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Vireo Health Announces Forced Redemption of Warrants Issued in Conjunction with March 2020 Private Placement

— Successful financing helped drive improvements in operating performance —

— Management expects redemptions to result in CAD $13.1 million of cash proceeds —

PR Newswire

MINNEAPOLIS, Nov. 16, 2020 /PRNewswire/ — Vireo Health International, Inc. (“Vireo” or the “Company”) (CNSX: VREO, OTCQX: VREOF), the science-focused, multi-state cannabis company with active operations in exclusively medical-only markets and licenses in seven states and the Commonwealth of Puerto Rico, today announced that it has exercised its right to force the redemption of all subordinate voting share purchase warrants (the “Warrants”) issued to participants in the Company’s previously-announced private placement offering, which closed on March 10, 2020 (the “Offering”).

Each Warrant issued in conjunction with the Offering entitles the holder to purchase one subordinate voting share in the capital of Vireo for a period of three years from the date of issuance at an exercise price of CAD $0.96 per share, subject to adjustment in certain events. Vireo retained the right to require the redemption of these Warrants if the Company’s five-day volume-weighted-average-price (“VWAP”) on the Canadian Securities Exchange (CSE) exceeded CAD $1.44. This milestone was achieved during the trading period from November 3, 2020 through November 9, 2020. Management expects these redemptions to result in the issuance of 13,651,574 additional subordinate voting shares and cash proceeds of approximately CAD $13.1 million prior to the close of the current November. 

Chairman and Chief Executive Officer, Kyle Kingsley, M.D., commented, “The private placement offering we completed earlier this year was priced modestly to balance the near-term requirements of our business with the long-term interests of shareholders. We invested that capital prudently to position Vireo to begin generating positive cash flow. We remain pleased with the trajectory of our operating performance since March and expect to utilize a portion of the proceeds from these redemptions to fund additional investments consistent with our strategy of increasing scale and margins in our core markets.”

About Vireo Health International, Inc.

Vireo Health International, Inc. (“Vireo” or the “Company”) is a physician-led cannabis company focused on bringing the best of technology, science, and engineering to the cannabis industry. Vireo manufactures proprietary, branded cannabis products in environmentally-friendly, state-of-the-art greenhouses and other facilities and distributes its products through its growing network of Green GoodsTM retail dispensaries and through hundreds of third-party dispensaries in seven states. Vireo’s team of more than 425 employees, led by scientists, engineers, and cultivation experts, is focused on efficiency and the creation of best-in-class products, while driving scientific innovation within the cannabis industry and developing meaningful intellectual property. Today, Vireo is licensed to grow and/or process cannabis in eight markets. The Company is operational in seven of those eight markets – including the core markets of Arizona, Maryland, Minnesota, New Mexico, and New York. The Company holds 32 total retail dispensary licenses, of which 13 are currently open for business and seven more are in development. For more information about Vireo Health, please visit www.vireohealth.com.

Caution Regarding Forward-Looking Statements

This press release contains statements that Vireo believes are, or may be considered to be, “forward-looking statements” as defined in applicable securities laws. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on current beliefs, expectations or assumptions regarding the future of the business, future plans and strategies, operational results and other future conditions of the Company. All statements other than statements of historical fact included in this release regarding the prospects our prospects, plans, financial position or business strategy, including statements expressing the expectation that Vireo will enter into the “Credit Facility,” or the date any transaction is expected to close and/or fund, may constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking words such as “plans,” “expects” or “does not expect,” “is expected,” “look forward to,” “budget,” “scheduled,” “estimates,” “forecasts,” “will continue,” “intends,” “the intent of,” “have the potential,” “anticipates,” “does not anticipate,” “believes,” “should,” “should not,” or variations of such words and phrases that indicate that certain actions, events or results “may,” “could,” “would,” “might,” or “will,” “be taken,” “occur,” or “be achieved,” or the negative of these terms or variations of them or similar terms. Furthermore, forward-looking statements may be included in various filings that we make with the SEC or on SEDAR, or may be contained in press releases or oral statements made by or with the approval of one of Vireo’s authorized executive officers. Although Vireo believes that the expectations reflected in these forward-looking statements are reasonable, the Company cannot provide assurances these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. The reader should not place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. Risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, as applicable, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Readers are cautioned not to place undue reliance on any forward-looking statements contained in this press release, which reflect management’s opinions only as of the date hereof. Except as required by law, Vireo undertakes no obligation to revise or publicly release the results of any revision to any forward-looking statements. The reader is advised, however, to consult any additional disclosures Vireo makes in its reports filed on SEDAR or to the SEC, or in future press releases. All subsequent written and oral forward-looking statements attributable to Vireo or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements contained in this cautionary statement.



Media Inquiries



Investor Inquiries

Albe Zakes

Sam Gibbons


Vice President, Corporate Communications 


Vice President, Investor Relations


[email protected]


[email protected]  

(267) 221-4800

(612) 314-8995

 

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SOURCE Vireo Health International, Inc.

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Whitecap Resources Inc. Confirms Monthly Dividend for November of $0.01425 Per Share

Canada NewsWire

CALGARY, AB, Nov.16, 2020 /CNW/ – Whitecap Resources Inc. (“Whitecap”) (TSX: WCP) confirms that a cash dividend of Cdn. $0.01425 per common share in respect of November operations will be paid on December 15, 2020 to shareholders of record on November 30, 2020.  This dividend is an eligible dividend for the purposes of the Income Tax Act (Canada).

About Whitecap
Whitecap Resources Inc. is an oil-weighted growth company that pays a monthly cash dividend to its shareholders.  Our business is focused on profitable production growth combined with sustainable dividends to shareholders. Our objective is to fully fund our capital expenditures and dividend payments within funds flow.  For further information about Whitecap, please visit our website at www.wcap.ca.

SOURCE Whitecap Resources Inc.

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Supreme Cannabis Announces Financial Results for Q1 2021

PR Newswire

Continued strong revenue growth and operational efficiency

2021 First
 Quarter Highlights:

  • Positive Adjusted EBITDA of $0.3 million
  • 24% net revenue growth quarter-over-quarter
  • 45 active retail SKUs, with presence in all 10 provinces
  • Completed the third shipment of medical cannabis to Israel through its Truverra brand
  • Maintains a strong liquidity position, including a cash balance of $20.4 million

Subsequent to Quarter-End:

  • Entered into a supply agreement with Medical Cannabis by Shoppers Inc., a subsidiary of Shoppers Drug Mart Inc., to offer Truverra-branded medical cannabis products through the Medical Cannabis by Shoppers™ online sales platform accessible to patients across Canada.

TORONTO, Nov. 16, 2020 /PRNewswire/ – The Supreme Cannabis Company, Inc. (“Supreme Cannabis” or the “Company”) (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) today announced its financial and operating results for the three months ended September 30, 2020.

Supreme Cannabis’ Management Discussion & Analysis (“MD&A”) and condensed interim consolidated financial statements (“Financial Statements”) for the three months ended September 30, 2020 (“Q1 2021”), along with all previous public filings of the Company may be found on SEDAR at www.SEDAR.com.  All figures are in Canadian dollars.

Beena Goldenberg, President and CEO of Supreme Cannabis, commented:

“In the first quarter of fiscal 2021, we made solid progress towards our goal of transforming Supreme Cannabis into a premium cannabis CPG company. We continued to execute on our strategy of accelerating revenue and controlling our costs, which led to sequential growth in consolidated net revenue of 24%. Recreational net revenue grew slightly compared to the fourth quarter of 2020, due largely to higher sales volumes offset by lower average selling prices. Despite an initial drop in recreational sales volumes in July due to stockouts as a result of fulfillment and supply chain growth challenges, we built steady month-over-month improvement in August and September as our sales partnership with Humble & Fume Inc. gained traction. This strong momentum led to September 2020 being Supreme Cannabis’ highest month on record for recreational sales. We exercised good cost control across the organization and benefitted from a full quarter of cost savings from the measures taken to right-size the business in the second half of fiscal 2020. This resulted in Supreme Cannabis generating a slightly positive Adjusted EBITDA of $0.3 million.” 

Ms. Goldenberg concluded, “Supreme Cannabis’ performance in the first quarter of fiscal 2021 demonstrates that our strategy is working. While the first quarter of 2021 was a consistent improvement, we understand that more work is needed to become a sustainably profitable business. We will continue to efficiently focus our resources on driving near-term revenue growth in the recreational market. We are well-positioned to increase our market share with compelling brands and high-quality products at several points of value and preference. We have increased our sales and marketing efforts in the recreational segment during the quarter. Our partnership with Humble & Fume Inc. (“humble+fume”) has enabled Supreme Cannabis to secure 2,258 new listings during the quarter. We expect the expanded listings to set us up for further recreational revenue growth.”

Select Financial and Operational Results.


Three months ended


Financial Highlights (in 000’s $)


Sept 30, 2020


June 30, 2020

Gross revenue


13,977

10,855

Net revenue


11,867

9,532

Gross margin, excluding fair value items (1)


(2,153)

(8,246)

Gross margin


(11,340)

(11,544)

Operating expenses


6,547

15,886

Impairment of assets


–

3,414

Net income (loss)


29,768

(33,252)

Net comprehensive income (loss)


29,768

(33,806)

Adjusted EBITDA (2)


266

(4,167)

Cash


20,366

28,419

1.

Gross margin, excluding fair value items, is an Additional Subtotal presented by the Company. The Company defines gross margin, excluding fair value items as the gross margin before recording fair value changes on growth of biological assets and realized fair value changes on inventory sold or impaired. More information on changes in fair value of biological assets can be found in “Changes in fair value of biological assets” in the MD&A.

