Market Newsdesk

November 16, 2020 4:33 pm

Baidu Announces Third Quarter 2020 Results

PR Newswire

BEIJING, Nov. 16, 2020 /PRNewswire/ — Baidu, Inc. (NASDAQ: BIDU) (“Baidu” or the “Company”), a leading search engine, knowledge and information centered Internet platform and AI company, today announced its unaudited financial results for the third quarter ended September 30, 2020^[1].

“Our revenue growth turned positive in the third quarter with many advertising verticals turning around, putting Baidu in a good position to further benefit from a recovery in the Chinese economy. The vibrant mobile ecosystem that Baidu has built in the last few years sets a strong foundation for us to grow our non-advertising business,” saidRobin Li, Co-founder and CEO of Baidu. “Our new AI businesses saw healthy growth in the third quarter, particularly from cloud, where we are differentiating with AI solutions.”

“Our team executed in the third quarter with top line growth, resilient profitability and strong cash flow, a testament to the durability of Baidu’s business, despite China experiencing a second wave of COVID-19 in July. Our focus on differentiating Baidu with open-platform, in-app search and new AI businesses has enabled Baidu Core’s adjusted EBITDA margin to reach 46% in the third quarter,” said Herman Yu, CFO of Baidu. “We also executed on our capital allocation strategy by selling down equity investments and continuing to execute on our share repurchase plan.”

Financial Highlights

	Baidu, Inc.
(In millions except per ADS,	Q3	Q2	Q3
unaudited)	2019	2020	2020		YOY	QOQ
	RMB	RMB	RMB	US$
Total revenues	28,080	26,034	28,232	4,158	1%	8%

Operating income	2,355	3,644	6,156	907	161%	69%
Operating income (non-GAAP ) ^[2]	3,691	5,605	7,636	1,125	107%	36%

Net income (loss) to Baidu	(6,373)	3,579	13,678	2,015	–	282%
Net income to Baidu (non-GAAP ) ^[2]	4,387	5,082	6,988	1,029	59%	38%

Diluted earnings (loss) per ADS	(18.37)	10.31	39.79	5.86	–	286%
Diluted earnings per ADS (non-GAAP ) ^[2]	12.61	14.73	20.35	3.00	61%	38%

Adjusted EBITDA ^[2]	5,116		7,015		9,073	1,336		77%		29%
Adjusted EBITDA margin	18%		27%		32%	32%

	Baidu Core
	Q3	Q2	Q3
(In millions, unaudited)	2019	2020	2020		YOY	QOQ
	RMB	RMB	RMB	US$
Total revenues	21,010	18,926	21,379	3,149	2%	13%

Operating income	5,191	4,966	7,404	1,090	43%	49%
Operating income (non-GAAP) ^[2]	6,224	6,482	8,505	1,253	37%	31%

Net income (loss) to Baidu Core	(4,287)	4,424	14,368	2,116	–	225%
Net income to Baidu Core (non-GAAP) ^[2]	6,310	5,656	7,486	1,103	19%	32%

Adjusted EBITDA ^[ ^2]	7,525	7,771	9,822	1,447	31%	26%
Adjusted EBITDA margin	36%	41%	46%	46%

^[1] Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.7896 to US$1.00, the exchange rate in effect as of September 30, 2020 as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations are provided solely for the convenience of the reader.

^[2] Non-GAAP measures are defined in Non-GAAP Financial Measures section. Also see the table captioned “Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures” for more details.

Other Highlights

Corporate

Baidu received an ESG rating of BB from MSCI and an ESG risk score of 21.5 from Sustainalytics, reflecting the progress the Company has made through ESG policy changes and improved disclosure on corporate governance.
Baidu World was held virtually in September 2020 in partnership with CCTV, reaching an audience of over 60 million. This year’s theme centered on the “Intelligence of Everything,” highlighting how Baidu AI products and solutions can improve everyday life and empower enterprises and the public sector to do more and do better in the areas of cloud computing, smart transportation and autonomous driving.
Baidu entered into definitive agreements to raise financing for its Smart Living Group (“SLG”) at a post-money valuation of approximately RMB 20 billion, or US$2.9 billion, in September 2020. The transaction is expected to be completed in the fourth quarter of 2020, and Baidu is expected to be a super majority shareholder.
Baidu completed a bond offering of US$950 million in October 2020, consisting of US$650 million of 1.720% notes due 2026 and US$300 million of 2.375% notes due 2030, the proceeds from which are expected to be used to repay certain existing indebtedness.
Baidu returned US$596 million to shareholders in the third quarter of 2020, bringing the cumulative share repurchase over the last two years to approximately US$2.0 billion.

Mobile Ecosystem

Baidu App’s daily active users (“DAUs”) reached 206 million and its monthly active users (“MAUs”) reached 544 million in September 2020.
The massive reach of Baidu App, along with other products in the Company’s product portfolio, is attracting a wide range of knowledge and information-centric videos, including live and short videos. Topical live streaming, such as Wander Planet and Who to Support, grew eight folds sequentially.
Publishers are sharing more originals on Baijiahao (“BJH”) accounts, to take advantage of Baidu’s large scale and easy sharing of content across Baidu family of apps. BJH accounts reached 3.6 million, up 52% year over year, in September 2020.
App developers are adopting Baidu Smart Mini Programs (“SMPs”) to provide users with native-app like experience on Baidu, without having to download the host apps. The number of SMPs grew three folds, and SMP monthly active users on Baidu App reached 355 million, up 22% year over year, in September 2020.
Site merchants are switching to Managed Page as the landing page for their search results to improve marketing effectiveness, resulting in Managed Page revenue reaching almost 1/3 of Baidu Core’s online marketing services revenue in the third quarter of 2020.

DuerOS

DuerOS first-party monthly voice queries reached 2.7 billion, up 65% from last year, and DuerOS total monthly voice queries reached 5.3 billion in September 2020.
Xiaodu Smart Display ranked #1 in smart display shipments globally, and Xiaodu smart speakers ranked #1 in smart speaker shipments in China for the second quarter of 2020, according to market research firms IDC, Strategy Analytics and Canalys.
The DuerOS skills store, offering 4,300 skills in wide ranging genres, including education, video, online game and live streaming, is supported by a developer community of 45,000.
Xiaodu Smart Earphones was introduced in September 2020, allowing users to navigate DuerOS skills using its voice assistant and hear instant language translation. Xiaodu Smart Earphones broaden the use case of the Xiaodu voice assistant from home, auto and hotel to anywhere with mobile.

Cloud, AI Services & AI Platform

Baidu partners with Postal Savings Bank of China (“PSBC”), a top consumer bank in China with 40,000 branches nationwide, to provide Baidu AI PaaS, which can be trained to provide better credit risk management by leveraging Baidu’s advanced AI capabilities, such as big data and natural language processing.
Baidu partners with the Economic and Technological Development Zone in Guiyang, a major national data center hub in China, to provide its AI PaaS platform that will be made available to the 400+ enterprises across 10 industries located in the economic development zone. Baidu’s AI PaaS can help businesses improve their operations and do more through advanced AI, including deep learning, blockchain and computer vision,
Baidu’s AI open platform built on Baidu Cloud offers over 270 AI capabilities, attracting a developer community of over 2 million.
Baidu Translate, an AI cloud service leveraging Baidu’s advanced natural language processing, speech and vision processing technologies, supports over 200 languages and processes over 100 billion bites a day, attracting a developer community of 400,000.

Apollo

Baidu partners with the city of Guangzhou, Guangdong to provide smart transportation solutions to improve traffic efficiency, air pollution and road safety.
Apollo Go robotaxi is now opened to the public in Beijing, becoming the third city following Changsha, Hunan and Cangzhou, Hebei. Apollo Go rides may be ordered from Baidu Maps or Apollo Go app.
Baidu was granted China’s first driverless test permit in Changsha.

iQIYI

iQIYI subscribers reached 104.8 million in September 2020, and membership revenue was up 7% year over year. iQIYI’s large subscriber base further strengthens iQIYI’s foundation to produce entertainment blockbuster originals.

Third Quarter 2020 Results

Total revenues reached RMB 28.2 billion ($4.16 billion), increasing 1% year over year.

Revenue from Baidu Core reached RMB 21.4 billion ($3.15 billion), increasing 2% year over year. Online marketing revenue from Baidu Core was RMB 18.4 billion ($2.72 billion), which was basically flat from last year. Non-online marketing revenue from Baidu Core reached 2.9 billion ($434 million), increasing 14% year over year, primarily driven by the growth of cloud services.

Cost of revenues was RMB 12.8 billion ($1.89 billion), decreasing 22% year over year, primarily due to a decrease in content costs, traffic acquisition costs and costs of goods sold.

Selling, general and administrative expenses were RMB 4.7 billion ($692 million), increasing 1% year over year.

Research and development expenses were RMB 4.6 billion ($673 million), decreasing 3% year over year.

Operating income was RMB 6.2 billion ($907 million) and operating margin was 22%. Baidu Core operating income was RMB 7.4 billion ($1.09 billion) and Baidu Core operating margin was 35%.

Non-GAAP operating income was RMB 7.6 billion ($1.13 billion), and non-GAAP operating margin was 27%. Non-GAAP Baidu Core operating income was RMB 8.5 billion ($1.25 billion), and non-GAAP Baidu Core operating margin was 40%.

Total other income was RMB 8.9 billion ($1.31 billion), compared to total other loss of RMB 9.5 billion in Q3 2019. Total other income in Q3 2020 included fair value gain of RMB 9.0 billion from long-term investments.

Income tax expense was RMB 1.6 billion ($239 million), compared to RMB 934 million in Q3 2019.

Net income attributable to Baidu was RMB 13.7 billion ($2.02 billion), and diluted earnings per ADS was RMB 39.79 ($5.86). Net income attributable to Baidu Core was RMB 14.4 billion ($2.12 billion).

Non-GAAP net income attributable to Baidu was RMB 7.0 billion ($1.03 billion), and non-GAAP net margin was 25%. Non-GAAP diluted earnings per ADS amounted to RMB 20.35($3.00). Non-GAAP net income attributable to Baidu Core was RMB 7.5 billion ($1.10 billion), and non-GAAP net margin for Baidu Core was 35%.

Adjusted EBITDA was RMB 9.1 billion ($1.34 billion) and adjusted EBITDA margin was 32%. Adjusted EBITDA for Baidu Core was RMB 9.8 billion ($1.45 billion) and adjusted EBITDA margin for Baidu Core was 46%.

As of September 30, 2020, cash, cash equivalents, restricted cash and short-term investments were RMB 146.0 billion ($21.50 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB 138.5 billion ($20.41 billion). Free cash flow was RMB 6.3 billion ($925 million), and free cash flow excluding iQIYI was RMB 8.3 billion ($1.22 billion).

