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Limbach Holdings Reports Third Quarter 2020 Results

Third Quarter 2020 Revenue Increases 10.6% over prior year; Diluted EPS of $0.31; Third Quarter Net Cash Provided by Operating Activities of $12.8 million

Increasing Adjusted EBITDA Guidance for Fiscal 2020

Conference Call Scheduled for 10:00 am ET on November 12, 2020

PITTSBURGH–(BUSINESS WIRE)–
Limbach Holdings, Inc. (Nasdaq: LMB) (“Limbach” or the “Company”) today announced its financial results for the quarter ended September 30, 2020. Revenue for the third quarter increased 10.6% from the prior year period to $163.9 million. Gross margin in the quarter was 14.8%, an increase of 235 basis points as compared to the same period during fiscal year 2019. Greater gross profit combined with moderate growth in selling, general and administrative expenses resulted in net income of $2.5 million and Adjusted EBITDA of $8.8 million which reflects Adjusted EBITDA growth of more than twice the prior year period amount. The Company generated strong cash flow, with net cash provided by operating activities of $12.8 million in the quarter.

The following are key financial highlights of the third quarter. All comparisons are to the third quarter of 2019, unless noted otherwise.

• Construction segment revenue of $130.5 million increased 10.2% driven by growth in the Michigan, Ohio, and New England operating regions, offset by revenue declines in the Florida, Southern California and Eastern Pennsylvania regions. Service segment revenue of $33.4 million increased 12.3%, driven by growth in the Florida, Mid-Atlantic and Western Pennsylvania regions, offset by a revenue decline in the Michigan region.
• Gross margin increased to 14.8% from 12.4%, primarily as a result of improved project execution in the Construction segment and improved pricing and business mix in the Service segment. Gross margin in the Service segment was 27.9% representing an increase of 360 basis points.
• SG&A expense in the third quarter increased approximately $0.4 million to $17.0 million as compared to $16.6 million as the Company continued to invest in Service segment and owner-direct sales and execution resources. That growth in SG&A expense was offset by a decline in Construction segment and Corporate SG&A which reflects the continuing effort to identify cost reductions undertaken earlier in the calendar year. As a percent of revenue, SG&A expense was 10.4% as compared to 11.2%.
• Interest expense was $2.2 million in the third quarter of 2020 as compared to $1.8 million as the Company paid higher interest rates under the Company’s term loan following the execution in the third quarter of 2019 of an amendment to its credit facility.
• Net income in the third quarter was $2.5 million compared with a net loss of $(3.0) million. Diluted EPS increased to $0.31 as compared to $(0.39).
• Net cash provided by operating activities was $12.8 million in the third quarter, as compared to net cash used in operating activities of $(1.9) million.
• Total backlog at September 30, 2020 was $469.3 million as compared to $470.6 million as of June 30, 2020 and $561.2 million as of December 31, 2019. At September 30, 2020, Construction segment backlog accounted for $407.5 million of the consolidated total. Service segment backlog accounted for $61.8 million of the consolidated total.

Charlie Bacon, Limbach’s President and Chief Executive Officer, said, “Overall, we experienced a more normalized operating environment during the third quarter. Our strong performance on a consolidated basis reflected continuing improvement in execution in the Construction segment. We expect that dynamic to continue over the coming quarters as older, lower-margin projects are completed and are replaced with higher margin opportunities that better reflect our enhanced risk management paradigm. We’re pleased with the quality and quantity of the mid-size and large project opportunities we are negotiating and booking into backlog and remain disciplined about project selection. We also generated sequential growth in the Service segment where the impact from COVID-19 had been most significant earlier this year. The velocity we experienced in the Service segment this quarter better reflects what we consider to be a run-rate level of activity, and we’re obviously pleased with the continued expansion in margins.”

Mr. Bacon continued, “We also saw another quarter of cash flow generation and improvement in working capital and liquidity. Our quarter-end cash balance increased 37.4% sequentially to $39.6 million, and we again finished the quarter undrawn on the revolver other than to support certain standby letters of credit. Strengthening the balance sheet has been a core initiative all year and will remain so as we enter the winter season and prepare to confront a number of economic, political and public-health uncertainties. Despite these continued distractions, our employees persevered to generate solid financial and operating performance during the quarter and remain well focused on working safely. Given our performance on a year-to-date basis, we are increasing our Adjusted EBITDA guidance from a range of $22-24 million to a range of $23-26 million. We’re maintaining revenue guidance of $560-600 million. We’re excited to carry this momentum through the balance of the year and into 2021.”

Third Quarter 2020 Summary

Revenue

Third quarter 2020 revenue increased 10.6% to $163.9 million compared to $148.1 million in the prior year period. Revenue for the third quarter of 2019 is “As Recast” to reflect the adoption of ASC Topic 606, which amends the existing accounting standards for revenue recognition and establishes principles for recognizing revenue upon the transfer of promised goods or services to customers based on the expected consideration to be received in exchange for those goods or services.

Construction segment of $130.5 million increased 10.2% driven by growth in the Michigan, Ohio and New England operating regions mainly as a result of the start of new projects and the continuation of work on existing projects. These increases were partially offset by revenue decreases in the Florida operating region largely due to project shutdowns due to COVID-19, planned reductions in revenue in the Southern California region and a decrease in revenue in the Eastern Pennsylvania region due to the substantial completion of projects in the third quarter of 2020 compared to the same prior year quarter. Service segment revenue of $33.4 million represented an increase of 12.3% over the third quarter of 2019, driven by growth in the Florida, Mid-Atlantic and Western Pennsylvania regions, offset by a revenue decline in the Michigan region.