2.

Adjusted EBITDA is a Non–GAAP measure and does not have a standardized meaning under GAAP. As a result, it may not be comparable to data presented by other cannabis companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the “Results of Operations” and “Non–GAAP Measures and Additional Subtotals” in the MD&A.

Revenue

Overall net revenue increased 24% to $11.9 million in Q1 2021 from $9.5 million in Q4 2020.

Recreational net revenue rose to $7.5 million, an increase of 3% quarter-over-quarter as a result of existing and new products continuing to be well received by the recreational cannabis consumer. In particular 7ACRES Craft Collective and cannabis extracts, which include oils, vapes and concentrates contributed a growing portion of the recreational sales in the quarter.  

Wholesale net revenue, which includes the Company’s sales in the international medical cannabis segment, in Q1 2021 was $4.4 million, up 92% quarter-over-quarter, with a 14% increase in average selling price, driven by a higher contribution from domestic flower. Wholesale volumes grew by 69% as the Company continues to forge longer-term relationships in the domestic market. The growth was also driven by a 25% increase in international medical sales with the Company strengthening its relationship with Breath of Life International Ltd., Israel’s largest and leading producer of medical cannabis. The Company plans to add additional medical partners in various international jurisdictions.

Gross Margin

In Q1 2021, the gross margin, excluding fair value items, included impairment charges of $8.4 million recorded in production costs. Excluding the impact of impairment charges recorded in production costs, gross margin, excluding fair value items, increased to 53% in Q1 2021 compared to 41% for Q4 2020, mainly due to a realization of cost optimization initiatives the Company initiated in the second half of fiscal 2020.

Adjusted EBITDA

The Company generated a positive Adjusted EBITDA of $0.3 million compared to an Adjusted EBITDA loss of $4.2 million in Q4 2020 due to an increase in revenue and a higher gross margin, excluding fair value items and the impact of impairment charges.

Balance Sheet, Liquidity and Cash Flow from Operations

Supreme Cannabis ended the quarter with a total cash balance of $20.4 million and a working capital surplus of $48.1 million.

During the first quarter of fiscal 2021, the Company significantly strengthened its balance sheet by refinancing its convertible debentures and amending its three year term credit facility consisting of a term loan and a revolving credit facility (the “Credit Facility”). As a result, there are no debt maturities for two years (excluding customary principal amortization payments), and the carrying value of total debt was reduced by approximately $71.0 million on the day of the transaction related to the convertible debt extinguishment. Furthermore, expected cash interest expense was significantly reduced due to the reduction in the principal amount of the convertible debentures and the Credit Facility. The amended Credit Facility defers the financial covenants related to leverage and the fixed charge coverage ratio by 12 months until Q3 2022.

Operating and Capital Expenditures

In Q1 2021, the cost realignment efforts resulted in the Company achieving a $9.3 million or 59% decrease in operating expenses, compared to the three months ended June 30, 2020. Operating expenses for the three months ended September 30, 2020 benefited from a recovery of $1.5 million related to share based payments, primarily driven by a recovery of $2.1 million for the cancellation and forfeiture of 10.9 million stock options. The Company has executed on its cost rationalization activities which have led to significant operating expense cost reductions since the start of its efforts during the third quarter of fiscal 2020. The efforts included reduction in staffing levels across all facilities and shared services, the consolidation and streamlining of the Company’s facilities and production processes and the curtailment of avoidable expenses.  

In addition to reducing its operating expenses, the Company’s capital expenditures in Q1 2021 decreased to $0.4 million, down 61% quarter-over-quarter. With the completion of construction projects at the Company’s Kincardine, Ontario (“Kincardine Facility”) and Langley, British Columbia (“Langley Facility”) facilities, capital expenditures for the remainder of fiscal 2021 are expected to be minimal and will be focused on productivity enhancements justified by near–term cash flow returns.

Brand and Product Developments in Q1 2021.

Supreme Cannabis introduced 10 new SKUs to the market in Q1 2021:

  • 7ACRES Craft Collective 3.5g Whole Flower Pink Kush
  • 7ACRES Craft Collective 3.5g Whole Flower Ice Cream Cake
  • Sugarleaf 0.5g Boost Sativa 510 Vape Cart (first 510 format launched for all brands)
  • Sugarleaf 3×0.5g Pre-roll Jean Guy (New size format)
  • Sugarleaf 3×0.5g Pre-roll Jack Haze (New size format)
  • Sugarleaf 3×0.5g Pre-roll White Widow (New size format)
  • Sugarleaf 3×0.5g Pre-roll Sensi Star (New size format)
  • Sugarleaf 7g Bloom Milled Cannabis
  • Sugarleaf 3.5g Bloom Milled Cannabis
  • Hiway 2g Hiway Hash

Distribution.

Overall, Supreme Cannabis shipped 44% more product in Q1 2020 compared to Q4 2020. The provinces of Quebec, Alberta, Ontario and British Columbia generated the majority of the Company’s sales.

Distribution to the recreational market on a gram equivalent basis was 17% higher in Q1 2020 compared to Q4 2020.

Key to growing Supreme Cannabis’ presence across Canada is the Company’s sales agency agreement with humble+fume. Through this partnership, humble+fume is deploying a team of sales professionals that will drive distribution, brand advocacy and budtender education for all Supreme Cannabis brands at the store level. Since tracking commenced in April 2020 until the end of September 2020, humble+fume has created over 3,500 new listings for Supreme Cannabis products, including 2,258 new listings in the first quarter of 2021. In the first quarter of 2021, 232 new stores started carrying the Company’s products.

In the first quarter of 2021, as many COVID-19 restrictions were lifted and retail stores reopened, humble+fume representatives resumed engaging directly with operators and supporting new retail store openings. This allowed further opportunities for promotions, new product introductions, staff training and adding new retail outlets.

Subsequent to quarter-end, the Company entered into a supply agreement with Medical Cannabis by Shoppers Inc., a subsidiary of Shoppers Drug Mart Inc., to offer Truverra-branded medical cannabis products through the Medical Cannabis by Shoppers™ online sales platform accessible to patients across Canada. Under this agreement, Canadian patients will be able to order Truverra dried flower, pre-rolls and full-spectrum CBD oil. Included in the offering is the Jean Guy strain, which is a tribute to the legendary variety offered by the Montreal Compassion Club.

Operations.

The Company continues to make incremental improvements at its core facilities in Kincardine, Ontario and Langley, British Columbia, to enhance production, processing and operating efficiency.

Kincardine Facility

The Kincardine Facility implemented several changes with solid success.

  • In August, the facility completed its fuel conversion from propane to natural gas, which is expected to deliver $1.5 million in annual savings
  • Bottled flower containers at the facility have been optimized to address shelf presence and reduce the cost of procurement and is expected to deliver savings of over $1.0 million annually
  • The facility also optimized its boiler systems, resulting in significantly more consistent climate control

Subsequent to quarter-end, the Company’s processing license for the Kincardine Facility was amended by Health Canada on October 29 to authorize commercial sale of cannabis products in the cannabis extracts class of cannabis. The Company also received a research license at the Kincardine Facility on November 12.

Langley Facility

The continuous improvement program at the Langley Facility continues to yield positive results. A key focus has been on improving conversion yields through first-pass extraction and distillation and further enhancing quality in these processes.

Outlook.

The Company remains confident in its ability to grow near-term revenue and reach sustainable profitability based on its accelerated transformation into a premium Cannabis CPG company, its streamlined and right-sized operating structure, and its enhanced offering of new high-quality brands.  

  • The Company has a robust and growing product line that addresses consumers’ needs at a variety of price points and form factors.
  • The Company has efficient and effective coast-to-coast sales coverage with the humble+fume sales partnership.
  • The Company has substantially completed the right-sizing of its operating structure with the right teams in place to deliver against objectives efficiently.
  • Supreme Cannabis remains focused on cost containment and is fully-funded to execute on all planned initiatives.

First-quarter 2021 earnings conference call and webcast.

The Company will host a conference call to discuss its first-quarter fiscal 2021 results at 8:00 AM Eastern on Tuesday, November 17, 2020. Interested parties can join the call by dialling 416-764-8659 or 1-888-664-6392. The conference ID number is 67218125. The call can also be accessed through the following webcast link: http://bit.ly/FIREQ12021.

A recording of the conference call will be available for replay two hours after the call’s completion. To access the recording, please dial 416-764-8677 or 1-888-390-0541 and the replay code 218125. The recording will be available until Thursday, December 17, 2020.

About Supreme Cannabis.

The Supreme Cannabis Company, Inc., (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1), is a global diversified portfolio of distinct cannabis companies, products and brands. Since 2014, the Company has emerged as one of the world’s most premium producers of recreational, wholesale and medical cannabis products.

Supreme Cannabis’ portfolio of brands caters to diverse consumer and patient experiences, with brands and products that address recreational, wellness, medical and new consumer preferences. The Company’s recreational brand portfolio includes 7ACRES, Blissco, 7ACRES Craft Collective, Sugarleaf and Hiway. Supreme Cannabis addresses national and international medical cannabis opportunities through its premium Truverra brand.

Supreme Cannabis’ brands are backed by a focused suite of world-class operating assets that serve key functions in the value chain, including scaled cultivation, value-add processing, automated packaging and product testing and R&D. Follow the Company on Instagram, Twitter, Facebook, LinkedIn and YouTube.

We simply grow better.

Forward-Looking Information.