For more information on the adoption of ASU 2019-02 beginning January 1, 2020, in accordance with the new accounting standard, please see explanation under “Non-GAAP Financial Measures”.

Financial Guidance

For the fourth quarter of 2020, Baidu expects revenues to be between RMB 28.6 billion ($4.2 billion) and RMB 31.3 billion ($4.6 billion), representing a growth rate of -1% to 8% year over year, which assumes that Baidu Core revenue will grow between -1% and 10% year over year.

The above forecast reflects Baidu’s current and preliminary view, which is subject to substantial uncertainty.

Conference Call Information

Baidu’s management will hold an earnings conference call at 8:15 PM on November 16, 2020, U.S. Eastern Time (9:15 AM on November 17, 2020, Beijing Time).

Please register in advance of the conference call using the link provided below. Upon registering, you will be provided with participant dial-in numbers, Direct Event passcode and unique registrant ID by email.

For pre-registration, please click http://apac.directeventreg.com/registration/event/2876397. It will automatically direct you to the registration page of “Baidu Q3 2020 Earnings Conference Call”, where you may fill in your details for RSVP. If it requires you to enter a participant conference ID, please enter “2876397”.

In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), Direct Event passcode and unique registrant ID) provided in the confirmation email that you have received following your pre-registration.

Additionally, a live and archived webcast of this conference call will be available at http://ir.baidu.com.

A replay of the conference call may be accessed by phone at the following number until November 24, 2020:

International:	+61 2 8199 0299
Passcode:	2876397

About Baidu

Baidu, Inc. is a leading search engine, knowledge and information centered Internet platform and AI company. The Company’s mission is to make the complicated world simpler through technology. Baidu’s ADSs trade on the NASDAQ Global Select Market under the symbol “BIDU”. Currently, ten ADSs represent one Class A ordinary share.

Contacts

Investors Relations, Baidu, Inc.
Tel: +86-10-5992-8888
Email: [email protected]

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the outlook for the fourth quarter of 2020, quotations from management in this announcement, as well as Baidu’s and other parties’ strategic and operational plans, contain forward-looking statements. Baidu may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Baidu’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Baidu’s growth strategies; its future business development, including development of new products and services; its ability to attract and retain users and customers; competition in the Chinese Internet search and newsfeed market; competition for online marketing customers; changes in the Company’s revenues and certain cost or expense items as a percentage of its revenues; the outcome of ongoing, or any future, litigation or arbitration, including those relating to intellectual property rights; the expected growth of the Chinese-language Internet search and newsfeed market and the number of Internet and broadband users in China; Chinese governmental policies relating to the Internet and Internet search providers, and general economic conditions in China and elsewhere. Further information regarding these and other risks is included in the Company’s annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of the press release, and Baidu undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

To supplement Baidu’s consolidated financial results presented in accordance with GAAP, Baidu uses the following non-GAAP financial measures: non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss) attributable to Baidu, non-GAAP net margin, non-GAAP diluted earnings per ADS, adjusted EBITDA, adjusted EBITDA margin and free cash flow. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

Baidu believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain items that may not be indicative of its recurring core business operating results, such as operating performance excluding not only non-cash charges, but also other items that are infrequent or unusual in nature. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to Baidu’s historical performance and liquidity. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company’s results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data.

Non-GAAP operating income represents operating income excluding share-based compensation expenses and amortization and impairment of intangible assets resulting from business combinations.

Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, disposal gain or loss, impairment of long-term investments, fair value change of long-term investments, adjusted for related income tax effects. Baidu’s share of equity method investments for these non-GAAP reconciling items, amortization and impairment of intangible assets not on the investees’ books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per shares, adjusted for related income tax effects, are also excluded.

Non-GAAP diluted earnings per ADS represents diluted earnings per ADS calculated by dividing non-GAAP net income attributable to Baidu, which is adjusted for accretion for the redeemable non-controlling interests, by the weighted average number of ordinary shares expressed in ADS. Adjusted EBITDA represents operating income excluding depreciation, amortization and impairment of intangible assets resulting from business combinations, and share-based compensation expenses.

Free cash flow represents net cash provided by operating activities less capital expenditures. Starting from January 1, 2020, Baidu adopted ASU 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials, which reclassifies cash outflows for costs incurred to acquire licensed contents from investing activities to operating activities. To increase comparability, 2019 free cash flow has been retrospectively adjusted to include cash outflows of acquisition of licensed copyrights, which is presented on the same basis as 2020 and going forward.

For more information on non-GAAP financial measures, please see the tables captioned “Reconciliations of non-GAAP financial measures to the nearest comparable GAAP measures.”

Baidu, Inc.
Condensed Consolidated Statements of Income (Loss)
(In millions except for share, per share (or ADS) information, unaudited)
	Three Months Ended
	September 30,	June 30,	September 30,	September 30,
	2019	2020	2020	2020
	RMB	RMB	RMB	US$⁽²⁾
Revenues:
Online marketing services	20,434	17,688	20,201	2,975
Others	7,646	8,346	8,031	1,183
Total revenues	28,080	26,034	28,232	4,158

Costs and expenses:
Cost of revenues⁽¹⁾	16,378	13,134	12,815	1,886
Selling, general and administrative⁽¹⁾	4,657	4,417	4,700	692
Research and development⁽¹⁾	4,690	4,839	4,561	673
Total costs and expenses	25,725	22,390	22,076	3,251
Operating income	2,355	3,644	6,156	907

Other income (loss):
Interest income	1,687	1,312	1,297	191
Interest expense	(788)	(820)	(755)	(111)
Foreign exchange income (loss), net	29	55	(271)	(40)
Gain (loss) from equity method investments	(729)	(1,732)	(546)	(80)
Other income (loss), net	(9,683)	1,551	9,169	1,351
Total other income (loss), net	(9,484)	366	8,894	1,311

Income (loss) before income taxes	(7,129)	4,010	15,050	2,218
Income tax expense	934	1,222	1,618	239
Net income (loss)	(8,063)	2,788	13,432	1,979
Net loss attributable to noncontrolling interests	(1,690)	(791)	(246)	(36)
Net income (loss) attributable to Baidu	(6,373)	3,579	13,678	2,015


Earnings per ADS (1 Class A ordinary share equals 10 ADSs):
-Basic	(18.37)	10.34	40.21	5.92
-Diluted	(18.37)	10.31	39.79	5.86
Earnings per share for Class A and Class B ordinary shares:
-Basic	(183.74)	103.44	402.06	59.22
-Diluted	(183.74)	103.06	397.88	58.60
Weighted average number of Class A and Class B ordinary shares outstanding:
Basic	34,793,154	34,377,658	33,982,547	33,982,547
Diluted	34,793,154	34,505,617	34,339,438	34,339,438

(1) Includes share-based compensation expenses as follows:
Cost of revenues	70	108	81	12
Selling, general and administrative	336	550	403	60
Research and development	810	1,188	930	137
Total share-based compensation expenses	1,216	1,846	1,414	209

(2) All translations from RMB to U.S. dollars are made at a rate of RMB 6.7896 to US$1.00, the exchange rate in effect as of September 30, 2020 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System.

Baidu, Inc.
Condensed Consolidated Balance Sheets
(In millions except for share information, unaudited)

	December 31,	September 30,	September 30,
	2019	2020	2020
	RMB	RMB	US$
ASSETS
Current assets:
Cash and cash equivalents	33,443	18,423	2,713
Restricted cash	996	669	99
Short-term investments	112,924	126,876	18,687
Accounts receivable, net	7,416	7,046	1,038
Amounts due from related parties	1,594	1,307	193
Other current assets, net	9,189	8,831	1,301
Total current assets	165,562	163,152	24,031

Non-current assets:
Fixed assets, net	18,311	17,154	2,527
Licensed copyrights, net	6,287	6,062	893
Intangible assets, net	1,600	2,033	299
Goodwill	18,250	21,776	3,207
Long-term investments, net	69,410	81,289	11,973
Amounts due from related parties	3,564	3,639	536
Deferred tax assets, net	2,193	804	118
Operating lease right-of-use assets	7,332	9,648	1,421
Produced content, net	4,355	5,517	813
Other non-current assets	4,452	3,668	540
Total non-current assets	135,754	151,590	22,327

Total assets	301,316	314,742	46,358

LIABILITIES AND EQUITY
Current liabilities:
Short-term loans	2,618	3,804	560
Accounts payable and accrued liabilities	32,701	31,592	4,653
Customer deposits and deferred revenue	11,062	12,185	1,795
Deferred income	529	163	24
Long-term loans, current portion	737	7,506	1,106
Notes payable, current portion	5,219	–	–
Amounts due to related parties	2,231	1,747	257
Operating lease liabilities	2,283	4,636	683
Total current liabilities	57,380	61,633	9,078

Non-current liabilities:
Deferred income	17	57	8
Deferred revenue	1,009	609	90
Amounts due to related parties	3,846	3,689	543
Long-term loans	7,804	628	92
Notes payable	38,090	43,917	6,468
Convertible senior notes	12,297	12,307	1,813
Deferred tax liabilities	3,273	3,319	489
Operating lease liabilities	4,486	4,607	679
Other non-current liabilities	299	316	47
Total non-current liabilities	71,121	69,449	10,229

Total liabilities	128,501	131,082	19,307

Redeemable noncontrolling interests	1,109	1,248	184

Equity
Total Baidu shareholders’ equity	163,599	176,291	25,965
Noncontrolling interests	8,107	6,121	902
Total equity	171,706	182,412	26,867

Total liabilities, redeemable noncontrolling interests, and equity	301,316	314,742	46,358

Baidu, Inc.

Selected Information

(In millions except for per ADS information, unaudited)

Three months ended
September 30, 2019 (RMB)

Three months ended
June 30, 2020 (RMB)

Three months ended
September 30, 2020 (RMB)

Three months ended
September 30, 2020 (US$)

Baidu
Core

iQIYI

Elim &
adj⁽²⁾

Baidu,
Inc.

Baidu
Core

iQIYI

Elim &
adj⁽²⁾

Baidu,
Inc.

Baidu
Core

iQIYI

Elim &
adj⁽²⁾

Baidu,
Inc.

Baidu
Core

iQIYI

Elim &
adj⁽²⁾

Baidu,
Inc.