Gross Profit

Total gross margin for the quarter was 14.8% as compared to 12.4% in last year’s third quarter. Gross profit for the third quarter of 2019 is “As Recast” to reflect the adoption of ASC Topic 606. In the current period, gross profit in the Construction segment increased by 33.2% driven by higher margins and a reduction in project write-downs. Gross profit in the Service segment increased by 29.0% as a result of more favorable project pricing across most lines of business which remains a key focus area.

Gross profit was negatively impacted by the recognition of net project write-downs of $2.4 million, approximately two-thirds of which are related to previously addressed projects in the Southern California region. That net project adjustment was more favorable than the net project adjustment recognized in the prior year period which also included write-downs on several projects in the Southern California operating region.

SG&A Expense

SG&A expense for the third quarter was $17.0 million compared to $16.6 million in the prior year period. The increase of approximately $0.4 million resulted from an increase of $2.1 million in higher performance-based compensation expense due to the Company’s current year-to-date performance, offset by expense reductions in payroll, travel and entertainment, and other Corporate categories. As a percent of total revenue, SG&A expense for the third quarter declined to 10.4% from 11.2% in the prior year period.

Net Income

Net income was $2.5 million compared to a net loss of $(3.0) million in the prior year period. Net loss for the third quarter of 2019 is “As Recast” to reflect the adoption of ASC Topic 606. Net income per basic and diluted share for the third quarter was $0.32 and $0.31, respectively, compared to a net loss per share of $(0.39) for both basic and diluted for the prior year period.

Adjusted EBITDA

Adjusted EBITDA for the third quarter was $8.8 million as compared to $3.8 million in the prior year period, an increase of 130.4%. Adjusted EBITDA for the third quarter of 2019 is “As Recast” to reflect the adoption of ASC Topic 606. The increase in Adjusted EBITDA was primarily attributable to the increased revenue and gross margins in both the Construction and Service segments during the third quarter of 2020, offset by a moderate increase in SG&A expense.

Backlog and Remaining Performance Obligations

Total backlog at September 30, 2020 was $469.3 million as compared to $561.2 million as of December 31, 2019. At September 30, 2020, Construction segment backlog accounted for $407.5 million of the consolidated total, a decrease of 19.2% as compared to Construction segment backlog at December 31, 2019 of $504.2 million. Service segment backlog accounted for $61.8 million of the consolidated total, an increase of 8.4% as compared to Service segment backlog of $57.0 million at December 31, 2019.

Backlog includes unexercised contract options which are not included in the Company’s remaining performance obligations. At September 30, 2020, remaining performance obligations of the Company’s Construction and Service segment contracts were $407.5 million and $47.6 million, respectively. At December 31, 2019, remaining performance obligations of the Company’s Construction and Service segment contracts were $504.2 million and $41.9 million, respectively.

Balance Sheet

At September 30, 2020, the Company had current assets of $237.7 million and current liabilities of $187.0 million, representing a current ratio of 1.27x. Working capital was $50.7 million at September 30, 2020, an increase of $12.2 million from December 31, 2019. The Company had no borrowings against its $14.0 million revolving credit facility at September 30, 2020, other than for standby letters of credit totaling $3.4 million.

2020 Guidance

The Company announces the following updated guidance for 2020:

		Current		Previous
Revenue		$560 million – $600 million		$560 million – $600 million
Adjusted EBITDA		$23 million – $26 million		$22 million – $24 million

In addition to the risks and uncertainties identified under “Forward-Looking Statements,” the Company’s 2020 guidance is estimated based on the assumption that any impact on the Company in the fourth quarter of the year from a resurgence of COVID-19 is no more extensive or impactful than what Limbach and the construction industry in the United States experienced in the third quarter of fiscal year 2020.

With respect to projected fiscal year 2020 Adjusted EBITDA, a quantitative reconciliation is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to taxes and other items, which are excluded from Adjusted EBITDA. We expect the variability of this item to have a potentially unpredictable, and potentially significant, impact on our future financial results.

Conference Call Details
Date:	Thursday, November 12, 2020
Time:	10:00 a.m. Eastern Time
Participant Dial-In Numbers:
Domestic callers:	(866) 604-1698
International callers:	(201) 389-0844

Access by Webcast

The call will also be simultaneously webcast over the Internet via the “Investor Relations” section of LMB’s website at www.limbachinc.com or by clicking on the conference call link: https://78449.themediaframe.com/dataconf/productusers/lmb/mediaframe/41132/indexl.html. An audio replay of the call will be archived on the Company’s website for 365 days.

About Limbach

Founded in 1901, Limbach is the 8^th largest mechanical systems solutions firm and 44^th largest specialty contractor in the United States as determined by Engineering News Record. Limbach provides building infrastructure services, with an expertise in the design, installation and maintenance of HVAC and mechanical, electrical, and plumbing systems for a diversified group of commercial and institutional building owners. Limbach employs more than 1,700 employees in 22 offices throughout the United States. The Company’s full life-cycle capabilities, from concept design and engineering through system commissioning and recurring 24/7 service and maintenance, position Limbach as a value-added and essential partner for building owners, construction managers, general contractors and energy service companies.