Certain statements made in this press release may constitute “forward-looking information”, “future oriented financial information” or “financial outlooks” (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information may relate to anticipated events or results including, but not limited to: focussing on efficiency throughout the Company; progressing  towards becoming a premium cannabis CPG company; expected capital expenditures for the remainder of fiscal 2021; plans to add additional medical partners in international jurisdictions; the expectation that the natural gas conversion at the Kincardine Facility will deliver approximately $1.5 million in annual savings; the expectation that the optimization of the bottled flower containers at the Kincardine Facility will deliver over $1.0 million in annual savings; the Company’s ability to grow near-term revenue and reach sustainable profitability; the Company’s focus on cost containment and ability to execute on all planned initiatives; and other statements that are not historical facts. Particularly, information regarding our expectations of future results, targets, performance achievements, prospects or opportunities is forward-looking information. Often, but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology. Forward-looking information is current as of the date it is made and is based on reasonable estimates and assumptions made by us at the relevant time in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the circumstances. To the extent any forward-looking information in this press release constitutes “future oriented financial information” or “financial outlooks”, within the meaning of applicable securities laws, the purpose of such information being provided is to demonstrate the potential of the Company and readers are cautioned that this information may not be appropriate for any other purpose. However, we do not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws in Canada. There can be no assurance that such estimates and assumptions will prove to be correct.

Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking information as discussed in the “Risk Factors” section of the Company’s Annual Information Form dated September 24, 2020 (“AIF”). A copy of the AIF and the Company’s other publicly filed documents can be accessed under the Company’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com. The Company cautions that the list of risk factors and uncertainties described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information.

Non-GAAP Measures and Additional Subtotals. 

This news release contains certain financial performance measures that are not recognized or defined under IFRS (“Non-GAAP Measures”) including, but not limited to, “Adjusted EBITDA”. As a result, this data may not be comparable to data presented by other cannabis companies. For an explanation and reconciliation of these measures to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, please refer to the “Results of Operations” section in the MD&A. The Company believes that these Non-GAAP Measures are useful indicators of operating performance and are specifically used by management to assess the financial and operational performance of the Company.

The Company defines Adjusted EBITDA as net income (loss) excluding amortization of property plant and equipment & intangible assets, share based payments, restructuring charges, impairment of inventory in production costs, fair value changes on growth of biological assets, realized fair value changes on inventory sold or impaired, net finance expenses, gain on settlement of convertible debentures, loss on modification of debt, gain on settlement of contract, gain or loss on disposal of property plant and equipment, unrealized and realized gains or losses on investments and income taxes.

The Company presents additional subtotals in its Financial Statements prepared in accordance with IFRS. The additional subtotals include, but not limited to, gross margin, excluding fair value items in its statements of comprehensive loss (“Additional Subtotals”). The Company defines gross margin, excluding fair value items as the gross margin before recording fair value changes on growth of biological assets and realized fair value changes on inventory sold or impaired. More information on changes in fair value of biological assets can be found in “Changes in fair value of biological assets” section of the MD&A.

Non-GAAP Measures and Additional Subtotals should be considered together with other financial information prepared in accordance with IFRS to enable investors to evaluate the Company’s operating results, underlying performance and prospects in a manner similar to Supreme Cannabis’ management. Accordingly, these Non-GAAP Measures and Additional Subtotals are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

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SOURCE The Supreme Cannabis Company, Inc.

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Wix to Present at the 2020 RBC Global Technology, Internet, Media and Telecommunications Conference

PR Newswire

NEW YORK, Nov. 16, 2020 /PRNewswire/ — Wix.com Ltd. (Nasdaq: WIX), today announced that Lior Shemesh, CFO, and Joe Pollaro, GM of the US, will present at the 2020 RBC Global Technology, Internet, Media and Telecommunications Virtual Conference on Tuesday, November 17, 2020 at 9:20 a.m. ET.

The event will be available via live audio webcast and archived replay on Wix’s investor relations website: https://investors.wix.com.

About Wix.com Ltd.
Wix is leading the way with a cloud-based website development platform for over 189 million registered users worldwide today. The Wix website builder was founded on the belief that the Internet should be accessible to everyone to develop, create and contribute. Through free and premium subscriptions, Wix empowers millions of businesses, organizations, artists, and individuals to take their businesses, brands and workflow online. The Wix Editor, Wix ADI, Editor X, a highly curated App Market, Ascend by Wix and Corvid by Wix enable users to build and manage a fully integrated and dynamic digital presence. Wix’s headquarters are in Tel Aviv with offices in Austin, Be’er Sheva, Berlin, Cedar Rapids, Denver, Dnipro, Dublin, Kiev, Los Angeles, Miami, New York, San Francisco, São Paulo, Tokyo and Vilnius. 

Visit us: on our blog, Facebook, Twitter, Instagram, LinkedIn and Pinterest 
Download: Wix App is available for free on Google Play and in the App Store.

For more about Wix please visit our Press Room

Investor Relations:

Maggie O’Donnell


[email protected]
 
914-267-7390

Media Relations:


[email protected]

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SOURCE Wix.com Ltd.

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Agora, Inc. Reports Third Quarter 2020 Financial Results

SANTA CLARA, Calif., Nov. 16, 2020 (GLOBE NEWSWIRE) — Agora, Inc. (NASDAQ: API) (“Agora”), a pioneer and leading platform for real-time engagement APIs, today announced its financial results for the third quarter ended September 30, 2020.

“Agora is empowering software developers around the world to bring contextual video engagement to more and more online activities, such as taking a class or exam, attending a virtual event, meeting new friends and competing in a game. Such innovations are far beyond traditional video conferencing and still have a long way to go,” said Tony Zhao, founder, chairman and CEO of Agora. “Our performance in this quarter demonstrates the steady adoption of contextual video engagement across industries and we will continue to invest in the depth and breadth of our platform to better serve developers.”


Third Quarter 2020 Highlights

  • Total revenues for the quarter were $30.8 million, an increase of 80.8% from $17.1 million in the third quarter of 2019.
  • Active Customers as of September 30, 2020 were 1,815, an increase of 95.4% from 929 as of September 30, 2019.
  • Constant Currency Dollar-Based Net Expansion Rate was 187.9% for the trailing 12-month period ended September 30, 2020.
  • Net loss for the quarter was $2.9 million, compared to net loss of $1.1 million in the third quarter of 2019. After excluding share-based compensation expense, non-GAAP net loss for the quarter was $0.4 million, compared to the non-GAAP net loss of $0.3 million in the third quarter of 2019. Adjusted EBITDA for the quarter was negative $0.1 million, compared to $0.2 million in the third quarter of 2019.
  • Total cash
    ,
    cash equivalents
    and s
    hort-term investments as of September 30, 2020 was $635.4 million.
  • Net cash used in operating activities for the quarter was $1.9 million, compared to $0.1 million in the third quarter of 2019. Free cash flow for the quarter was negative $5.1 million, compared to negative $1.3 million in the third quarter of 2019.


Third Quarter 2020 Financial Results

Revenues

Total revenues were $30.8 million in the third quarter of 2020, an increase of 80.8% from $17.1 million in the same period last year, primarily due to increased usage of our video and voice products as result of our business expansion.

Cost of Revenues

Cost of revenues was $11.6 million in the third quarter of 2020, an increase of 120.7% from $5.2 million in the same period last year, primarily due to increase in bandwidth and co-location costs as we continued to scale our business.

Gross Profit and Gross Margin

Gross profit was $19.3 million in the third quarter of 2020, an increase of 63.1% from $11.8 million in the same period last year. Gross margin was 62.5% in the third quarter of 2020, a decrease of 6.7% from 69.2% in the same period last year, primarily due to international expansion to regions with higher infrastructure costs.

Operating Expenses

Operating expenses were $23.2 million in the third quarter of 2020, an increase of 78.3% from $13.0 million in the same period last year.

  • Research and development expenses were $12.4 million in the third quarter of 2020, an increase of 89% from $6.6 million in the same period last year, primarily due to increased personnel costs as we continue to build our research and development team, including an increase in share-based compensation from $0.2 million in the third quarter of 2019 to $0.9 million in the third quarter of 2020.
  • Sales and marketing expenses were $6.4 million in the third quarter of 2020, an increase of 33.4% from $4.8 million in the same period last year, primarily due to increased personnel costs as we continue to build our team and advertising expenses.
  • General and administrative expenses were $4.4 million in the third quarter of 2020, an increase of 165.4% from $1.7 million in the same period last year, primarily due to increased personnel costs as we continue to build our team and professional services expenses, including an increase in share-based compensation from $0.3 million in the third quarter of 2019 to $1.1 million in the third quarter of 2020.

Other Operating Income

Other operating income was $181 thousand in the third quarter of 2020, compared to $58 thousand in the same period last year, primarily due to additional value added tax deductions.

Loss from Operations

Loss from operations was $3.8 million in the third quarter of 2020, compared to loss from operations of $1.2 million in the same period last year.

Interest and Investment Income

Interest and investment income were $960 thousand in the third quarter of 2020, an increase of 266.4% from $262 thousand in the same period last year, primarily due to an increase in the average balance of cash and cash equivalents and an increase in short-term investments purchased due to our initial public offering and concurrent private placement.

Income Taxes

Income taxes were $74 thousand in the third quarter of 2020, a decrease of 71.8% from $0.3 million in the same period last year, primarily due to decrease in pre-tax income generated by our subsidiaries.

Net Loss

Net loss was $2.9 million in the third quarter of 2020, compared to net loss of $1.1 million in the same period last year.

Net loss attributable to ordinary shareholders

Net loss attributable to ordinary shareholders for the quarter was $2.9 million, compared to net loss attributable to ordinary shareholders of $18.8 million in the same period last year.

Net loss per American Depositary Share

Net loss per American Depositary Share (“ADS”)1 was $0.03, compared to net loss of $0.65 per ADS in the same period last year.


