Market Newsdesk

November 11, 2020 4:44 pm

SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Celsion Corporation of Class Action Lawsuit and Upcoming Deadline – CLSN

NEW YORK, Nov. 11, 2020 (GLOBE NEWSWIRE) — Pomerantz LLP announces that a class action lawsuit has been filed against certain officers of Celsion Corporation (“Celsion” or the “Company”) (NASDAQ: CLSN). The class action, filed in United States District Court for the District of New Jersey, and docketed under 20-cv-015228, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise, acquired Celsion securities between November 2, 2015 and July 10, 2020, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

If you are a shareholder who purchased Celsion securities during the class period, you have until December 28, 2020, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.

[Click here for information about joining the class action]

Celsion is an integrated development clinical stage oncology drug company that focuses on the development and commercialization of directed chemotherapies, DNA-mediated immunotherapy, and RNA-based therapies for the treatment of cancer.

Celsion’s lead product candidate is ThermoDox, a heat-activated liposomal encapsulation of doxorubicin that is in Phase III clinical development for treating primary liver cancer.

In February 2014, Celsion announced that the U.S. Food and Drug Administration (“FDA”) had reviewed and provided clearance for the Company’s planned pivotal, double-blind, placebo-controlled Phase III trial of ThermoDox in combination with radio frequency ablation (“RFA”) in primary liver cancer, also known as hepatocellular carcinoma (“HCC”), called the “OPTIMA Study.” The trial design was purportedly based on a comprehensive analysis of data from the Company’s Phase III HEAT Study, which purportedly demonstrated that treatment with ThermoDox resulted in a 55% improvement in overall survival (“OS”) in a substantial number of HCC patients that received an optimized RFA treatment.

The OPTIMA Study was expected to enroll 550 patients globally, with up to 100 sites in the U.S., Europe, China and Asia Pacific, to evaluate ThermoDox in combination with RFA. The primary endpoint for the trial was OS, and the statistical plan called for two interim efficacy analyses by an independent Data Monitoring Committee (“DMC”).

The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading because they misrepresented and failed to disclose the following adverse facts pertaining to the Company’s business, operations, and prospects, which were known to Defendants or recklessly disregarded by them. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Defendants had significantly overstated the efficacy of ThermoDox; (ii) the foregoing significantly diminished the approval and commercialization prospects for ThermoDox; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On July 13, 2020, Celsion announced that “it ha[d] received a recommendation from the independent [DMC] to consider stopping the global Phase III OPTIMA Study of ThermoDox® in combination with [RFA] for the treatment of [HCC], or primary liver cancer.” According to the Company, “[t]he recommendation was made following the second pre-planned interim safety and efficacy analysis by the DMC on July 9, 2020,” which “found that the pre-specified boundary for stopping the trial for futility of 0.900 was crossed with an actual value of 0.903.”

On this news, Celsion’s stock price fell $2.29 per share, or 63.97%, to close at $1.29 per share on July 13, 2020.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.

CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980

November 11, 2020 4:44 pm

Mandalay Resources Corporation Announces Financial Results for the Third Quarter of 2020

TORONTO, Nov. 11, 2020 (GLOBE NEWSWIRE) — Mandalay Resources Corporation (“Mandalay” or the “Company”) (TSX: MND, OTCQB: MNDJF) is pleased to announce its financial results for the quarter ended September 30, 2020.

The Company’s unaudited condensed and consolidated interim financial results for the quarter ended September 30, 2020, together with its Management’s Discussion and Analysis (“MD&A”) for the corresponding period, can be accessed under the Company’s profile on www.sedar.com and on the Company’s website at www.mandalayresources.com. All currency references in this press release are in U.S. dollars except as otherwise indicated.

Third Quarter 2020 Highlights:

Quarterly revenue of $49.8 million, highest since Q2 2016;
Adjusted EBITDA of $26.7 million, the second highest in Company history;
Free cash flow of $17.0 million and net cash flows from operating activities of $28.9 million; and
Adjusted net income of $9.8 million, or $0.11 per share and consolidated net income of $0.6 million, or $0.01 per share.

Dominic Duffy, President and CEO of Mandalay, made the following comments:

“Mandalay Resources’ performance in the third quarter of 2020 was outstanding. We generated our highest quarterly revenue since the second quarter of 2016 and our quarterly adjusted EBITDA was the second highest on record – results not seen since the fourth quarter of 2012. The Company’s stellar financial performance was driven by another all-time record in quarterly adjusted EBITDA at Costerfield of $18.8 million, surpassing the $15.4 million record set last quarter. As a result, we generated a $26.7 million in adjusted EBITDA on a consolidated basis during the quarter, bringing the year-to-date total to $68.9 million – more than 400% higher than the $14.9 million amount in the same period last year. Our consolidated cash costs for the quarter were $826 per saleable gold equivalent ounce produced as compared to the $1,186 in the same period last year.”

Mr. Duffy continued, “The Company leveraged its third consecutive quarter of improved operational performance, coupled with high metal prices and consistent costs, to deliver strong free cash flow of $17.0 million. We increased our cash balance since the previous quarter by 57%, ending the third quarter of 2020 with a cash balance of $32.9 million, and are well-positioned to meet our target of becoming net debt neutral in 2021.”

Mr. Duffy added, “At Costerfield, the third quarter of 2020 was another quarter of high-quality production, with average processed grades of 11.5 g/t gold and 4.1% antimony. Costerfield recorded quarterly revenue of $27.9 million, a 22% improvement over last quarter, and an adjusted quarterly EBITDA margin of 67%. We anticipate further improvement during the fourth quarter and that Costerfield’s 2021 production will exceed 2020.”

Mr. Duffy continued, “Björkdal delivered another steady quarter of stable, profitable gold production with 11,044 ounces, which led to $21.9 million in revenue and $9.6 million in adjusted EBITDA. We expect Björkdal to improve operationally and financially in the coming quarters as we develop further into the higher-grade, lower levels of the Aurora zone.”

Mr. Duffy concluded, “Over the past nine months, Mandalay has demonstrated that it has turned the corner, both operationally and financially. With our operational turnaround complete at Costerfield, and three straight quarters of improved financial performance and cash generation, I am pleased with the Company’s current trajectory – we expect this trend to continue and are excited to finish 2020 strong.”

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Financial

Summary

The following table summarizes the Company’s financial results for the three months and nine months ended September 30, 2020 and 2019:

	Three months ended Sept 30, 2020		Three months ended Sept 30, 2019		Nine months ended Sept 30, 2020 ⁽³⁾		Nine months ended Sept 30, 2019
	$’000		$’000		$’000		$’000
Revenue	49,753		28,798		133,654		85,058
Cost of sales	21,418		21,610		59,984		65,755
Adjusted EBITDA⁽¹⁾	26,727		5,555		68,901		14,906
Income from mine ops before depreciation, depletion	28,335		7,188		73,670		19,303
Adjusted net income (loss)⁽¹⁾	9,823		(961	)	22,639		(5,346	)
Consolidated net income (loss)	635		(1,403	)	(5,413	)	(12,487	)
Capital expenditure	(12,083	)	(10,094	)	(32,684	)	(27,744	)
Total assets	283,379		252,042		283,379		252,042
Total liabilities	173,281		139,494		173,281		139,494
Adjusted net income (loss) per share⁽¹⁾	0.11		(0.01	)	0.25		(0.07	)
Consolidated net income (loss) per share⁽²⁾	0.01		(0.02	)	(0.06	)	(0.16	)

¹Adjusted EBITDA, adjusted net income (loss) and adjusted net income (loss) per share are non-IFRS measures, defined at the end of this press release “Non-IFRS Measures”.
²As a result of share consolidation on July 2, 2019, the Company has restated its number of common shares and the income (loss) per share for all periods presented.
³Includes restated figures for the three months ended March 31, 2020 and June 30, 2020 related to a reduction of loss on financial instruments amounting to $1.5 million.

In the third quarter of 2020, Mandalay generated consolidated revenue of $49.8 million, 73% higher than in the third quarter of 2019. This increase is attributable to Mandalay selling 8,188 more gold equivalent ounces in the third quarter of 2020 compared to the third quarter of 2019. The Company’s realized gold price in the third quarter of 2020 also increased by 16% compared to the third quarter of 2019, and the realized price of antimony was flat year-over-year.

Consolidated cash cost per ounce of $826 decreased by 30% in the third quarter of 2020 compared to the third quarter of 2019, mainly due to higher production and slightly lower cost of sales. Cost of sales during the third quarter of 2020 versus the third quarter of 2019 were $0.5 million higher at Costerfield, offset by a $0.7 million reduction at Björkdal. Consolidated general and administrative costs were $0.03 million lower as compared to the prior year quarter.

Mandalay generated adjusted EBITDA of $26.7 million in the third quarter of 2020, 377% higher compared to the Company’s adjusted EBITDA of $5.6 million in the year ago quarter. Adjusted net income was $9.8 million in the third quarter of 2020, which excludes the $8.7 million fair value loss related to the gold hedges associated with the Syndicated Facility, and $0.5 million in care and maintenance costs, compared to an adjusted net loss of $1.0 million in the third quarter of 2019. Consolidated net income was $0.6 million for the third quarter of 2020, versus a net loss of $1.4 million in the third quarter of 2019. Mandalay ended the third quarter of 2020 with $32.9 million in cash and cash equivalents.

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Operational

Summary

The table below summarizes the Company’s capital expenditures and operational unit costs for the three and nine months ended September 30, 2020 and 2019:

		Three months ended Sept 30 , 20 20	Three months ended Sept 30 , 201 9	Nine months ended Sept 30 , 20 20	Nine months ended Sept 30 , 20 19
		$’000	$’000	$’000	$’000
Björkdal
	Gold produced (oz)	11,044	11,880	33,044	40,508
	Cash cost ⁽¹⁾ per oz gold produced ($)	1,051	941	1,061	891
	All-in sustaining cost⁽¹⁾ per oz gold produced ($)	1,505	1,332	1,495	1,195
	Capital development	2,525	1,660	7,004	5,498
	Property, plant and equipment purchases	2,414	2,965	7,193	6,754
	Capitalized exploration	359	412	1,343	704
Costerfield
	Gold produced (oz)	11,749	3,103	32,722	10,509
	Antimony produced (t)	991	402	3,045	1,348
	Gold equivalent produced (oz)	14,620	4,745	43,049	17,557
	Cash cost ⁽¹⁾ per oz gold eq. produced ($)	657	1,800	622	1,413
	All-in sustaining cost ⁽¹⁾ per oz gold eq. produced ($)	1,088	2,714	987	2,190
	Capital development	3,956	3,736	10,632	10,191
	Property, plant and equipment purchases	1,568	521	3,065	3,073
	Capitalized exploration	1,241	783	3,308	1,315
Consolidated
	Gold equivalent produced (oz)	25,664	16,625	76,093	58,065
	Cash cost ⁽¹⁾ per oz gold eq. produced ($)	826	1,186	812	1,049
	All-in sustaining cost ⁽¹⁾ per oz gold eq. produced ($)	1,355	1,858	1,295	1,612
	Capital development	6,481	5,396	17,636	15,689
	Property, plant and equipment purchases	3,982	3,486	10,258	9,827
	Capitalized exploration ⁽²⁾	1,620	1,212	4,790	2,228

¹Cash cost and all-in sustaining cost are non-IFRS measures. See “Non-IFRS Measures” at the end of this press release.
²Includes capitalized exploration relating to other non-core assets.

Björkdal gold mine,
Skellefteå
,
Sweden

Björkdal produced 11,044 ounces of gold in the third quarter of 2020 with cash and all-in sustaining costs of $1,051/oz and $1,505/oz, respectively, compared to cash and all-in sustaining costs of $941/oz and $1,332/oz, respectively, in the third quarter of 2019.

Costerfield gold-antimony mine, Victoria, Australia

Costerfield produced 11,749 ounces of gold and 991 tonnes of antimony for 14,620 gold equivalent ounces in the third quarter of 2020. Due to the higher gold equivalent ounces produced, cash and all-in sustaining costs at Costerfield decreased to $657/oz and $1,088/oz, respectively, compared to cash and all-in sustaining costs of $1,800/oz and $2,714/oz, respectively, in the third quarter of 2019.

Cerro Bayo silver-gold mine, Patagonia, Chile

In the third quarter of 2020, the Company spent $0.5 million on care and maintenance expenses at Cerro Bayo compared to $0.4 million in the third quarter of 2019. Cerro Bayo is currently subject to a binding option agreement between the Company and Equus Mining (“Equus”) pursuant to which Equus has an option to acquire Cerro Bayo. For further information see the Company’s October 8, 2019 press release.

Lupin
,
Nunavut
,
Canada

Care and maintenance spending at Lupin was $0.1 million during the third quarter of 2020, which was the same as in the third quarter of 2019. Reclamation spending at Lupin was $0.5 million during the third quarter of 2020 as compared to $0.8 million in the third quarter of 2019.

Challacollo, Chile

No key developments occurred during the third quarter of 2020. Further information regarding the definitive agreement signed with Aftermath Silver for the sale of Challacollo can be found in the Company’s November 12, 2019 press release.

