2020 /PRNewswire/– Zhongchao Inc. (NASDAQ: ZCMD) (“Zhongchao” or the “Company”), a healthcare services company offering patient management, online healthcare information, professional training and educational services, today announced that the Company and Takeda Pharmaceutical Company Limited (“Takeda”) agreed to expand their current scope of cooperation which now covers five of Takeda’s subsidiaries in China including the new addition of Baishen Biotechnology (Shanghai) Co., Ltd. Pursuant to the amended service agreement by and between Zhongchao and Takeda, Zhongchao shall continue to serve as Takeda’s vendor and partner in China, providing a broad range of services in medical editing, document collation, and medical training and education to Takeda.

Weiguang Yang, Chairman and Chief Executive Officer of Zhongchao, commented, “With over 50,000 employees and over $30 billion in revenues (for the fiscal year ended March 31, 2020), Takeda is a global biopharmaceutical leader and a Fortune Global 500 company. We are proud that we have been a vendor and partner in China for various medical training and education and brand building programs sponsored by Takeda since 2018. Takeda has established itself as a values-based, R&D-driven biopharma with strong presence in the Chinese market and recently announced that it plans to bring at least fifteen new drugs or indications into the Chinese market over the next 5 years – widely regarded as one of the most aggressive expansion plans in China by major pharmaceutical companies. With the renewal of the contract by Takeda with broadened scope of cooperation, we believe this represents a significant opportunity for us to further grow our business in years to come.”

About Takeda Pharmaceutical Company Limited

Takeda Pharmaceutical Company Limited (TSE:4502/NYSE:TAK)(“Takeda”) is a global, values-based, R&D-driven biopharmaceutical leader headquartered in Japan, committed to bringing Better Health and a Brighter Future to patients by translating science into highly-innovative medicines. Takeda focuses its R&D efforts on four therapeutic areas: Oncology, Rare Diseases, Neuroscience, and Gastroenterology (GI). Takeda also makes targeted R&D investments in Plasma-Derived Therapies and Vaccines. Takeda is focusing on developing highly innovative medicines that contribute to making a difference in people’s lives by advancing the frontier of new treatment options and leveraging our enhanced collaborative R&D engine and capabilities to create a robust, modality-diverse pipeline. Takeda is committed to improving quality of life for patients and to working with its partners in health care in approximately 80 countries. More information can be found at https://www.takeda.com.

About Zhongchao Inc.

Incorporated in 2012 with headquarter offices in Shanghai and Beijing, China, Zhongchao Inc. is an online provider of healthcare information, professional training and educational services to healthcare professionals under its “MDMOOC” platform (www.mdmooc.org) and to the public under its “Sunshine Health Forums” platform (www.ygjkclass.com) in China. The Company also offers patient management services under its “Zhongxun” platform (www.zhongxun.online). More information about the Company can be found at its investor relations website at http://izcmd.com.

Safe Harbor Statement

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may, “will, “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company’s goals and strategies; the Company’s future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the professional training and educational services market in China and the other international markets the Company plans to serve; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and the international markets the Company plans to serve and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the SEC, the length and severity of the recent coronavirus outbreak, including its impacts across our business and operations. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward
–
looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

At the Company:
Pei Xu, CFO
Email: [email protected]
Phone: +86 21-3220-5987

Investor Relations:
Sherry Zheng
Weitian Group LLC
Email: [email protected]
Phone: +1 718-213-7386

View original content:http://www.prnewswire.com/news-releases/zhongchao-inc-and-takeda-pharmaceutical-expand-scope-of-cooperation-in-china-301171065.html

SOURCE Zhongchao Inc.

November 12, 2020 6:33 am

Farfetch to Participate in Virtual Investor Conferences

Farfetch to Participate in Virtual Investor Conferences

LONDON–(BUSINESS WIRE)–
Farfetch Limited (NYSE: FTCH), the leading global platform for the luxury fashion industry, today announced its participation at the following virtual investor conferences.