Total revenues

21,010

7,397

(327)

28,080

18,926

7,412

(304)

26,034

21,379

7,188

(335)

28,232

3,149

1,059

(50)

4,158

YOY

(3%)

QOQ

13%

(3%)

Costs and expenses:

Cost of revenues ⁽¹⁾

8,502

8,176

(300)

16,378

6,555

6,834

(255)

13,134

6,728

6,363

(276)

12,815

991

937

(42)

1,886

Selling, general and administrative ⁽¹⁾

3,320

1,350

(13)

4,657

3,230

1,196

(9)

4,417

3,354

1,364

(18)

4,700

494

201

(3)

692

Research and development ⁽¹⁾

3,997

703

(10)

4,690

4,175

664

–

4,839

3,893

671

(3)

4,561

574

–

673

Total costs and expenses

15,819

10,229

(323)

25,725

13,960

8,694

(264)

22,390

13,975

8,398

(297)

22,076

2,059

1,237

(45)

3,251

YOY

Cost of revenues

(21%)

(22%)

Selling, general and administrative

Research and development

(3%)

(5%)

(3%)

Cost and expenses

(12%)

(18%)

(14%)

Operating income (loss)

5,191

(2,832)

(4)

2,355

4,966

(1,282)

(40)

3,644

7,404

(1,210)

(38)

6,156

1,090

(178)

(5)

907

YOY

43%

(57%)

161%

QOQ

49%

(6%)

69%

Operating margin

25%

(38%)

26%

(17%)

14%

35%

(17%)

22%

Add: total other income (loss),net

(8,657)

(827)

(9,484)

507

(141)

–

366

8,827

–

8,894

1,301

–

1,311

Less: income tax expense

918

934

1,206

–

1,222

1,599

–

1,618

236

–

239

Less: net income (loss) attributable to NCI

(97)

(1,606)

(1,690)

(157)

(637)

(3)

(791)

264

(523)

(3)

(246)

(77)

(3)

(36)

Net income(loss) attributable to Baidu

(4,287)

(3,688)

1,602

(6,373)

4,424

(1,442)

597

3,579

14,368

(1,175)

485

13,678

2,116

(173)

2,015

YOY

–

(68%)

–

QOQ

225%

(19%)

282%

Net margin

(20%)

(50%)

(23%)

23%

(19%)

14%

67%

(16%)

48%

Non-GAAP financial measures:

Operating income (loss) (non-GAAP)

6,224

(2,529)

3,691

6,482

(837)

5,605

8,505

(831)

7,636

1,253

(123)

1,125

YOY

37%

(67%)

107%

QOQ

31%

(1%)

36%

Operating margin (non-GAAP)

30%

(34%)

13%

34%

(11%)

22%

40%

(12%)

27%

Net income (loss) attributable to Baidu (non-GAAP)

6,310

(3,394)

4,387

5,656

(956)

5,082

7,486

(830)

6,988

1,103

(123)

1,029

YOY

19%

(76%)

59%

QOQ

32%

(13%)

38%

Net margin (non-GAAP)

30%

(46%)

16%

30%

(13%)

20%

35%

(12%)

25%

Adjusted EBITDA

7,525

(2,405)

5,116

7,771

(716)

7,015

9,822

(711)

9,073

1,447

(106)

1,336

YOY

31%

(70%)

77%

QOQ

26%

(1%)

29%

Adjusted EBITDA margin

36%

(33%)

18%

41%

(10%)

27%

46%

(10%)

32%

(1) Includes share-based compensation as follows:

Cost of revenues

108

Selling, general and administrative

207

129

336

331

219

550

187

216

403

Research and development

749

810

1,102

1,188

846

930

125

137

Total share-based compensation

981

235

1,216

1,482

364

1,846

1,062

352

1,414

157

209

(2) Relates to intersegment eliminations and adjustments

(3) Relates to the net loss attributable to iQIYI noncontrolling interests

Baidu, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions,unaudited)

	Three months ended			Three months ended			Three months ended			Three months ended
	September 30, 2019 (RMB)			June 30, 2020 (RMB)			September 30, 2020 (RMB)			September 30, 2020 (US$)
	Baidu excl. iQIYI	iQIYI	Baidu, Inc.	Baidu excl. iQIYI	iQIYI	Baidu, Inc.	Baidu excl. iQIYI	iQIYI	Baidu, Inc.	Baidu excl. iQIYI	iQIYI	Baidu, Inc.
Net cash provided by (used in) operating activities	8,508	293	8,801	9,547	(1,358)	8,189	9,716	(1,929)	7,787	1,431	(284)	1,147
Net cash provided by (used in) investing activities	(11,960)	(922)	(12,882)	(8,854)	1,144	(7,710)	(6,576)	343	(6,233)	(969)	51	(918)
Net cash provided by (used in) financing activities	(1,903)	(160)	(2,063)	(2,211)	823	(1,388)	(4,387)	238	(4,149)	(646)	35	(611)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	122	258	380	26	(10)	16	(77)	(113)	(190)	(11)	(17)	(28)
Net increase (decrease) in cash, cash equivalents and restricted cash	(5,233)	(531)	(5,764)	(1,492)	599	(893)	(1,324)	(1,461)	(2,785)	(195)	(215)	(410)
Cash, cash equivalents and restricted cash
At beginning of period	15,315	7,624	22,939	18,089	4,681	22,770	16,597	5,280	21,877	2,444	778	3,222
At end of period	10,082	7,093	17,175	16,597	5,280	21,877	15,273	3,819	19,092	2,249	563	2,812

Net cash provided by (used in) operating activities	8,508	293	8,801	9,547	(1,358)	8,189	9,716	(1,929)	7,787	1,431	(284)	1,147
Less: Capital expenditures	(1,031)	(181)	(1,212)	(797)	(57)	(854)	(1,417)	(90)	(1,507)	(209)	(13)	(222)
Less: Acquisition of licensed copyrights⁽¹⁾	(50)	(2,689)	(2,739)	–	–	–	–	–	–	–	–	–
Free cash flow	7,427	(2,577)	4,850	8,750	(1,415)	7,335	8,299	(2,019)	6,280	1,222	(297)	925


Note: Baidu excl. iQIYI represents Baidu, Inc. minus iQIYI’s consolidated cash flows.

(1) Starting from January 1, 2020, Baidu adopted ASU 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials, which reclassifies cash outflows for costs incurred to acquire licensed contents from investing activities to operating activities. To increase comparability, 2019 non-GAAP measure of free cash flow has been retrospectively adjusted to include cash outflows of acquisition of licensed copyrights, which is presented on the same basis as 2020 and going forward.

Free cash flow, previously reported	7,477	112	7,589	8,750	1,290	10,040	8,299	385	8,684	1,222	57	1,279
Less: Acquisition of licensed copyrights	(50)	(2,689)	(2,739)	–	(2,705)	(2,705)	–	(2,404)	(2,404)	–	(354)	(354)
Free cash flow, revised	7,427	(2,577)	4,850	8,750	(1,415)	7,335	8,299	(2,019)	6,280	1,222	(297)	925

Baidu, Inc.
Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures
(In millions except for ADS and per ADS information, unaudited)

	Three months ended			Three months ended			Three months ended			Three months ended
	September 30, 2019 (RMB)			June 30, 2020 (RMB)			September 30, 2020 (RMB)			September 30, 2020 (US$)
	Baidu Core	iQIYI	Baidu, Inc.	Baidu Core	iQIYI	Baidu, Inc.	Baidu Core	iQIYI	Baidu, Inc.	Baidu Core	iQIYI	Baidu, Inc.
Operating income (loss)	5,191	(2,832)	2,355	4,966	(1,282)	3,644	7,404	(1,210)	6,156	1,090	(178)	907
Add: Share-based compensation expenses	981	235	1,216	1,482	364	1,846	1,062	352	1,414	157	52	209
Add: Amortization and impairment of intangible assets⁽¹⁾	52	68	120	34	81	115	39	27	66	6	3	9
Operating income (loss) (non-GAAP)	6,224	(2,529)	3,691	6,482	(837)	5,605	8,505	(831)	7,636	1,253	(123)	1,125

Add: Depreciation of fixed assets	1,301	124	1,425	1,289	121	1,410	1,317	120	1,437	194	17	211
Adjusted EBITDA	7,525	(2,405)	5,116	7,771	(716)	7,015	9,822	(711)	9,073	1,447	(106)	1,336

Net income (loss) attributable to Baidu	(4,287)	(3,688)	(6,373)	4,424	(1,442)	3,579	14,368	(1,175)	13,678	2,116	(173)	2,015
Add: Share-based compensation expenses	974	235	1,106	1,473	364	1,676	1,056	352	1,252	156	52	184
Add: Amortization and impairment of intangible assets⁽¹⁾⁽³⁾	21	50	47	19	65	55	31	23	44	5	3	6
Add: Disposal loss (gain)⁽³⁾⁽⁴⁾	–	–	–	453	–	453	(5)	–	(5)	(1)	–	(1)
Add: Impairment of long-term investments⁽³⁾	8,023	–	8,023	752	48	779	–	–	–	–	–	–
Add: Fair value loss (gain) of long-term investments⁽³⁾	745	1	745	(2,535)	–	(2,535)	(8,464)	(33)	(8,483)	(1,247)	(5)	(1,249)
Add: Reconciling items on equity method investments⁽²⁾	834	8	839	1,070	9	1,075	500	3	502	74	–	74
Net income (loss) attributable to Baidu (non-GAAP)	6,310	(3,394)	4,387	5,656	(956)	5,082	7,486	(830)	6,988	1,103	(123)	1,029

Diluted earnings per ADS			(18.37)			10.31			39.79			5.86
Add: Accretion of the redeemable noncontrolling interests			0.06			0.07			0.04			0.01
Add: Non-GAAP adjustments to earnings per ADS			30.92			4.35			(19.48)			(2.87)
Diluted earnings per ADS (non-GAAP)			12.61			14.73			20.35			3.00




(1) This represents amortization and impairment of intangible assets resulting from business combinations.
(2) This represents Baidu’s share of equity method investments for other non-GAAP reconciling items, amortization and impairment of intangible assets not on the investee’s books, accretion of their redeemable noncontrolling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per shares, adjusted for related income tax effects.
(3) Net of related tax impact
(4) Includes re-measurement gain or loss of previous held equity interest in the acquisition

View original content:http://www.prnewswire.com/news-releases/baidu-announces-third-quarter-2020-results-301173850.html

SOURCE Baidu, Inc.

November 16, 2020 4:33 pm

iQIYI Announces Third Quarter 2020 Financial Results

PR Newswire

BEIJING, Nov. 16, 2020 /PRNewswire/ — iQIYI, Inc. (Nasdaq: IQ) (“iQIYI” or the “Company”), an innovative market-leading online entertainment service in China, today announced its unaudited financial results for the third quarter ended September 30, 2020.