Financial Outlook

Based on currently available information, Agora expects that the estimated total revenues for the full fiscal year ending December 31, 2020 remain to be between $125 million and $130 million. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, and the outlook ranges for full year 2020 reflect a number of assumptions that are subject to change based on uncertainties related to the impact of the COVID-19 pandemic.


Earnings Call

Agora will host a conference call to discuss the financial results at 5 p.m. Pacific Time / 8:00 p.m. Eastern Time on the same day. Details for the conference call are as follows:
Event title: Agora, Inc. 3Q 2020 Financial Results
Conference ID: 3351435
Direct Event online registration: http://apac.directeventreg.com/registration/event/3351435
Please register in advance of the conference using the link provided above. Upon registering, you will be provided with participant dial-in numbers, Direct Event passcode and unique registrant ID.
A digital recording of the conference call will be available for replay two hours after the call’s completion (dial-in number: US 18554525696, International +61 2 81990299; same conference ID as shown above).
Please visit Agora’s investor relations website at https://investor.agora.io/investor-relations on November 16, 2020 to view the earnings release and accompanying slides prior to the conference call.


Use of Non-GAAP Financial Measures

Agora has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). Agora uses these non-GAAP financial measures internally in analyzing its financial results and believes that use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing Agora’s financial results with other companies in its industry, many of which present similar non-GAAP financial measures. Besides free cash flow (as defined below), each of these non-GAAP financial measures represents the corresponding GAAP financial measure before share-based compensation expenses. We believe that such non-GAAP financial measures help identify underlying trends in our business that could otherwise be distorted by the effect of such share-based compensation expenses that we include in cost of revenues, total operating expenses and net income (loss). We believe that all such non-GAAP financial measures also provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.

Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with Agora’s consolidated financial statements prepared in accordance with GAAP. A reconciliation of Agora’s historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the tables captioned “Reconciliation of GAAP to Non-GAAP Measures” included at the end of this press release, and investors are encouraged to review the reconciliation.

Definitions of Agora’s non-GAAP financial measures included in this press release are presented below.


Non-GAAP Net Income (Loss)

Agora defines non-GAAP net income (loss) as net income (loss) adjusted to exclude share-based compensation expense.


Adjusted EBITDA

Agora defines Adjusted EBITDA as net income (loss) before exchange gain (loss), interest and investment income, income taxes, depreciation and amortization, and adjusted to exclude the effects of share-based compensation expense.


Free Cash Flow

Agora defines free cash flow as net cash provided by operating activities less purchases of property and equipment. Agora considers free cash flow to be a liquidity measure that provides useful information to management and investors regarding net cash provided by operating activities and cash used for investments in property and equipment required to maintain and grow the business.


Operating Metrics

Agora also uses other operating metrics included in this press release and defined below to assess the performance of its business.


Active Customers

Agora defines an active customer at the end of any particular period as an organization or individual developer from which Agora generated more than $100 of revenue during the preceding 12 months. Agora counts customers based on unique customer account identifiers. Generally, one software application uses the same customer account identifier throughout its life cycle while one account may be used for multiple applications.


Constant Currency Dollar-Based Net Expansion Rate

Agora calculates Dollar-Based Net Expansion Rate for a trailing 12-month period by first identifying all customers in the prior 12-month period, and then calculating the quotient from dividing the revenue generated from such customers in the trailing 12-month period by the revenue generated from the same group of customers in the prior 12-month period. Constant Currency Dollar-Based Net Expansion Rate is calculated the same way as Dollar-Based Net Expansion Rate but using fixed exchange rates based on the daily average exchange rates prevailing during the prior 12-month period to remove the impact of foreign currency translations. Agora believes Constant Currency Dollar-Based Net Expansion Rate facilitates operating performance comparisons on a period-to-period basis as Agora does not consider the impact of foreign currency fluctuations to be indicative of its core operating performance.


Safe Harbor Statements

This press release contains ‘‘forward-looking statements’’ within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding Agora’s financial outlook, beliefs and expectations. Forward-looking statements include statements containing words such as “expect,” “anticipate,” “believe,” “project,” “will” and similar expressions intended to identify forward-looking statements. Among other things, the Financial Outlook in this announcement contain forward-looking statements. These forward-looking statements are based on Agora’s current expectations and involve risks and uncertainties. Agora’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to the growth of the RTE-PaaS market; Agora’s ability to manage its growth and expand its operations; the continued impact of the COVID-19 pandemic on global markets and Agora’s business, operations and customers; Agora’s ability to attract new developers and convert them into customers; Agora’s ability to retain existing customers and expand their usage of Agora’s platform and products; Agora’s ability to drive popularity of existing use cases and enable new use cases, including through quality enhancements and introduction of new products, features and functionalities; Agora’s fluctuating operating results; competition; the effect of broader technological and market trends on Agora’s business and prospects; general economic conditions and their impact on customer and end-user demand; and other risks and uncertainties included under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission, including, without limitation, the final prospectus related to the IPO filed with the SEC on June 26, 2020. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Agora undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.


About Agora

Agora’s mission is to make real-time engagement ubiquitous, allowing everyone to interact with anyone, in any application, anytime and anywhere. Agora’s platform provides developers simple, flexible and powerful application programming interfaces, or APIs, to embed real-time video and voice engagement experiences into their applications.

For more information, please visit: www.agora.io.


Investor Contact

:

Fionna Chen
[email protected]


Media Contact

:

Suzanne Nguyen
[email protected]

__________________________
1 One ADS represents four Class A ordinary shares.

 
Agora, Inc.

Condensed Consolidated Balance Sheets

(Unaudited, in US$ thousands)
       
  As of   As of
  September 30,   December 31,
  2020   2019
Assets      
Current assets:      
Cash and cash equivalents 409,782     105,603  
Short-term investments 225,584     –  
Accounts receivable, net 28,921     16,248  
Prepayments and other current assets 5,725     1,381  
Total current assets 670,012     123,232  
Property and equipment, net 12,755     6,282  
Deferred tax assets 876     836  
Other non-current assets 1,036     809  
Total assets 684,679     131,159  
       
Liabilities, mezzanine equity and shareholders’ equity (deficit)      
Current liabilities:      
Accounts payable 4,558     4,088  
Advances from customers 1,132     921  
Taxes payable 2,792     2,493  
Accrued expenses and other current liabilities 20,123     10,979  
Total current liabilities 28,605     18,481  
Total liabilities 28,605     18,481  
       
Mezzanine equity –     239,970  
       
Shareholders’ equity (deficit):      
Ordinary shares –     12  
Class A ordinary shares 33     –  
Class B ordinary shares 8     –  
Additional paid-in-capital 813,670     –  
Accumulated other comprehensive loss 128     (988 )
Accumulated deficit (157,765 )   (126,316 )
Total shareholders’ equity (deficit) 656,074     (127,292 )
Total liabilities, mezzanine equity and shareholders’ equity (deficit) 684,679     131,159  
           

 
Agora, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited, in US$ thousands, except share and per ADS amounts)
       
  Three Month Ended   Nine Month Ended
  September 30,   September 30,
  2020 2019   2020 2019
Real-time engagement service revenues 30,620   16,936     99,738   45,085  
Other revenues 227   125     573   239  
Total revenues 30,847   17,061     100,311   45,324  
Cost of revenues 11,583   5,248     34,042   13,983  
Gross profit 19,264   11,813     66,269   31,341  
Operating expenses:          
Research and development 12,449   6,588     35,056   16,495  
Sales and marketing 6,372   4,778     18,287   13,851  
General and administrative 4,401   1,658     11,342   4,756  
Total operating expenses 23,222   13,024     64,685   35,102  
Other operating income 181   58     974   77  
Income (loss) from operations (3,777 ) (1,153 )   2,558   (3,684 )
Exchange gain (34 ) 40     (34 ) 53  
Interest and investment income 960   262     1,177   386  
Income (loss) before income taxes (2,851 ) (851 )   3,701   (3,245 )
Income taxes (74 ) (262 )   (633 ) (590 )
Net income (loss) (2,925 ) (1,113 )   3,068   (3,835 )
Less: cumulative undeclared dividends on convertible redeemable preferred shares –   (2,490 )   (6,715 ) (7,471 )
Less: accretion on convertible redeemable preferred shares to redemption value –   (15,246 )   (193,466 ) (33,974 )
Net loss attributable to ordinary shareholders (2,925 ) (18,849 )   (197,113 ) (45,280 )
Other comprehensive loss:          
Foreign currency translation adjustments 1,587   (602 )   1,117   (686 )
Total comprehensive loss attributable to ordinary shareholders (1,338 ) (19,451 )   (195,996 ) (45,966 )
           
Net loss per ADS attributable to ordinary shareholders, basic and diluted (0.03 ) (0.65 )   (3.55 ) (1.58 )
           
Weighted-average shares used in computing net loss per ADS attributable to ordinary shareholders, basic and diluted 407,297,929   116,512,788     222,127,507   114,878,676  
           
Share-based compensation expenses included in:            
Cost of revenues 31   21     99   60  
Research and development expenses 894   169     1,565   1,290  
Sales and marketing expenses 434   370     1,336   1,281  
General and administrative expenses 1,117   260     2,574   775  
                   

 
Agora, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in US$ thousands)
       