La Quebrada
, Chile

The La Quebrada copper-silver project in Chile remained held for sale throughout the period.

COVID-19

The coronavirus (“COVID-19”) pandemic is present in all countries in which the Company operates, with cases being reported in Canada, Australia, Sweden and Chile. At this time, the Company has activated business continuity practices across all sites. Management will continue to monitor developments across all jurisdictions and will adjust its planning as necessary. More details are included in the Company’s press release dated March 20, 2020.

The Company currently expects this strong operating performance seen in the third quarter of 2020 to continue, however, the COVID-19 pandemic creates uncertainties. At this time, the Company is maintaining its existing 2020 production guidance but will continue to closely monitor the situation in both Australia and Sweden and will make adjustments, if necessary.

Conference Call

Mandalay’s management will be hosting a conference call for investors and analysts on November 12, 2020 at 8:00 AM (Toronto time).

Analysts and interested investors are invited to participate using the following dial-in numbers:

Participant Number:	(201) 689-8341
Participant Number (Toll free):	(877) 407-8289
Conference ID:	13713074

A replay of the conference call will be available until 11:59 PM (Toronto time), November 26, 2020 and can be accessed using the following dial-in number:

Encore Toll Free Dial-in Number:	(877) 660-6853
Encore ID:	13713074

About Mandalay Resources Corporation:

Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia and Sweden, care and maintenance and development projects in Chile. The Company is focused on growing production at its gold and antimony operation in Australia, and gold production from its operation in Sweden to generate near-term cash flow.

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of applicable
securities laws, including statements regarding the Company’s
anticipated performance over the balance of 2020
and into 2021.
Readers
are cautioned not to place undue reliance on forward-looking statements.
Actual results and developments may differ materially from those contemplated by these
statements depending on, among other things, changes in commodity prices and general market
and economic conditions. The factors identified above are not intended to represent a complete list
of the factors that could affect Mandalay. A description of additional risks that could result in actual
results and developments differing from those contemplated by forward-looking statements in this
news release can be found under the heading “Risk Factors” in Mandalay’s annual information form
dated March 30, 2020, a copy of which is available under Mandalay’s profile at www.sedar.com. In
addition, there can be no assurance that any inferred resources that are discovered as a result of
additional drilling will ever be upgraded to proven or probable reserves. Although Mandalay has
attempted to identify important factors that could cause actual actions, events or results to differ
materially from those described in forward-looking statements, there may be other factors that
cause actions, events or results not to be as anticipated, estimated or intended. There can be no
assurance that forward-looking statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward-looking statements.

Non-IFRS Measures

This news release may contain references to adjusted EBITDA, adjusted net income, free cash flow, cash cost per saleable ounce of gold equivalent produced, cash cost per saleable ounce of silver produced net of gold credits and all-in sustaining cost all of which are non-IFRS measures and do not have standardized meanings under IFRS. Therefore, these measures may not be comparable to similar measures presented by other issuers.

Management uses adjusted EBITDA and free cash flow as measures of operating performance to assist in assessing the Company’s ability to generate liquidity through operating cash flow to fund future working capital needs and to fund future capital expenditures, as well as to assist in comparing financial performance from period to period on a consistent basis. Management uses adjusted net income in order to facilitate an understanding of the Company’s financial performance prior to the impact of non-recurring or special items. The Company believes that these measures are used by and are useful to investors and other users of the Company’s financial statements in evaluating the Company’s operating and cash performance because they allow for analysis of its financial results without regard to special, non-cash and other non-core items, which can vary substantially from company to company and over different periods.

The Company defines adjusted EBITDA as income from mine operations, net of administration costs, and before interest, taxes, non-cash charges/(income), intercompany charges and finance costs. The Company defines adjusted net income as net income before special items. Special items are items of income and expense that are presented separately due to their nature and, in some cases, expected infrequency of the events giving rise to them. A reconciliation between adjusted EBITDA and adjusted net income, on the one hand, and consolidated net income, on the other hand, is included in the MD&A.

The Company defines free cash flow as a measure of the Corporation’s ability to generate and manage liquidity. It is calculated starting with the net cash flows from operating activities (as per IFRS) and then subtracting capital expenditures and lease payments. Refer to Section 1.2 of MD&A for a reconciliation between free cash flow and net cash flows from operating activities.

For Costerfield, saleable equivalent gold ounces produced is calculated by adding to saleable gold ounces produced, the saleable antimony tonnes produced times the average antimony price in the period divided by the average gold price in the period. The total cash operating cost associated with the production of these saleable equivalent ounces produced in the period is then divided by the saleable equivalent gold ounces produced to yield the cash cost per saleable equivalent ounce produced. The cash cost excludes royalty expenses. Site all-in sustaining costs include total cash operating costs, sustaining mining capital, royalty expense, accretion and depletion. Sustaining capital reflects the capital required to maintain each site’s current level of operations. The sites the all-in sustaining cost per ounce of saleable gold equivalent in a period equals the all-in sustaining cost divided by the saleable equivalent gold ounces produced in the period.

For Björkdal, the total cash operating cost associated with the production of saleable gold ounces produced in the period is then divided by the saleable gold ounces produced to yield the cash cost per saleable gold ounce produced. The cash cost excludes royalty expenses. Site all-in costs include total cash operating costs, royalty expense, accretion, depletion, depreciation and amortization. Site all-in sustaining costs include total cash operating costs, sustaining mining capital, royalty expense, accretion and depletion. Sustaining capital reflects the capital required to maintain each site’s current level of operations. The sites the all-in sustaining cost per ounce of saleable gold equivalent in a period equals the all-in sustaining cost divided by the saleable equivalent gold ounces produced in the period.

For the Company as a whole, cash cost per saleable gold equivalent ounce is calculated by summing the gold equivalent ounces produced by each site and dividing the total by the sum of cash operating costs at the sites. Consolidated cash cost excludes royalty and corporate level general and administrative expenses. This definition was updated this quarter to exclude corporate general and administrative expenses to better align with industry standard. All-in sustaining cost per saleable ounce gold equivalent in the period equals the sum of cash costs associated with the production of gold equivalent ounces at all operating sites in the period plus corporate overhead expense in the period plus sustaining mining capital, royalty expense, accretion, depletion, depreciation and amortization, divided by the total saleable gold equivalent ounces produced in the period. A reconciliation between cost of sales and cash costs, and also cash cost to all-in sustaining costs are included in the MD&A.

Fo

r Further Information:

Dominic Duffy
President and Chief Executive Officer

Edison Nguyen
Manager, Analytics and Investor Relations

Contact:
(647) 260-1566

November 11, 2020 4:39 pm

SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Las Vegas Sands Corporation of Class Action Lawsuit and Upcoming Deadline – LVS

NEW YORK, Nov. 11, 2020 (GLOBE NEWSWIRE) — Pomerantz LLP announces that a class action lawsuit has been filed against Las Vegas Sands Corporation (“Las Vegas Sands” or the “Company”) (NYSE: LVS) and certain of its officers. The class action, filed in United States District Court for the District of Nevada, and docketed under 20-cv-01958, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise, acquired Las Vegas Sands securities between February 27, 2016 and September 15, 2020, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

If you are a shareholder who purchased Las Vegas Sands securities during the class period, you have until December 21, 2020, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.

[Click here for information about joining the class action]

Las Vegas Sands was founded in 1988 and is based in Las Vegas, Nevada. The Company, together with its subsidiaries, develops, owns, and operates integrated resorts in Asia and the U.S., which offer various amenities.

Las Vegas Sands’ properties include, among others, the Marina Bay Sands resort in Singapore, which operates a casino.

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) weaknesses existed in Marina Bay Sands’ casino control measures pertaining to fund transfers; (ii) the Marina Bay Sands’ casino was consequently prone to illicit fund transfers that implicated, among other issues, the transfer of customer funds to unauthorized persons and potential breaches in the Company’s anti-money laundering procedures; (iii) the foregoing foreseeably increased the risk of litigation against the Company, as well as investigation and increased oversight by regulatory authorities; (iv) Las Vegas Sands had inadequate disclosure controls and procedures; (v) consequently, all the foregoing issues were untimely disclosed; and (vi) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On July 19, 2020, Bloomberg News reported that Las Vegas Sands had settled a lawsuit brought by a former patron, Wang Xi (“Xi”), meeting his demand for a S$9.1 million ($6.5 million) payment. Xi reportedly sued the Marina Bay Sands casino in 2019 to recover S$9.1 million of his funds that the casino allegedly transferred to other patrons from his casino deposit accounts in 2015 without his approval, which triggered a probe into the casino by local authorities. Bloomberg News also reported that the U.S. Department of Justice (“DOJ”) “is also scrutinizing whether anti-money laundering procedures had been breached in the way the Singapore casino handles high rollers.”

On this news, Las Vegas Sands’ stock price fell $1.41 per share, or 2.9%, to close at $47.28 per share on July 20, 2020.

Then, on September 16, 2020, Bloomberg reported that Marina Bay Sands “has hired a law firm to conduct a new investigation into employee transfers of more than $1 billion in gamblers’ money to third parties[.]” The article quoted the Singapore Casino Regulatory Authority (“CRA”) as stating that “there were weaknesses in [Marina Bay Sands’] casino control measures pertaining to fund transfers[.]”

On this news, Las Vegas Sands’ stock price fell $2.18 per share, or 4.2%, to close at $49.67 per share on September 16, 2020.

CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]

November 11, 2020 4:39 pm

Atmos Energy Corporation Reports Earnings for Fiscal 2020; Initiates Fiscal 2021 through Fiscal 2025 Guidance; Raises Dividend 8.7 Percent

Atmos Energy Corporation Reports Earnings for Fiscal 2020; Initiates Fiscal 2021 through Fiscal 2025 Guidance; Raises Dividend 8.7 Percent

DALLAS–(BUSINESS WIRE)–
Atmos Energy Corporation (NYSE: ATO) today reported consolidated results for its fourth fiscal quarter ended September 30, 2020.

Highlights

Earnings per diluted share:
- $4.89 for the year ended September 30, 2020
- $0.53 for the quarter ended September 30, 2020
Consolidated net income:
- $601.4 million for the year ended September 30, 2020
- $65.3 million for the quarter ended September 30, 2020
Adjusted net income and adjusted diluted earnings per share, which excludes a $21.0 million one-time tax benefit related to the remeasurement of net deferred tax liabilities was $580.5 million and $4.72 for the year ended September 30, 2020.
Capital expenditures rose 14 percent to $1,935.7 million for the year ended September 30, 2020, with approximately 88 percent of capital spending related to system safety and reliability investments.

Outlook

Earnings per diluted share for fiscal 2021 is expected to be in the range of $4.90 to $5.10.
Capital expenditures are expected to be in the range of $2.0 billion to $2.2 billion in fiscal 2021.
The company’s Board of Directors has declared a quarterly dividend of $0.625 per common share. The indicated annual dividend for fiscal 2021 is $2.50, which represents an 8.7% increase over fiscal 2020.

“I am extremely proud of every employee for their commitment to deliver safe and reliable natural gas service paired with exceptional customer service. The preparation and dedication of our employees and leadership has served us and our customers well as we have continued to perform at the highest levels on every facet of our business during this pandemic,” said Kevin Akers, president and chief executive officer of Atmos Energy Corporation. “As we continue to execute our strategy of modernizing our natural gas distribution, transmission and storage systems to improve safety, reliability and environmental performance along with providing exceptional customer service at an affordable price, we remain well positioned to continue delivering annual earnings per share growth in the six to eight percent range,” Akers concluded.

Results for the Fiscal Year Ended September 30, 2020

Consolidated operating income increased $78.0 million to $824.1 million for the year ended September 30, 2020, compared to $746.1 million in the prior year, which primarily reflects rate outcomes in both segments and customer growth and lower operation and maintenance expense in our distribution business, partially offset by lower through system revenue and higher operation and maintenance expense in our pipeline and storage segment and increased depreciation and property tax expense.

Distribution operating income increased $57.4 million to $528.2 million for the year ended September 30, 2020, compared with $470.8 million in the prior year. The increase reflects a net $86.8 million increase in rates and customer growth of $13.7 million, partially offset by a $30.6 million increase in depreciation and property tax expenses associated with increased capital investments. Due to the timing of our fiscal year, the economic impacts from COVID-19 had a limited impact on our operating income.

Pipeline and storage operating income increased $20.6 million to $295.9 million for the year ended September 30, 2020, compared with $275.3 million in the prior year. This increase is primarily attributable to a $53.2 million increase from our GRIP filings approved in fiscal 2019 and 2020, partially offset by a $13.6 million decrease in through system revenues, a $6.8 million increase in operation and maintenance expense primarily due to well integrity costs and spending on hydro testing and in-line inspections and a $12.5 million increase in depreciation expense due to increased capital investments.

Capital expenditures increased $242.2 million to $1,935.7 million for the year ended September 30, 2020, compared with $1,693.5 million in the prior year, due to continued spending for infrastructure replacements and enhancements.