Third Quarter 2020 Highlights

Total revenues were RMB7.2 billion (US$1.1 billion^[1]), representing a 3% decrease from the same period in 2019.
Operating loss was RMB1.2 billion (US$178.2 million) and operating loss margin was 17%, compared to operating loss of RMB2.8 billion and operating loss margin of 38% in the same period in 2019.
Net loss attributable to iQIYI was RMB1.2 billion (US$173.0 million), compared to net loss attributable to iQIYI of RMB3.7 billion in the same period in 2019. Diluted net loss attributable to iQIYI per ADS was RMB1.61(US$0.24), compared to diluted net loss attributable to iQIYI per ADS of RMB5.04 in the same period of 2019.
The number of total subscribing members was 104.8 million as of September 30, 2020, 99.5% of whom were paying subscribing members. This compares to 105.8 million of total subscribing members as of September 30, 2019.

“Our business performed fairly well in the third quarter and in-line with our overall expectation,” commented Dr. Yu Gong, Founder, Director, and Chief Executive Officer of iQIYI. “Despite the turbulence this year, we have leveraged a number of strategies, such as launching theatre-themed content and upgrading our membership portfolio, to improve our service and to better serve our users. Our Mist Theatre has become a remarkable success in terms of both reputation and ROI. In the coming quarters, we may continue to see fluctuations in the number of subscribers, driven by the normalization of user behaviour and content pipeline. However, with the valuable insight gained during this period, we believe our capabilities are sharpened in content generation and technology innovation, which have better positioned us to capture greater business opportunities in the future.”

“Our advertising revenue increased by 16% quarter-over-quarter, while net loss margin significantly narrowed for two consecutive quarters on a year-over-year basis” commented Mr. Xiaodong Wang, Chief Financial Officer of iQIYI. “We continued our efforts on exploring diversified contents and innovated products with better ROI. Meanwhile, during such challenging times, we also managed our expenses more cautiously and efficiently. We believe our arduous efforts can lead to solid future growth in the long run.”

Footnotes:

Third Quarter 2020 Financial Results

Total revenues reached RMB7.2 billion (US$1.1 billion), representing a 3% decrease from the same period in 2019.

Membership services revenue was RMB4.0 billion (US$585.5 million), representing a 7% increase from the same period in 2019. The increase was primarily attributable to our various operational initiatives to improve monetization.

Online advertising services revenue was RMB1.8 billion (US$271.0 million), representing a 11% decrease from the same period in 2019. The decrease was primarily due to the challenging macroeconomic environment in China.

Content distribution revenue was RMB392.3 million (US$57.8 million), representing a 42% decrease from the same period in 2019. The decrease was primarily due to less content titles we distributed to other platforms during the quarter.

Other revenues were RMB979.6 million (US$144.3 million), representing a 5% increase from the same period in 2019, primarily due to the growth of certain business lines.

Cost of revenues was RMB6.4 billion (US$937.2 million), representing a 22% decrease from the same period in 2019. The decrease in cost of revenues was primarily due to lower content costs during the quarter. Content costs as a component of cost of revenues were RMB4.7 billion (US$692.1 million), representing a 24% decrease from the same period in 2019 due to less new content being released online and update of accounting estimates of future viewership consumption patterns and useful lives of content assets to better reflect the expected usage of these content assets.

Selling, general and administrative expenses were RMB1.4 billion (US$200.9 million), representing a 1% increase from the same period in 2019. This was primarily due to increased share-based compensation expenses and allowance for doubtful accounts.

Research and development expenses were RMB669.9 million (US$98.7 million), representing a 5% decrease from the same period in 2019, primarily due to the decrease of personnel-related compensation expenses.

Operating loss was RMB1.2 billion (US$178.2 million), compared to operating loss of RMB2.8 billion in the same period in 2019. Operating loss margin was 17%, compared to operating loss margin of 38% in the same period in 2019.

Total other income was RMB67.0 million (US$9.9 million), compared to total other expense of RMB826.8 million during the same period of 2019. The year-over-year variance was mainly due to the fluctuation of exchange rate between Renminbi and the U.S. dollar.

Loss before income taxes was RMB1.1 billion (US$168.3 million), compared to loss before income taxes of RMB3.7 billion in the same period in 2019.

Income tax expense was RMB18.8 million (US$2.8 million), compared to income tax expense of RMB16.0 million in the same period in 2019.

Net loss attributable to iQIYI was RMB1.2 billion (US$173.0 million), compared to net loss attributable to iQIYI of RMB3.7 billion in the same period in 2019. Diluted net loss attributable to iQIYI per ADS was RMB1.61(US$0.24) for the third quarter of 2020, compared to diluted net loss attributable to iQIYI per ADS of RMB5.04 in the same period of 2019.

As of September 30, 2020, the Company had cash, cash equivalents, restricted cash and short-term investments of RMB7.4 billion (US$1.1 billion).

Financial Guidance

For the fourth quarter of 2020, iQIYI expects total net revenues to be between RMB7.28 billion (US$1.07 billion) and RMB7.73 billion (US$1.14 billion), representing a 3% decrease to a 3% increase year over year. This forecast reflects iQIYI’s current and preliminary view, which may be subject to change.

Conference Call Information

iQIYI’s management will hold an earnings conference call at 7:00 PM on November 16, 2020, U.S. Eastern Time (8:00 AM on November 17, 2020, Beijing Time).

Please register in advance of the conference using the link provided below. Upon registering, you will be provided with participant dial-in numbers, Direct Event passcode and unique registrant ID by email.

Participant Online Registration:
http://apac.directeventreg.com/registration/event/2948288

It will automatically direct you to the registration page of “iQIYI Third Quarter 2020 Earnings Conference Call”, where you may fill in your details for RSVP. If it requires you to enter a participant conference ID, please enter “2948288”.

A telephone replay of the call will be available after the conclusion of the conference call through November 24, 2020.

Dial-in numbers for the replay are as follows:

International Dial-in:	+61 2 8199 0299
Passcode:	2948288

A live and archived webcast of the conference call will be available at http://ir.iqiyi.com/.

About iQIYI

, Inc.

iQIYI, Inc. is an innovative market-leading online entertainment service in China. Its corporate DNA combines creative talent with technology, fostering an environment for continuous innovation and the production of blockbuster content. iQIYI’s platform features highly popular original content, as well as a comprehensive library of other professionally-produced content, professional user generated content and user-generated content. The Company distinguishes itself in the online entertainment industry by its leading technology platform powered by advanced AI, big data analytics and other core proprietary technologies. iQIYI attracts a massive user base with tremendous user engagement, and has developed a diversified monetization model including membership services, online advertising services, content distribution, online games, live broadcasting, IP licensing, talent agency, online literature and e-commerce etc.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the Financial Guidance and quotations from management in this announcement, as well as iQIYI’s strategic and operational plans, contain forward-looking statements. iQIYI may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about iQIYI’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: iQIYI’s strategies; iQIYI’s future business development, financial condition and results of operations; iQIYI’s ability to retain and increase the number of users, members and advertising customers, and expand its service offerings; competition in the online entertainment industry; changes in iQIYI’s revenues, costs or expenditures; Chinese governmental policies and regulations relating to the online entertainment industry, general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and iQIYI undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

To supplement iQIYI’s consolidated financial results presented in accordance with GAAP, iQIYI uses free cash flow as non-GAAP financial measure. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

iQIYI believes that the non-GAAP financial measure provides meaningful supplemental information regarding its liquidity by excluding certain items that may not be indicative of its recurring liquidity position, such as operating cash flows adjusted by capital expenditures. The Company believes that both management and investors benefit from referring to the non-GAAP financial measure in assessing its liquidation and when planning and forecasting future periods. The non-GAAP financial measure also facilitates management’s internal comparisons to iQIYI’s historical liquidity. The Company believes the non-GAAP financial measure is useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using the non-GAAP financial measure is that the non-GAAP measure exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company’s results of operations. The non-GAAP financial measure presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data.

Free cash flow represents net cash provided by operating activities less capital expenditures. Starting from January 1, 2020, iQIYI adopted ASU 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials, which reclassifies cash outflows for costs incurred to acquire licensed contents from investing activities to operating activities. To increase comparability, 2019 free cash flow has been adjusted to include cash outflows of acquisition of licensed copyrights, which is presented on the same basis as 2020 and going forward.

For more information, please contact:

Investor Relations
iQIYI, Inc.
+ 86 10 8264 6585
[email protected]

iQIYI, INC.
Condensed Consolidated Statements of Loss
(In RMB thousands, except for number of shares and per share data)

	Three Months Ended
	September 30,	June 30,	September 30,
	2019	2020	2020
	RMB	RMB	RMB
	(Unaudited)	(Unaudited)	(Unaudited)
Revenues:
Membership services	3,716,861	4,045,968	3,975,514
Online advertising services	2,067,385	1,586,083	1,840,231
Content distribution	680,377	860,629	392,338
Others	932,311	918,897	979,609
Total revenues	7,396,934	7,411,577	7,187,692

Operating costs and expenses:
Cost of revenues	(8,175,751)	(6,833,586)	(6,363,438)
Selling, general and administrative	(1,349,543)	(1,195,632)	(1,363,935)
Research and development	(703,211)	(664,045)	(669,933)
Total operating costs and expenses	(10,228,505)	(8,693,263)	(8,397,306)
Operating loss	(2,831,571)	(1,281,686)	(1,209,614)

Other expense
Interest income	116,494	44,425	34,049
Interest expenses	(254,435)	(265,656)	(269,311)
Foreign exchange (loss)/gain, net	(656,105)	61,199	265,572
Loss from equity method investments	(33,213)	(62,205)	(24,749)
Other income, net	478	81,389	61,461
Total other (expense)/income, net	(826,781)	(140,848)	67,022

Loss before income taxes	(3,658,352)	(1,422,534)	(1,142,592)
Income tax expense	(16,047)	(15,926)	(18,846)

Net loss	(3,674,399)	(1,438,460)	(1,161,438)
Less: Net income attributable to noncontrolling interests	13,724	3,357	12,850
Net loss attributable to iQIYI, Inc.	(3,688,123)	(1,441,817)	(1,174,288)
Accretion of redeemable noncontrolling interests	–	(1,747)	(1,796)
Net loss attributable to ordinary shareholders	(3,688,123)	(1,443,564)	(1,176,084)

Net loss per share for Class A and Class B ordinary shares:
Basic	(0.72)	(0.28)	(0.23)
Diluted	(0.72)	(0.28)	(0.23)

Net loss per ADS (1 ADS equals 7 Class A ordinary shares):
Basic	(5.04)	(1.96)	(1.61)
Diluted	(5.04)	(1.96)	(1.61)