  Three Month Ended   Nine Month Ended
  September 30,   September 30,
  2020 2019   2020 2019
Cash flows from operating activities:          
Net income (loss) (2,925 ) (1,113 )   3,068   (3,835 )
Adjustments to reconcile net income (loss) to net cash generated from (used in) operating activities:          
Share-based compensation expense 2,476   820     5,574   2,558  
Depreciation of property and equipment 1,196   520     2,946   1,291  
Change in the fair value of short-term investments (33 ) –     (33 ) –  
Changes in assets and liabilities:          
Accounts receivable (7 ) (614 )   (12,133 ) (1,619 )
Prepayments and other current assets (1,084 ) 15     (4,230 ) 83  
Other non-current assets (601 ) (31 )   (599 ) (14 )
Accounts payable (661 ) (239 )   891   (324 )
Advances from customers 138   36     184   462  
Taxes payable 664   477     265   571  
Accrued expenses and other current liabilities (1,097 ) 75     8,664   (544 )
Net cash generated from (used in) operating activities (1,934 ) (54 )   4,597   (1,371 )
Cash flows from investing activities:          
Purchase of short-term investments (225,143 ) (4,294 )   (225,143 ) (13,899 )
Proceeds from sale and maturity of short-term investments –   2,862     –   10,949  
Purchase of property and equipment (3,210 ) (1,213 )   (9,531 ) (3,622 )
Net cash generated from (used in) investing activities (228,353 ) (2,645 )   (234,674 ) (6,572 )
Cash flows from financing activities:          
Proceeds from issuance of Series C+ convertible redeemable preferred shares, net of the issuance costs of nil –   –     50,000   –  
Proceeds from the IPO and concurrent private placement, net of underwriter discounts and commissions and other offering costs paid (1,419 ) –     483,905   –  
Net cash provided by financing activities (1,419 ) –     533,905   –  
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash 634   (299 )   351   (316 )
Net increase (decrease) in cash, cash equivalents and restricted cash (231,072 ) (2,998 )   304,179   (8,259 )
Cash, cash equivalents and restricted cash at beginning of period * 640,934   103,337     105,683   108,598  
Cash, cash equivalents and restricted cash at end of period ** 409,862   100,339     409,862   100,339  
Supplemental disclosure of cash flow information:          
Income taxes paid 18   –     742   411  
Non-cash financing and investing activities:          
Accretion to redemption value of convertible redeemable preferred shares –   15,246     193,466   33,974  
Payables for property and equipment 173   341     173   341  
Payables for deferred initial public offering cost 277   –     277   –  
           
* includes restricted cash balance 80   80     80   80  
** includes restricted cash balance 80   80     80   80  
                   

 
Agora, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(Unaudited, in US$ thousands, except share and per ADS amounts)
       
  Three Month Ended   Nine Month Ended
  September 30,   September 30,
  2020 2019   2020 2019
GAAP net income (loss) (2,925 ) (1,113 )   3,068   (3,835 )
Add:          
Share-based compensation expense 2,476   820     5,574   3,405  
Non-GAAP net income (loss) (449 ) (293 )   8,642   (430 )
           
Net income (loss) (2,925 ) (1,113 )   3,068   (3,835 )
Excluding:          
Exchange rate gains (loss) (34 ) 40     (34 ) 53  
Interest and investment income 960   262     1,177   386  
Income taxes (74 ) (262 )   (633 ) (590 )
Depreciation and amortization expense 1,196   520     2,946   1,291  
Share-based compensation expense 2,476   820     5,574   3,405  
Adjusted EBITDA (105 ) 187     11,078   1,012  
           
Net cash generated from (used in) operating activities (1,934 ) (54 )   4,597   (1,371 )
Purchase of property and equipment (3,210 ) (1,213 )   (9,531 ) (3,622 )
Free Cash Flow (5,144 ) (1,267 )   (4,934 ) (4,993 )
Net cash generated from (used in) investing activities (228,353 ) (2,645 )   (234,674 ) (6,572 )
Net cash provided by financing activities (1,419 ) –     533,905   –  
                   



Posted on

ERES REIT Declares November 2020 Monthly Distribution

TORONTO, Nov. 16, 2020 (GLOBE NEWSWIRE) — European Residential Real Estate Investment Trust (TSX: ERE.UN, “ERES”) is pleased to announce that the trustees of ERES have declared the November 2020 monthly cash distribution of €0.00875 per Unit and Class B LP Unit (the “NovemberDistribution”), being equivalent to €0.105 per Unit annualized. The distribution will be payable to holders of the Units and Class B LP Units (the “Unitholders”) of record on November 30, 2020, with payment on December 15, 2020.

The Euro-denominated distribution will be paid in Canadian dollars based on the exchange rate on the date of payment (estimated C$0.01352 per Unit and Class B LP Unit). Registered Unitholders will be provided with an option to elect to receive such distribution in Euros rather than Canadian dollars. If no such election is made, registered Unitholders will be paid the distribution in Canadian dollars based on the above exchange rate mechanism. Beneficial Unitholders will not have an option to elect to receive the distribution in Euros. The final cash distribution in respect of October 2020 was C$0.01352 per Unit and Class B LP Unit.

To encourage participation and reward our loyal Unitholders, investors registered in our Distribution Reinvestment Plan will continue to receive an additional amount equal to 5% of their distributions paid in the form of additional Units.

ERES intends to continue to make regular monthly distributions, subject to the discretion of the ERES board of trustees. ERES continues to target an AFFO payout ratio in the range of 80% to 90%. ERES Limited Partnership will make corresponding cash distributions to holders of Class B LP Units.

About ERES

ERES is an unincorporated, open-ended real estate investment trust. ERES’s Units are listed on the TSX under the symbol ERE.UN. ERES is Canada’s only European-focused, multi-residential REIT, with a current initial focus on investing in high-quality, multi-residential real estate properties in the Netherlands. ERES owns a portfolio of 137 multi-residential properties, comprised of 5,865 suites and ancillary retail space located in the Netherlands, and owns one office property in Germany and one office property in Belgium.

ERES’s registered and principal business office is located at 11 Church Street, Suite 401, Toronto, Ontario M5E 1W1.

For more information, please visit our website at www.eresreit.com.

For further information

ERES ERES
Mr. Phillip Burns Mr. Scott Cryer
Chief Executive Officer Chief Financial Officer
416.354.0167 416.861.5771
[email protected] [email protected]
   



Posted on

America’s Car-Mart Reports Diluted Earnings per Share of $3.05 on Record Revenues of $223 Million

ROGERS, Ark., Nov. 16, 2020 (GLOBE NEWSWIRE) — America’s Car-Mart, Inc. (NASDAQ: CRMT) today announced its operating results for the second quarter of fiscal year 2021.

“Our disciplined execution and ongoing focus are propelling the business forward at an accelerating pace. At the same time, significant investments in key areas are laying the groundwork for future growth. Notwithstanding the tight used vehicle market – especially at the lower price points – we generated a meaningful increase in revenues. The market we serve is large and fragmented, and consumer expectations and shopping preferences are changing. We have a healthy paranoia about change and are committed to re-inventing the business in order to adapt and prepare us for long-term market leadership,” said Jeff Williams, President and CEO. “Our business continues to both generate cash and increased borrowing capacity while maintaining a conservative balance sheet, enabling us to think big about our place in the world.”

“We continue to make significant investments in the areas of customer experience, inventory procurement and recruiting and training. Improvements in these key areas will drive increased traffic and productivity. Corresponding technology and systems upgrades support these initiatives and provide a foundation for future growth. For example, the centralization of certain functions dovetails with the advantages of our localized branch structure; the ability to make key customer decisions locally is important to our success,” added Mr. Williams. “We are aggressively addressing changes in consumer buying preferences by building an efficient, seamless, digital and customer-friendly sales process that compares favorably with alternatives. Further, as our infrastructure strengthens, we will aggressively market our lower total cost of ownership advantage. Also, we will heavily promote the more intangible but very real advantages that consumers realize when they are part of the Car-Mart family. We are committed to giving our customers ‘Peace of Mind’ by ‘Keeping Them on the Road.’ We take the stress out of one area of our customers’ lives and believe strongly that we have an obligation to serve significantly more customers over time.”

“Our offering is unique, and we believe that our existing dealerships have significant room to grow. We will prioritize the allocation of capital with an eye to gaining market share in the areas we currently serve. We have opened two new dealerships this fiscal year and currently have two more in process – Edmond and Norman, Oklahoma. We are proud to be growing while simultaneously building an infrastructure that will support a much larger business. This is possible largely because of the commitment of our associates and the power of our business model,” said Mr. Williams. “There is real consumer enthusiasm for our offering driven by a superior proposition, local presence, and genuine commitment to customers. Coupled with the advantages of our captive lending arrangement and relentless focus on costs, we believe that our future is very bright.”

“Our overall revenue increase was driven by a 15.3% increase in the average retail sales price combined with a $4.1 million increase in interest income. Our second quarter sales volumes were impacted by the continued tight supply of vehicles at lower price points resulting in a lack of an affordable alternative for some of our customers. This impacted our productivity per dealership,” said Vickie Judy, Chief Financial Officer. “Net charge-offs for the quarter, as a percentage of average finance receivables, were down to 4.7%. Our selling, general, and administrative expenses returned to pre-pandemic levels, reflecting our commitment to have a strong infrastructure to support a growing customer base. We did have some nice leveraging of these expenses at 16.5% of sales compared to 16.9% for the prior year comparable quarter.”

“Our cash balance is $19.5 million and our debt, net of cash, to finance receivable is 28%. During the quarter, we added $49.4 million in receivables, increased inventory by $11.2 million, funded $2.2 million in net capital expenditures, and repurchased $6.1 million of our common stock, a total of $68.9 million utilizing $31.1 million of cash and no increase in debt. We will continue to stay focused on a strong balance sheet and cash flows while ensuring we are investing with an eye for the future,” added Ms. Judy.