Elliot Jordan, Chief Financial Officer, will present at:

Bank of America Consumer & Retail Virtual Conference, Thursday November 19, 2020 at 9:00 a.m. Eastern Time

Morgan Stanley Virtual European Technology, Media & Telecoms Conference, Friday November 20, 2020 at 8:35 a.m. Eastern Time

Credit Suisse 24th Annual Technology Conference, Wednesday December 2, 2020 at 10:10 a.m. Eastern Time

UBS Global TMT Virtual Conference, Monday December 7, 2020 at 8:25 a.m. Eastern Time

Luís Teixeira, Chief Operations Officer, will present at:

Bernstein Operational Decisions Conference, Tuesday November 17, 2020 at 9:00 a.m. Eastern Time

To access the live audio webcasts of each presentation, please visit http://farfetchinvestors.com. A replay of the webcasts will be available for 30 days following the live events at the same website.

About Farfetch

Farfetch Limited is the leading global platform for the luxury fashion industry. Founded in 2007 by José Neves for the love of fashion, and launched in 2008, Farfetch began as an e-commerce marketplace for luxury boutiques around the world. Today the Farfetch Marketplace connects customers in over 190 countries with items from more than 50 countries and over 1,300 of the world’s best brands, boutiques and department stores, delivering a truly unique shopping experience and access to the most extensive selection of luxury on a single platform. Farfetch’s additional businesses include Farfetch Platform Solutions, which services enterprise clients with e-commerce and technology capabilities; Browns and Stadium Goods, which offer luxury products to consumers; and New Guards Group, a platform for the development of global fashion brands. Farfetch also invests in innovations such as its Store of the Future augmented retail solution, and develops key technologies, business solutions, and services for the luxury fashion industry.

For more information, please visit www.farfetchinvestors.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112005499/en/

Investor Relations:

Alice Ryder

VP Investor Relations

[email protected]

Media:

Susannah Clark

VP Communications, Global

[email protected]

+44 7788 405224

Brunswick Group

[email protected]

US: +1 (212) 333 3810

UK: +44 (0) 207 404 5959

KEYWORDS: United Kingdom Europe

INDUSTRY KEYWORDS: Retail Online Retail Luxury Fashion

MEDIA:

Logo

November 12, 2020 6:33 am

Babcock & Wilcox Enterprises Reports Third Quarter 2020 Results

Babcock & Wilcox Enterprises Reports Third Quarter 2020 Results

– Revenues of $132.5 million

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

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

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

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

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

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

Management Commentary

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

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

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

New Segment Financial Reporting

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

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

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

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

Results of Operations

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

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

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

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

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

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

Financing, Liquidity and Balance Sheet

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

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

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

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

Earnings Call Information

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

COVID-19 Impact

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

Non-GAAP Financial Measures

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

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

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

Forward-Looking Statements

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

About B&W Enterprises

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

Exhibit 1

Babcock & Wilcox Enterprises, Inc.

Condensed Consolidated Statements of Operations⁽¹⁾

(In millions, except per share amounts)

Three months ended

September 30,

Nine months ended

September 30,

2020

2019

2020

2019

Revenues

$

132.5

$

198.6

$

416.5

$

678.7

Costs and expenses:

Cost of operations

75.2

158.3

292.7

563.2

Selling, general and administrative expenses

35.7

36.0

107.9

120.4

Advisory fees and settlement costs

3.8

4.5

10.1

22.9

Restructuring activities

2.4

2.6

6.7

9.6

Research and development costs

1.4

0.8

3.9

2.3

Gain on asset disposals, net

—

(0.3

)

(0.9

)

(0.2

)

Total costs and expenses

118.4

201.8

420.4

718.1

Operating income (loss)

14.1

(3.2

)

(3.9

)

(39.4

)

Other (expense) income:

Interest expense

(12.2

)

(29.5

)

(49.8

)

(67.4

)

Interest income

0.2

0.1

0.4

0.9

Loss on debt extinguishment

—

—

(6.2

)

(4.0

)

Loss on sale of business

—

—

(0.1

)

(3.6

)

Benefit plans, net

7.3

3.6

22.3

9.1

Foreign exchange

25.0

(26.7

)

22.7

(27.4

)

Other – net

(0.3

)

(0.3

)

(3.1

)

0.2

Total other income (expense)

20.0

(52.8

)

(13.7

)

(92.2

)

Income (loss) before income tax

(benefit) expense

34.1

(55.9

)

(17.6

)

(131.6

)

Income tax (benefit) expense

(0.5

)

1.0

(0.5

)

3.6

Income (loss) from continuing

operations

34.6

(57.0

)