Recast Presentation for 2019

As noted, Revenue for the third quarter of 2019 is “As Recast” to reflect the adoption of ASC Topic 606, which amends the existing accounting standards for revenue recognition and establishes principles for recognizing revenue upon the transfer of promised goods or services to customers based on the expected consideration to be received in exchange for those goods or services. For more information, including reconciliation related to the As Recast Revenue numbers, please refer to our periodic filings, which are available on the SEC’s website (www.sec.gov).

Forward-Looking Statements

We make forward-looking statements in this press release within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations or forecasts for future events, including, without limitation, our earnings, adjusted EBITDA, revenues, expenses, backlog, capital expenditures or other future financial or business performance or strategies, results of operations or financial condition, and in particular statements regarding the impact of the COVID-19 pandemic on the construction industry in the fourth quarter and future periods, timing of the recognition of backlog as revenue, the potential for recovery of cost overruns, and the ability of the Company to successfully remedy the issues that have led to write-downs in various business units. These statements may be preceded by, followed by or include the words “may,” “might,” “will,” “will likely result,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “continue,” “target” or similar expressions. These forward-looking statements are based on information available to us as of the date they were made and involve a number of risks and uncertainties which may cause them to turn out to be wrong. Some of these risks and uncertainties may in the future be amplified by the COVID-19 outbreak and there may be additional risks that we consider immaterial or which are unknown. Additionally, our revised “2020 Guidance” is inherently forward looking, and is subject to a number of risks and uncertainties and assumptions which may ultimately cause that guidance to be different than we project. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Please refer to our most recent annual report on Form 10-K, as well as our subsequent filings on Form 10-Q and Form 8-K, which are available on the SEC’s website (www.sec.gov), for a full discussion of the risks and other factors that may impact any forward-looking statements in this press release.

LIMBACH HOLDINGS, INC. Condensed Consolidated Statements of Operations (Unaudited)
		Three months ended September 30,										Nine months ended September 30,
		2020					2019					2020					2019
(in thousands, except share and per share data)							(As Recast)										(As Recast)
Revenue		$	163,856				$	148,119				$	437,813				$	414,469
Cost of revenue		139,685					129,746					375,083					358,778
Gross profit		24,171					18,373					62,730					55,691
Operating expenses:
Selling, general and administrative expenses		17,045					16,568					47,596					49,691
Amortization of intangibles		109					149					526					499
Total operating expenses		17,154					16,717					48,122					50,190
Operating income		7,017					1,656					14,608					5,501
Other income (expenses):
Interest expense, net		(2,154		)			(1,759		)			(6,449		)			(4,190		)
Gain on disposition of property and equipment		3					17					18					38
Loss on debt extinguishment		—					—					—					(513		)
Gain (loss) on change in fair value of warrant liability		(1,371		)			525					(1,312		)			422
Impairment of goodwill		—					(4,359		)			—					(4,359		)
Total other expenses		(3,522		)			(5,576		)			(7,743		)			(8,602		)
Income (loss) before income taxes		3,495					(3,920		)			6,865					(3,101		)
Income tax provision (benefit)		970					(942		)			1,445					(681		)
Net income (loss)		$	2,525				$	(2,978	)			$	5,420				$	(2,420	)
Earnings Per Share (“EPS”)
Income (loss) per common share:
Basic		$	0.32				$	(0.39	)			$	0.69				$	(0.32	)
Diluted		$	0.31				$	(0.39	)			$	0.68				$	(0.32	)
Weighted average number of shares outstanding:
Basic		7,890,074					7,673,517					7,844,587					7,653,372
Diluted		8,107,149					7,673,517					7,969,857					7,653,372

LIMBACH HOLDINGS, INC. Condensed Consolidated Balance Sheets
(Unaudited)	September 30,					December 31,
(in thousands, except share and per share data)	2020					2019
ASSETS
Current assets
Cash and cash equivalents	$	39,600				$	8,344
Restricted cash	113					113
Accounts receivable, net	124,839					105,067
Contract assets	68,576					77,188
Income tax receivable	685					494
Other current assets	3,908					4,174
Total current assets	237,721					195,380
Property and equipment, net	20,582					21,287
Intangible assets, net	11,785					12,311
Goodwill	6,129					6,129
Operating lease right-of-use assets	19,533					21,056
Deferred tax asset	4,575					4,786
Other assets	461					668
Total assets	$	300,786				$	261,617
LIABILITIES
Current liabilities
Current portion of long-term debt	$	6,612				$	4,425
Current operating lease liabilities	3,875					3,750
Accounts payable, including retainage	88,962					86,267
Contract liabilities	61,085					42,370
Accrued income taxes	1,959					12
Accrued expenses and other current liabilities	24,508					20,045
Total current liabilities	187,001					156,869
Long-term debt	37,462					38,868
Long-term operating lease liabilities	16,402					18,247
Other long-term liabilities	6,794					763
Total liabilities	247,659					214,747
Commitments and contingencies
STOCKHOLDERS’ EQUITY
Common stock, $0.0001 par value; 100,000,000 shares authorized, 7,894,202 issued and outstanding at September 30, 2020 and 7,688,958 at December 31, 2019	1					1
Additional paid-in capital	57,394					56,557
Accumulated deficit	(4,268		)			(9,688		)
Total stockholders’ equity	53,127					46,870
Total liabilities and stockholders’ equity	$	300,786				$	261,617