For the year ended September 30, 2020, the company generated operating cash flow of $1,038.0 million, a $69.2 million increase compared with the year ended September 30, 2019. The year-over-year increase reflects the positive cash effects of rate case outcomes achieved in fiscal 2020 and working capital changes, primarily as a result of the timing of gas cost recoveries under our purchase gas cost mechanisms.

Our equity capitalization ratio at September 30, 2020 was 60.0%, compared with 59.0% at September 30, 2019. The increase primarily reflects the absence of short-term debt balances at September 30, 2020.

Results for the Three Months Ended September 30, 2020

Consolidated operating income increased $11.1 million to $100.8 million for the three months ended September 30, 2020, from $89.7 million in the prior-year quarter. Rate case outcomes in both segments and customer growth in our distribution segment were partially offset by lower through system revenue in our pipeline and storage segment, decreased service order revenue in our distribution segment and higher depreciation expense.

Distribution operating income increased $8.2 million to $31.9 million for the three months ended September 30, 2020, compared with $23.7 million in the prior-year quarter. The increase primarily reflects a net $16.0 million increase in rates and a $3.4 million increase due to net customer growth, partially offset by a $10.5 million increase in operating expenses primarily related to increased bad debt expense and a $3.1 million decrease in service order revenues.

Pipeline and storage operating income increased $2.9 million to $68.9 million for the three months ended September 30, 2020, compared with $66.0 million in the prior-year quarter. This increase is primarily attributable to a $13.3 million increase in rates, due to the GRIP filing approved in fiscal 2020, partially offset by a $5.0 million decrease in through system revenues and a $4.2 million increase in depreciation expense due to increased capital investments.

Conference Call to be Webcast November 12, 2020

Atmos Energy will host a conference call with financial analysts to discuss the fiscal 2020 fourth quarter financial results on Thursday, November 12, 2020, at 10:00 a.m. Eastern Time. The domestic telephone number is 877-407-3088 and the international telephone number is 201-389-0927. Kevin Akers, President and Chief Executive Officer, and Chris Forsythe, Senior Vice President and Chief Financial Officer, will participate in the conference call. The conference call will be webcast live on the Atmos Energy website at www.atmosenergy.com. A playback of the call will be available on the website later that day.

Forward-Looking Statements

The matters discussed in this news release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included in this news release are forward-looking statements made in good faith by the company and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used in this news release or any of the company’s other documents or oral presentations, the words “anticipate”, “believe”, “estimate”, “expect”, “forecast”, “goal”, “intend”, “objective”, “plan”, “projection”, “seek”, “strategy” or similar words are intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in this presentation, including the risks relating to regulatory trends and decisions, the company’s ability to continue to access the credit and capital markets, and the other factors discussed in the company’s reports filed with the Securities and Exchange Commission. These risks and uncertainties include the following: federal, state and local regulatory and political trends and decisions, including the impact of rate proceedings before various state regulatory commissions; increased federal regulatory oversight and potential penalties; possible increased federal, state and local regulation of the safety of our operations; the impact of greenhouse gas emissions or other legislation or regulations intended to address climate change; possible significant costs and liabilities resulting from pipeline integrity and other similar programs and related repairs; the inherent hazards and risks involved in distributing, transporting and storing natural gas; the availability and accessibility of contracted gas supplies, interstate pipeline and/or storage services; increased competition from energy suppliers and alternative forms of energy; adverse weather conditions; the impact of climate change; the inability to continue to hire, train and retain operational, technical and managerial personnel; increased dependence on technology that may hinder the Company’s business if such technologies fail; the threat of cyber-attacks or acts of cyber-terrorism that could disrupt our business operations and information technology systems or result in the loss or exposure of confidential or sensitive customer, employee or Company information; natural disasters, terrorist activities or other events and other risks and uncertainties discussed herein, all of which are difficult to predict and many of which are beyond our control; the capital-intensive nature of our business; our ability to continue to access the credit and capital markets to execute our business strategy; market risks beyond our control affecting our risk management activities, including commodity price volatility, counterparty performance or creditworthiness and interest rate risk; the concentration of our operations in Texas; the impact of adverse economic conditions on our customers; changes in the availability and price of natural gas; increased costs of providing health care benefits, along with pension and postretirement health care benefits and increased funding requirements; the outbreak of COVID-19 and its impact on business and economic conditions.

Accordingly, while we believe these forward-looking statements to be reasonable, there can be no assurance that they will approximate actual experience or that the expectations derived from them will be realized. Further, the company undertakes no obligation to update or revise any of our forward-looking statements whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

During our fiscal third quarter we remeasured our deferred income tax balance as a result of Kansas House Bill 2585 and an update to the state deferred tax rate. As a result, we recorded a non-cash income tax benefit of $21.0 million for the year ended September 30, 2020. Due to the non-recurring nature of this benefit, we believe that net income and diluted net income per share before the non-cash income tax benefit provide a more relevant measure to analyze our financial performance than net income and diluted net income per share in order to allow investors to better analyze our core results and allow the information to be presented on a comparative basis to the prior year. Accordingly, the discussion and analysis of our financial performance herein will reference adjusted net income and adjusted diluted net income per share, non-GAAP measures, which are calculated as follows:

	Year Ended September 30
	2020			2019		Change
	(In thousands, except per share data)
Net income	$	601,443		$	511,406	$	90,037
Non-cash income tax benefit	(20,962		)	—		(20,962		)
Adjusted net income	$	580,481		$	511,406	$	69,075

Diluted net income per share	$	4.89		$	4.35	$	0.54
Diluted EPS from non-cash income tax benefit	(0.17		)	—		(0.17		)
Adjusted diluted net income per share	$	4.72		$	4.35	$	0.37

About Atmos Energy

Atmos Energy Corporation is the nation’s largest fully regulated, natural gas-only distributor of safe, clean, efficient and affordable energy. As part of our vision to be the safest provider of natural gas services, we are modernizing our business and our infrastructure while continuing to invest in safety, innovation, environmental sustainability and our communities. An S&P 500 company headquartered in Dallas, Atmos Energy serves more than 3 million distribution customers in over 1,400 communities across eight states and manages proprietary pipeline and storage assets, including one of the largest intrastate natural gas pipeline systems in Texas. Find us online at http://www.atmosenergy.com, Facebook, Twitter, Instagram and YouTube.

This news release should be read in conjunction with the attached unaudited financial information.


Atmos Energy Corporation Financial Highlights (Unaudited)

Statements of Income	Year Ended September 30
(000s except per share)	2020			2019
Operating revenues
Distribution segment	$	2,626,993		$	2,745,461
Pipeline and storage segment	609,339			567,024
Intersegment eliminations	(415,195		)	(410,637		)
	2,821,137			2,901,848
Purchased gas cost
Distribution segment	1,071,227			1,268,591
Pipeline and storage segment	1,548			(360		)
Intersegment eliminations	(413,921		)	(409,394		)
	658,854			858,837
Operation and maintenance expense	629,601			630,308
Depreciation and amortization	429,828			391,456
Taxes, other than income	278,755			275,189
Operating income	824,099			746,058
Other non-operating income	7,171			7,404
Interest charges	84,474			103,153
Income before income taxes	746,796			650,309
Income tax expense	145,353			138,903
Net income	$	601,443		$	511,406

Basic net income per share	$	4.89		$	4.36
Diluted net income per share	$	4.89		$	4.35
Cash dividends per share	$	2.30		$	2.10
Basic weighted average shares outstanding	122,788			117,200
Diluted weighted average shares outstanding	122,872			117,461

	Year Ended September 30
Summary Net Income by Segment (000s)	2020			2019
Distribution	$	395,664		$	328,814
Pipeline and storage	205,779			182,592
Net income	$	601,443		$	511,406


Atmos Energy Corporation Financial Highlights, continued (Unaudited)

Statements of Income	Three Months Ended September 30
(000s except per share)	2020			2019
Operating revenues
Distribution segment	$	430,176		$	403,793
Pipeline and storage segment	156,918			147,706
Intersegment eliminations	(112,180		)	(107,816		)
	474,914			443,683
Purchased gas cost
Distribution segment	128,641			120,993
Pipeline and storage segment	1,258			184
Intersegment eliminations	(111,868		)	(107,507		)
	18,031			13,670
Operation and maintenance expense	180,072			177,736
Depreciation and amortization	111,746			100,919
Taxes, other than income	64,220			61,643
Operating income	100,845			89,715
Other non-operating income (expense)	(1,962		)	9,250
Interest charges	15,494			28,763
Income before income taxes	83,389			70,202
Income tax expense	18,056			11,796
Net income	$	65,333		$	58,406

Basic net income per share	$	0.53		$	0.49
Diluted net income per share	$	0.53		$	0.49
Cash dividends per share	$	0.575		$	0.525
Basic weighted average shares outstanding	124,096			119,345
Diluted weighted average shares outstanding	124,100			119,824

	Three Months Ended September 30
Summary Net Income by Segment (000s)	2020			2019
Distribution	$	19,944		$	9,838
Pipeline and storage	45,389			48,568
Net income	$	65,333		$	58,406


Atmos Energy Corporation Financial Highlights, continued (Unaudited)

Condensed Balance Sheets	September 30,		September 30,
(000s)	2020		2019
Net property, plant and equipment	$	13,355,347	$	11,787,669
Cash and cash equivalents	20,808		24,550
Accounts receivable, net	230,595		230,571
Gas stored underground	111,950		130,138
Other current assets	107,905		72,772
Total current assets	471,258		458,031
Goodwill	731,257		730,706
Deferred charges and other assets	801,170		391,213
	$	15,359,032	$	13,367,619

Shareholders’ equity	$	6,791,203	$	5,750,223
Long-term debt	4,531,779		3,529,452
Total capitalization	11,322,982		9,279,675
Accounts payable and accrued liabilities	235,775		265,024
Other current liabilities	546,461		479,501
Short-term debt	—		464,915
Current maturities of long-term debt	165		—
Total current liabilities	782,401		1,209,440
Deferred income taxes	1,456,569		1,300,015
Regulatory excess deferred taxes	697,764		705,101
Deferred credits and other liabilities	1,099,316		873,388
	$	15,359,032	$	13,367,619


Atmos Energy Corporation Financial Highlights, continued (Unaudited)

Condensed Statements of Cash Flows	Year Ended September 30
(000s)	2020			2019
Cash flows from operating activities
Net income	$	601,443		$	511,406
Depreciation and amortization	429,828			391,456
Deferred income taxes	155,322			132,004
One-time income tax benefit	(20,962		)	—
Other	6,044			10,589
Changes in assets and liabilities	(133,676		)	(76,686		)
Net cash provided by operating activities	1,037,999			968,769
Cash flows from investing activities
Capital expenditures	(1,935,676		)	(1,693,477		)
Proceeds from the sale of discontinued operations	—			4,000
Debt and equity securities activities, net	491			(2,784		)
Other, net	9,667			8,601
Net cash used in investing activities	(1,925,518		)	(1,683,660		)
Cash flows from financing activities
Net decrease in short-term debt	(464,915		)	(110,865		)
Proceeds from issuance of long-term debt, net of premium/discount	999,450			1,045,221
Net proceeds from equity offering	624,302			694,103
Issuance of common stock through stock purchase and employee retirement plans	19,548			19,323
Settlement of interest rate swaps	(4,426		)	(90,141		)
Repayment of long-term debt	—			(575,000		)
Cash dividends paid	(282,444		)	(245,717		)
Debt issuance costs	(7,738		)	(11,254		)
Net cash provided by financing activities	883,777			725,670
Net increase (decrease) in cash and cash equivalents	(3,742		)	10,779
Cash and cash equivalents at beginning of period	24,550			13,771
Cash and cash equivalents at end of period	$	20,808		$	24,550

	Three Months Ended September 30				Year Ended September 30
Statistics	2020		2019		2020		2019
Consolidated distribution throughput (MMcf as metered)	66,447		66,184		439,037		470,554
Consolidated pipeline and storage transportation volumes (MMcf)	167,725		204,810		621,371		721,998
Distribution meters in service	3,333,181		3,291,835		3,333,181		3,291,835
Distribution average cost of gas	$	3.75	$	3.68	$	3.67	$	4.02

View source version on businesswire.com: https://www.businesswire.com/news/home/20201111005706/en/

Analysts and Media Contact:

Dan Meziere (972) 855-3729

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Energy Utilities Oil/Gas

MEDIA:

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November 11, 2020 4:38 pm

Atmos Energy Corporation Increases Quarterly Dividend

Atmos Energy Corporation Increases Quarterly Dividend

DALLAS–(BUSINESS WIRE)–Atmos Energy Corporation (NYSE: ATO) said today that its Board of Directors declared a quarterly dividend increase on the company’s common stock to $0.625 cents per share. The Fiscal 2021 indicated annual dividend is $2.50. The Fiscal 2020 annual dividend was $2.30.