(17.1

)

(135.2

)

Income from discontinued operations, net of tax

—

—

1.8

0.7

Net income (loss)

34.6

(57.0

)

(15.3

)

(134.5

)

Net loss attributable to non-controlling interest

0.2

—

0.4

0.1

Net income (loss) attributable to

stockholders

$

34.7

$

(57.0

)

$

(14.9

)

$

(134.4

)

Basic earnings (loss) per share – continuing

operations

$

0.70

$

(1.39

)

$

(0.35

)

$

(5.21

)

Basic earnings per share – discontinued operations

—

—

0.04

0.03

Basic earnings (loss) per share

$

0.70

$

(1.39

)

$

(0.31

)

$

(5.18

)

Diluted earnings (loss) per share – continuing

operations

$

0.69

$

(1.39

)

$

(0.35

)

$

(5.21

)

Diluted earnings per share – discontinued

operations

—

—

0.04

0.03

Diluted earnings (loss) per share

$

0.69

$

(1.39

)

$

(0.31

)

$

(5.18

)

Shares used in the computation of earnings per share:

Basic

49.5

40.9

47.6

26.0

Diluted

50.1

40.9

47.6

26.0

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

Exhibit 2

Babcock & Wilcox Enterprises, Inc.

Condensed Consolidated Balance Sheets⁽¹⁾

(In millions, except per share amount)

September 30, 2020

December 31, 2019

Cash and cash equivalents

$

38.9

$

43.8

Restricted cash and cash equivalents

9.4

13.2

Accounts receivable – trade, net

126.8

142.2

Accounts receivable – other

52.1

23.3

Contracts in progress

73.9

91.6

Inventories

67.0

63.1

Other current assets

20.6

27.0

Current assets held for sale

4.8

8.1

Total current assets

393.6

412.2

Net property, plant and equipment, and finance lease

88.6

97.1

Goodwill

47.1

47.2

Intangible assets

23.7

25.3

Right-of-use assets

10.3

12.5

Other assets

34.9

25.0

Non-current assets held for sale

7.5

7.3

Total assets

$

605.8

$

626.5

Revolving credit facilities

—

179.0

Last out term loans

—

104.0

Financing lease liabilities

0.9

—

Accounts payable

80.0

109.9

Accrued employee benefits

17.4

18.3

Advance billings on contracts

54.0

75.3

Accrued warranty expense

26.8

33.4

Operating lease liabilities

4.0

4.3

Other accrued liabilities

86.8

68.8

Current liabilities held for sale

6.9

9.5

Total current liabilities

276.7

602.5

Revolving credit facilities

181.9

—

Last out term loans

173.3

—

Pension and other accumulated postretirement benefit liabilities

236.4

259.3

Non-current finance lease liabilities

29.9

30.5

Non-current operating lease liabilities

6.4

8.4

Other non-current liabilities

21.9

20.9

Non-current liabilities held for sale

—

—

Total liabilities

926.5

921.5

Commitments and contingencies

Stockholders’ deficit:

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

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

December 31, 2019, respectively

4.8

4.7

Capital in excess of par value

1,157.8

1,142.6

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

(106.0

)

(105.7

)

Accumulated deficit

(1,354.8

)

(1,339.9

)

Accumulated other comprehensive income (loss)

(23.4

)

1.9

Stockholders’ deficit attributable to shareholders

(321.7

)

(296.4

)

Non-controlling interest

0.9

1.4

Total stockholders’ deficit

(320.8

)

(294.9

)

Total liabilities and stockholders’ deficit

$

605.8

$

626.5

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

Exhibit 3

Babcock & Wilcox Enterprises, Inc.