LIMBACH HOLDINGS, INC. Condensed Consolidated Statements of Cash Flows (Unaudited)
	Nine months ended September 30,
	2020					2019
(in thousands)						(As Recast)
Cash flows from operating activities:
Net income (loss)	$	5,420				$	(2,420	)
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Depreciation and amortization	4,635					4,234
Impairment of goodwill	—					4,359
Provision for doubtful accounts	62					104
Stock-based compensation expense	739					1,373
Noncash operating lease expense	3,033					2,789
Amortization of debt issuance costs	1,620					901
Deferred income tax (benefit) provision	211					(775		)
Gain on sale of property and equipment	(18		)			(38		)
Loss on debt extinguishment	—					513
Gain on change in fair value of warrant liability	1,312					(422		)
Changes in operating assets and liabilities:
Accounts receivable	(19,834		)			(5,223		)
Contract assets	8,612					(15,768		)
Other current assets	270					29,733
Accounts payable, including retainage	2,695					(1,406		)
Prepaid income taxes	(192		)			77
Accrued taxes payable	1,947					63
Contract liabilities	18,715					(6,826		)
Operating lease liabilities	(3,229		)			(2,789		)
Accrued expenses and other current liabilities	8,925					(25,961		)
Other long-term liabilities	306					(102		)
Net cash provided by (used in) operating activities	35,229					(17,584		)
Cash flows from investing activities:
Proceeds from sale of property and equipment	65					148
Advances (to) from joint ventures	(3		)			3
Purchase of property and equipment	(1,116		)			(2,192		)
Net cash used in investing activities	(1,054		)			(2,041		)
Cash flows from financing activities:
Increase in bank overdrafts	—					6,102
Payments on Credit Agreement term loan	—					(14,335		)
Proceeds from Credit Agreement revolver	—					17,500
Payments on Credit Agreement revolver	—					(17,500		)
Proceeds from 2019 Revolving Credit Facility	7,250					19,250
Payments on 2019 Revolving Credit Facility	(7,250		)			(19,250		)
Payments on 2019 Refinancing Term Loan	(1,000		)			—
Proceeds from 2019 refinancing Term Loan, net of debt discount	—					38,643
Warrants issued in conjunction with the 2019 Refinancing Term Loan	—					969
Embedded derivative associated with the 2019 Refinancing Term Loan	—					388
Payments on Bridge Term Loan	—					(7,736		)
Payments on finance leases	(1,966		)			(1,803		)
Payments of debt issuance costs	—					(3,339		)
Taxes paid related to net-share settlement of equity awards	(102		)			(123		)
Proceeds from contributions to Employee Stock Purchase Plan	149					—
Net cash (used in) provided by financing activities	(2,919		)			18,766
Increase in cash, cash equivalents and restricted cash	31,256					(859		)
Cash, cash equivalents and restricted cash, beginning of period	8,457					1,732
Cash, cash equivalents and restricted cash, end of period	$	39,713				$	873
Supplemental disclosures of cash flow information
Noncash investing and financing transactions:
Right of use assets obtained in exchange for new operating lease liabilities	$	924				$	3,022
Right of use assets obtained in exchange for new finance lease liabilities	2,399					2,685
Right of use assets disposed or adjusted modifying operating lease liabilities	586					1,651
Right of use assets disposed or adjusted modifying finance lease liabilities	(64		)			(55		)
Interest paid	$	4,817				$	3,091

LIMBACH HOLDINGS, INC. Condensed Consolidated Statements of Operations (Unaudited)
	Three months ended September 30,									Increase/(Decrease)
	2020					2019
(in thousands)						(As Recast)				$					%
Statement of Operations Data:
Revenue:
Construction	$	130,498				$	118,424			$	12,074				10.2		%
Service	33,358					29,695				3,663					12.3		%
Total revenue	163,856					148,119				15,737					10.6		%
Gross profit:
Construction	14,848					11,144				3,704					33.2		%
Service	9,323					7,229				2,094					29.0		%
Total gross profit	24,171					18,373				5,798					31.6		%
Selling, general and administrative expenses:(1)
Construction	10,501					10,746				(245		)			(2.3	)	%
Service	6,240					5,329				911					17.1		%
Corporate	304					493				(189		)			(38.3	)	%
Total selling, general and administrative expenses	17,045					16,568				477					2.9		%
Amortization of intangibles (Corporate)	109					149				(40		)			(26.8	)	%
Operating income (loss):
Construction	4,347					398				3,949					992.2		%
Service	3,083					1,900				1,183					62.3		%
Corporate	(413		)			(642		)		229					(35.7	)	%
Total operating income	$	7,017				$	1,656			$	5,361				323.7		%

(1) Starting January 1, 2020, we changed the methodology in which we present our corporate selling, general and administrative expenses to our CODM to better reflect the way the business is managed. Under this new methodology, all corporate expenses except for stock-based compensation are allocated to our Construction and Service segments. For comparability purposes, we reclassified our selling, general and administrative expense segment amounts for the three months ended September 30, 2019 to align with this updated allocation methodology.