Conference Call

Management will be holding a conference call on Tuesday, November 17, 2020 at 11:00 a.m. Eastern Time to discuss quarterly results. A live audio of the conference call will be accessible to the public by calling (877) 776-4031. International callers dial (631) 291-4132. Callers should dial in approximately 10 minutes before the call begins. A conference call replay will be available two hours following the call for thirty days and can be accessed by calling (855) 859-2056 (domestic) or (404) 537-3406 (international), conference call ID #4393992.

About America’s Car-Mart

America’s Car-Mart, Inc. operates automotive dealerships in twelve states and is one of the largest publicly-held automotive retailers in the United States focused exclusively on the “Integrated Auto Sales and Finance” segment of the used car market. The Company emphasizes superior customer service and the building of strong personal relationships with its customers. The Company operates its dealerships primarily in smaller cities throughout the South-Central United States selling quality used vehicles and providing financing for substantially all of its customers. For more information about America’s Car-Mart, including investor presentations, please visit our website at www.car-mart.com.

Car-Mart was named to the Forbes America’s Best Mid-Size Employers list for two consecutive years in 2019 and 2018 and has sold over 700,000 vehicles since fiscal year 2000.

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements address the Company’s future objectives, plans and goals, as well as the Company’s intent, beliefs and current expectations regarding future operating performance and can generally be identified by words such as “may,” “will,” “should,” “could,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” and other similar words or phrases. Specific events addressed by these forward-looking statements may include, but are not limited to:

  • new dealership openings;
  • performance of new dealerships;
  • same dealership revenue growth;
  • future revenue growth;
  • receivables growth as related to revenue growth;
  • gross profit per retail unit sold;
  • interest rates;
  • future credit losses;
  • the Company’s collection results, including but not limited to collections during income tax refund periods;
  • seasonality; and
  • the Company’s business, operating and growth strategies.

These forward-looking statements are based on the Company’s current estimates and assumptions and involve various risks and uncertainties. As a result, you are cautioned that these forward-looking statements are not guarantees of future performance, and that actual results could differ materially from those projected in these forward-looking statements. Factors that may cause actual results to differ materially from the Company’s projections include, but are not limited to:

  • business and economic disruptions and uncertainty resulting from the COVID-19 pandemic and efforts to mitigate the financial impact and health risks associated with the pandemic;
  • general economic conditions in the markets in which the Company operates, including but not limited to fluctuations in gas prices, grocery prices and employment levels;
  • the availability of credit facilities to support the Company’s business;
  • the Company’s ability to underwrite and collect its contracts effectively;
  • competition;
  • dependence on existing management;
  • ability to attract, develop and retain qualified general managers;
  • availability of quality vehicles at prices that will be affordable to customers;
  • changes in consumer finance laws or regulations, including but not limited to rules and regulations that have recently been enacted or could be enacted by federal and state governments;
  • ability to keep pace with technological advances and changes in consumer behavior affecting our business;                
  • security breaches, cyber-attacks, or fraudulent activity; and
  • the ability to successfully identify, complete and integrate new acquisitions.

Additionally, risks and uncertainties that may affect future results include those described from time to time in the Company’s SEC filings. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.

____________________________
Contacts:        Jeffrey A. Williams, President and CEO (479) 464-9944 or Vickie D. Judy, CFO (479) 464-9944

          % Change   As a % of Sales
  Three Months Ended   2020   Three Months Ended
  October 31,   vs.   October 31,
    2020       2019     2019   2020   2019
Operating Data:                      
Retail units sold   14,022       13,763     1.9 %            
Average number of stores in operation   150       145     3.4              
Average retail units sold per store per month   31.2       31.6     (1.3 )            
Average retail sales price $ 13,365     $ 11,589     15.3              
Gross profit per retail unit $ 5,705     $ 4,935     15.6              
Same store revenue growth   12.8 %     12.2 %                
Net charge-offs as a percent of average finance receivables   4.7 %     6.1 %                
Collections as a percent of average finance receivables   12.9 %     13.3 %                
Average percentage of finance receivables-current (excl. 1-2 day)   84.8 %     83.5 %                
Average down-payment percentage   6.4 %     6.0 %                
                       
Period End Data:                      
Stores open   150       145     3.4 %            
Accounts over 30 days past due   2.5 %     3.5 %                
Active customer count   83,945       78,910     6.4 %            
Finance receivables, gross $ 692,775     $ 587,087     18.0 %            
                       
Operating Statement:                      
Revenues:                      
Sales $ 196,684     $ 167,743     17.3 %   100.0 %   100.0 %
Interest income   26,676       22,567     18.2     13.6     13.5  
Total   223,360       190,310     17.4     113.6     113.5  
                       
Costs and expenses:                      
Cost of sales   116,690       99,826     16.9     59.3     59.5  
Selling, general and administrative   32,536       28,296     15.0     16.5     16.9  
Provision for credit losses   43,862       41,177     6.5     22.3     24.5  
Interest expense   1,658       2,081     (20.3 )   0.8     1.2  
Depreciation and amortization   928       971     (4.4 )   0.5     0.6  
Loss (gain) on disposal of property and equipment   (64 )     2     (3,300.0 )   –     –  
Total   195,610       172,353     13.5     99.5     102.7  
                       
Income before taxes   27,750       17,957         14.1     10.7  
                       
Provision for income taxes   6,554       4,070         3.3     2.4  
                       
Net income $ 21,196     $ 13,887         10.8     8.3  
                       
Dividends on subsidiary preferred stock $ (10 )   $ (10 )                
                       
Net income attributable to common shareholders $ 21,186     $ 13,877                  
                       
Earnings per share:                      
Basic $ 3.20     $ 2.10                  
Diluted $ 3.05     $ 2.00                  
                       
Weighted average number of shares used in calculation:                      
Basic   6,627,780       6,621,562                  
Diluted   6,935,707       6,952,667                  
                       

          % Change   As a % of Sales
  Six Months Ended   2020   Six Months Ended
  October 31,   vs.   October 31,
    2020       2019     2019   2020   2019
Operating Data:                      
Retail units sold   26,198       26,286     (0.3 )%            
Average number of stores in operation   150       145     3.4              
Average retail units sold per store per month   29.1       30.2     (3.6 )            
Average retail sales price $ 13,102     $ 11,504     13.9              
Gross profit per retail unit $ 5,646     $ 4,912     14.9              
Same store revenue growth   9.5 %     7.6 %                
Net charge-offs as a percent of average finance receivables   9.6 %     11.5 %                
Collections as a percent of average finance receivables   25.9 %     26.8 %                
Average percentage of finance receivables-current (excl. 1-2 day)   84.8 %     83.3 %                
Average down-payment percentage   6.9 %     6.2 %                
                       
Period End Data:                      
Stores open   150       145     3.4 %            
Accounts over 30 days past due   2.5 %     3.5 %                
Active customer count   83,945       78,910     6.4 %            
Finance receivables, gross $ 692,775     $ 587,087     18.0 %            
                       
Operating Statement:                      
Revenues:                      
Sales $ 359,483     $ 317,817     13.1 %   100.0 %   100.0 %
Interest income   51,788       44,371     16.7     14.4     14.0  
Total   411,271       362,188     13.6     114.4     114.0  
                       
Costs and expenses:                      
Cost of sales   211,564       188,711     12.1     58.9     59.4  
Selling, general and administrative   61,293       56,967     7.6     17.1     17.9  
Provision for credit losses   79,946       72,652     10.0     22.2     22.9  
Interest expense   3,377       4,085     (17.3 )   0.9     1.3  
Depreciation and amortization   1,866       1,938     (3.7 )   0.5     0.6  
Loss (gain) on disposal of property and equipment   (64 )     39     (264.1 )   –     –  
Total   357,982       324,392     10.4     99.6     102.1  
                       
Income before taxes   53,289       37,796         14.8     11.9  
                       
Provision for income taxes   12,529       8,398         3.5     2.6  
                       
Net income $ 40,760     $ 29,398         11.3     9.2  
                       
Dividends on subsidiary preferred stock $ (20 )   $ (20 )                
                       
Net income attributable to common shareholders $ 40,740     $ 29,378                  
                       
Earnings per share:                      
Basic $ 6.14     $ 4.42                  
Diluted $ 5.88     $ 4.21                  
                       
Weighted average number of shares used in calculation:                      
Basic   6,630,112       6,652,922                  
Diluted   6,925,651       6,984,709                  
                       

  October 31,   April 30,   October 31,
    2020       2020       2019  
           
Cash and cash equivalents $ 19,533     $ 59,560     $ 2,474  
Finance receivables, net $ 519,810     $ 466,141     $ 451,606  
Inventory $ 67,428     $ 36,414     $ 48,103  
Total assets $ 716,344     $ 667,324     $ 575,367  
Total debt $ 213,523     $ 215,568     $ 176,970  
Treasury stock $ 252,991     $ 246,911     $ 245,598  
Total equity $ 343,631     $ 302,759     $ 278,359  
Shares outstanding   6,602,148       6,619,319       6,566,321  
           
Finance receivables:          
Principal balance $ 692,775     $ 621,182     $ 587,087  
Deferred revenue – payment protection plan   (26,840 )     (24,480 )     (22,836 )
Deferred revenue – service contract   (13,236 )     (11,641 )     (11,265 )
Allowance for credit losses   (172,965 )     (155,041 )     (135,481 )
           
Finance receivables, net of allowance and deferred revenue $ 479,734     $ 430,020     $ 417,505  
           
           
Allowance as % of principal balance net of deferred revenue   26.5 %     26.5 %     24.5 %
           
           
Changes in allowance for credit losses:          
  Six months Ended    
  October 31,    
    2020       2019      
Balance at beginning of period $ 155,041     $ 127,842      
Provision for credit losses   79,946       72,652      
Charge-offs, net of collateral recovered   (62,022 )     (65,013 )    
Balance at end of period $ 172,965     $ 135,481      
                   



Posted on

1347 Property Insurance Holdings, Inc. Reports Third Quarter 2020 Financial Results; Plans to Change Name to FG Financial Group, Inc.