Condensed Consolidated Statements of Cash Flows⁽¹⁾

(In millions)

Nine months ended September 30,

2020

2019

Cash flows from operating activities:

Net loss

$

(15.3

)

$

(134.5

)

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

Depreciation and amortization of long-lived assets

12.3

19.1

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

16.0

42.2

Amortization of guaranty fee

0.7

—

Non-cash operating lease expense

3.6

4.1

Loss on sale of business

0.1

3.6

Loss on debt extinguishment

6.2

4.0

(Gains) losses on asset disposals and impairments

(0.9

)

(0.2

)

Benefit from deferred income taxes, including valuation allowances

(0.8

)

(0.7

)

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

(0.7

)

(0.1

)

Stock-based compensation, net of associated income taxes

3.3

1.8

Changes in assets and liabilities:

Accounts receivable

28.6

41.3

Accrued insurance receivable

(26.0

)

—

Contracts in progress

21.6

23.1

Advance billings on contracts

(23.2

)

(68.1

)

Inventories

(4.9

)

(6.6

)

Income taxes

(4.8

)

1.6

Accounts payable

(33.5

)

(71.3

)

Accrued and other current liabilities

9.9

(21.1

)

Accrued non-cash interest expense

11.9

—

Accrued contract loss

(5.3

)

(49.8

)

Pension liabilities, accrued postretirement benefits and employee benefits

(25.9

)

(5.8

)

Other, net

(40.3

)

16.2

Net cash used in operating activities

(67.3

)

(201.1

)

Cash flows from investing activities:

Purchase of property, plant and equipment

(2.3

)

(1.6

)

Proceeds from sale of business

8.0

7.4

Purchases of available-for-sale securities

(19.1

)

(3.5

)

Sales and maturities of available-for-sale securities

14.6

5.1

Other, net

0.8

(0.4

)

Net cash from investing activities

2.0

7.1

Cash flows from financing activities:

Borrowings under our U.S. revolving credit facility

126.3

251.9

Repayments of our U.S. revolving credit facility

(123.4

)

(205.1

)

Borrowings under Last Out Term Loans

60.0

151.4

Repayments under Last Out Term Loans

—

(41.8

)

Repayments under our foreign revolving credit facilities

—

(0.6

)

Shares of our common stock returned to treasury stock

(0.3

)

—

Proceeds from rights offering

—

40.4

Costs related to rights offering

—

(0.7

)

Debt issuance costs

(10.3

)

(15.5

)

Issuance of common stock

—

1.4

Other, net

0.1

(0.3

)

Net cash from financing activities

52.4

181.0

Effects of exchange rate changes on cash

4.4

(4.0

)

Net decrease in cash, cash equivalents and restricted cash

(8.6

)

(16.9

)

Cash, cash equivalents and restricted cash, beginning of period

56.9

60.3

Cash, cash equivalents and restricted cash, end of period

$

48.4

$

43.3

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

Exhibit 4

Babcock & Wilcox Enterprises, Inc.

Segment Information⁽¹⁾

(In millions)

SEGMENT RESULTS

Three months ended

September 30,

Nine months ended

September 30,

2020

2019

2020

2019

REVENUES:

Babcock & Wilcox Renewable

$

39.1

$

51.3

$

118.6

$

158.9

Babcock & Wilcox Environmental

25.3

45.0

76.4

234.5

Babcock & Wilcox Thermal

70.0

108.2

223.9

315.6

Eliminations

(1.8

)

(5.8

)

(2.4

)

(30.3

)

$

132.5

$

198.6

$

416.5

$

678.7

ADJUSTED EBITDA:

Babcock & Wilcox Renewable

$

23.6

$

(0.6

)

$

22.0

$

(4.2

)

Babcock & Wilcox Environmental

1.1

1.8

(0.1

)

2.5

Babcock & Wilcox Thermal

7.3

12.9

22.7

35.0

Corporate

(4.9

)

(3.1

)

(12.9

)

(17.0

)

Research and development costs

(1.4

)

(0.8

)

(3.9

)

(2.3

)

$

25.6

$

10.1

$

27.8

$

14.0

AMORTIZATION EXPENSE:

Babcock & Wilcox Renewable ⁽²⁾

$

0.1

$

0.1

$

0.5

$

0.5

Babcock & Wilcox Environmental

0.8

0.8

2.3

2.5

Babcock & Wilcox Thermal ⁽²⁾

0.4

0.1

1.3

0.3

$

1.3

$

1.0

$

4.1

$

3.3

DEPRECIATION EXPENSE:

Babcock & Wilcox Renewable

$

0.7

$

1.0

$

2.3

$

3.7

Babcock & Wilcox Environmental

0.4

0.4

1.4

1.6

Babcock & Wilcox Thermal

1.5

2.9

4.5

10.5

Corporate

—

—

—

—

$

2.7

$

4.3

$

8.2

$

15.8

As of September 30,

BACKLOG:

2020

2019

Babcock & Wilcox Renewable ⁽³⁾

$

196

$

207

Babcock & Wilcox Environmental

107

112

Babcock & Wilcox Thermal

208

161

Other/Eliminations

(2

)

(7

)

$

509

$

473

⁽¹⁾

Figures may not be clerically accurate due to rounding.