LIMBACH HOLDINGS, INC. Condensed Consolidated Statements of Operations (Unaudited)
	Nine months ended September 30,										Increase/(Decrease)
	2020					2019
(in thousands)						(As Recast)					$					%
Statement of Operations Data:
Revenue:
Construction	$	345,921				$	327,643				18,278					5.6		%
Service	91,892					86,826					5,066					5.8		%
Total revenue	437,813					414,469					23,344					5.6		%
Gross profit:
Construction	38,043					34,742					3,301					9.5		%
Service	24,687					20,949					3,738					17.8		%
Total gross profit	62,730					55,691					7,039					12.6		%
Selling, general and administrative expenses:(1)
Construction	28,700					32,427					(3,727		)			(11.5	)	%
Service	18,157					15,890					2,267					14.3		%
Corporate	739					1,374					(635		)			(46.2	)	%
Total selling, general and administrative expenses	47,596					49,691					(2,095		)			(4.2	)	%
Amortization of intangibles (Corporate)	526					499					27					5.4		%
Operating income (loss):
Construction	9,343					2,315					7,028					303.6		%
Service	6,530					5,059					1,471					29.1		%
Corporate	(1,265		)			(1,873		)			608					(32.5	)	%
Total operating income	$	14,608				$	5,501				$	9,107				165.6		%

(1) Starting January 1, 2020, we changed the methodology in which we present our corporate selling, general and administrative expenses to our CODM to better reflect the way the business is managed. Under this new methodology, all corporate expenses except for stock-based compensation are allocated to our Construction and Service segments. For comparability purposes, we reclassified our selling, general and administrative expense segment amounts for the three months ended September 30, 2019 to align with this updated allocation methodology.

Non-GAAP Financial Measures

In assessing the performance of our business, management utilizes a variety of financial and performance measures. The key measure is Adjusted EBITDA, a non-GAAP financial measure. We define Adjusted EBITDA as net income (loss) plus depreciation and amortization expense, interest expense, and taxes, as further adjusted to eliminate the impact of, when applicable, other non-cash items or expenses that are unusual or non-recurring that we believe do not reflect our core operating results. We believe that Adjusted EBITDA is meaningful to our investors to enhance their understanding of our financial performance for the current period and our ability to generate cash flows from operations that are available for taxes, capital expenditures and debt service. We understand that Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties as a measure of financial performance and to compare our performance with the performance of other companies that report Adjusted EBITDA. Our calculation of Adjusted EBITDA, however, may not be comparable to similarly titled measures reported by other companies. When assessing our operating performance, investors and others should not consider this data in isolation or as a substitute for net income (loss) calculated in accordance with GAAP. Further, the results presented by Adjusted EBITDA cannot be achieved without incurring the costs that the measure excludes. A reconciliation of net income (loss) to Adjusted EBITDA, the most comparable GAAP measure, is provided below.

We refer to our estimated revenue on uncompleted contracts, including the amount of revenue on contracts for which work has not begun, less the revenue we have recognized under such contracts, as “backlog.” Backlog includes unexercised contract options.

Reconciliation of Net Income (loss) to Adjusted EBITDA
	Three months ended September 30,								Nine months ended September 30,
(in thousands)	2020				2019 (As Recast)				2020				2019 (As Recast)
Net income (loss)	$	2,525			$	(2,978)			$	5,420			$	(2,420)
Adjustments:
Depreciation and amortization	1,495				1,362				4,635				4,234
Interest expense	2,154				1,759				6,449				4,190
Non-cash stock-based compensation expense	304				491				739				1,373
Loss on debt extinguishment	—				—				—				513
Impairment of goodwill	—				4,359				—				4,359
Change in fair value of warrants	1,371				(525)				1,312				(422)
Severance expense	—				—				622				—
Income tax (benefit) provision	970				(942)				1,445				(681)
CFO transition costs	—				301				—				301
Adjusted EBITDA	$	8,819			$	3,827			$	20,622			$	11,447

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112005366/en/

Investor Relations:

The Equity Group, Inc.

Jeremy Hellman, CFA

Vice President

(212) 836-9626 / [email protected]

or

Limbach Holdings, Inc.

S. Mathew Katz

Executive Vice President

(212) 201-7006 / [email protected]

KEYWORDS: Pennsylvania United States North America

INDUSTRY KEYWORDS: Engineering Construction & Property Building Systems Manufacturing

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GoodRx Releases Third Quarter 2020 Financial Results

SANTA MONICA, Calif.–(BUSINESS WIRE)–GoodRx Holdings Inc. (Nasdaq: GDRX), a leading consumer-focused digital healthcare platform in the United States, has released its third quarter 2020 financial results and posted a letter to shareholders on the Overview page of its investor relations website at https://investors.goodrx.com.

GoodRx management will host a conference call and webcast today at 5:30 a.m. Pacific Time (8:30 a.m. Eastern Time) to discuss the results and the Company’s business outlook.

Third Quarter 2020 Results Conference Call

Date:				Thursday, November 12, 2020
Time:				5:30 a.m. Pacific Time / 8:30 a.m. Eastern Time
Webcast:				https://investors.goodrx.com (live and replay)
Dial-in number:				(833) 614-1447

Approximately one hour after completion of the live call, an archived version of the webcast will be available on the Company’s investor relations website at https://investors.goodrx.com for at least 30 days.

About GoodRx

GoodRx helps Americans get the healthcare they need at a price they can afford. As America’s leading resource for healthcare savings, GoodRx connects consumers with affordable and convenient prescriptions and medical care, including telehealth, mail order prescriptions, doctor visits, and lab tests. We have helped Americans save over $25 billion since 2011 and are the #1 most downloaded medical app in the last three years.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112005227/en/

Investor Contact

GoodRx

Whitney Notaro

[email protected]

Press Contact

GoodRx

Lauren Casparis

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Professional Services Health Technology Insurance Mobile/Wireless Software Pharmaceutical

MEDIA:

Posted on November 12, 2020 7:33 am

Castlepoint Numa Inc. sells remaining minority shares in Pinewood Toronto Studios to Bell Media

– With two expansions completed and a third underway, Pinewood Toronto has been at virtually 100% capacity for several years –

TORONTO, Nov. 12, 2020 (GLOBE NEWSWIRE) — Alfredo Romano, president of Castlepoint Numa Inc., announced today that Castlepoint has completed the sale of the remainder of its minority shares in Pinewood Toronto Studios (PTS) to majority shareholder Bell Media for an undisclosed sum.

Bell Media exercised its right to purchase the shares through a right of first offer.

“When we invested in Pinewood Toronto in 2009, following the Lehman Brothers crisis, it was incomplete, empty and insolvent,” said Mr. Romano. “After two expansions and now a third that is under construction, it’s been at virtually 100% capacity for several years. We leave with Pinewood Toronto in very good hands with Bell Media, Paul Bronfman and CreateTO. We’re very proud to have been part of this partnership.”

Said Paul Bronfman, chairman of Pinewood Toronto, “Alfredo has been a fabulous partner for over 11 years and I will miss him. He has added a tremendous amount of experience and wisdom to our partnership. As chairman of PTS, we all wish him only good things.”

Pinewood Toronto, located in the Port Lands, is the largest purpose-built facility in Toronto with 11 sound stages, including the 46,000 sq. ft. Mega Stage. It will have 16 sound stages and support spaces totaling over 500,000 sq. ft. when the current expansion is completed. Recent productions filming at Pinewood Toronto include Star Trek: Discovery, Molly’s Game, It: Chapter Two and Oscar winner Guillermo del Toro’s Scary Stories to Tell in the Dark.

Film and television production reached a record‐breaking $2.16 billion in Ontario in 2019, creating 44,540 full‐time equivalent and spin‐off jobs. “Demand for studio space in Toronto and other markets across North America is at an all-time high”, said Mr. Romano, adding that platform streamers such as Netflix and other Hollywood content creators have proven Toronto to be a premier location for filming.

About Castlepoint Numa Inc.

Castlepoint is a leader in the property development industry recognized for projects across the Greater Toronto Area and select markets in the United States. It is a values based company with expertise in heritage preservation, adaptive re-use, brownfield reclamation and the regeneration of large urban development sites. It was founded in 1988.

For further information:
Colleen Ryan
[email protected]
647-232-6867

Posted on November 12, 2020 7:33 am

Axcella Reports Third Quarter 2020 Financial Results and Provides Business Update

Axcella Reports Third Quarter 2020 Financial Results and Provides Business Update

• Plan to advance AXA1125 directly into a Phase 2b biopsy clinical trial in NASH under IND following successful Type B pre-IND meeting with FDA
• Plan to advance AXA1665 directly into a Phase 2 clinical trial in OHE under IND following positive top-line data from AXA1665-002
• Published peer-reviewed manuscripts highlighting therapeutic benefit of EMMs and results from AXA1665-001 clinical study
• Presented AXA1125 late-breaker at EASL Digital International Liver Congress
• Company to hold conference call today at 8:30 a.m. ET

CAMBRIDGE, Mass.–(BUSINESS WIRE)–
Axcella (Nasdaq: AXLA), a clinical-stage biotechnology company pioneering a new approach to treat complex diseases and improve health using endogenous metabolic modulator (EMM) compositions, today announced financial results for the third quarter ended September 30, 2020 and provided a business update.

“Recent accomplishments serve as further validation of the strength of Axcella’s execution amid the COVID-19 pandemic as well as its clinical and regulatory approach,” said Bill Hinshaw, President and Chief Executive Officer of Axcella. “We are pleased to report that we recently completed a successful Type B pre-IND meeting with the U.S. Food and Drug Administration (FDA) that enabled us to affirm our plans to submit an Investigational New Drug (IND) application and initiate a Phase 2b biopsy clinical trial of AXA1125, our product candidate for nonalcoholic steatohepatitis (NASH). We also presented positive top-line data in the third quarter for AXA1665, our product candidate for the reduction in risk of overt hepatic encephalopathy (OHE) recurrence. Having already completed our pre-IND FDA engagement for AXA1665, preparations for its IND submission and Phase 2 clinical trial are now underway.”

“Just three years ago, Axcella finalized the designs of these differentiated, multi-targeted product candidates, and we now are prepared to enter later-stage clinical trials. Better still, we have compiled far more human data than would normally be expected at this stage of development, which we believe increases the probability of success in our next phase of development as we seek to make a difference for patients,” Mr. Hinshaw continued. “With key catalysts for AXA1125 and AXA1665 as well as our decision regarding enrollment expansion for our AXA4010-001 clinical study on the near-term horizon, our excitement continues to build.”

Recent Accomplishments and Next Steps

AXA1125

• Completed Successful Type B Meeting: Axcella recently participated in a Type B pre-IND meeting with the FDA regarding AXA1125, focusing on key elements of the company’s development strategy. This engagement enables Axcella to proceed with its IND submission and Phase 2b clinical trial design as planned.
• Planned Phase 2b Clinical Trial: Axcella plans to submit an IND for AXA1125 and proceed directly into a 48-week Phase 2b serial biopsy clinical trial enrolling adult patients with NASH, with a primary endpoint based on liver histology. This trial is expected to be initiated in the first half of 2021.
• Presented Late-Breaker at EASL for AXA1125: A late-breaker poster containing key findings from Axcella’s AXA1125-003 clinical study was presented at the EASL Digital International Liver Congress by Stephen A. Harrison, M.D., Medical Director of Pinnacle Clinical Research in San Antonio, TX and visiting professor of Hepatology at the University of Oxford, UK.
• Planned Presentations at AASLD: Posters regarding AXA1125-003 will be presented at The Liver Meeting® 2020, the Annual Meeting of the American Association for the Study of Liver Diseases (AASLD), which is taking place virtually November 13-16, 2020.

AXA1665

• Reported Positive Top-Line Data: Axcella reported top-line data from AXA1665-002, a 12-week clinical study assessing the impact of AXA1665 on safety, tolerability and physiology in subjects with mild and moderate hepatic insufficiency. Results from the study showed that AXA1665 was generally well-tolerated, with dose dependent changes noted across measures of amino acid metabolism and neurocognition. These included statistically significant (p <0.05) improvements in the Fischer Ratio and the psychometric hepatic encephalopathy score (PHES) in the AXA1665 high dose arm vs. placebo. Additionally, clinically relevant trends were seen in certain measures of nitrogen/ammonia handling and physical function in the AXA1665 arms versus placebo.
• Planned Phase 2 Clinical Trial Initiation: Axcella plans to submit an IND for AXA1665 and proceed directly into a 24-week Phase 2 clinical trial enrolling subjects with liver cirrhosis who have experienced at least one prior OHE event. This trial is expected to be initiated in the first half of 2021.
• Published Findings from Initial Investigation of AXA1665: Clinical and Translational Gastroenterology published a peer-reviewed report detailing results from Axcella’s AXA1665-001 clinical study, the initial clinical investigation of AXA1665’s effect on safety, tolerability, and clinically relevant biomarkers related to hepatic and muscle metabolism and function.

AXA4010

• Planned Enrollment Decision for AXA4010-001: Following Axcella’s receipt of Cohort 1 data in December 2020 from the ongoing AXA4010-001 clinical study, the company expects to communicate its decision about whether to enroll additional subjects with sickle cell disease in the study by early 2021.

EMM Platform

• Published Manuscript Elucidating the Therapeutic Potential of EMMs:iScience published a peer-reviewed manuscript entitled “Endogenous Metabolic Modulators: Emerging Therapeutic Potential of Amino Acids” that detailed clinical precedents for EMMs as therapeutics and discussed the potential to develop EMM compositions that simultaneously target multiple biological pathways to address unmet needs in a range of complex diseases.

Financial Results

Cash Position: As of September 30, 2020, cash, cash equivalents and marketable securities totaled $117.3 million, compared to $92.1 million as of December 31, 2019. The increase is primarily the result of net proceeds from the company’s follow-on stock offering that was completed in May 2020.

R&D Expenses: Research and development expenses for the quarter and nine months ended September 30, 2020 were $7.5 million and $26.4 million, respectively. Research and development expenses for the same periods ended September 30, 2019 were $12.2 million and $29.1 million. The decrease for the three and nine months ended September 30, 2020 is primarily due to the completion of the company’s AXA1125-003 and AXA1665-002 clinical studies.

G&A Expenses: General and administrative expenses for the quarter and nine months ended September 30, 2020 were $4.2 million and $12.9 million, respectively. General and administrative expenses for the same periods ended September 30, 2019 were $4.8 million and $13.0 million.

Net Loss: Net loss for the quarter and nine months ended September 30, 2020 was $12.4 million, or $0.34 per basic and diluted share, and $41.3 million, or $1.39 per basic and diluted share, respectively. This compares with a net loss of $17.3 million, or $0.75 per basic and diluted share, and $43.3 million, or $3.01 per basic and diluted share, for the quarter and nine months ended September 30, 2019. Included in the net loss for the quarter and the nine months ended September 30, 2020 was $1.4 million and $4.9 million, respectively, of non-cash expense related to stock-based compensation, as compared to $1.7 million and $4.3 million, respectively, for the same periods in 2019.

Conference Call Reminder

Axcella will host a conference call today at 8:30 a.m. ET to discuss the company’s financial results and other recent business updates. The conference call webcast will be accessible in the Investors & News section on the company’s website at www.axcellahealth.com. To access the call via telephone, please dial (866) 652-5200 (U.S. toll free) or (412) 317-6060 (international) five minutes prior to the start time. For those unable to listen in live, a webcast archive will be available on the company’s website for 30 days following the call.

About Endogenous Metabolic Modulators (EMMs)

EMMs are a broad family of molecules, including amino acids, that regulate human metabolism. Axcella is developing a range of novel product candidates that are comprised of multiple EMMs engineered in distinct combinations and ratios to simultaneously impact multiple metabolic pathways to modify the root causes of various complex diseases and improve health.