The dividend will be paid on December 14, 2020, to shareholders of record on November 30, 2020. This is the company’s 148^th consecutive quarterly dividend.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201111005694/en/

Dan Meziere (972) 855-3729

KEYWORDS: Texas United States North America

INDUSTRY KEYWORDS: Energy Utilities Oil/Gas

MEDIA:

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November 11, 2020 4:37 pm

LeMaitre Vascular to Present at the Jefferies Virtual London Healthcare Conference

BURLINGTON, Mass., Nov. 11, 2020 (GLOBE NEWSWIRE) — LeMaitre Vascular, Inc. (Nasdaq:LMAT) announced today that David Roberts, President, will present at Jefferies Virtual London Healthcare Conference on Wednesday, November 18, 2020, at 12:25 PM ET.

LeMaitre Vascular is a provider of devices, implants and services for the treatment of peripheral vascular disease, a condition that affects more than 200 million people worldwide. The Company develops, manufactures and markets disposable and implantable vascular devices to address the needs of its core customer, the vascular surgeon Additional information can be found at www.lemaitre.com.

Contact:

LeMaitre Vascular, Inc.
Sandra Millar
+1-781-425-1686
[email protected]

November 11, 2020 4:37 pm

Lifeloc Reports Third Quarter 2020 Results

PR Newswire

WHEAT RIDGE, Colo., Nov. 11, 2020 /PRNewswire/ — Lifeloc Technologies, Inc. (OTC: LCTC), a global leader in the development and manufacturing of breath alcohol and drug testing devices, has announced financial results for the third quarter and for the nine months ended September 30, 2020.

Third Quarter Financial Highlights

Lifeloc posted quarterly net revenue of $1.555 million resulting in a quarterly net loss of $213 thousand, or $(0.09) per diluted share. These results compare to net revenue of $2.258 million and net income of $151 thousand, or $0.06 per diluted share, in the third quarter of 2019. Revenue for the current quarter declined 31% versus the third quarter last year. For the first nine months of 2020, net revenue was $4.893 million with a net loss of $728 thousand, or $(0.30) per diluted share, compared to net revenue of $6.664 million and net income of $401 thousand, or $0.16 per diluted share, for the same nine months of 2019.

The global Covid-19 pandemic continues to suppress purchasing activities of many of our customers. Travel bans, governmental orders, and social distancing guidelines continue to force severe contractions in demand in both domestic and international markets. As an essential part of transportation and public safety, Lifeloc has continued operations, while taking important steps to mitigate the financial impact of the pandemic. Lifeloc has received a Paycheck Protection Program (PPP) loan and has complied with all currently published SBA guidance on loan forgiveness and is hopeful that the PPP loan obtained in May of $465 thousand will be forgiven. Following use of the PPP loan funds, structural costs savings were achieved through measures including staff reduction.

Current market conditions do not change our vision that Lifeloc is becoming the world’s leading provider of real-time alcohol and drug abuse detection and monitoring equipment. In fact, current conditions highlight the urgency of achieving this vision. To achieve this, we will continue to grow our research and development investment required to move our developments into the market. Growing research and development spending could result in continued short term losses, even when sales return to pre-pandemic levels.

Our new breath alcohol testers, the LX9 and LT7, have been released and are on the U.S. Department of Transportation Conforming Products List, and are starting to find adoption both domestically and internationally. With highly flexible configuration, multiple language capability and a wide temperature use range, these breathalyzers are expected to facilitate future sales growth. Additionally, our Easycal® G2 has broadened our automated calibration capability and is compatible with our existing installed base of professional breathalyzers as well as the new LX9 and LT7. The G2 model also includes RFID (Radio Frequency Identification) reading of calibration standard data, which further automates the calibration process.

Additionally, several manufacturing runs of the R.A.D.A.R.^® (Real-time Alcohol Detection and Reporting) model 200 have been produced. Evaluation is beginning with key customers. Recently added, the automated enrollment assistant application is providing real-time enrollment coaching, streamlining this process for customer productivity. Additionally, this new model has updated communication, improved GPS accuracy and mechanical reliability. These devices have alcohol monitoring capability and onboard biometrics that automatically verify the identity of the test subject and are intended as a tool for supervising offenders. This alternative to incarceration represents a critical step in moving our business closer to a recurring monitoring revenue model and is expected to contribute to an increase in revenue and earnings this year and in the future.

Our SpinDx-based marijuana breathalyzer remains a key product of interest in attempts to address the broadening legalization of marijuana. Legalization and decriminalization of marijuana only increases the need for a rapid, quantitative roadside test to identify drivers under the influence of marijuana. The ability of our technology to detect delta-9-THC down to a concentration of 5 nanograms per milliliter and to collect a testable sample from a vapor stream has been demonstrated in our laboratories, and we continue the development work needed to convert this technology into a simple-to-operate device that is suitable for roadside testing. Detection of THC is accomplished through the SpinDx technology, licensed exclusively by Lifeloc Technologies for drugs of abuse from Sandia National Laboratory. We are targeting the end of 2021 for the first product release from this platform.

“We are very excited to have some R.A.D.A.R. 200 units in customer’s hands for evaluation,” said CEO Dr. Wayne Willkomm. “This is a critical step to enable a recurring revenue stream through a monitoring business.”

About Lifeloc Technologies

Lifeloc Technologies, Inc. (OTC: LCTC) is a trusted U.S. manufacturer of evidential breath alcohol testers and related training and supplies for Workplace, Law Enforcement, Corrections and International customers. Lifeloc stock trades over-the-counter under the symbol LCTC. We are a fully reporting Company with our SEC filings available on our web site, www.lifeloc.com/investor.

Forward Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve substantial risks and uncertainties that may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements expressed or implied in this press release, including statements about our strategies, expectations about new and existing products, market demand, acceptance of new and existing products, technologies and opportunities, market size and growth, and return on investments in products and market, are based on information available to us on the date of this document, and we assume no obligation to update such forward-looking statements. Investors are strongly encouraged to review the section titled “Risk Factors” in our SEC filings.

Easycal^® and R.A.D.A.R.^® are registered trademarks of Lifeloc Technologies, Inc.

SpinDx™ is a trademark of Sandia Corporation.

Amy Evans
Lifeloc Technologies, Inc.
http://www.lifeloc.com
(303) 431-9500

LIFELOC TECHNOLOGIES, INC.
Condensed Balance Sheets

ASSETS


			September 30, 2020		December 31,
CURRENT ASSETS:			(Unaudited)		2019
	Cash	$	2,264,887	$	3,185,996
	Accounts receivable, net		517,618		641,239
	Inventories, net		2,518,996		1,986,299
	Income taxes receivable		223,404		6,750
	Prepaid expenses and other		67,916		18,857
	Total current assets		5,592,821		5,839,141

PROPERTY AND EQUIPMENT, at cost:
	Land		317,932		317,932
	Building		1,928,795		1,928,795
	Real-time Alcohol Detection And Recognition equipment and software		569,448		569,448
	Production equipment, software and space modifications		976,621		976,621
	Training courses		432,375		432,375
	Office equipment, software and space modifications		218,074		208,986
	Sales and marketing equipment and space modifications		232,600		232,600
	Research and development equipment, software and space modifications		172,429		172,429
	Less accumulated depreciation		-2,220,032		-1,959,541
	Total property and equipment, net		2,628,242		2,879,645

OTHER ASSETS:
	Patents, net		154,415		145,323
	Deposits and other		163,480		74,027
	Deferred taxes		97,846		86,658
	Total other assets		415,741		306,008

	Total assets	$	8,636,804	$	9,024,794

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
	Accounts payable	$	257,743	$	261,798
	Term loan payable, current portion		46,128		44,879
	Paycheck Protection loan payable		465,097		0
	Customer deposits		182,810		214,031
	Accrued expenses		212,359		290,458
	Deferred revenue, current portion		37,494		45,874
	Reserve for warranty expense		46,500		45,000
	Total current liabilities		1,248,131		902,040

TERM LOAN PAYABLE, net of current portion and
	debt issuance costs		1,289,659		1,324,467

DEFERRED REVENUE, net of current portion			1,723		6,066
	Total liabilities		2,539,513		2,232,573

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS’ EQUITY:
	Common stock, no par value; 50,000,000 shares
	authorized, 2,454,116 shares outstanding		4,636,038		4,603,304
	Retained earnings		1,461,253		2,188,917
	Total stockholders’ equity		6,097,291		6,792,221

	Total liabilities and stockholders’ equity	$	8,636,804	$	9,024,794

LIFELOC TECHNOLOGIES, INC.
Condensed Statements of Income (Unaudited)

		Three Months Ended September 30,
REVENUES:			2020		2019
	Product sales	$	1,502,034	$	2,083,044
	Royalties		31,395		153,922
	Rental income		21,639		21,189
	Total		1,555,068		2,258,155

COST OF SALES			957,964		1,193,088

GROSS PROFIT			597,104		1,065,067

OPERATING EXPENSES:
	Research and development		335,075		253,716
	Sales and marketing		235,733		329,824
	General and administrative		297,128		287,814
	Total		867,936		871,354

OPERATING INCOME (LOSS)			-270,832		193,713

OTHER INCOME (EXPENSE):
	Interest income		2,598		10,454
	Interest expense		-14,051		-14,513
	Total		-11,453		-4,059

NET INCOME (LOSS) BEFORE (PROVISION FOR) BENEFIT FROM TAXES			-282,285		189,654

BENEFIT FROM (PROVISION FOR) FEDERAL AND STATE INCOME TAXES			69,519		-38,129

NET INCOME (LOSS)		$	-212,766	$	151,525

NET INCOME (LOSS) PER SHARE, BASIC		$	(0.09)	$	0.06

NET INCOME (LOSS) PER SHARE, DILUTED		$	(0.09)	$	0.06

WEIGHTED AVERAGE SHARES, BASIC			2,454,116		2,454,116

WEIGHTED AVERAGE SHARES, DILUTED			2,454,116		2,456,105

Lifeloc Technologies, Inc.
Condensed Statements of Stockholders’ Equity (Unaudited)



		Three Months Ended September 30,				Nine Months Ended September 30,
		2020		2019		2020		2019
Total shareholders’ equity, beginning balances		$	6,309,746	$	6,413,642	$	6,792,221	$	6,160,737

Common stock (no shares issued during periods):
	Beginning balances		4,635,727		4,600,867		4,603,304		4,597,646
	Stock based compensation expense related to stock options
	Stock based compensation expense related to stock options		311		2,437		32,734		5,658
	Ending balances		4,636,038		4,603,304		4,636,038		4,603,304

Retained earnings:
	Beginning balances		1,674,019		1,812,775		2,188,917		1,563,091
	Net income (loss)		-212,766		151,525		-727,664		401,209
	Ending balances		1,461,253		1,964,300		1,461,253		1,964,300

Total shareholders’ equity, ending balances		$	6,097,291	$	6,567,604	$	6,097,291	$	6,567,604

LIFELOC TECHNOLOGIES, INC.
Condensed Statements of Cash Flows (Unaudited)

			Nine Months Ended September 30,
CASH FLOWS FROM OPERATING ACTIVITIES:			2020		2019
	Net income (loss)		$	-727,664	$	401,209
	Adjustments to reconcile net income (loss) to net cash
	provided by (used in) operating activities-
	Depreciation and amortization			270,984		316,150
	Provision for doubtful accounts, net change			3,899		–
	Provision for inventory obsolescence, net change			48,943		7,500
	Deferred taxes, net change			-11,188		-10,192
		Reserve for warranty expense, net change		1,500		1,000
	Stock based compensation expense related to
	stock options			32,734		5,658
	Changes in operating assets and liabilities-
	Accounts receivable			119,722		-79,544
	Inventories			-581,640		-768,790
	Income taxes receivable			-216,654		90,629
		Prepaid expenses and other		-49,059		-62,178
	Deposits and other			-89,453		62,884
	Accounts payable			-4,055		45,355
		Customer deposits		-31,221		145,341
		Accrued federal and state income tax		–		105,346
	Accrued expenses			-78,099		49,430
	Deferred revenue			-12,723		23,706
		Net cash provided from (used in)
		operating activities		-1,323,974		333,504

CASH FLOWS FROM INVESTING ACTIVITIES:
	Purchases of property and equipment			-9,088		-166,488
	Patent filing expense			-18,772		–
		Net cash (used in) investing activities		-27,860		-166,488

CASH FLOWS FROM FINANCING ACTIVITIES:
	Principal payments made on term loan			-34,372		-33,167
	Proceeds from Paycheck Protection loan			465,097		–
		Net cash provided by (used in)
		financing activities		430,725		-33,167

NET INCREASE (DECREASE) IN CASH				-921,109		133,849

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD				3,185,996		2,788,327

CASH AND CASH EQUIVALENTS, END OF PERIOD			$	2,264,887	$	2,922,176

SUPPLEMENTAL INFORMATION:
	Cash paid for interest		$	41,384	$	42,590

	Cash paid for income tax		$	20,063	$	–

View original content to download multimedia:http://www.prnewswire.com/news-releases/lifeloc-reports-third-quarter-2020-results-301171329.html

SOURCE Lifeloc Technologies

November 11, 2020 4:36 pm

Air Lease Corporation CFO to Speak at Stephens Annual Investment Conference 2020

Air Lease Corporation CFO to Speak at Stephens Annual Investment Conference 2020

LOS ANGELES–(BUSINESS WIRE)–
Air Lease Corporation (NYSE: AL) announced today that Gregory B. Willis, Executive Vice President and Chief Financial Officer, will be speaking at the Stephens Annual Investment Conference. This speaking engagement will be a fireside chat held virtually on Tuesday, November 17, 2020 at 1:00 p.m. Eastern Time, and will be broadcast live through a link on the Investors page of the Air Lease Corporation website at www.airleasecorp.com. Alternatively, virtual attendees may access the webcast directly via this link: Stephens Annual Investment Conference 2020. Please visit the website prior to the webcast to register, download and install any necessary audio software. Any materials utilized for this speaking engagement will be posted 15 minutes prior to the speaking time.