Weighted average number of Class A and Class B ordinary shares used in net loss per share computation:
Basic	5,109,395,926	5,151,499,718	5,182,686,302
Diluted	5,109,395,926	5,151,499,718	5,182,686,302

iQIYI, INC.
Condensed Consolidated Balance Sheets
(In RMB thousands, except for number of shares and per share data)

	December 31,	September 30,
	2019	2020
	RMB	RMB
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	5,934,742	3,163,128
Restricted cash	974,932	655,653
Short-term investments	4,579,313	3,603,891
Accounts receivable	3,627,749	3,260,191
Prepayments and other assets	3,719,228	3,463,425
Amounts due from related parties	211,993	169,799
Licensed copyrights, net	1,224,881	1,247,415
Total current assets	20,272,838	15,563,502

Non-current assets:
Fixed assets, net	1,754,367	1,463,733
Long-term investments	2,982,154	3,710,782
Deferred tax assets, net	34,916	66,673
Licensed copyrights, net	6,287,330	6,061,511
Intangible assets, net	813,960	661,683
Produced content, net	4,355,221	5,517,095
Prepayments and other assets	3,508,476	2,711,235
Operating lease assets	722,742	1,001,648
Goodwill	3,888,346	3,888,346
Amounts due from related parties	172,200	242,000
Total non-current assets	24,519,712	25,324,706

Total assets	44,792,550	40,888,208

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts and notes payable	8,212,449	7,455,954
Amounts due to related parties	1,604,258	1,828,085
Customer advances and deferred revenue	3,081,407	3,064,785
Short-term loans	2,618,170	3,804,396
Long-term loans, current portion	736,814	733,365
Operating lease liabilities, current portion	125,412	197,673
Accrued expenses and other liabilities	3,794,656	3,419,198
Total current liabilities	20,173,166	20,503,456
Non-current liabilities:
Long-term loans	880,278	628,286
Convertible senior notes	12,296,868	12,307,243
Deferred tax liabilities	30,136	13,749
Amounts due to related parties	1,061,883	993,608
Operating lease liabilities	402,732	757,882
Other non-current liabilities	232,555	207,071
Total non-current liabilities	14,904,452	14,907,839

Total liabilities	35,077,618	35,411,295

Redeemable noncontrolling interests:	101,542	106,802

Shareholders’ equity:

Class A ordinary shares	142	146
Class B ordinary shares	183	183
Additional paid-in capital	41,298,328	42,464,474
Accumulated deficit	(33,834,357)	(39,424,412)
Accumulated other comprehensive income	2,106,718	2,274,276
Non-controlling interests	42,376	55,444
Total shareholders’ equity	9,613,390	5,370,111

Total liabilities, redeemable noncontrolling interests and shareholders’ equity	44,792,550	40,888,208

iQIYI, INC.
Condensed Consolidated Statements of Cash Flows
(In RMB thousands, except for number of shares and per share data)

	Three Months Ended
	September 30,	June 30,	September 30,
	2019	2020	2020
	RMB	RMB	RMB
	(Unaudited)	(Unaudited)	(Unaudited)

Net cash provided by (used in) operating activities⁽¹⁾	293,485	(1,358,278)	(1,929,077)
Net cash (used in) provided by investing activities ⁽¹^、²⁾	(921,736)	1,144,401	342,847
Net cash (used in) provided by financing activities	(160,334)	822,793	238,109
Effect of exchange rate changes on cash, cash equivalents and restricted cash	257,690	(10,016)	(113,074)
Net (decrease) increase in cash, cash equivalents and restricted cash	(530,895)	598,900	(1,461,195)
Cash, cash equivalents and restricted cash
At beginning of period	7,624,018	4,681,076	5,279,976
At end of period	7,093,123	5,279,976	3,818,781

Net cash provided by (used in) operating activities	293,485	(1,358,278)	(1,929,077)
Less: Capital expenditures ⁽³⁾	(180,885)	(57,465)	(89,938)
Less: Acquisition of licensed copyrights ⁽¹⁾	(2,688,769)	–	–
Free cash flow	(2,576,169)	(1,415,743)	(2,019,015)

(1) Starting from January 1, 2020, iQIYI adopted ASU 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials, which reclassifies cash outflows for costs incurred to acquire licensed contents from investing activities to operating activities. To increase comparability, 2019 non-GAAP measure of free cash flow has been adjusted to include cash outflows of acquisition of licensed copyrights, which is presented on the same basis as 2020 and going forward.
(2) Starting from January 1, 2020, net cash used in or provided by investing activities primarily consists of net cash flows from investing in debt securities, purchase of long term investments and capital expenditures.
(3) Capital expenditures are incurred primarily in connection with leasehold improvements, computers and servers.

View original content:http://www.prnewswire.com/news-releases/iqiyi-announces-third-quarter-2020-financial-results-301173677.html

SOURCE iQIYI, Inc.

November 16, 2020 4:33 pm

U.S. Energy Corp. Announces Third Quarter Financial and Operating Results

HOUSTON, Nov. 16, 2020 (GLOBE NEWSWIRE) — U.S. Energy Corp. (NASDAQCM: USEG) (“We”, “U.S. Energy” or the “Company”) today announced financial and operating results for the third quarter ended September 30, 2020.

Management Comments

“Despite the continuation of the challenging commodity price backdrop and widespread shut-in activity taking place in the upstream industry, U.S. Energy has continued to execute on its previously stated 2020 plan,” said Ryan Smith, U.S. Energy’s Chief Executive Officer. “While the third quarter still undoubtedly felt the effects of shut-in activity that began in the previous quarter, with the improvement in commodity strip pricing, U.S. Energy began to see a slow but steady return of curtailed and shut-in production beginning in August 2020 as evidenced by our ascending production volumes throughout the quarter. The Company’s two recently announced acquisitions show that U.S. Energy can continue to transact on producing assets at compelling valuations despite the current market landscape. Going forward, the Company’s priorities will continue to be focused on maintaining the strength of our balance sheet and liquidity position while seeking out strategic asset packages that contain producing properties which generate free cash flow and hold upside potential. As we come to the conclusion of 2020, the success U.S. Energy has had throughout the year in accomplishing our stated goals and navigating an unprecedented energy backdrop has well positioned the Company to deliver both near-term and long-term value creation as we head into 2021.”

Third

Quarter 2020

Production Update

During the quarter ended September 30, 2020, U.S. Energy produced volumes of 13,453 BOE (77% oil), an average of approximately 146 BOE per day. U.S. Energy continued to be affected by many of our operating partners actions to shut-in or curtail production and delay workover plans as a result of the low commodity price environment. While the majority of production shut-ins began during the second quarter of 2020 and continued through July 2020, U.S. Energy began seeing a significant portion of its properties return to production towards the end of the third quarter as shown by Company production averaging approximately 168 barrels of oil equivalent per day during August and September 2020, an approximate 15% increase from the overall third quarter average.

		3 q 2020
Sales Volume (Total)
Oil (Bbls)		10,354
Gas (Mcf)		18,591
Sales volume (Boe)		13,453

Average daily production (Boe)		146

Average Sales Prices
Oil (Bbl)	$	34.96
Gas (Mcf)	$	2.10
Average price (Boe)	$	29.81

Current Liquidity

Position

At September 30, 2020, the Company had approximately $1.0 million in cash. As of November 16, 2020, we had approximately $5.4 million in cash and 2,915,654 shares outstanding.

Recent

M&A Activity

As previously disclosed, on September 25, 2020, U.S. Energy closed a transaction to acquire producing properties primarily located in Lea County, New Mexico and Converse County, Wyoming. The assets contain both operated and non-operated properties and have total estimated Proved Developed Producing (“PDP”) reserves of approximately 237,263 barrels of oil equivalent (63% oil) with a present value of estimated net revenue before income taxes discounted at 10% (“PV10”) value of approximately $2.5 million using strip pricing as of September 9, 2020. The consideration paid at closing by U.S. Energy consisted of $500,000 in cash.

It should also be noted that subsequent to quarter end, on November 9, 2020, U.S. Energy announced it had entered into a Purchase and Sale Agreement to acquire operated assets in Liberty County, Texas in an all-stock transaction. The acquired properties have total estimated Proved Developed reserves of approximately 242,300 barrels of oil comprised entirely of PDP and Proved Developed Non-Producing reserves. The assets have a PV10 of approximately $1.2 million using strip pricing as of November 5, 2020. The consideration payable for the assets is expected to be $250,000 in U.S. Energy restricted common stock and the transaction is expected to close in the fourth quarter of 2020.

Third

Quarter

Ended

September

30

, 2020

Financial Results

Revenues from sales of oil and natural gas during the third quarter of 2020 were $0.4 million compared to $1.6 million during the comparable period of 2019. The change in revenue was primarily attributable to a decrease in commodity prices combined with a decrease in production volumes. For the third quarter of 2020 we realized an average oil sales price of $34.96 per Bbl and an average gas sales price of $2.10 per Mcf for an overall average sales price of $29.81 per BOE compared to an average oil sales price of $55.58 per Bbl and an average gas sales price of $1.63 per Mcf for an average sales price of $47.20 BOE during the comparable period of 2019. Revenue from oil production represented 90% of our revenue during the quarter.

Lease operating expenses during the third quarter of 2020 were $0.3 million compared to $0.4 million during the comparable period of 2019. The decrease in overall lease operating expenses was due to reduced overall field activity as a result of low commodity prices.

General and administrative (“G&A”) expenses, including non-cash items, totaled $607 thousand during the third quarter of 2020 compared to $1.0 million during the comparable period of 2019. The reduction was primarily attributable to a decrease in professional service fees combined with savings realized as a result of the Company’s successful implementation of a corporate overhead reduction.

We recorded a non-cash impairment of our oil and natural gas properties of $1.1 million during the third quarter of 2020 related to a full cost ceiling test limitation driven by the reduction in the value of our reserves due to a decline in commodity prices. We had no such impairment during the comparable period of 2019.

About
U.S. Energy Corp.

We are an independent energy company focused on the acquisition and development of oil and gas producing properties in the United States. Our business is currently focused on targeting mature, low decline assets with existing infrastructure that allows us to maximize our return on capital in a sustainable and efficient manner. More information about U.S. Energy Corp. can be found at www.usnrg.com.