About Axcella’s Clinical Studies

Each of the company’s clinical studies to date are or have been conducted as non-investigational new drug application (IND) clinical studies under U.S. Food and Drug Administration regulations and guidance supporting research with food. These studies evaluate product candidates for safety, tolerability and effects on the normal structures and functions in humans, including in individuals with disease. They are not designed or intended to evaluate a product candidate’s ability to diagnose, cure, mitigate, treat or prevent a disease. If Axcella decides to further develop a product candidate as a potential therapeutic, as is the case with AXA1665 and AXA1125, any subsequent clinical studies will be conducted under an IND.

Internet Posting of Information

Axcella uses its website, www.axcellahealth.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Such disclosures will be included on the company’s website in the “Investors and News” section. Accordingly, investors should monitor this portion of the company’s website, in addition to following its press releases, SEC filings and public conference calls and webcasts.

About Axcella

Axcella is a clinical-stage biotechnology company pioneering a new approach to treat complex diseases and improve health using endogenous metabolic modulator (EMM) compositions. The company’s product candidates are comprised of EMMs and their derivatives that are engineered in distinct combinations and ratios to simultaneously impact multiple biological pathways. Axcella’s pipeline includes lead therapeutic candidates for non-alcoholic steatohepatitis (NASH) and the reduction in risk of overt hepatic encephalopathy (OHE) recurrence. Additional muscle- and blood-related programs are in earlier-stage development. For more information, please visit www.axcellahealth.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, statements regarding the characteristics, competitive position and development potential of the company’s product candidates and the company’s characterization of the results from its clinical studies and future clinical trials, including for AXA1125 and AXA1665, the design, status and timing of the company’s ongoing clinical study and planned IND-enabled clinical trials, the company’s anticipated program milestones, including the timing of data readout from Cohort 1 of AXA4010-001, the subject and timing of the company’s planned interactions with the FDA on the AXA1665 and AXA1125 programs, including the potential timing of IND application submissions for its product candidates, including AXA1125 and AXA1665, the potential of the company’s product candidates to impact health and/or disease, including AXA1125’s potential in NASH and AXA1665’s potential in OHE, and the importance of any intellectual rights granted to the company. The words “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any forward-looking statements in this press release are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, those related to the potential impact of COVID-19 on the company’s ability to conduct and complete its ongoing or planned clinical studies and IND-enabled clinical trials and planned interactions and submissions to FDA or other regulatory authorities, including planned IND submissions for AXA1125 and AXA1665, in a timely manner or at all due to patient or principal investigator recruitment or availability challenges, clinical trial site shutdowns or other interruptions and potential limitations on the quality, completeness and interpretability of data the company is able to collect in its ongoing AXA4010-001 clinical study and potential delays in disclosure of the same, other potential impacts of COVID-19 on the company’s our business and financial results, including with respect to the company’s ability to raise additional capital and operational disruptions or delays, changes in law, regulations, or interpretations and enforcement of regulatory guidance, whether data readouts and/or FDA feedback support the company’s IND submission and clinical trial initiation plans and timing, clinical trial design and target indications for AXA1125 and AXA1665, the clinical development and safety profile of the company’s product candidates and their health or therapeutic potential, whether and when, if at all, the company’s product candidates will receive approval from the FDA or other comparable regulatory authorities, and for which, if any, indications, competition from other biotechnology companies, past results from clinical studies not being representative of future results in clinical studies or IND-enabled clinical trials, and other risks identified in the company’s SEC filings, including Axcella’s Annual Report on Form 10-K, Quarterly Report on Form 10-Q and subsequent filings with the SEC. The company cautions you not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. Axcella disclaims any obligation to publicly update or revise any such statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements. Any forward-looking statements contained in this press release represent the company’s views only as of the date hereof and should not be relied upon as representing its views as of any subsequent date. The company explicitly disclaims any obligation to update any forward-looking statements.

Axcella Health Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
		September 30,				December 31,
		2020				2019
Assets:
Cash and cash equivalents		$	114,063			$	92,053
Marketable securities		3,192				—
Other assets		2,898				2,306
Total assets		$	120,153			$	94,359
Liabilities and stockholders’ equity:
Liabilities		$	31,391			$	34,135
Stockholders’ equity		88,762				60,224
Total liabilities and stockholders’ equity		$	120,153			$	94,359

Axcella Health Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2020				2019				2020				2019
Operating expenses:
Research and development		$	7,541			$	12,157			$	26,441			$	29,063
General and administrative		4,184				4,840				12,928				13,036
Total operating expenses		11,725				16,997				39,369				42,099
Loss from operations		(11,725)				(16,997)				(39,369)				(42,099)
Other income (expense), net		(712)				(307)				(1,969)				(1,225)
Net loss		$	(12,437)			$	(17,304)			$	(41,338)			$	(43,324)
Net loss per share, basic and diluted		$	(0.34)			$	(0.75)			$	(1.39)			$	(3.01)
Weighted average common shares outstanding, basic and diluted		36,942,475				23,083,367				29,804,034				14,430,397

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112005213/en/

Company Contact

Jason Fredette

[email protected]

(857) 320-2236

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS: Biotechnology Pharmaceutical Health Clinical Trials

MEDIA:

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