About Air Lease Corporation (NYSE: AL)

ALC is a leading aircraft leasing company based in Los Angeles, California that has airline customers throughout the world. ALC and its team of dedicated and experienced professionals are principally engaged in purchasing commercial aircraft and leasing them to its airline customers worldwide through customized aircraft leasing and financing solutions. ALC routinely posts information that may be important to investors in the “Investors” section of ALC’s website at www.airleasecorp.com. Investors and potential investors are encouraged to consult the ALC website regularly for important information about ALC. The information contained on, or that may be accessed through, ALC’s website is not incorporated by reference into, and is not a part of, this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201111005874/en/

Investors:

Mary Liz DePalma

Vice President, Investor Relations

Email: [email protected]

Media:

Laura Woeste

Senior Manager, Media and Investor Relations

Email: [email protected]

Jason Arnold

Assistant Vice President, Finance

Email: [email protected]

Ashley Arnold

Manager, Media and Investor Relations

Email: [email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Finance Public Relations/Investor Relations Communications Professional Services Air Aerospace Transport Manufacturing

MEDIA:

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November 11, 2020 4:35 pm

International Game Technology PLC Reports Third Quarter 2020 Results

– Consolidated revenue of $982 million driven by the strongest lottery same-store sales growth in seven quarters; sharp improvement from the second quarter across all major revenue sources

– Delivered $285 million in cash from operating activities and $220 million in free cash flow during the third quarter; reduced net debt by $46 million as reported and $228 million at constant currency during the third quarter

– Net loss of $128 million includes $149 million in foreign exchange losses, primarily non-cash; Adjusted net income was $54 million

– Solid lottery profit flow-through and benefit of cost-saving actions led to $354 million in Adjusted EBITDA

PR Newswire

LONDON, Nov. 11, 2020 /PRNewswire/ — International Game Technology PLC (“IGT”) (NYSE: IGT) today reported financial results for the third quarter ended September 30, 2020. Tomorrow, at 8:00 a.m. EST, management will host a conference call and webcast to present the results; access details are provided below.

“The resilience of our portfolio, particularly in lottery, and benefits from our swift cost reduction initiatives are on full display in our third quarter results,” said Marco Sala, CEO of IGT. “Strong player demand and a host of compelling new games, systems, and digital solutions led to a sharp, sequential improvement in our most important markets. We continue to monitor the evolution and impact of the pandemic around the world. With a simplified organization firmly in place, we are creating a leaner, stronger IGT.”

“Robust cash flow generation during the quarter and year-to-date periods have enabled us to improve our liquidity and reduce net debt,” said Max Chiara, CFO of IGT. “We are on track to achieve our 2020 temporary cost-reduction targets and have identified a number of initiatives that will enable us to deliver over $200 million of structural savings over the next two years. As a result, the improvement in our profitability should support our continued focus on reducing debt.”

Overview of Consolidated Third Quarter 2020 Results

	Quarter Ended		Y/Y	Constant
	September 30,		Change	Currency
	2020	2019	(%)	Change (%)
(In $ millions, unless otherwise noted)
GAAP Financials:
Revenue
Global Lottery	570	552	3%	0%
Global Gaming	412	601	(31)%	(34)%
Total revenue	982	1,153	(15)%	(17)%

Operating income (loss)
Global Lottery	196	161	22%	17%
Global Gaming	(8)	68	NA	NA
Corporate support expense	(18)	(26)	33%	37%
Other⁽¹⁾	(42)	(49)	13%	13%
Total operating income	129	154	(16)%	(22)%

Net (loss) income attributable to IGT PLC	(128)	104	NA

Non-GAAP Financial Measures:
Adjusted net income attributable to IGT PLC	54	43	25%

Adjusted EBITDA
Global Lottery	309	270	14%	10%
Global Gaming	58	156	(63)%	(65)%
Corporate support expense	(13)	(20)	32%	36%
Total Adjusted EBITDA	354	407	(13)%	(17)%

Net debt	7,243	7,354	(2)%

⁽¹⁾Primarily includes purchase price amortization
Note: Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided at the end of this news release

Key Highlights:

Delivered $220 million in positive free cash flow in the quarter; generated $610 million in cash from operations and $384 million in free cash flow year-to-date
Robust player demand drives highest Global Lottery same-store sales growth and Adjusted EBITDA in seven quarters
Signed 2-year contract extension with New York Lottery
Recently awarded 7-year contracts with Poland and Nebraska Lotteries following competitive bid processes
Sharp, sequential improvement in Global Gaming revenue and profit following acute impact of the pandemic in the second quarter
41% increase in Digital & Betting revenue; launched full-service, in-house U.S. sports betting trading team in the third quarter and recently established new partnerships with Boyd Gaming and the National Basketball Association (NBA)
Awarded three spots on Casino Journal’s esteemed “Top 20 Most Innovative Gaming Technology Products Awards,” the most of any gaming supplier
Cashless solutions gaining traction as Resort Wallet™ launched at Resorts World Catskills

Financial highlights:

Third quarter 2020 results reflect the continued, global impact of the COVID-19 pandemic, but at a lower level compared to the second quarter

Resilient consolidated revenue of $982 million, down 15% from the prior year

Global Lottery revenue of $570 million, up 3%, driven by double-digit growth in North America same-store sales
Global Gaming revenue totals $412 million, down 31% on pandemic-related closures and restrictions; positive sequential trends as casinos re-open and installed base is gradually reactivated

Operating income of $129 million, compared to $154 million in the prior year

Benefit of disciplined cost-saving actions
Global Lottery same-store sales growth translates into high profit flow-through
Contribution from Global Gaming impacted by $36 million higher bad debt and obsolescence charges, primarily due to the protracted pandemic slow-down in business activities

Net interest expense of $101 million compared to $103 million in the prior year

Benefit from income taxes of $27 million, compared to a provision for income taxes of $45 million, driven by lower pre-tax income and the tax impact of significant foreign exchange losses in the third quarter of 2020 versus significant foreign exchange gains in the prior-year period

Net loss attributable to IGT was $128 million; adjusted net income attributable to IGT of $54 million compared to adjusted net income of $43 million in the prior year

Net loss includes $149 million in non-cash foreign exchange loss, primarily on Euro-denominated debt instruments

Net loss per diluted share of $0.62; adjusted net income per diluted share of $0.26 compared to adjusted net income per diluted share of $0.21 in the prior year

Adjusted EBITDA of $354 million compared to $407 million in the prior-year period

Benefit from previously mentioned cost-saving actions
Global Lottery achieves highest segment-level Adjusted EBITDA in seven quarters

Net debt of $7.24 billion compared to $7.38 billion at December 31, 2019; Net debt to LTM adjusted EBITDA of 5.72x up from 4.31x at December 31, 2019, due to pandemic’s impact on EBITDA in the first nine months of 2020

Cash and Liquidity Update

At September 30, 2020, liquidity totaled $2.55 billion, an improvement from the second quarter level on strong cash flow generation; comprised of $943 million in unrestricted cash and $1.61 billion available under revolving credit facilities

Conference Call and Webcast:

November 12, 2020, at 8:00 a.m. EST

Live webcast available under “News, Events & Presentations” on IGT’s Investor Relations website at www.IGT.com; replay available on the website following the live event

Dial-In Numbers

US/Canada toll-free dial-in number: +1 844 842 7999
Outside the US/Canada toll-free number: +1 612 979 9887
Conference ID/confirmation code: 9189642
A telephone replay of the call will be available for one week

US/Canada replay number: +1 855 859 2056
Outside the US/Canada replay number: +1 404 537 3406
ID/Confirmation code: 9189642

Note: Certain totals in the tables included in this press release may not add due to rounding

Comparability of Results

All figures presented in this news release are prepared under U.S. GAAP, unless noted otherwise. Adjusted figures exclude the impact of items such as purchase accounting, impairment charges, restructuring expense, foreign exchange, and certain one-time, primarily transaction-related items. Reconciliations to the most directly comparable U.S. GAAP measures are included in the tables in this news release. Constant currency changes for 2020 are calculated using the same foreign exchange rates as the corresponding 2019 period. Management uses non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, and to evaluate the Company’s financial performance. Management believes these non-GAAP financial measures reflect the Company’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of business trends. These constant currency changes and non-GAAP financial measures should however be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with U.S. GAAP.

About IGT

IGT (NYSE:IGT) is the global leader in gaming. We deliver entertaining and responsible gaming experiences for players across all channels and regulated segments, from Gaming Machines and Lotteries to Sports Betting and Digital. Leveraging a wealth of compelling content, substantial investment in innovation, player insights, operational expertise, and leading-edge technology, our solutions deliver unrivalled gaming experiences that engage players and drive growth. We have a well-established local presence and relationships with governments and regulators in more than 100 countries around the world, and create value by adhering to the highest standards of service, integrity, and responsibility. IGT has approximately 11,000 employees. For more information, please visit www.IGT.com.

Cautionary Statement Regarding Forward-Looking Statements
This news release may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning International Game Technology PLC and its consolidated subsidiaries (the “Company”) and other matters. These statements may discuss goals, intentions, and expectations as to future plans, trends, events, dividends, results of operations, or financial condition, or otherwise, based on current beliefs of the management of the Company as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as “aim,” “anticipate,” “believe,” “plan,” “could,” “would,” “should,” “shall”, “continue,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “will,” “possible,” “potential,” “predict,” “project” or the negative or other variations of them. These forward-looking statements speak only as of the date on which such statements are made and are subject to various risks and uncertainties, many of which are outside the Company’s control. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may differ materially from those predicted in the forward-looking statements and from past results, performance, or achievements. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) the factors and risks described in the Company’s annual report on Form 20-F for the financial year ended December 31, 2019 and other documents filed from time to time with the SEC, which are available on the SEC’s website at www.sec.gov and on the investor relations section of the Company’s website at www.IGT.com. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. You should carefully consider these factors and other risks and uncertainties that affect the Company’s business. Nothing in this news release is intended, or is to be construed, as a profit forecast or to be interpreted to mean that the financial performance of International Game Technology PLC for the current or any future financial years will necessarily match or exceed the historical published financial performance or International Game Technology PLC, as applicable. All forward-looking statements contained in this news release are qualified in their entirety by this cautionary statement. All subsequent written or oral forward-looking statements attributable to International Game Technology PLC, or persons acting on its behalf, are expressly qualified in their entirety by this cautionary statement.

Non-GAAP Financial Measures
Management supplements the reporting of financial information, determined under GAAP, with certain non-GAAP financial information. Management believes the non-GAAP information presented provides investors with additional useful information, but it is not intended to nor should it be considered in isolation or as a substitute for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. The Company encourages investors to review its financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

Consolidated Adjusted EBITDA represents net income (loss) (a GAAP measure) before income taxes, interest expense, foreign exchange gain (loss), other non-operating expenses, depreciation, impairment losses, amortization (service revenue, purchase accounting and non-purchase accounting) restructuring expenses, stock-based compensation, and certain other non-recurring items. Other non-recurring items are infrequent in nature and are not reflective of on-going operational activities. For the business segments, Adjusted EBITDA represents segment operating income (loss) before depreciation, amortization (service revenue, purchase accounting and non-purchase accounting) restructuring expenses, stock-based compensation, and certain other non-recurring items. Adjusted net (loss) income attributable to IGT PLC represents Net (loss) income attributable to IGT PLC before foreign exchange, purchase accounting depreciation and amortization, restructuring expenses, loss on extinguishment of debt and certain other non-recurring items. Adjusted Diluted EPS represents Adjusted net (loss) income attributable to IGT PLC per weighted-average number of common shares outstanding during the period that takes into consideration potential common shares outstanding deriving from the IGT PLC share-based payment awards, when inclusion is not antidilutive. Other non-recurring items are discrete, infrequent in nature and are not reflective of on-going operational activities. Management believes that the non-GAAP measures just mentioned are useful in providing period-to-period comparisons of the results of the Company’s ongoing operational performance.

Net debt is a non-GAAP financial measure that represents debt (a GAAP measure, calculated as long-term obligations plus short-term borrowings) minus cash and equivalents. Cash and cash equivalent are subtracted from the GAAP measure because they could be used to reduce the Company’s debt obligations. Management believes that net debt is a useful measure to monitor leverage and evaluate the balance sheet.