Forward-Looking Statements

This press release may include “forward-looking statements” within the meaning of the securities laws. All statements other than statements of historical facts included herein may constitute forward-looking statements. Forward-looking statements in this document may include statements concerning the Company’s expectations regarding the Company’s operational, exploration and development plans; expectations regarding the nature and amount of the Company’s reserves; and expectations regarding production, revenues, cash flows and recoveries. When used in this press release, the words “will,” “potential,” “believe,” “estimate,” “intend,” “expect,” “may,” “should,” “anticipate,” “could,” “plan,” “predict,” “project,” “profile,” “model,” or their negatives, other similar expressions or the statements that include those words, are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, fluctuations in oil and natural gas prices, uncertainties inherent in estimating quantities of oil and natural gas reserves and projecting future rates of production and timing of development activities, competition, operating risks, acquisition risks, liquidity and capital requirements, the effects of governmental regulation, adverse changes in the market for the Company’s oil and natural gas production, dependence upon third-party vendors, and other risks detailed in the Company’s periodic report filings with the Securities and Exchange Commission.

Corporate Contact:

U.S. Energy Corp. 
Ryan Smith
Chief Executive Officer
(303) 993-3200
www.usnrg.com

November 16, 2020 4:33 pm

Amedisys to Present at the Jefferies Virtual London Healthcare Conference

BATON ROUGE, La., Nov. 16, 2020 (GLOBE NEWSWIRE) — Amedisys, Inc. (NASDAQ: AMED), one of America’s leading home health, hospice and personal care companies, today announced that Paul B. Kusserow, President and Chief Executive Officer will present at the Jefferies Virtual London Healthcare Conference on Tuesday, November 17, 2020.

The presentation will begin at 9:25 a.m. Eastern Time. To access a live webcast of the Amedisys presentation, please log on through our website at http://investors.amedisys.com.

About Amedisys:

Amedisys, Inc. is a leading healthcare at home company delivering personalized home health, hospice and personal care. Amedisys is focused on delivering the care that is best for our patients, whether that is home-based personal care; recovery and rehabilitation after an operation or injury; care focused on empowering them to manage a chronic disease; or hospice care at the end of life. More than 2,600 hospitals and 67,000 physicians nationwide have chosen Amedisys as a partner in post-acute care. Founded in 1982, headquartered in Baton Rouge, LA with an executive office in Nashville, Tenn., Amedisys is a publicly held company. With 21,000 employees in 516 care centers within 39 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 415,000 patients and clients in need every year. For more information about the Company, please visit: www.amedisys.com

Contact:

Amedisys, Inc.
Investor Relations
855.259.2046
[email protected]

November 16, 2020 4:33 pm

Hooker Furniture to Host Third Quarter Earnings Call on December 10

MARTINSVILLE, Va., Nov. 16, 2020 (GLOBE NEWSWIRE) — Hooker Furniture Corporation (Nasdaq-GS:HOFT) will present its fiscal 2021 third quarter financial results via teleconference and live internet web cast on Thursday morning, December 10, 2020 at 9:00 AM Eastern Time. The dial-in number for domestic callers is 877.665.2466 and the number for international callers is 678.894.3031. The conference ID number is 9423979.

Hooker’s fiscal 2021 third quarter began on August 3, 2020 and ended on November 1, 2020.

The call will be simultaneously web cast and archived for replay on the Company’s web site at hookerfurniture.com in the Company section under Investor Relations.

Hooker Furniture Corporation, in its 97th year of business, is a designer, marketer and importer of casegoods (wooden and metal furniture), leather furniture and fabric-upholstered furniture for the residential, hospitality and contract markets. The Company also domestically manufactures premium residential custom leather and custom fabric-upholstered furniture. It is ranked among the nation’s largest publicly traded furniture sources, based on 2019 shipments to U.S. retailers, according to a 2020 survey by a leading trade publication. Major casegoods product categories include home entertainment, home office, accent, dining, and bedroom furniture in the upper-medium price points sold under the Hooker Furniture brand. Hooker’s residential upholstered seating product lines include Bradington-Young, a specialist in upscale motion and stationary leather furniture, Sam Moore Furniture, a specialist in upscale occasional chairs, settees, sofas and sectional seating with an emphasis on cover-to-frame customization, Hooker Upholstery, imported upholstered furniture targeted at the upper-medium price-range and Shenandoah Furniture, an upscale upholstered furniture company specializing in private label sectionals, modulars, sofas, chairs, ottomans, benches, beds and dining chairs in the upper-medium price points for lifestyle specialty retailers. The H Contract product line supplies upholstered seating and casegoods to upscale senior living facilities. The Home Meridian division addresses more moderate price points and channels of distribution not currently served by other Hooker Furniture divisions or brands. Home Meridian’s brands include Accentrics Home, home furnishings centered around an eclectic mix of unique pieces and materials that offer a fresh take on home fashion, Pulaski Furniture, casegoods covering the complete design spectrum in a wide range of bedroom, dining room, accent and display cabinets at medium price points, Samuel Lawrence Furniture, value-conscious offerings in bedroom, dining room, home office and youth furnishings, Prime Resources, value-conscious imported leather upholstered furniture, Samuel Lawrence Hospitality, a designer and supplier of hotel furnishings and HMidea, a 2019 start-up that provides better-quality, ready-to-assemble furniture to mass marketers and e-commerce customers. Hooker Furniture Corporation’s corporate offices and upholstery manufacturing facilities are located in Virginia and North Carolina, with showrooms in High Point, N.C. and Ho Chi Minh City, Vietnam. The company operates eight distribution centers in North Carolina, Virginia, California and Vietnam. Please visit our websites hookerfurniture.com, bradington-young.com, sammoore.com, hcontractfurniture.com, homemeridian.com, pulaskifurniture.com, accentricshome.com and slh-co.com.

For more information, contact:

Paul A. Huckfeldt
, Senior Vice President-Finance
and
CFO

Hooker Furniture Corporation, 276.666.3949

November 16, 2020 4:33 pm

Hall of Fame Resort & Entertainment Company Appoints Lisa Roy to its Board of Directors

Hall of Fame Resort & Entertainment Company Appoints Lisa Roy to its Board of Directors

CANTON, Ohio–(BUSINESS WIRE)–
Hall of Fame Resort & Entertainment Company (“HOFV” or the “Company”) (NASDAQ: HOFV, HOFVW), the only resort, entertainment and media company centered around the power of professional football and owner of the Hall of Fame Village powered by Johnson Controls, has announced that it has appointed Lisa Roy to its Board of Directors. Ms. Roy fills a Class A position on the Board and the appointment is effective immediately.

Ms. Roy has been with Johnson Controls for more than 25 years and brings vast knowledge of its business verticals and contracting experience to HOFV. Currently, she is the Vice President of Commercial Sales, Building Solutions North America (BSNA) for Johnson Controls International PLC (NYSE: JCI), where she leads revenue growth, commercial operations, strategy and marketing. She has served in this role since 2016. Ms. Roy has been responsible for driving growth in commercial excellence for BSNA’s direct channel business and its profitable year-over-year growth, including its go to market approach, organizational design, and integration of mergers in North America.

Prior to this role, Ms. Roy was the Vice President and General Manager of Systems, Services, and Solutions’ (SSI) South Region. In this role, she was responsible for the profitable growth in the region – across systems, services and energy performance contracting. Throughout her career, she has held roles of increasing responsibility including Vice President and General Manager of Global Security and Fire, Vice President and General Manager, Enterprise Accounts and Vice President, North America Security and Fire.

“We welcome Lisa to our Board of Directors and know that her deep expertise, strong leadership, and impressive personal and professional background will immediately add value as an advisor to the Company,” said Michael Crawford, President and CEO of HOFV. “She is a seasoned operational executive with direct experiences that will offer a unique perspective and align well with our strategic outlook and plans for the future.”

Ms. Roy holds a Bachelor’s Degree in Electrical Engineering from Louisiana State University. During her career at Johnson Controls, she has been an active supporter of United Way and the United Performing Arts Foundation. In addition, she is actively involved in the Johnson Controls Women’s Network.

About the Hall of Fame Resort & Entertainment Company

The Hall of Fame Resort & Entertainment Company (NASDAQ: HOFV, HOFVW) is a resort and entertainment company leveraging the power and popularity of professional football and its legendary players in partnership with the Pro Football Hall of Fame. Headquartered in Canton, Ohio, the Hall of Fame Resort & Entertainment Company is the owner of the Hall of Fame Village powered by Johnson Controls, a multi-use sports, entertainment and media destination centered around the Pro Football Hall of Fame’s campus. Additional information on the Company can be found at www.HOFREco.com.

Forward-Looking Statements

Certain statements made herein are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words and phrases such as “opportunity,” “future,” “will,” “goal,” and “look forward” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include the inability to recognize the anticipated benefits of the business combination; costs related to the business combination; the inability to obtain or maintain the listing of the Company’s shares on Nasdaq; the Company’s ability to manage growth; the Company’s ability to execute its business plan and meet its projections; potential litigation involving the Company; changes in applicable laws or regulations; general economic and market conditions impacting demand for the Company’s products and services, and in particular economic and market conditions in the resort and entertainment industry; the potential adverse effects of the ongoing global coronavirus (COVID-19) pandemic on capital markets, general economic conditions, unemployment and the Company’s liquidity, operations and personnel, as well as those risks and uncertainties discussed from time to time in our reports and other public filings with the SEC. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201116006027/en/

Media Inquiries

[email protected]

Investor Inquiries

[email protected]

KEYWORDS: Ohio United States North America

INDUSTRY KEYWORDS: Other Sports General Sports Sports Entertainment Other Entertainment General Entertainment Lodging Destinations Travel

MEDIA:

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November 16, 2020 4:33 pm

Cellectis Appoints Pharma HR Leader Kyung Nam-Wortman as Executive Vice President, Chief Human Resources Officer

NEW YORK, Nov. 16, 2020 (GLOBE NEWSWIRE) — Cellectis (Euronext Growth: ALCLS – Nasdaq: CLLS), a clinical-stage biopharmaceutical company focused on developing immunotherapies based on gene-edited allogeneic CAR T-cells (UCART), announced today the appointment of Kyung Nam-Wortman as Cellectis’ Executive Vice President, Chief Human Resources Officer. Ms. Nam-Wortman, who will be based in Cellectis’ New York office, is also joining the Company’s executive committee.

“Ky is an accomplished human resources leader who brings over 25 years of experience in the biotech/biopharma industries to Cellectis. She will lead Cellectis’ human resources strategies and contribute to the Company’s overarching mission, which will ultimately help drive our business toward commercialization,” said Dr. André Choulika, Chief Executive Officer, Cellectis. “Furthermore, Ky has worked globally with some of the most successful biopharma companies and has an extensive background specializing in multiple areas of human resources. Her vast experience working with biotech leaders across the board to maximize human capital will make her an invaluable asset to our growing team.”