1347 Property Insurance Holdings, Inc. Reports Third Quarter 2020 Financial Results; Plans to Change Name to FG Financial Group, Inc.

Company Formally Names Larry Swets, Jr. Chief Executive Officer

ST. PETERSBURG, Fla.–(BUSINESS WIRE)–1347 Property Insurance Holdings, Inc. (Nasdaq: PIH) (the “Company”), a holding company which is implementing business plans to operate as a diversified holding company of reinsurance and investment management businesses, today announced the filing of its financial results for its third fiscal quarter ended September 30, 2020 on Form 10-Q, which can be found at the SEC’s website at www.sec.gov, or at PIH’s corporate website: www.1347pih.com.

The company will hold its annual meeting on December 14, 2020, the details of which can be found in the annual proxy statement filed with the Securities and Exchange Commission on October 30, 2020. Among the ballot items to be voted on at the annual meeting is the intended name change of the company to FG Financial Group, Inc. to better reflect the Company’s diversified holding company strategy. Upon approval of the name change, the company expects to change the ticker of its common stock on the NASDAQ market to “FGF”, while the series A preferred shares, also traded on the NASDAQ market, will trade with the ticker “FGFPP”.

Select Q3 2020 Financial Results

Net loss attributable to common shareholders was $9.9 million for the quarter, or $1.69 per diluted share. General and administrative expenses in the quarter were $1.9 million. Major non-operating items contributing to the net loss included:

  • Non-cash losses associated with the change in fair value of the Company’s investment in the common stock of FedNat Holding Company (Nasdaq: FNHC) (“FedNat”) of $5.8 million.
  • Realized losses of $2.1 million associated with the sale of 330,231 FNHC shares pursuant to a Share Repurchase and Cooperation Agreement transaction entered into with Hale Partnership Capital Management, LLC, which yielded an increase of treasury shares of 1,130,512, or $5.2 million.

As of September 30, 2020, key balance sheet items included:

  • Cash and cash equivalents of $15.2 million.
  • Equity securities, consisting of 1,442,871 shares of common stock of FedNat, with a cost basis of $20.8 million. As of September 30, 2020, the equity securities were valued at $9.1 million, compared with $19.6 million as of June 30, 2020, as the share price declined during the period and the company reduced its holdings.
  • Limited liability investments totaling $9.3 million, which primarily consists of $4.0 million to sponsor the launch of FG Special Situations Fund, LP through Fundamental Global Asset Management (“FGAM”), and $4.6 million invested in FGI Metrolina Property Income Fund, LP (”Metrolina”).
  • Book value per common share of approximately $3.81.

Appointment of Larry Swets, Jr. as Chief Executive Officer

  • The Company has appointed the Interim Chief Executive Officer of the Company, Larry G. Swets Jr., to serve as the Company’s Chief Executive Officer, effective November 10, 2020. Mr. Swets, who has served as a director of the Company since November 2013 and previously served as the Company’s Chairman from March 2017 to May 2018, had been appointed to serve as the Company’s Interim Chief Executive Officer in June 2020.

Other Information

  • As of November 11, 2020, the value of the Company’s investment in FedNat common stock was $9.3 million, resulting in a pre-tax, unrealized holding gain, of $0.2 million for the period beginning October 1 and ending November 11, 2020.
  • On September 14, 2020 and September 28, 2020 the Company invested $2 million and $3 million, respectively into its joint venture, FGAM, to capitalize FG Special Situations Fund Advisor, LLC (“Advisor”), a Delaware limited liability company formed on September 2, 2020, and to sponsor the launch of FG Special Situations Fund, LP (the “Fund”), a Delaware limited partnership formed on September 2, 2020. The Fund’s investment will be used by FG New America Investors, LLC (the “Sponsor”) as part of a total of $8.6 million of risk capital used to launch FG New America Acquisition Corp (NYSE: FGNA), a newly formed special purpose acquisition company which consummated its initial public offering on October 2, 2020.

About 1347 Property Insurance Holdings, Inc.

1347 Property Insurance Holdings, Inc. is implementing business plans to operate as a diversified insurance, reinsurance and investment management holding company and is incorporated in Delaware. The Company endeavors to make opportunistic and value-oriented investments in insurance, reinsurance and related businesses. The Company’s principal business operations are conducted through its subsidiaries and affiliates. The Company also provides investment management services to unaffiliated companies.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements are therefore entitled to the protection of the safe harbor provisions of these laws. These statements may be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “budget,” “can,” “contemplate,” “continue,” “could,” “envision,” “endeavor,” “estimate,” “expect,” “evaluate,” “forecast,” “goal,” “guidance,” “indicate,” “intend,” “likely,” “may,” “might,” “outlook,” “plan,” “possibly,” “potential,” “predict,” “probable,” “probably,” “pro-forma,” “project,” “seek,” “should,” “target,” “view,” “will,” “would,” “will be,” “will continue,” “will likely result”, “change” or the negative thereof or other variations thereon or comparable terminology. In particular, discussions and statements regarding the Company’s expectations as to its financial results and the Company’s future business plans and initiatives are forward-looking in nature.

We have based these forward-looking statements on our current expectations, assumptions, estimates, and projections. While we believe these to be reasonable, such forward-looking statements are only predictions and involve a number of risks and uncertainties, many of which are beyond our control. These and other important factors may cause our actual results, performance, or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements, and may impact our ability to implement and execute on our future business plans and initiatives. You should be aware that many of the risks listed below were, and are expected to continue to be, exacerbated by the COVID-19 pandemic. Management cautions that the forward-looking statements in this press release are not guarantees of future performance, and we cannot assume that such statements will be realized or the forward-looking events and circumstances will occur. Factors that might cause such a difference include, without limitation: risks associated with our limited business operations since the closing of the sale of all of the issued and outstanding equity of three of the Company’s wholly-owned insurance subsidiaries to FedNat Holding Company (the “Asset Sale”); risks associated with our inability to identify and realize business opportunities, and the undertaking of any new such opportunities, following the Asset Sale; our ability to change our name and effect the required approvals to change our name; our ability to spend or invest the net proceeds from the Asset Sale in a manner that yields a favorable return; general conditions in the global economy, including the impact of health and safety concerns from the current COVID-19 pandemic and the impact of governmental measures taken in response thereto; the uncertainty and difficulty in predicting the ultimate impact of the COVID-19 pandemic on our business; our lack of operating history or established reputation in the reinsurance industry; our inability to obtain or maintain the necessary approvals to operate reinsurance subsidiaries; risks associated with operating in the reinsurance industry, including inadequately priced insured risks, credit risk associated with brokers we may do business with, and inadequate retrocessional coverage; our inability to execute on our investment and investment management strategy, including risks associated with the Company’s investments and joint ventures; potential loss of value of investments; the risk of becoming or being deemed an investment company; fluctuations in our short-term results as we implement our new business strategy; risks of being unable to attract and retain qualified management and personnel to implement and execute on our business and growth strategy; failure of our information technology systems, data breaches and cyber-attacks; our ability to establish and maintain an effective system of internal controls; our limited operating history as a publicly traded company; the requirements of being a public company and losing our status as a smaller reporting company or becoming an accelerated filer; any potential conflicts of interest between us and our controlling stockholders and different interests of controlling stockholders; potential conflicts of interest between us and our directors and executive officers; the impact of the COVID-19 pandemic on the business of FedNat Holding Company; continued volatility or further decline in the value of the shares of FedNat Holding Company common stock received by us as consideration in the Asset Sale or limitations and restrictions with respect to our ownership of such shares; risks of being a minority stockholder of FedNat Holding Company; and risks of our inability to continue to satisfy the continued listing standards of the Nasdaq following completion of the Asset Sale.

Our expectations and future plans and initiatives may not be realized. If one of these risks or uncertainties materialize, or if our underlying assumptions prove incorrect, actual results may vary materially from those expected, estimated or projected. You are cautioned not to place undue reliance on forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof and do not necessarily reflect our outlook at any other point in time. We do not undertake and specifically decline any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect new information, future events or developments.