Free cash flow is a non-GAAP financial measure that represents cash flow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing IGT’s ability to fund its activities, including debt service and distribution of earnings to shareholders.

A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this release. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.

Contact:

Phil O’Shaughnessy, Global Communications, toll free in U.S./Canada +1 (844) IGT-7452; outside U.S./Canada +1 (401) 392-7452
Francesco Luti, +39 3485475493; for Italian media inquiries
James Hurley, Investor Relations, +1 (401) 392-7190

Select Performance and KPI data: (In $ millions, unless otherwise noted)
	Q3’20	Q3’19	% Change As Reported	% Change
GLOBAL LOTTERY	Q3’20	Q3’19	% Change As Reported	At Constant FX
Revenue
Service
Operating and facilities management contracts	525	502	5%	1%
Upfront license fee amortization	(52)	(48)	(7)%	0%
Operating and facilities management contracts, net	474	454	4%	2%
Other	76	66	15%	9%
Total service revenue	549	520	6%	3%

Product sales	20	33	(38)%	(38)%
Total revenue	570	552	3%	0%

Operating income	196	161	22%	17%
Adjusted EBITDA	309	270	14%	10%

Global same-store sales growth (%)
Instant ticket & draw games				10.6%
Multi-jurisdiction jackpots				(14.3)%
Total				8.7%

North America & Rest of world same-store sales growth (%)
Instant ticket & draw games				15.0%
Multi-jurisdiction jackpots				(14.3)%
Total				12.1%

Italy same-store sales growth (%)
Instant ticket & draw games				(3.5)%



	Q3’20	Q3’19	% Change As Reported	% Change
GLOBAL GAMING	Q3’20	Q3’19	% Change As Reported	At Constant FX
Revenue
Service
Terminal	193	276	(30)%	(33)%
Systems, software, and other	138	126	10%	6%
Total service revenue	331	402	(18)%	(21)%

Product sales
Terminal	49	139	(64)%	(65)%
Other	32	60	(47)%	(48)%
Total product sales revenue	81	199	(59)%	(60)%
Total revenue	412	601	(31)%	(34)%

Operating (loss) income	(8)	68	NA	NA
Adjusted EBITDA	58	156	(63)%	(65)%

Installed base units
Casino	48,280	51,592	(6)%
Casino – L/T lease⁽¹⁾	1,102	—	NA
Italy VLT – Operator (B2C)	10,845	10,984	(1)%
Italy VLT – Supplier (B2B)	7,112	7,514	(5)%
Italy AWP	36,279	41,129	(12)%
Total installed base units	103,618	111,219	(7)%

Installed base units (by geography)
US & Canada	34,584	37,260	(7)%
Rest of world	14,798	14,332	3%
Subtotal	49,382	51,592	(4)%
Italy	54,236	59,627	(9)%
Total installed base units	103,618	111,219	(7)%

Yields (by geography)⁽²⁾, in absolute $
US & Canada	$26.79	$41.31	(35)%
Rest of world (ex-Italy)	$4.31	$8.04	(46)%
Total yields (ex-Italy)	$19.88	$32.06	(38)%

Global machine units sold
New/expansion	818	1,001	(18)%
Replacement	2,853	9,190	(69)%
Total machine units sold	3,671	10,191	(64)%

US & Canada machine units sold
New/expansion	667	791	(16)%
Replacement	2,007	4,150	(52)%
Total machine units sold	2,674	4,941	(46)%

⁽¹⁾ Excluded from yield calculations due to treatment as sales-type leases
⁽²⁾ Excludes Casino L/T lease units due to treatment as sales-type leases
	Q3’20	Q3’19	% Change As Reported	% Change
GLOBAL GAMING (Continued)	Q3’20	Q3’19	% Change As Reported	At Constant FX
Rest of world machine units sold
New/expansion	151	210	(28)%
Replacement	846	5,040	(83)%
Total machine units sold	997	5,250	(81)%

Average Selling Price (ASP), in absolute $
US & Canada	13,800	14,800	(7)%
Rest of world	12,100	11,800	3%
Total ASP	13,300	13,300	0%

Gaming Systems Revenue	32	53	(41)%

Italy Wagers (€)
VLT (B2C)	940	1,324		(29)%
AWP	711	877		(19)%

Italy sports betting wagers (€)	237	227		5%
Italy sports betting payout (%)	83.0%	83.4%		0%





	Q3’20	Q3’19	% Change As Reported	% Change
CONSOLIDATED	Q3’20	Q3’19	% Change As Reported	At Constant FX
Revenue (by geography)
US & Canada	443	538	(18)%	(18)%
Italy	416	402	3%	(4)%
Rest of world	123	213	(42)%	(43)%
Total revenue	982	1,153	(15)%	(17)%

Digital & Betting Revenue ⁽¹⁾	104	74	41%	35%

⁽¹⁾ Included within consolidated revenue

International Game Technology PLC
Consolidated Statements of Operations
*($ and shares in thousands, except per share amounts)*
*Unaudited*

	For the three months ended		For the nine months ended
	September 30,		September 30,
	2020	2019	2020	2019
Service revenue	880,133	921,712	2,223,772	2,892,774
Product sales	101,377	231,535	335,417	639,642
Total revenue	981,510	1,153,247	2,559,189	3,532,416

Cost of services	541,118	575,594	1,479,605	1,765,519
Cost of product sales	81,516	136,246	239,822	397,217
Selling, general and administrative	180,315	201,416	515,858	616,516
Research and development	48,039	68,804	140,111	200,305
Restructuring	(98)	16,152	46,955	21,853
Goodwill impairment	—	—	296,000	—
Other operating expense (income), net	2,118	1,153	3,721	(24,743)
Total operating expenses	853,008	999,365	2,722,072	2,976,667

Operating income (loss)	128,502	153,882	(162,883)	555,749

Interest expense, net	(101,023)	(102,551)	(297,284)	(309,480)
Foreign exchange (loss) gain, net	(149,403)	124,068	(153,427)	141,609
Other (expense) income, net	(7,031)	(308)	(39,791)	22,687
Total non-operating (expenses) income	(257,457)	21,209	(490,502)	(145,184)

(Loss) income before (benefit from) provision for income taxes	(128,955)	175,091	(653,385)	410,565

(Benefit from) provision for income taxes	(26,617)	44,530	(34,806)	160,522

Net (loss) income	(102,338)	130,561	(618,579)	250,043

Less: Net income attributable to non-controlling interests	25,652	26,998	37,315	101,370

Net (loss) income attributable to IGT PLC	(127,990)	103,563	(655,894)	148,673

Net (loss) income attributable to IGT PLC per common share – basic	(0.62)	0.51	(3.20)	0.73
Net (loss) income attributable to IGT PLC per common share – diluted	(0.62)	0.51	(3.20)	0.73

Weighted-average shares – basic	204,857	204,435	204,680	204,352
Weighted-average shares – diluted	204,857	204,528	204,680	204,532

International Game Technology PLC
Consolidated Balance Sheets
*($ thousands)*
*Unaudited*

	September 30,	December 31,
	2020	2019
Assets
Current assets:
Cash and cash equivalents	943,346	662,934
Restricted cash and cash equivalents	196,252	231,317
Trade and other receivables, net	828,459	1,006,127
Inventories	183,220	161,790
Other current assets	556,607	571,869
Total current assets	2,707,884	2,634,037
Systems, equipment and other assets related to contracts, net	1,180,511	1,307,940
Property, plant and equipment, net	129,636	146,055
Operating lease right-of-use assets	332,121	341,538
Goodwill	5,188,657	5,451,494
Intangible assets, net	1,672,750	1,836,002
Other non-current assets	1,779,807	1,927,524
Total non-current assets	10,283,482	11,010,553
Total assets	12,991,366	13,644,590

Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	1,116,854	1,120,922
Current portion of long-term debt	374,656	462,155
Short-term borrowings	4	3,193
Other current liabilities	1,006,658	882,081
Total current liabilities	2,498,172	2,468,351
Long-term debt, less current portion	7,821,723	7,600,169
Deferred income taxes	272,555	366,822
Operating lease liabilities	305,805	310,721
Other non-current liabilities	372,428	413,549
Total non-current liabilities	8,772,511	8,691,261
Total liabilities	11,270,683	11,159,612
Commitments and contingencies
Shareholders’ equity	1,720,683	2,484,978
Total liabilities and shareholders’ equity	12,991,366	13,644,590

International Game Technology PLC
Consolidated Statements of Cash Flows
*($ thousands)*
*Unaudited*

	For the three months ended		For the nine months ended
	September 30,		September 30,
	2020	2019	2020	2019
Cash flows from operating activities
Net (loss) income	(102,338)	130,561	(618,579)	250,043
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation	102,578	106,020	300,826	315,291
Goodwill impairment	—	—	296,000	—
Amortization	65,624	69,960	201,581	207,161
Amortization of upfront license fees	54,229	50,695	155,576	154,630
Foreign exchange loss (gain), net	149,403	(124,068)	153,427	(141,609)
(Gain) loss on extinguishment of debt	(10)	2,336	28,267	11,964
Debt issuance cost amortization	5,451	5,481	15,748	17,004
Loss (gain) on sale of assets	389	(2,085)	455	(65,324)
Stock-based compensation	1,103	7,544	(10,703)	20,046
Deferred income taxes	(69,815)	(3,925)	(106,520)	2,590
Other non-cash items, net	2,621	17,339	5,125	48,731
Changes in operating assets and liabilities, excluding the effects of acquisitions:
Trade and other receivables	58,553	(32,513)	198,131	16,546
Inventories	(3,457)	23,073	(9,435)	23,875
Accounts payable	(17,984)	57,928	(23,646)	611
Other assets and liabilities	38,867	(111,362)	24,060	(72,854)
Net cash provided by operating activities	285,214	196,984	610,313	788,705

Cash flows from investing activities
Capital expenditures	(65,668)	(101,713)	(225,847)	(332,716)
Proceeds from sale of assets	1,272	35,314	6,457	100,743
Other	1,540	3,581	12,437	6,126
Net cash used in investing activities	(62,856)	(62,818)	(206,953)	(225,847)

Cash flows from financing activities
Principal payments on long-term debt	(579,175)	(431,518)	(959,275)	(1,264,647)
Payments in connection with extinguishment of debt	—	—	(25,000)	(8,598)
Payments of debt issuance costs	(1,863)	(18,853)	(21,479)	(24,787)
Net payments of short-term borrowings	(82,537)	(54,092)	(7,610)	(34,519)
Proceeds from long-term debt	—	550,050	895,896	1,397,025
Net receipts from financial liabilities	59,230	12,148	95,698	753
Dividends paid	—	(40,887)	(40,887)	(122,616)
Dividends paid – non-controlling interests	(44,516)	(6,290)	(135,892)	(135,684)
Return of capital – non-controlling interests	—	(9,985)	—	(80,384)
Capital increase – non-controlling interests	1,304	294	3,334	1,369
Other	(2,540)	(1,065)	(8,598)	(7,798)
Net cash used in financing activities	(650,097)	(198)	(203,813)	(279,886)

Net (decrease) increase in cash and cash equivalents and restricted cash and cash equivalents	(427,739)	133,968	199,547	282,972
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents	37,575	(27,343)	45,800	(31,091)
Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the period	1,529,762	657,033	894,251	511,777
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period	1,139,598	763,658	1,139,598	763,658

Supplemental Cash Flow Information
Interest paid	(141,263)	(160,256)	(372,127)	(371,847)
Income taxes paid	(41,637)	(88,232)	(59,432)	(138,009)

International Game Technology PLC
Net Debt
*($ thousands)*
*Unaudited*

	September 30,	December 31,
	2020	2019
6.250% Senior Secured U.S. Dollar Notes due February 2022	1,004,662	1,491,328
4.750% Senior Secured Euro Notes due February 2023	989,909	948,382
5.350% Senior Secured U.S. Dollar Notes due October 2023	60,811	60,885
3.500% Senior Secured Euro Notes due July 2024	581,534	557,331
6.500% Senior Secured U.S. Dollar Notes due February 2025	1,091,210	1,089,959
3.500% Senior Secured Euro Notes due June 2026	871,151	835,105
6.250% Senior Secured U.S. Dollar Notes due January 2027	743,958	743,387
2.375% Senior Secured Euro Notes due April 2028	580,333	556,403
5.250% Senior Secured U.S. Dollar Notes due January 2029	743,004	—
Senior Secured Notes	6,666,572	6,282,780

Euro Term Loan Facility due January 2023	994,835	1,317,389
U.S. Dollar Revolving Credit Facility A due July 2024	160,316	—
Long-term debt, less current portion	7,821,723	7,600,169

4.750% Senior Secured Euro Notes due March 2020	—	434,789
5.500% Senior Secured U.S. Dollar Notes due June 2020	—	27,366
Euro Term Loan Facility due January 2023	374,656	—
Current portion of long-term debt	374,656	462,155

Short-term borrowings	4	3,193
Total debt	8,196,383	8,065,517

Less: Cash and cash equivalents	943,346	662,934
Less: Debt issuance costs, net – Euro Revolving Credit Facility B due July 2024	10,422	20,464

Net debt	7,242,615	7,382,119

Note: Net debt is a non-GAAP financial measure

International Game Technology PLC
Reconciliation of Non-GAAP Financial Measures
*($ and shares in thousands, except per share amounts)*
*Unaudited*

	For the three months ended September 30, 2020
			Operating
	Global	Global	Segment	Corporate	Total
	Lottery	Gaming	Total	and Other	IGT PLC
Net loss					(102,338)
Benefit from income taxes					(26,617)
Interest expense, net					101,023
Foreign exchange loss, net					149,403
Other non-operating expense, net					7,031
Operating income (loss)	195,766	(7,550)	188,216	(59,714)	128,502
Depreciation	51,248	51,007	102,255	323	102,578
Amortization – service revenue ⁽¹⁾	54,229	—	54,229	—	54,229
Amortization – non-purchase accounting	7,926	15,178	23,104	762	23,866
Amortization – purchase accounting	—	—	—	41,758	41,758
Restructuring	(52)	(428)	(480)	382	(98)
Stock-based compensation	81	71	152	951	1,103
Other ⁽²⁾	—	—	—	2,118	2,118
Adjusted EBITDA	309,198	58,278	367,476	(13,420)	354,056

Cash flows from operating activities					285,214
Capital expenditures					(65,668)
Free Cash Flow					219,546

Net loss attributable to IGT PLC					(127,990)
Foreign exchange loss, net					149,403
Depreciation and amortization – purchase accounting					42,069
Restructuring					(98)
Gain on extinguishment of debt					(10)
Other ⁽²⁾					2,118
Income tax impact on adjustments⁽³⁾					(11,167)
Adjusted net income attributable to IGT PLC					54,325
Weighted-average shares – diluted					204,857
Adjusted weighted-average shares – diluted⁽⁴⁾					205,013
Net loss attributable to IGT PLC per common share – diluted					(0.62)
Adjusted net income attributable to IGT PLC per common share – diluted					0.26

⁽¹⁾ Includes amortization of upfront license fees
⁽²⁾ Primarily includes transaction-related costs
⁽³⁾ Adjustments for income taxes are determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated
⁽⁴⁾ Adjusted weighted-average shares – diluted includes shares that were excluded from the GAAP computation, due to the net loss as reported

International Game Technology PLC
Reconciliation of Non-GAAP Financial Measures
*($ and shares in thousands, except per share amounts)*
*Unaudited*

	For the three months ended September 30, 2019
			Operating
	Global	Global	Segment	Corporate	Total
	Lottery	Gaming	Total	and Other	IGT PLC
Net income					130,561
Provision for income taxes					44,530
Interest expense, net					102,551
Foreign exchange gain, net					(124,068)
Other non-operating expense, net					308
Operating income (loss)	160,820	68,025	228,845	(74,963)	153,882
Depreciation	50,099	55,160	105,259	761	106,020
Amortization – service revenue ⁽¹⁾	50,695	—	50,695	—	50,695
Amortization – non-purchase accounting	6,843	14,415	21,258	754	22,012
Amortization – purchase accounting	—	—	—	47,948	47,948
Restructuring	211	16,283	16,494	(342)	16,152
Stock-based compensation	1,582	2,126	3,708	3,836	7,544
Other ⁽²⁾	—	432	432	2,391	2,823
Adjusted EBITDA	270,250	156,441	426,691	(19,615)	407,076

Cash flows from operating activities					196,984
Capital expenditures					(101,713)
Free Cash Flow					95,271

Net income attributable to IGT PLC					103,563
Foreign exchange gain, net					(124,068)
Depreciation and amortization – purchase accounting					48,580
Restructuring					16,152
Loss on extinguishment of debt					2,336
Other ⁽²⁾					2,823
Income tax impact on adjustments⁽³⁾					(6,041)
Adjusted net income attributable to IGT PLC					43,345
Weighted-average shares – diluted					204,528
Adjusted weighted-average shares – diluted					204,528
Net income attributable to IGT PLC per common share – diluted					0.51
Adjusted net income attributable to IGT PLC per common share – diluted					0.21

⁽¹⁾ Includes amortization of upfront license fees
⁽²⁾ Primarily includes transaction-related costs
⁽³⁾ Adjustments for income taxes are determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated

International Game Technology PLC
Reconciliation of Non-GAAP Financial Measures
*($ and shares in thousands, except per share amounts)*
*Unaudited*

	For the nine months ended September 30, 2020
			Operating
	Global	Global	Segment	Corporate	Total
	Lottery	Gaming	Total	and Other	IGT PLC
Net loss					(618,579)
Benefit from income taxes					(34,806)
Interest expense, net					297,284
Foreign exchange loss, net					153,427
Other non-operating expense, net					39,791
Operating income (loss)	446,965	(124,787)	322,178	(485,061)	(162,883)
Goodwill impairment	—	—	—	296,000	296,000
Depreciation	147,055	152,670	299,725	1,101	300,826
Amortization – service revenue ⁽¹⁾	155,576	—	155,576	—	155,576
Amortization – non-purchase accounting	22,006	46,726	68,732	2,341	71,073
Amortization – purchase accounting	—	—	—	130,508	130,508
Restructuring	5,332	35,430	40,762	6,193	46,955
Stock-based compensation	(3,713)	(5,063)	(8,776)	(1,927)	(10,703)
Other ⁽²⁾	—	—	—	3,623	3,623
Adjusted EBITDA	773,221	104,976	878,197	(47,222)	830,975

Cash flows from operating activities					610,313
Capital expenditures					(225,847)
Free Cash Flow					384,466

Net loss attributable to IGT PLC					(655,894)
Foreign exchange loss, net					153,427
Goodwill impairment					296,000
Depreciation and amortization – purchase accounting					131,442
Restructuring					46,955
Loss on extinguishment of debt					23,250
Other ⁽²⁾					3,623
Income tax impact on adjustments⁽³⁾					(49,430)
Adjusted net loss attributable to IGT PLC					(50,627)
Weighted-average shares – diluted					204,680
Adjusted weighted-average shares – diluted					204,680
Net loss attributable to IGT PLC per common share – diluted					(3.20)
Adjusted net loss attributable to IGT PLC per common share – diluted					(0.25)

⁽¹⁾ Includes amortization of upfront license fees
⁽²⁾ Primarily includes transaction-related costs
⁽³⁾ Adjustments for income taxes are determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated

International Game Technology PLC
Reconciliation of Non-GAAP Financial Measures
*($ and shares in thousands, except per share amounts)*
*Unaudited*

	For the nine months ended September 30, 2019
			Operating
	Global	Global	Segment	Corporate	Total
	Lottery	Gaming	Total	and Other	IGT PLC
Net income					250,043
Provision for income taxes					160,522
Interest expense, net					309,480
Foreign exchange gain, net					(141,609)
Other non-operating income, net					(22,687)
Operating income (loss)	542,913	239,940	782,853	(227,104)	555,749
Depreciation	147,461	165,490	312,951	2,340	315,291
Amortization – service revenue ⁽¹⁾	154,629	—	154,629	—	154,629
Amortization – non-purchase accounting	18,175	43,090	61,265	2,231	63,496
Amortization – purchase accounting	—	—	—	143,666	143,666
Restructuring	1,003	16,959	17,962	3,891	21,853
Stock-based compensation	3,854	5,088	8,942	11,104	20,046
Other ⁽²⁾	—	432	432	2,296	2,728
Adjusted EBITDA	868,035	470,999	1,339,034	(61,576)	1,277,458

Cash flows from operating activities					788,705
Capital expenditures					(332,716)
Free Cash Flow					455,989

Net income attributable to IGT PLC					148,673
Foreign exchange gain, net					(141,609)
Depreciation and amortization – purchase accounting					145,562
Restructuring					21,853
Loss on extinguishment of debt					11,964
Other ⁽²⁾					2,728
Income tax impact on adjustments⁽³⁾					(30,819)
Adjusted net income attributable to IGT PLC					158,352
Weighted-average shares – diluted					204,532
Adjusted weighted-average shares – diluted					204,532
Net income attributable to IGT PLC per common share – diluted					0.73
Adjusted net income attributable to IGT PLC per common share – diluted					0.77

⁽¹⁾ Includes amortization of upfront license fees
⁽²⁾ Primarily includes transaction-related costs
⁽³⁾ Adjustments for income taxes are determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated

View original content to download multimedia:http://www.prnewswire.com/news-releases/international-game-technology-plc-reports-third-quarter-2020-results-301171346.html

SOURCE International Game Technology PLC

November 11, 2020 4:34 pm

Sundial Reports Third Quarter 2020 Financial Results

PR Newswire

CALGARY, AB, Nov. 11, 2020 /PRNewswire/ – Sundial Growers Inc. (NASDAQ: SNDL) (“Sundial” or the “Company”) reported its financial and operational results for the third quarter ended September 30, 2020. All financial information in this press release is reported in millions of Canadian dollars, unless otherwise indicated.

THIRD QUARTER 2020 FINANCIAL AND OPERATIONAL HIGHLIGHTS

Branded net cannabis sales increased to 77% of total cannabis sales from 69% in the previous quarter as Sundial continues to transition from reliance on wholesale to branded retail sales
Net cannabis revenue for the third quarter of 2020 was $12.9 million, a decrease of 36% over the second quarter of 2020 due primarily to focus on branded retail sales
Branded product average gross selling price for the quarter remained relatively stable at $5.53 per gram equivalent from $5.67 per gram equivalent in the previous quarter
Principal amount of debt outstanding decreased by $23 million during the third quarter. A total of $100 million of debt has been eliminated year to date and current cash on hand stands at $60 million
Cash used from operations decreased by 63% to $5.3 million for the quarter, not including the change in non-cash working capital, financing and investing activities, from $14.3 million during the previous quarter
Dried bulk cost per gram sold was $1.18, a decrease of 12% from the previous three months ended June 30, 2020. Management is working towards a target cash cost of $0.69 per gram
General and administrative costs were reduced by 7% from $7.7 million to $7.2 million in the third quarter of 2020 when compared to the previous three months ended June 30, 2020
Capital raises provided gross proceeds of $26.4 million during the quarter and $48.1 million subsequent to the end of the quarter
A total of $4.1 million was received under the Canada Emergency Wage Subsidy (CEWS)
Net loss was $71.4 million in the third quarter; adjusted EBITDA loss increased by 13% over the previous quarter to $4.4 million from $3.9 million
A property, plant, and equipment impairment provision of $60 million was recorded on the Olds facility and an inventory impairment provision of $19.9 million was recorded on dried cannabis and cannabis extracts

“While our third quarter revenue decreased, we are pleased with the demonstrated improvement in operating discipline, successful cost optimization initiatives and a material reduction of our debt,” said Zach George, Sundial’s CEO. “Following the announcement of our financial restructuring in June of this year, we have accelerated improvements in our operating practices targeting a sustainable cost structure and a simplified business model that will better enable us to focus on delighting consumers.”

“Having entered 2020 with a challenged capital structure, and a disparate business model, our team has moved aggressively to focus our operations and product portfolio to get the very best from our high-quality people and assets,” added Mr. George. “We faced some challenges with our cultivation processes this past quarter, but the modular nature of our indoor facility enabled Sundial to quickly adapt to rapidly evolving market conditions and consumer preferences in today’s Canadian cannabis market. We firmly believe that the changes we’ve made to the business these past four months will position Sundial for future success.”

THIRD QUARTER 2020 KEY FINANCIAL METRICS

	Gross Revenue	Net Revenue	Gross Margin⁽¹⁾	Net Loss	Adj. EBITDA
Reported	15,525	12,865	2,606	(71,397)	(4,409)
% Change Q2 2020	-36%	-36%	-9%	-117%	-13%
% Change Q3 2019	-46%	-54%	-66%	16%	29%

(1)

Gross margin before inventory impairment and fair value adjustments

THIRD QUARTER 2020 BUSINESS & OPERATIONAL HIGHLIGHTS

The decrease in net revenue in the third quarter of 2020 can be attributed to:

Changes to the Company’s processes as it continues to adapt its cultivars to meet consumers’ expectations, including high THC potency
The Company’s decision to prioritize larger pack formats in flower during the early stages of COVID-19, resulted in a slower than expected ramp-up in pre-roll production. Demand for Sundial’s pre-roll products remains strong and capacity constraints have been removed, which should benefit product mix in subsequent quarters
Many provincial boards have adjusted their inventory stocking and re-ordering practices in response to short-term market demand and inventory management
Sundial underestimated on-hand inventory on certain SKUs at select customers, which resulted in smaller re-orders in the quarter as the Company continues to move through its inventory depletion

In response to these factors, Sundial is implementing critical changes that have enhanced the Company’s cultivation results:

The modular room design of Sundial’s facility has rapidly created a broad set of cultivation statistics. Since inception the company has completed over 600 harvests, including 243 in 2020 and 52 in the third quarter. Sundial has leveraged its data analytics capability to focus on key improvement areas within cultivation. Recently improved cultivation processes have led to Sundial’s highest average potency results since inception. Sundial expects to realize benefits from those products in early 2021
Sundial’s commitment to data and science-based decisions has also been supported by the restructuring of our cultivation teams. These changes will be vital to accelerate the momentum of improvements in quality, potency, and cost
Sundial acquired an expanded library of genetics to better serve evolving consumer preferences and cultivate higher potency products

GROSS MARGIN
Gross margin before inventory impairment and fair value adjustments for the three months ended September 30, 2020 was 20% compared to 14% for the three months ended June 30, 2020. The increase in the gross margin percentage of 6% was mainly due to efficiency gains realized through decreased cost of goods sold and one large LP order.

GROSS SELLING PRICE
Average gross selling price per gram equivalent of branded products was $5.53 per gram in the third quarter of 2020, including net provisions, compared to $5.67 per gram in the prior quarter. Average gross selling price on branded products held firm despite price compression seen in the market and a decrease in vape sales. Average gross selling price for unbranded flower in the third quarter was $0.84 per gram down from $2.22 per gram. The decrease was due to the monetization of winterized oil, trim and shake inventory at a discounted price.

REVENUE BY FORMATS
Sundial remains focused on delivering premium products with an emphasis on inhalable formats, including flower, pre-rolls and vape cartridges. Gross revenue from vape cartridge sales was $3.6 million in the third quarter of 2020 representing a 43% decrease from the previous quarter. The decrease in vape sales was due in part by Sundial’s SKU increase in the segment along with significant price compressions. Gross revenue from dried flower sales was $11.6 million in the third quarter of 2020 representing a 28% decrease from the previous quarter. Gross revenue from oil sales was $319,000 in the third quarter of 2020 representing an 84% decrease from the previous quarter. The decrease in oil sales was due to a one-time bulk sale to a licensed producer. Sundial was under indexed in the pre-roll format and will increase production in the fourth quarter and into 2021 to meet consumer demand. Sundial is currently undertaking a proactive SKU optimization initiative to ensure top selling SKUs replace less popular products. The Company continues to diversify its product mix with plans for the addition of solventless extracts by the end of the fourth quarter of this year.

KILOGRAMS SOLD
The Company sold 5,819 kilogram equivalents of cannabis in the third quarter of 2020, a 3% decrease over the previous quarter sales of 5,997 kilogram equivalents.

NET BRANDED SALES
The Company continues to focus on increasing its sales to Provincial Boards through continued brand portfolio penetration coast-to-coast, the addition of new formats and supply chain optimization. Branded net cannabis sales in the third quarter of 2020 were $9.9 million compared to $14.0 million in the second quarter of 2020, a decrease of 29%.

COST OF GOODS SOLD PER GRAM EQUIVALENT
Cultivation costs per gram of bulk dried cannabis were $1.18 in the third quarter, compared to $1.34 in the previous quarter. Total cost of goods sold per gram including packaging, shipment and fulfillment costs for the three months ended September 30, 2020 was $1.76 compared to $2.89 for the previous quarter. The decrease of $1.13 per gram was mainly due to a bulk sale to an LP that had a low per gram cost.

SALES, MARKETING AND GENERAL AND ADMINISTRATIVE EXPENSES
General and administrative costs were further reduced by 7% from $7.7 million to $7.2 million in the third quarter of 2020 when compared to the prior quarter. The reduction in the Company’s workforce to adjust to market conditions and a focused review of all spending resulted in this decline. Sundial is fully committed to investing in its brands, and as a result sales and marketing expenses increased to $1.1 million from $0.5 million in the previous quarter. These investments will continue to increase in upcoming quarters.

NET LOSS
Net loss from continuing operations for the three months ended September 30, 2020 was $71.4 million compared to a net loss of $32.8 million for three months ended June 30, 2020. The net loss included impairment charges related to inventory ($19.9 million) and property, plant and equipment ($60.0 million) of $79.9 million.

ADJUSTED EBITDA
Adjusted EBITDA from cannabis operations was a loss of $4.4 million for the three months ended September 30, 2020 compared to a loss of $3.9 million for the three months ended June 30, 2020. The increased loss was primarily due to lower net revenue and higher sales and marketing expense, partially offset by lower cost of sales and general and administrative expenses.

LIQUIDITY AND CAPITAL RESOURCES

Through a combination of cash repayments, asset dispositions, equity and equity-linked issuances and debt-for-equity conversions in 2020, Sundial has greatly improved its leverage and cash balance positions.

Highlights include:

Eliminated $100 million of debt in 2020 as of November 9, 2020. Net debt was reduced by $72 million
Reduced annualized debt service costs by $31 million through the June 5 restructuring
Raised gross cash proceeds of $93 million since the June 5 restructuring and received unrestricted government subsidies of $4.1 million, as of November 9, 2020
As of November 9, 2020, Sundial had $127 million of indebtedness outstanding, including $55 million aggregate principal amount of senior secured convertible notes and $72 million dollars of syndicated bank debt, 439 million common shares outstanding and an available cash balance of $60 million
The process of converting debt into equity has significantly improved the Company’s balance sheet, but has resulted in pressure on the trading price of Sundial’s common shares
Sundial’s shareholders have authorized the Board of Directors, subject to required regulatory and stock exchange approvals, to consolidate its outstanding common shares to ensure compliance with the Nasdaq’s continued listing standards, and to provide access to a broad universe of investors, access to equity capital and trading liquidity. Further details regarding a potential share consolidation will be announced at a later date

STRATEGIC AND ORGANIZATIONAL UPDATE

Sundial remains confident in its overall strategy of building sustainable, long-term shareholder value through reducing leverage, improving liquidity and cost of capital while optimizing the utilization and output of its production facilities.

Subsequent to the end of the quarter, Sundial significantly increased its investment in brands through sales and marketing initiatives, including launching a comprehensive holiday campaign in early November (Top Leaf, Sundial and Palmetto) as well as increased its sales capacity with the addition of new sales representatives from coast-to-coast
Subsequent to the quarter, Sundial renegotiated terms with an external manufacturing partner significantly reducing its costs by over 60% on those products. Sundial expects annual savings in excess of $2 million from this updated arrangement
Following the quarter end, Sundial has internalized some processing operations that were previously performed by an external manufacturing partner. Sundial expects annual savings in excess of $2 million from this change. The lower costs will enable Sundial to be more competitive with its vape offering
Following the quarter end, Sundial has undertaken an initiative to further simplify its supply chain and rationalize its SKUs across all brands and formats. The Company is taking a proactive approach with customers to limit SKU proliferation, and maximize shelf space and rate of sale with an optimized portfolio approach
Subsequent to the quarter end, Sundial entered a sales and distribution agreement with local company Choklat Inc. The new collaboration provides Sundial the opportunity to continue to expand its product portfolio and enter the edible market

STRATEGIC ALTERNATIVES REVIEW

While Sundial remains focused on its core strategy, the Company continues to review potential strategic alternatives to ensure that all opportunities to maximize value are explored. There is no assurance that this review will result in a transaction of any kind, and the Company does not intend to provide any update or additional comment on these matters until the Board approves a specific action or otherwise concludes the review.

COVID-19 UPDATE

The Company continues to monitor daily developments in the COVID-19 pandemic and actions taken by government authorities. In accordance with the guidance of provincial and federal health officials to limit the risk and transmission of COVID-19, Sundial continues to implement mandatory self-quarantine policies, travel restrictions, enhanced cleaning and sanitation processes and frequency, and social distancing measures. Sundial believes that it can maintain safe operations with these pandemic-related procedures and protocols in place. The Company has not experienced a material impact on its production and processing activities to date related to COVID-19.

NON-IFRS MEASURES

Certain financial measures in this news release, including adjusted EBITDA, working capital and gross margin before fair value adjustments are non-IFRS measures. These terms are not defined by IFRS and, therefore, may not be comparable to similar measures provided by other companies. These non-IFRS financial measures should not be considered in isolation or as an alternative for measures of performance prepared in accordance with IFRS.

ADJUSTED EBITDA

Adjusted EBITDA is a non-IFRS measure which the Company uses to evaluate its operating performance. Adjusted EBITDA provides information to investors, analysts and others to aid in understanding and evaluating the Company’s operating results in a similar manner to its management team. Adjusted EBITDA is defined as net income (loss) before finance costs, depreciation and amortization, accretion expense, income tax recovery and excluding change in fair value of biological assets, change in fair value realized through inventory, unrealized foreign exchange gains or losses, share-based compensation expense, asset impairment, gain or loss on disposal of property, plant and equipment and certain one-time non-operating expenses, as determined by management.

	Q3 2020	Q2 2020	% Change	Q3 2019	% Change
Net loss from continuing operations	(71,397)	(32,827)	-117%	(85,487)	16%
Adjustments				—
Finance (income) costs	(18,197)	591	3179%	10,150	-279%
Loss on financial obligation	—	—	0%	59,583	-100%
Depreciation and amortization	1,480	1,277	16%	143	935%
Change in fair value of biological assets	(194)	1,756	-111%	(11,675)	98%
Change in fair value realized through inventory	2,447	6,213	-61%	5,875	-58%
Unrealized foreign exchange (gain) loss	(243)	583	142%	(229)	-6%
Share-based compensation	3,118	3,152	-1%	7,991	-61%
Asset impairment	60,000	—	0%	—	0%
Loss on disposition of PP&E	—	122	100%	19	-100%
Cost of sales non-cash component⁽¹⁾	1,289	1,549	-17%	1,072	0%
Inventory obsolescence and impairment	19,897	10,026	98%	—	0%
Restructuring costs	1,108	2,363	-53%	—	0%
Transaction costs⁽²⁾	364	1,297	-72%	6,315	0%
Government subsidies	(4,081)	—	0%	—	0%
Adjusted EBITDA from continuing operations	(4,409)	(3,898)	-13%	(6,243)	29%

(1) Cost of sales non-cash component is comprised of depreciation expense
(2) Transaction costs are non-recurring costs related to financing

SUNDIAL CORPORATE VIDEO

Sundial launched its new corporate video available to watch on https://www.sndlgroup.com/investors/corporate-video

CONFERENCE CALL

Sundial will host a conference call and webcast at 10:30 a.m. EDT (8:30 a.m. MDT) on Thursday, November 12, 2020.    A current investor presentation will be available on http://sndlgroup.com/investors at that time.

CONFERENCE CALL ACCESS
Callers may access the conference call via the following phone numbers:
Canada/USA Toll Free: 1-800-319-4610
International Toll: +1-604-638-5340
UK Toll Free: 0808-101-2791
Callers should dial in 5-10 minutes prior to the scheduled start time.

WEBCAST
To access the live webcast of the call, please visit the following link:
http://services.choruscall.ca/links/sundialgrowers20201112.html

REPLAY
A telephone replay will be available for one month. To access the replay dial:
Canada/USA Toll Free: 1-800-319-6413 or International Toll: +1-604-638-9010
When prompted, enter Replay Access Code: 5547 #
The webcast archive will be available for three months via the link provided above.

ABOUT SUNDIAL GROWERS INC.

Sundial is a public company with Common Shares traded on Nasdaq under the symbol “SNDL”.

Sundial is a licensed producer that crafts cannabis using state-of-the-art indoor facilities. Our ‘craft-at-scale’ modular growing approach, award-winning genetics and experienced growers set us apart.

Our Canadian operations cultivate small-batch cannabis using an individualized “room” approach, with 470,000 square feet of total space.

Sundial’s brand portfolio includes Top Leaf, Sundial Cannabis, Palmetto and Grasslands. Our consumer-packaged goods experience enables us to not just grow quality cannabis, but also to create exceptional consumer and customer experiences.

We are proudly Albertan, headquartered in Calgary, AB, with operations in Olds, AB, and Rocky View County, AB. 

Forward-Looking Information Cautionary Statement
 

This news release includes statements containing certain “forward-looking information” within the meaning of applicable securities law (“forward-looking statements”), including, but not limited to, statements regarding the Company’s cost-cutting initiatives, the cost savings expected to be achieved, the Company’s ability to obtain new financing and covenant relief, operational goals, demand for the Company’s products, the Company’s ability to achieve profitability, the development of the legal cannabis market, future financings and the maintenance of production levels. In particular, any failure or delay in obtaining new financing would have a material adverse effect on our liquidity and impair our ability to operate as a going concern. In such a case, the Company would look to delay investments or capital expenditures and evaluate potential asset sales, but it could be forced to curtail operations or seek relief under bankruptcy or insolvency laws. In addition, depending on the development of the cannabis market and the Company’s ability to capture any growth opportunities, future liquidity issues may continue to arise, which could have a material adverse effect on our business, results of operations and financial condition. Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “likely”, “outlook”, “forecast”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Please see “Item 3D Risk Factors” in the Company’s Annual Report on Form 20-F, which was filed with the Securities and Exchange Commission (“SEC”) on March 30, 2020, and the risk factors included in our other SEC filings for a discussion of the material risk factors that could cause actual results to differ materially from the forward-looking information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. 

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SOURCE Sundial Growers Inc.