In her new role at Cellectis, Ms. Nam-Wortman will work closely with Dr. Choulika and the executive management team to ensure that the Company advances its roadmap through the recruitment and retention of top talent. She will also work to further develop and enhance Cellectis’ dynamic and inclusive culture, while optimizing the Company’s human resources function.

Kyung Nam-Wortman joins Cellectis from Achillion (recently acquired by Alexion in January 2020) where she served as Senior Vice President, Head of Human Resources, Head of Information Technology, Facilities and Internal Communications. At Achillion, she was responsible for leading the strategic and operational components of the aforementioned functions.

Prior to her tenure at Achillion, Ms. Nam-Wortman served as Vice President and Head of Global Talent and Organization Capability at Zoetis, where she supported the spin-off of Pfizer’s animal health business unit through its IPO and was responsible for the stand up of Zoetis’ global talent management function to support the company’s growth worldwide. She also held various human resource leadership roles for Pfizer’s business units, divisions, and functions with regional and global accountabilities.

In addition to her experience in biotech/biopharma, Ms. Nam-Wortman has 14 years of experience in the consulting industry focused on strategic and organization change management from Delta Consulting Group and IBM. She received her bachelor’s in marketing from New York University Stern School of Business and MS in human resources management / organization development from the New School of Social Research.

“From Day One, Cellectis’ commitment to developing a cure for cancer patients in need utilizing its novel gene-editing technology has resonated deeply with me. I look forward to working with the team to help shape the future of the Company,” said Ms. Nam-Wortman. “The success of any company ultimately starts with its people and culture. Continuing to find and develop the right talent for such a purpose-driven organization will be of the utmost importance for me, and ultimately, for Cellectis moving forward.”

About Cellectis

Cellectis is developing the first of its kind allogeneic approach for CAR-T immunotherapies in oncology, pioneering the concept of off-the-shelf and ready-to-use gene-edited CAR T-cells to treat cancer patients. As a clinical-stage biopharmaceutical company with over 20 years of expertise in gene editing, Cellectis is developing life-changing product candidates utilizing TALEN^®, its gene editing technology, and PulseAgile, its pioneering electroporation system to harness the power of the immune system in order to target and eradicate cancer cells.

As part of its commitment to a cure, Cellectis remains dedicated to its goal of providing life-saving UCART product candidates to address unmet needs for multiple cancers including acute myeloid leukemia (AML), B-cell acute lymphoblastic leukemia (B-ALL) and multiple myeloma (MM).

Cellectis headquarters are in Paris, France, with additional locations in New York, New York and Raleigh, North Carolina. Cellectis is listed on the Nasdaq Global Market (ticker: CLLS) and on Euronext Growth (ticker: ALCLS). For more information, visit www.cellectis.com.

Follow Cellectis on social media: @cellectis, LinkedIn and YouTube.

TALEN^®is a registered trademark owned by Cellectis.

For further information, please contact:

Media contacts:

Jennifer Moore, SVP, Public Relations, 917-580-1088, [email protected]
Caitlin Kasunich, KCSA Strategic Communications, 212-896-1241, [email protected]

IR contact:

Simon Harnest, SVP, Corporate Strategy and Finance, 646-385-9008, [email protected]

Disclaimer

This press release contains “forward-looking” statements within the meaning of applicable securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “at this time”, “anticipate”, “believe”, “can”, “could”, “estimate”, “expect”, “intend”, “is designed to”, “may”, “might”, “on track”, “plan”, “potential”, “predict”, “objective”, “scheduled”, “should” and “will,” or the negative of these and similar expressions. These forward-looking statements, which are based on our management’s current expectations and assumptions and on information currently available to management. These forward-looking statements are made in light of information currently available to us and are subject to numerous risks and uncertainties, including with respect to the duration and severity of the COVID-19 pandemic and governmental and regulatory measures implemented in response to the evolving situation. Furthermore, many other important factors, including those factors described in our Annual Report on Form 20-F and the financial report (including the management report) for the year ended December 31, 2019 and subsequent filings Cellectis makes with the Securities Exchange Commission from time to time, as well as other known and unknown risks and uncertainties may adversely affect such forward-looking statements and cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons why actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.

PDF available at: http://ml.globenewswire.com/Resource/Download/c8d9c85c-2df0-4e04-b950-f1a7965b1347

November 16, 2020 4:33 pm

Installed Building Products Announces the Acquisition of WeatherSeal Insulation Co., LLC

Installed Building Products Announces the Acquisition of WeatherSeal Insulation Co., LLC

– Acquisition Adds Approximately $6.4 Million of Annual Revenue –

COLUMBUS, Ohio–(BUSINESS WIRE)–
Installed Building Products, Inc. (the “Company” or “IBP”) (NYSE: IBP), an industry-leading installer of insulation and complementary building products, announced today the acquisition of WeatherSeal Insulation Co., LLC (“WeatherSeal”). Founded in 1989, WeatherSeal is headquartered in Charlottesville, Virginia and primarily provides fiberglass and spray foam insulation services to residential customers.

“With approximately $6.4 million of annual revenue, WeatherSeal expands our presence in Virginia,” stated Jeff Edwards, Chairman and Chief Executive Officer. “To date in 2020, we have acquired over $100 million of annual revenues. Acquisitions remain a key component of our growth strategy and we continue to have a robust pipeline of acquisition opportunities across multiple geographies, products, and end markets. On behalf of everyone at Installed Building Products, I would like to welcome the WeatherSeal team onto our team.”

About Installed Building Products

Installed Building Products, Inc. is one of the nation’s largest new residential insulation installers and is a diversified installer of complementary building products, including waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company manages all aspects of the installation process for its customers, from direct purchase and receipt of materials from national manufacturers to its timely supply of materials to job sites and quality installation. The Company offers its portfolio of services for new and existing single-family and multi-family residential and commercial building projects from its national network of over 180 branch locations.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, including with respect to the housing market and the economy, our financial and business model, the demand for our services and product offerings,  expansion of our national footprint and end markets, diversification of our products, our ability to grow and strengthen our market position, our ability to pursue and integrate value-enhancing acquisitions, our ability to improve sales and profitability,  and expectations for demand for our services and our earnings in 2020. Forward-looking statements may generally be identified by the use of words such as “anticipate,” “believe,” “expect,” “intends,” “plan,” and “will” or, in each case, their negative, or other variations or comparable terminology.  These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Any forward-looking statements that we make herein and in any future reports and statements are not guarantees of future performance, and actual results may differ materially from those expressed in or suggested by such forward-looking statements as a result of various factors, including, without limitation, the duration, effect and severity of the COVID-19 crisis; the adverse impact of the COVID-19 crisis on our business and financial results, the economy and the markets we serve; general economic and industry conditions, the material price environment; the timing of increases in our selling prices, and the factors discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission.  Any forward-looking statement made by the Company in this press release speaks only as of the date hereof. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict these events or how they may affect it. The Company has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201116006020/en/

Investor Relations:

614-221-9944

[email protected]

KEYWORDS: Virginia Ohio United States North America

INDUSTRY KEYWORDS: Chemicals/Plastics Other Construction & Property Residential Building & Real Estate Manufacturing Commercial Building & Real Estate Construction & Property

MEDIA:

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November 16, 2020 4:33 pm

Perceptron Announces Fiscal First Quarter 2021 Results

PLYMOUTH, Mich., Nov. 16, 2020 (GLOBE NEWSWIRE) — Perceptron, Inc. (NASDAQ: PRCP), a leading global provider of 3D automated metrology solutions and coordinate measuring machines, today announced results for the three months ended September 30, 2020.

FISCAL FIRST QUARTER 2021 SUMMARY

Net sales of $13.9 million
Operating Loss $(0.7) million
Adjusted EBITDA¹ of $(0.2) million
Total bookings of $14.6 million
Total backlog of $37.0 million
Cash and cash equivalents of $12.9 million

F
INANCIAL
RESULTS

For the three months ended September 30, 2020, the Company generated net sales of $13.9 million, versus $17.9 million in the prior-year period. Sales in the Americas, Europe and Asia declined 42%, 3% and 19% on a year-over-year basis, respectively, in the period. Sales of Measurement Solutions, which represented 95% of total sales in the period, declined 19% in the fiscal first quarter, when compared to the prior-year period.

Total gross profit declined 38% on a year-over-year basis, or $2.6 million, to $4.4 million in the fiscal first quarter. Gross profit margin decreased 790 basis points to 32%, versus 40% in the prior-year period, primarily due to the mix of revenue and increased cost of sales.

The Company reported a net loss of $(0.4) million, or $(0.04) per share, in the fiscal first quarter, versus $0.6 million, or $0.06 per share, in the prior-year period.

Adjusted EBITDA was $(0.2) million in the fiscal first quarter of 2021, versus $1.1 million in the prior year period, driven by lower sales.

Total bookings declined 15% on a year-over-year basis to $14.6 million in the fiscal first quarter, with decreased bookings in Europe, and Americas, partially off-set by increased bookings in Asia. Total backlog declined 2% on a year-over-year basis to $37.0 million in the fiscal first quarter, as improved backlog in Asia was more than offset by a decline in the Americas and Europe. Both bookings and backlog were adversely impacted by work stoppages and shelter-in-place orders resulting from the COVID-19 pandemic.

As of September 30, 2020, the Company had cash and cash equivalents globally of $12.9 million, which includes borrowings of $4.8 million. On April 16, 2020, Perceptron entered into an unsecured loan with TCF National Bank as the lender in the aggregate principal amount of $2.5 million pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act. Perceptron intends to apply for forgiveness for this loan under the terms of this program in the second quarter of fiscal 2021.

AGREEMENT AND PLAN MERGER

Perceptron will not hold an earnings call, nor provide forward guidance for the second quarter of fiscal year 2021, due to the previously announced proposed acquisition of Perceptron by Atlas Copco.

[1] See the attached “Non-GAAP Financial Measures” for a Reconciliation of Net (Loss) Income to Adjusted EBITDA

A
BOUT PERCEPTRON
^®

Perceptron (NASDAQ: PRCP) develops, produces and sells a comprehensive range of automated industrial metrology products and solutions to manufacturing organizations for dimensional gauging, dimensional inspection and 3D scanning. Products include 3D machine vision solutions, robot guidance, coordinate measuring machines, laser scanning and advanced analysis software. Global automotive and other manufacturing companies rely on Perceptron’s metrology solutions to assist in managing their complex manufacturing processes to improve quality, shorten product launch times and reduce costs. Headquartered in Plymouth, Michigan, Perceptron has subsidiary operations in Brazil, China, Czech Republic, France, Germany, India, Italy, Japan, Slovakia, Spain and the United Kingdom. For more information, please visit www.perceptron.com.