1347 PROPERTY INSURANCE HOLDINGS, INC.

Consolidated Statements of Operations and Comprehensive Loss

($ in thousands, except share and per share data)

(Unaudited)

 

Three months ended

September 30,

 

Nine months ended

September 30,

 

2020

 

2019

 

2020

 

2019

Revenue:

 

 

 

 

 

 

 

Net investment income (loss)

$

(7,715)

 

$

523

 

$

(16,992)

 

$

1,257

Other income

 

25

 

 

–

 

 

79

 

 

–

Total revenue

 

(7,690)

 

 

523

 

 

(16,913)

 

 

1,257

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

General and administrative expenses

 

1,900

 

 

595

 

 

4,210

 

 

2,236

Total expenses

 

1,900

 

 

595

 

 

4,210

 

 

2,236

 

 

 

 

 

 

 

 

Loss from continuing operations before income tax benefit

 

(9,590)

 

 

(72)

 

 

(21,123)

 

 

(979)

Income tax benefit

 

–

 

 

(12)

 

 

(665)

 

 

(162)

Net loss from continuing operations

 

(9,590)

 

 

(60)

 

 

(20,458)

 

 

(817)

Net loss from discontinued operations, net of income taxes

 

–

 

 

(3,475)

 

 

–

 

 

(7,152)

Net loss

$

(9,590)

 

$

(3,535)

 

$

(20,458)

 

$

(7,969)

 

 

 

 

 

 

 

 

Dividends declared on Series A Preferred Shares

 

350

 

 

350

 

 

1,050

 

 

1,050

Loss attributable to common shareholders

$

(9,940)

 

$

(3,885)

 

$

(21,508)

 

$

(9,019)

 

 

 

 

 

 

 

 

Basic and diluted loss per common share:

 

 

 

 

 

 

 

Continuing operations

$

(1.69)

 

$

(0.07)

 

$

(3.58)

 

$

(0.31)

Discontinued operations

 

–

 

 

(0.58)

 

 

–

 

 

(1.19)

Loss per share attributable to common shareholders

$

(1.69)

 

$

(0.65)

 

$

(3.58)

 

$

(1.50)

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic and diluted

 

5,893,125

 

 

6,015,753

 

 

6,009,267

 

 

6,013,771

 

 

 

 

 

 

 

 

Consolidated Statement of Comprehensive Loss

 

 

 

 

 

 

 

 

Net loss

$

(9,590)

 

$

(3,535)

 

$

(20,458)

 

$

(7,969)

Unrealized gains on investments available for sale, net of income taxes

 

–

 

 

(92)

 

 

–

 

 

1,783

Comprehensive loss

$

(9,590)

 

$

(3,627)

 

$

(20,458)

 

$

(6,186)

 

 

 

 

 

 

 

 

1347 PROPERTY INSURANCE HOLDINGS, INC.

Consolidated Balance Sheets

($ in thousands, except share and per share data)

 

 

September 30, 2020

(unaudited)

 

December 31, 2019

ASSETS

 

 

 

 

Equity securities, at fair value (cost basis of $20,751 and $25,500, respectively)

 

$

9,119

 

$

29,487

Limited liability investments (including $4,013 and $0 held by the Company’s consolidated VIE)

 

 

9,268

 

 

4,005

Cash and cash equivalents(including $50 and $0 held by the Company’s consolidated VIE)

 

 

15,233

 

 

28,509

Current income taxes recoverable

 

 

1,824

 

 

1,265

Other receivables and assets(including $937 and $0 held by the Company’s consolidated VIE)

 

 

1,512

 

 

188

Total assets

 

$

36,956

 

$

63,454

 

 

 

 

 

LIABILITIES

 

 

 

 

Accounts payable

 

$

480

 

$

400

Deferred tax liability, net

 

 

–

 

 

106

Other liabilities

 

 

82

 

 

33

Total liabilities

 

$

562

 

$

539

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

 

Series A Preferred Shares, $25.00 par value, 1,000,000 shares authorized, 700,000 shares issued and outstanding as of both periods

 

$

17,500

 

$

17,500

Common stock, $0.001 par value; 10,000,000 shares authorized; 6,238,875 and 6,217,307 shares issued as of September 30, 2020 and

December 31, 2019, respectively, and 4,957,364 and 6,065,948 shares outstanding as of September 30, 2020 and December 31, 2019, respectively

 

 

6

 

 

6

Additional paid-in capital

 

 

46,917

 

 

46,754

Accumulated deficit

 

 

(21,844)

 

 

(336)

 

 

 

42,579

 

 

63,924

Less: treasury stock at cost; 1,281,511 and 151,359 shares as of September 30, 2020 and December 31, 2019, respectively

 

 

(6,185)

 

 

(1,009)

Total shareholders’ equity

 

 

36,394

 

 

62,915

Total liabilities and shareholders’ equity

 

$

36,956

 

$

63,454

 

 

 

 

 

 

 

INVESTOR RELATIONS:

The Equity Group Inc.

Jeremy Hellman, CFA

Vice President

(212) 836-9626 / [email protected]

KEYWORDS: Florida United States North America

INDUSTRY KEYWORDS: Insurance Professional Services

MEDIA:

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Posted on

Voya Equity Closed End Funds Declare Distributions

Voya Equity Closed End Funds Declare Distributions

SCOTTSDALE, Ariz.,–(BUSINESS WIRE)–
Voya Investment Management, the asset management business of Voya Financial, Inc. (NYSE: VOYA), announced today the monthly distributions on the common shares of two of its closed-end funds (each a “Fund” and collectively, the “Funds”).

With respect to each Fund, the distribution will be paid on December 15, 2020, to shareholders of record on December 2, 2020. The ex-dividend date is December 1, 2020. The distribution per share for each Fund is as follows:

Fund

Distribution Per Share

Voya Global Equity Dividend and Premium Opportunity Fund (NYSE: IGD)

$0.040

Voya International High Dividend Equity Income Fund (NYSE: IID)

$0.030

Each Fund intends to make regular monthly distributions based on the past and projected performance of the Fund. The amount of a Fund’s distribution may vary, depending on a number of factors. As portfolio and market conditions change, the rate of distributions on the common shares may change. There can be no assurance that a Fund will be able to declare a distribution in each period. Past performance is no guarantee of future results.

The tax treatment and characterization of a Fund’s distributions may vary significantly from time to time depending on the net investment income of the Fund and whether the Fund has realized gains or losses from its options strategy versus gain or loss realizations in the equity securities in the portfolio. Each Fund’s distributions will normally reflect past and projected net investment income, and may include income from dividends and interest, capital gains and/or a return of capital.

The portion of each Fund’s monthly distributions estimated to come from the Fund’s option strategy, for tax purposes, may be treated as a combination of long-term and short-term capital gains, and/or a return of capital. The tax character of each Fund’s option strategy is largely determined by movements in, and gain and loss realizations in the underlying equity portfolio. Under certain conditions, federal tax regulations may also cause some or all of the return of capital to be taxed as ordinary income. The final tax characteristics of the distributions cannot be determined with certainty until after the end of the calendar year, and will be reported to shareholders at that time.

IGD estimates that for the current fiscal year as of October 31, 2020, approximately 27% of each distribution is characterized as net investment income and 73% is characterized as return of capital.

IID estimates that for the current fiscal year as of October 31, 2020, approximately 31% of each distribution is characterized as net investment income and 69% is characterized as return of capital.

Shares of closed-end funds often trade at a discount from their net asset value. The market price of Fund shares may vary from net asset value based on factors affecting the supply and demand for shares, such as Fund distribution rates relative to similar investments, investors’ expectations for future distribution changes, the clarity of the Fund’s investment strategy and future return expectations, and investors’ confidence in the underlying markets in which the Fund invests. Fund shares are subject to investment risk, including possible loss of principal invested. No Fund is a complete investment program and you may lose money investing in a Fund. An investment in a Fund may not be appropriate for all investors. Before investing, prospective investors should consider carefully the Fund’s investment objective, risks, charges and expenses.

Certain statements made on behalf of the Funds in this release are forward-looking statements. The Funds’ actual future results may differ significantly from those anticipated in any forward-looking statements due to numerous factors, including but not limited to a decline in value in equity markets in general or the Funds’ investments specifically. Neither the Funds nor Voya Investment Management undertake any responsibility to update publicly or revise any forward-looking statement.

This information should not be used as a basis for legal and/or tax advice. In any specific case, the parties involved should seek the guidance and advice of their own legal and tax counsel.

About Voya® Investment Management

A leading, active asset management firm, Voya Investment Management manages, as of September 30, 2020, over $238 billion for affiliated and external institutions as well as individual investors. With more than 40 years of history in asset management, Voya Investment Management has the experience and resources to provide clients with investment solutions with an emphasis on equities, fixed income, and multi-asset strategies and solutions. Voya Investment Management was named in 2015, 2016, 2017, 2018 and 2019 as a “Best Places to Work” by Pensions and Investments magazine. For more information, visit voyainvestments.com. Follow Voya Investment Management on Twitter @VoyaInvestments.

SHAREHOLDER INQUIRIES: Shareholder Services at (800) 992-0180; voyainvestments.com

CONTACT:  Kris Kagel, (800) 992-0180

KEYWORDS: Arizona United States North America

INDUSTRY KEYWORDS: Banking Professional Services Finance

MEDIA:

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Posted on

Everspin to Participate in Upcoming Investor Conferences

Everspin to Participate in Upcoming Investor Conferences

CHANDLER, Ariz.–(BUSINESS WIRE)–
Everspin Technologies, Inc. (Nasdaq: MRAM), the market leader in MRAM, today announced Kevin Conley, President and CEO, and Daniel Berenbaum, CFO, will participate in the following investor conferences:

  • Craig-Hallum Virtual Alpha-Select Virtual Conference on November 17th, 2020
  • Benchmark Discovery One-on-One Investor Conference on November 18th, 2020
  • Oppenheimer 5G Summit: The Revolution Begins Conference on December 15th, 2020
  • 12th Annual Virtual CEO Summit on December 16th, 2020
  • 23rd Annual Needham Virtual Growth Conference on January 11th through 15th, 2021

Portfolio managers and analysts who would like to request a meeting with management should contact a representative of the respective firm or Everspin’s investor relations.

About Everspin Technologies

Everspin Technologies, Inc. is the world’s leading provider of Magnetoresistive RAM (MRAM). Everspin MRAM delivers the industry’s most robust, highest performance non-volatile memory for Industrial IoT, Data Center, and other mission-critical applications where data persistence is paramount. Headquartered in Chandler, Arizona, Everspin provides commercially available MRAM solutions to a large and diverse customer base. For more information, visit www.everspin.com. NASDAQ: MRAM.

Company Contact:

Daniel Berenbaum, CFO

T: 480-347-1099

E: [email protected]

KEYWORDS: Arizona United States North America

INDUSTRY KEYWORDS: Semiconductor Data Management Technology Other Technology Internet Hardware

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