⁽²⁾

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

⁽³⁾

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

Exhibit 5

Babcock & Wilcox Enterprises, Inc.

Reconciliation of Adjusted EBITDA⁽²⁾

(In millions)

Three months ended

September 30,

Nine months ended

September 30,

2020

2019

2020

2019

Adjusted EBITDA

B&W Renewable segment

$

23.6

$

(0.6

)

$

22.0

$

(4.2

)

B&W Environmental segment

1.1

1.8

(0.1

)

2.5

B&W Thermal segment

7.3

12.9

22.7

35.0

Corporate

(4.9

)

(3.1

)

(12.9

)

(17.0

)

Research and development costs

(1.4

)

(0.8

)

(3.9

)

(2.3

)

25.6

10.1

27.8

14.0

Restructuring activities

(2.4

)

(2.6

)

(6.7

)

(9.6

)

Financial advisory services

(1.7

)

(1.2

)

(3.2

)

(8.4

)

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

—

—

—

(6.6

)

Advisory fees for settlement costs and liquidity planning

(1.4

)

(2.8

)

(5.2

)

(7.4

)

Litigation legal costs

(0.8

)

(0.5

)

(1.8

)

(0.5

)

Stock compensation

(1.2

)

(1.3

)

(3.1

)

(2.1

)

Loss from business held for sale

(0.1

)

—

(0.4

)

—

Depreciation & amortization

(4.1

)

(5.3

)

(12.3

)

(19.1

)

Gain on asset disposals, net

—

0.3

0.9

0.2

Operating income (loss)

14.1

(3.2

)

(3.9

)

(39.4

)

Interest expense, net

(12.0

)

(29.4

)

(49.3

)

(66.6

)

Loss on debt extinguishment

—

—

(6.2

)

(4.0

)

Loss on sale of business

—

—

(0.1

)

(3.6

)

Net pension benefit before MTM

7.3

3.6

22.3

10.4

MTM loss from benefit plans

—

—

—

(1.3

)

Foreign exchange

25.0

(26.7

)

22.7

(27.4

)

Other – net

(0.3

)

(0.3

)

(3.1

)

0.2

Total other income (expense)

20.0

(52.8

)

(13.7

)

(92.2

)

Income (loss) before income tax (benefit)

expense

34.1

(55.9

)

(17.6

)

(131.6

)

Income tax (benefit) expense

(0.5

)

1.0

(0.5

)

3.6

Income (loss) from continuing operations

34.6

(57.0

)

(17.1

)

(135.2

)

Income from discontinued operations, net of tax

—

—

1.8

0.7

Net income (loss)

34.6

(57.0

)

(15.3

)

(134.5

)

Net loss attributable to non-controlling interest

0.2

—

0.4

0.1

Net income (loss) attributable to stockholders

$

34.7

$

(57.0

)

$

(14.9

)

$

(134.4

)

⁽¹⁾

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

⁽²⁾

Figures may not be clerically accurate due to rounding.

Exhibit 6

Babcock & Wilcox Enterprises, Inc.

Reconciliation of Adjusted Gross Profit (Loss)⁽²⁾

(In millions)

Three months ended

September 30,

Nine months ended

September 30,

2020

2019

2020

2019

Adjusted gross profit (loss) ⁽¹⁾

Operating income (loss)

$

14.1

$

(3.2

)

$

(3.9

)

$

(39.4

)

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

35.6

35.8

107.6

120.0

Advisory fees and settlement costs

3.8

4.5

10.1

22.9

Amortization expense

1.4

1.0

4.1

3.3

Restructuring activities

2.4

2.6

6.7

9.6

Research and development costs

1.4

0.8

3.9

2.3

Losses (gains) on asset disposals, net

—

(0.3

)

(0.9

)

(0.2

)

Adjusted gross profit (loss)

58.6

41.2

127.7

118.4

Adjusted gross profit by segment is as follows:

Three months ended

September 30,

Nine months ended

September 30,

2020

2019

2020

2019

Adjusted gross profit (loss) ⁽¹⁾

B&W Renewable segment

32.1

6.6

48.4

19.3

B&W Environmental segment

5.9

9.0

15.5

33.6

B&W Thermal segment

20.6

25.6

63.8

65.5

Adjusted gross profit (loss)

58.6

41.2

127.7

118.4

⁽¹⁾

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

⁽²⁾

Figures may not be clerically accurate due to rounding.

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

Investors:

Megan Wilson

Vice President, Corporate Development & Investor Relations

Babcock & Wilcox Enterprises

704.625.4944 | [email protected]

Media:

Ryan Cornell

Public Relations

Babcock & Wilcox Enterprises

330.860.1345 | [email protected]

KEYWORDS: United States North America Ohio

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

MEDIA:

Logo

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

Utz Brands to Acquire ON THE BORDER^® Tortilla Chips

Expands Position in Attractive Tortilla Chip Sub-Category

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

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

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

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

Strategic Rationale

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

Compelling Financial Benefits

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

Transaction Details

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

Conference Call and Webcast Information

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

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

Advisors

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

About Utz Brands, Inc.

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

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

About Truco Enterprises

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

About Non-GAAP Financial Measures and Items Affecting Comparability

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

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

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

Forward-Looking Statements

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

___________________________

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

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

Media Contacts

Marie Espinel, Katie Lewis or Hannah Arnold

The LAKPR Group

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

Investor Contact

Chris Mandeville and Anna Kate Heller

ICR

[email protected]

203-682-8304

KEYWORDS: Pennsylvania United States North America

INDUSTRY KEYWORDS: Supermarket Retail Convenience Store Food/Beverage

MEDIA:

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

Radian Honored with MBA Diversity and Inclusion Leadership Award

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

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

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

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

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

Recent Inclusion and Diversity Highlights at Radian

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

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

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

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

About Radian’s Corporate Responsibility Program

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

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

About Radian

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

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

For the Media:

Rashi Iyer – Phone: 215.231.1167

Email: [email protected]

For Investors:

John Damian – Phone: 215.231.1383

Email: [email protected]

KEYWORDS: Pennsylvania United States North America

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

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

Second

Qua

rter 20

20

vs. Restated

Second

Quarter 201

9

Revenue of $19.7 million compared to $20.1 million;

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

Gross margin was 13.1% compared to 11.2%;

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

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

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

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

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

Six Months 2020 vs. Restated Six Months 2019

Revenue of $36.6 million compared to $42.1 million;

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

Gross margin of 9.0% compared to 11.2%;

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

Loss per share of $0.29 compared to $0.15;

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

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

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

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

Conference Call

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

About CPI Aero

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

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

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

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

CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

June 30, December 31,

2020

(Unaudited) 2019

ASSETS

Current Assets:

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

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

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

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

Inventory 7,658,508 5,891,386

Refundable income taxes 36,973 474,904

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

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

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

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

Intangibles, net 312,500 375,000

Goodwill 1,784,254 1,784,254

Other assets 123,013 179,068

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

LIABILITIES AND SHAREHOLDERS’ DEFICIT

Current Liabilities:

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

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

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

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

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

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

Income tax payable 1,216 1,216

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

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

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

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

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

Shareholders’ Deficit:

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

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

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

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

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

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

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

For the Three Months Ended

J
une 30
,

2020 2019

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

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

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

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

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

Interest expense 360,126 575,412

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

Provision for income taxes 1,522 1,636

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

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

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

Shares used in computing loss per common share:

Basic 11,855,404 11,817,713

Diluted 11,855,404 11,817,713

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

About Avaya

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

About RingCentral

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

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

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

Cautionary Note Regarding Forward-Looking Statements

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

Source: Avaya Newsroom

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

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

For Avaya Media Inquiries:

Alex Alias

[email protected]

RingCentral media inquiries:

Jyotsna Grover

[email protected]

KEYWORDS: California Europe United States North America

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

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

Armed Forces Services Corporation (AFSC) Rebrands as Magellan Federal

Initiative elevates commitment to reflect alignment in name and mission.

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

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

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

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

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

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

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

(MGLN-GEN)

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

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

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

KEYWORDS: United States North America Arizona

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

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