SAFE HARBOR STATEMENT

Certain statements in this press release may be “forward-looking statements” within the meaning of the Securities Exchange Act of 1934, including our expectations regarding the possible effects of the COVID-19 pandemic on general economic conditions, public health, and global automotive industry, and the Company’s results of operations, liquidity, capital resources, and general performance in the future, the potential impact of COVID-19 on our customers generally and their plans for retooling projects in particular, our fiscal year 2021 and future results, operating data, new order bookings, revenue, expenses, net income and backlog levels, trends affecting our future revenue levels, the rate of new orders, and our ability to fund our fiscal year 2020 and future cash flow requirements. We may also make forward-looking statements in our press releases or other public or shareholder communications. Whenever possible, we have identified these forward-looking statements by words such as “target,” “will,” “should,” “could,” “believes,” “expects,” “anticipates,” “estimates,” “prospects,” “outlook,” “guidance” or similar expressions. We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements. While we believe that our forward-looking statements are reasonable, you should not place undue reliance on any such forward-looking statements, which speak only as of the date made. Because these forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond our control or are subject to change, actual results could be materially different. Factors that might cause such a difference include, without limitation, the risks and uncertainties discussed from time to time in our periodic reports filed with the Securities and Exchange Commission, including those listed in “Item 1A. Risk Factors” of our Annual Report on Form 10-K for our fiscal year 2020. Except as required by applicable law, we do not undertake, and expressly disclaim, any obligation to publicly update or alter our statements whether as a result of new information, events or circumstances occurring after the date of this report or otherwise. The proposed merger is subject to certain conditions precedent, including regulatory approvals and approval of the Company’s shareholders. The Company cannot provide any assurance that the proposed merger will be completed, nor can it give assurances as to the terms on which such proposed merger will be consummated.

— Financial Tables Follow —


PERCEPTRON, INC.
SELECTED FINANCIAL DATA
(Unaudited, In Thousands Except Per Share Amounts)

Condensed Income Statements	Three Months Ended
	September 30,
		2020			2019

Net Sales	$	13,933		$	17,850
Cost of Sales		9,537			10,808
Gross Profit		4,396			7,042
Operating Expenses
Selling, General and Administrative		3,769			4,243
Engineering, Research and Development		1,324			1,828
Operating (Loss) Income		(697	)		971
Other Income and (Expenses), net
Interest Expense, net		(42	)		(24	)
Foreign Currency and Other, net		177			(178	)
(Loss) Income Before Income Taxes		(562	)		769
Income Tax (Expense) Benefit		155			(143	)

Net (Loss) Income	$	(407	)	$	626

(Loss) Income Per Common Share
Basic and Diluted	($	0.04	)	$	0.06

Weighted Average Common Shares Outstanding
Basic		9,750			9,661
Diluted		9,750			9,664

PERCEPTRON, INC.
SELECTED FINANCIAL DATA
(Unaudited, In Thousands)

Condensed Balance Sheets	September 30, 2020		June 30, 2020

Cash and Cash Equivalents	$	12,868	$	10,621
Short-Term Investments		427		355
Receivables, net		28,893		30,653
Inventories, net		10,280		10,387
Other Current Assets		3,355		1,854
Total Current Assets		55,823		53,870

Property and Equipment, net		5,677		5,750
Goodwill and Other Intangible Assets, net		978		1,100
Right of Use Assets		3,823		3,668
Long-Term Investments		725		725
Long-Term Deferred Income Tax Assets		595		469
Total Non-Current Assets		11,798		11,712

Total Assets	$	67,621	$	65,582

Lines of Credit and current portion of long-term debt	$	3,083	$	2,808
Accounts Payable		6,337		6,667
Deferred Revenue		7,294		6,032
Reserves for Severance, Impairment and Other Charges		59		148
Short-Term Operating Lease Liability		500		475
Other Current Liabilities		5,797		5,257
Total Current Liabilities		23,070		21,387

Long-Term Deferred Income Tax Liability		10		3
Long-Term Operating Lease Liability		3,376		3,245
Long-Term Deferred Revenue		181		214
Long-Term Debt, Less Current Portion		1,701		1,983
Other Long-Term Liabilities		443		449
Total Long-Term Liabilities		5,711		5,894

Total Liabilities		28,781		27,281

Shareholders’ Equity		38,840		38,301
Total Liabilities and Shareholders’ Equity	$	67,621	$	65,582

PERCEPTRON, INC.

NON-GAAP FINANCIAL MEASURES

While Perceptron’s results under Generally Accepted Accounting Principles in the United States of America (“U.S. GAAP”) provide significant insight into our operations and financial position, Perceptron’s management supplements its analysis of the business using “Adjusted EBITDA”. These are non-GAAP financial measures. Management believes these non-GAAP financial measures, when taken together with the corresponding GAAP measures, provide incremental insight into the underlying factors and trends affecting our performance because it excludes the effects of financing, investment, and other non-operating activities that management believes are not representative of our core business. However, it should be viewed as supplemental data, rather than as a substitute or an alternative to the comparable GAAP measure. The tables below present a reconciliation of the non-GAAP measures to the most directly comparable financial measure calculated in accordance with GAAP.



PERCEPTRON, INC.
RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA
(Unaudited, In Thousands)

	Three Months Ended
	September 30,
		2020			2019


Net (Loss) Income	$	(407	)	$	626
Interest Expense, net		42			24
Income Tax (Benefit) Expense		(155	)		143
Depreciation and amortization expense		350			336
Adjusted EBITDA	$	(170	)	$	1,129

Fully diluted shares outstanding		9,750			9,661
Adjusted Net (Loss) Income Per Share	$	(0.04	)	$	0.06

Adjusted EBITDA, for the periods presented, represents net (loss) income before interest expense, net; income tax (benefit) expense; and depreciation and amortization expense, severance costs, impairment charges and litigation settlements. Adjusted EBITDA does not represent net income, as that term is defined under GAAP, and should not be considered as an alternative to net income as an indicator of our operating performance. Adjusted EBITDA is not intended to be a measure of free cash flow available for management and discretionary use of such measures do not consider certain cash requirements such as capital expenditures, tax payments and debt service requirements.

Contact:

Investor Relations
[email protected]

November 16, 2020 4:33 pm

Universal Filmed Entertainment Group and Cinemark Theaters Announce Dynamic Release Window Agreement for Exhibition of Universal Films

Universal Filmed Entertainment Group and Cinemark Theaters Announce Dynamic Release Window Agreement for Exhibition of Universal Films

This Dynamic Window Provides Flexibility by Allowing Films that Open to More Than $50 Million at the Box Office to Have At Least 31 Days of an Exclusive Theatrical Window, with All Other Titles Receiving a Minimum of 17 Days of Theatrical Exclusivity

UNIVERSAL CITY, Calif. & PLANO, Texas–(BUSINESS WIRE)–
Building on the two companies’ shared commitment to the theatrical experience, while capitalizing on the opportunity to further adapt to changing consumer behavior, particularly in light of the current COVID-19 environment, Universal Filmed Entertainment Group (UFEG), a division of Comcast Corporation (NASDAQ: CMCSA), and Cinemark Holdings, Inc. (NYSE: CNK) today announced a multi-year agreement under which UFEG films will be exhibited in Cinemark theaters in the U.S.

The agreement includes at least three full weekends (17 days) of theatrical exclusivity for all Universal Pictures and Focus Features theatrical releases, at which time the studio will have the option to make its titles available across premium video on demand (PVOD) platforms. Under the terms of the deal, any title that opens to $50 million or more, including many franchise titles, will play exclusively in theaters for at least five full weekends (31 days) before the title may become available on PVOD.

“Universal’s century-long partnership with exhibition is rooted in the theatrical experience, and we are more committed than ever for audiences to experience our movies on the big screen,” said Donna Langley, Chairman, UFEG. “Mark Zoradi and the team at Cinemark have been outstanding partners, and Peter Levinsohn [Vice Chairman & Chief Distribution Officer, UFEG] has done a remarkable job on the studio’s behalf in making deals that give us the confidence to release our movies in the marketplace, keep the content pipeline moving, and provide consumers with the optionality that they are looking for.”

“We are extremely pleased to further enhance our strong partnership with Universal as we evolve the exclusive theatrical window,” said Mark Zoradi, Cinemark CEO. “We believe a more dynamic theatrical window, whereby movie theaters continue to provide an event-sized launching platform for films that maximize box office and bolsters the success of subsequent distribution channels, is in the shared best interests of studios, exhibitors and, most importantly, moviegoers.”

The full terms of the deal are confidential and are not being disclosed.

UFEG’s film slate, including titles from Universal Pictures, Focus Features and DreamWorks Animation, has five theatrical releases remaining on the 2020 calendar: The Croods: A New Age, Half Brothers, All My Life, News of the World and Promising Young Woman.

About Universal Filmed Entertainment Group

Universal Filmed Entertainment Group (UFEG) produces, acquires, markets and distributes filmed entertainment worldwide in various media formats for theatrical, home entertainment, television and other distribution platforms. The global division includes Universal Pictures, Focus Features, Universal Pictures Home Entertainment, DreamWorks Animation Film and Television. UFEG is part of NBCUniversal, one of the world’s leading media and entertainment companies in the development, production and marketing of entertainment, news and information to a global audience. NBCUniversal owns and operates a valuable portfolio of news and entertainment networks, a premier motion picture company, significant television production operations, a leading television stations group, world-renowned theme parks and a suite of leading Internet-based businesses. NBCUniversal is a subsidiary of Comcast Corporation.

About Cinemark Holdings, Inc.

Headquartered in Plano, TX, Cinemark (NYSE: CNK) is one of the largest and most influential movie theater companies in the world. Cinemark’s circuit, comprised of various brands that also include Century, Tinseltown and Rave, operates 534 theaters with 5,977 screens globally (332 theaters and 4,522 screens across 41 states domestically; 202 theaters and 1455 screens in 15 countries throughout South and Central America). Cinemark consistently provides an extraordinary guest experience from the initial ticket purchase to the closing credits, including Movie Club, the first U.S. exhibitor-launched subscription program; the highest Luxury Lounger recliner seat penetration among the major players; XD – the No. 1 exhibitor-brand premium large format; and expansive food and beverage options to further enhance the moviegoing experience. For more information go to https://ir.cinemark.com/.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201116006005/en/

Universal Filmed Entertainment Group

Evan Langweiler

[email protected]

Cinemark Media Relations

Caitlin Piper

[email protected]

Cinemark Investor Relations

Chanda Brashears

[email protected]

KEYWORDS: United States North America California Texas

INDUSTRY KEYWORDS: General Entertainment Entertainment Film & Motion Pictures

MEDIA: