Market Newsdesk

November 11, 2020 5:03 pm

OTC Markets Group Reports Third Quarter 2020 Results

Delivering Continued Revenue and Earnings Growth

PR Newswire

NEW YORK, Nov. 11, 2020 /PRNewswire/ —

Third Quarter 2020 Highlights:

Gross revenues of $17.7 million for the quarter, up 13% versus the prior year quarter
Operating income of $5.5 million for the quarter, up 16% versus the prior year quarter
Net income of $4.5 million for the quarter, up 11%, driving a 12% increase in GAAP diluted EPS to $0.37
Announcing special dividend of $0.65 per share, and fourth quarter dividend of $0.15 per share
19 graduates to a national securities exchange during the quarter
In the context of the continuing COVID-19 pandemic, remaining focused on safeguarding our colleagues and serving our clients while continuing to drive towards our long-term strategic goals
During the third quarter, hosted six Virtual Investor Conferences, with 85 companies participating, reaching more than 6,000 investors
In September 2020, introduced our Blue Sky Data Product, a premium offering designed to provide a comprehensive view of compliance data on state “Blue Sky” secondary trading rules
On September 16, 2020, the SEC published a Final Rulemaking amending Rule 15c2-11 under the Exchange Act, under which OTC Link ATS, in its capacity as a Qualified Interdealer Quotation System, will review company information availability to determine whether a security is eligible for public quoting

OTC Markets Group Inc. (OTCQX: OTCM), operator of the OTCQX^® Best Market, the OTCQB^® Venture Market and the Pink^® Open Market for 11,000 U.S. and global securities, today announced its financial results for the third quarter of 2020.

“Our people have, again, risen to the challenge this quarter, keeping our markets operating reliably, connecting and serving our broker-dealer subscribers and meeting the needs of the diverse spectrum of issuers that rely on our public markets. I am grateful for their dedication and commitment to delivering results for all of our stakeholders,” said R. Cromwell Coulson, President and Chief Executive Officer. “We remain well-positioned to continue to invest and innovate, to better serve our clients’ needs, and to seize new opportunities, while always remaining true to our core values and our mission.”

“Our business has continued to perform well, despite the challenging macroeconomic conditions. In our OTC Link business, continued volatility drove strong growth in transaction-based revenues. In our Market Data business, the impact of price increases as well as robust user growth drove significant quarter over quarter revenue gains. After a couple of difficult quarters, our Corporate Services business saw a rebound in sales and delivered modest quarter over quarter revenue growth,” said Bea Ordonez, Chief Financial Officer. “We are pleased to report 13% growth in top line revenues and 16% growth in operating income, and remain committed to continuing to deliver value for our shareholders and to the subscribers and issuers we serve.”

Third Quarter 2020 compared to Third Quarter 2019


	Three Months Ended September 30,
(in thousands, except shares and per share data)	2020	2019	% change	$ change
OTC Link	$ 3,816	$ 2,989	28%	827
Market data licensing	7,172	6,085	18%	1,087
Corporate services	6,759	6,682	1%	77
Gross revenues	17,747	15,756	13%	1,991
Net revenues	17,058	15,154	13%	1,904
Revenues less transaction-based expenses	16,444	14,935	10%	1,509
Operating expenses	10,966	10,211	7%	755
Income from operations	5,478	4,724	16%	754
Operating profit margin	32.1%	31.2%
Income before provision for income taxes	5,443	4,750	15%	693
Net income	$ 4,459	$ 4,020	11%	439

Diluted earnings per share	$ 0.37	$ 0.33	12%
Adjusted diluted earnings per share	$ 0.55	$ 0.48	15%
Weighted-average shares outstanding, diluted	11,620,153	11,691,106	(1%)

Financial Highlights

Gross revenues increased $2.0 million, or 13%, to $17.7 million.
OTC Link revenues increased $827 thousand, or 28%, with increased trading volumes across U.S. equity markets and the impact of additional subscribers driving a significant increase in transactional revenues on our OTC Link ECN.
Market Data Licensing delivered a $1.1 million, or 18%, increase in revenues, with price increases for professional subscribers effective for 2020, combined with a 7% quarter over quarter increase in reported usage driving a 20% increase in pro-user revenues. Increased retail participation in U.S. equities markets helped drive a 45% increase in the number of non-professional users of our market data at period end, delivering a 64% increase in related revenues.
Corporate Services revenues grew at 1% versus the prior year quarter, with revenues from our Disclosure & News Service^® product and our Virtual Investor Conferences^® (“VIC”) business up 7% and 183%, respectively. These increases were partially offset by a 4% and 2% decrease in revenue from our OTCQB market and OTCQX market, respectively. On the OTCQX market, a rebound in sales in the third quarter drove an increase in the number of companies on the market at the quarter end, while the average number of companies on the market for the quarter lagged the prior year period, resulting in a slight contraction in quarter over quarter revenues. On the OTCQB market, a lower starting point at the beginning of 2020 and a pronounced drop in first quarter sales contributed to contraction in the number of companies on the market, which was only partially offset by a rebound in sales in both the second and third quarters of 2020.
Operating expenses increased 7%, to $11.0 million, primarily due to an 8% increase in compensation costs, a 54% increase in occupancy costs and a 20% increase in professional fees.
Net income increased 11% to $4.5 million, driven by the 15% increase in operating income, partially offset by a 2.7 percentage point increase in our effective tax rate in the quarter, a result of a decrease in the amount of excess tax benefits realized in the quarter from share-based compensation
Adjusted EBITDA, which excludes non-cash stock-based compensation expense, increased 15%, to $6.6 million, or $0.55 per adjusted diluted share.

Business Developments and News

In the aggregate, the COVID-19 pandemic did not have a material adverse effect on our financial results for the third quarter, with strong growth in transaction-based revenues in our OTC Link business and the impact of price increases and user growth in our Market Data Licensing business line offsetting weaker results in our Corporate Services business.
We have continued to operate our businesses with the majority of our employees working remotely, and plan to continue to operate predominantly remotely at least through the end of 2020.
Considerable uncertainty still surrounds the likely trajectory of the COVID-19 pandemic and its impact on the macroeconomic environment, and the full scope and extent of the potential impact to our business is dependent on a number of highly uncertain factors. Factors that could affect the scope and extent of the potential impact are discussed in more detail in the Risk Factors sections of our 2019 Annual Report and our 2020 first quarter report, as well as the Trends sections of our quarterly reports for the first, second and third quarters of 2020.
On September 16, 2020, the SEC published a Final Rulemaking amending Rule 15c2-11 under the Exchange Act. Rule 15c2-11 governs the ability of broker-dealers to publish quotations in interdealer quotation systems, such as our OTC Link ATS. OTC Link LLC and OTC Link ATS, our broker-dealer subscribers, and companies quoted on our markets must comply with the amended rule on or before September 26, 2021. OTC Link ATS, in its capacity as a Qualified Interdealer Quotation System, will review company information availability to determine whether a security is eligible for public quoting. We plan to devote significant technology, compliance, legal, personnel and other resources towards compliance with the rule.
The initial phase of Consolidated Audit Trail (“CAT”) reporting obligations applicable to OTC Link LLC and its broker-dealer subscribers began on June 22, 2020. We continue to engage with FINRA, the SEC and others, to define the scope of CAT reporting obligations related to OTC equity securities. As the next phases of the CAT plan become effective through 2021, the applicable CAT reporting requirements are likely to result in increased compliance and technology costs that may be material.
In September 2020, we introduced our Blue Sky Data Product, a premium offering designed to provide a comprehensive view of compliance data on state “Blue Sky” secondary trading rules for more than 16,000 OTC equity securities and 80,000 OTC corporate fixed income securities.
We have continued to devote internal resources to growing our VIC business. Against the backdrop of restrictions on travel and a global business environment that continues to adopt online and virtual workflows, we see the VIC offering as an important tool for issuers to communicate and engage with their investor base. During the third quarter, we hosted six VICs, with 85 companies participating, reaching more than 6,000 investors.
As of November 1, 2020, the OTCQX market is exempt from state Blue Sky laws regarding secondary trading in 37 states and the OTCQB market is exempt in 33 states.
We have seen increased transactional volume on our OTC Link ECN, a result of the active U.S. equities market environment as well as continued growth in our subscriber base, with 72 subscribers connected to our OTC Link ECN as of November 1, 2020.

Dividend Declaration – Quarterly and Special Cash Dividend

OTC Markets Group announced today that its Board of Directors authorized and approved a special cash dividend of $0.65 per share of Class A Common Stock and a quarterly cash dividend of $0.15 per share of Class A common stock. The special dividend is payable on December 9, 2020 to our stockholders of record on November 25, 2020. The ex-dividend date is November 24, 2020. The quarterly dividend is payable on December 23, 2020 to our stockholders of record on December 9, 2020. The ex-dividend date is December 8, 2020.

Stock Buyback Program

The Company is authorized to purchase shares from time to time on the open market and through block trades, in compliance with applicable law. The Company did not repurchase any shares during the third quarter of 2020.

On March 4, 2020, the Board of Directors refreshed the Company’s stock repurchase program, giving the Company authorization to repurchase up to 300,000 shares of the Company’s Class A common stock. As of September 30, 2020, there are 300,000 shares remaining to be purchased under our plan.

Non-GAAP Financial Measures

In addition to disclosing results prepared in accordance with GAAP, the Company also discloses certain non-GAAP results of operations, including adjusted EBITDA and adjusted diluted earnings per share that either exclude or include amounts that are described in the reconciliation table of GAAP to non-GAAP information provided at the end of this release. Non-GAAP financial measures do not replace and are not superior to the presentation of GAAP financial results but are provided to improve overall understanding of the Company’s current financial performance. Management believes that this non-GAAP information is useful to both management and investors regarding certain additional financial and business trends related to the operating results. Management uses this non-GAAP information, along with GAAP information, in evaluating its historical operating performance.

Third Quarter 2020 Conference Call and Webcast

The Company will host a conference call and webcast on Thursday, November 12, 2020, at 8:30 a.m. Eastern Time, during which management will discuss the financial results in further detail. The conference call and replay of the conference call may be accessed as follows:

Dial-in Numbers: (877) 665-5564 (Domestic); (470) 495-9522 (International)

Conference ID: 7098115
Call Replay Numbers (Available until November 26, 2020): 855-859-2056 (Domestic); 404-537-3406 (International); Replay PIN Number: 7098115
Participants can access the conference via Internet webcast at the following link (available until November 11, 2021:

https://edge.media-server.com/mmc/p/4zh97jms
The earnings release, transcript of the earnings call and presentation will also be available in the Investor Relations section of the corporate website at www.otcmarkets.com/investor-relations/overview.

OTC Markets Group’s Quarterly Report for the period ended September 30, 2020 is available publicly at www.otcmarkets.com.

About OTC Markets Group Inc.

OTC Markets Group Inc. (OTCQX: OTCM) operates the OTCQX^® Best Market, the OTCQB^® Venture Market and the Pink^® Open Market for 11,000 U.S. and global securities. Through OTC Link^® ATS and OTC Link ECN, we connect a diverse network of broker-dealers that provide liquidity and execution services. We enable investors to easily trade through the broker of their choice and empower companies to improve the quality of information available for investors.

To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com.

OTC Link ATS and OTC Link ECN are SEC regulated ATSs, operated by OTC Link LLC, member FINRA/SIPC.

Subscribe to the OTC Markets RSS Feed

Investor Contact:

Bea Ordonez

Chief Financial Officer
Phone: 212-220-2215
Email: [email protected]

OTC MARKETS GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share information)
(Unaudited)

	Three Months Ended September 30,
	2020	2019
OTC Link	$ 3,816	$ 2,989
Market data licensing	7,172	6,085
Corporate services	6,759	6,682
Gross revenues	17,747	15,756
Redistribution fees and rebates	(689)	(602)
Net revenues	17,058	15,154
Transaction-based expenses	(614)	(219)
Revenues less transaction-based expenses	16,444	14,935
Operating expenses
Compensation and benefits	7,052	6,533
IT Infrastructure and information services	1,642	1,650
Professional and consulting fees	586	489
Marketing and advertising	138	256
Occupancy costs	877	569
Depreciation and amortization	441	384
General, administrative and other	230	330
Total operating expenses	10,966	10,211
Income from operations	5,478	4,724
Other income (expense)
Interest income	–	26
Other income (expense), net	(35)	–
Income before provision for income taxes	5,443	4,750
Provision for income taxes	984	730
Net income	$ 4,459	$ 4,020

Net income per share
Basic	$ 0.38	$ 0.35
Diluted	$ 0.37	$ 0.33

Basic weighted average shares outstanding	11,390,479	11,353,189
Diluted weighted average shares outstanding	11,620,153	11,691,106

Non-GAAP Reconciliation

	2020	2019
Net Income	$ 4,459	$ 4,020
Excluding:
Interest Income	–	(26)
Provision for income taxes	984	730
Depreciation and amortization	441	384
Stock-based compensation expense	717	617
Adjusted EBITDA	$ 6,601	$ 5,725

Adjusted diluted earnings per share	$ 0.55	$ 0.48

Note: We use non-GAAP financial measures of operating performance. Non-GAAP measures do not replace and are not superior to the presentation of our GAAP financial results, but are provided to improve overall understanding of the Company’s current financial performance.


OTC MARKETS GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share information)
(Unaudited)

	September 30,	December 31,
	2020	2019
Assets
Current assets
Cash	$ 28,647	$ 28,217
Accounts receivable, net of allowance for doubtful accounts of $165 and $168	5,802	5,157
Prepaid income taxes	568	318
Prepaid expenses and other current assets	1,417	1,338
Total current assets	36,434	35,030
Property and equipment, net	5,666	6,418
Operating lease right-of-use assets	15,143	16,018
Deferred tax assets, net	214	771
Goodwill	251	251
Intangible assets, net	40	40
Long-term restricted cash	1,561	1,561
Other assets	312	266
Total Assets	$ 59,621	$ 60,355

Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$ 718	$ 321
Accrued expenses and other current liabilities	8,772	9,154
Income taxes payable	183	99
Deferred revenue	10,922	15,815
Total current liabilities	20,595	25,389
Income tax reserve	757	1,764
Operating lease liabilities	14,708	15,529
Total Liabilities	36,060	42,682
Commitments and contingencies
Stockholders’ equity
Common stock – par value $0.01 per share
Class A – 14,000,000 authorized, 12,305,638 issued, 11,669,004 outstanding at
September 30, 2020; 12,189,022 issued, 11,655,326 outstanding at December 31, 2019	123	122
Additional paid-in capital	20,146	18,042
Retained earnings	15,409	8,106
Treasury stock – 636,634 shares at September 30, 2020 and 533,696 shares at December 31, 2019	(12,117)	(8,597)
Total Stockholders’ Equity	23,561	17,673
Total Liabilities and Stockholders’ Equity	$ 59,621	$ 60,355

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SOURCE OTC Markets Group Inc.

November 11, 2020 5:03 pm

Matson To Present At Stephens Annual Investment Conference

PR Newswire

HONOLULU, Nov. 11, 2020 /PRNewswire/ — Matson, Inc. (NYSE: MATX) announced today that Matt Cox, Chairman and Chief Executive Officer, and Joel Wine, Senior Vice President and Chief Financial Officer, will present an overview of the Company and respond to questions at the Stephens Annual Investment Conference to be held virtually on November 18, 2020.

Matson will provide access to the presentation slides on its website on November 18, 2020. Access to the slides will be available on www.matson.com, under Investors.

About the Company
Founded in 1882, Matson (NYSE: MATX) is a leading provider of ocean transportation and logistics services. Matson provides a vital lifeline to the domestic non-contiguous economies of Hawaii, Alaska, and Guam, and to other island economies in Micronesia. Matson also operates two premium, expedited services from China to Long Beach, California, provides service to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Dutch Harbor to Asia. The Company’s fleet of owned and chartered vessels includes containerships, combination container and roll-on/roll-off ships and custom-designed barges. Matson Logistics, established in 1987, extends the geographic reach of Matson’s transportation network throughout the continental U.S. Its integrated, asset-light logistics services include rail intermodal, highway brokerage, warehousing, freight consolidation, Asia supply chain services, and forwarding to Alaska. Additional information about the Company is available at www.matson.com.

Investor Relations inquiries:

Lee Fishman

Matson, Inc.

510.628.4227

[email protected]

News Media inquiries:

Keoni Wagner

Matson, Inc.

510.628.4534

[email protected]

View original content to download multimedia:http://www.prnewswire.com/news-releases/matson-to-present-at-stephens-annual-investment-conference-301171233.html

SOURCE Matson, Inc.

November 11, 2020 5:03 pm

Spin Master Reports Q3 2020 Financial Results

PR Newswire

Delivers Solid Financial Performance

Operational Improvement Milestones Achieved Ahead of Schedule

TORONTO, Nov. 11, 2020 /PRNewswire/ – Spin Master Corp. (“Spin Master” or the “Company”) (TSX: TOY) (www.spinmaster.com), a leading global children’s entertainment company, today announced its financial results for the third quarter ended September 30, 2020. The Company’s full Management’s Discussion and Analysis (“MD&A”) for the three and nine months ended September 30, 2020 is available on SEDAR (www.sedar.com) and posted on the Company’s web site at www.spinmaster.com/financial-info.php.

“This quarter we showed continued progress on many fronts,” said Ronnen Harary, Spin Master’s Co-CEO. “We launched one of our strongest Fall lines ever, with many of our toys making retailers’ top toy lists and in the quarter we grew both Gross Product Sales and Revenue while managing through the uncertain conditions arising from COVID-19. In September, we premiered our first-ever straight-to-streaming entertainment franchise Mighty Express and also saw significant growth in our Toca Boca digital games business driven by increased engagement and new content. Thanks to the dedication and tenacity of our team members globally, we are very well positioned for the holiday season with strong POS momentum globally for our products, lean retail inventories and continued consumer demand within the toy category.”

“Our efforts to manage costs and improve our profitability continue to show progress,” added Mark Segal, Spin Master’s Chief Financial Officer. “Our team achieved key milestones on our operational improvement goals well ahead of schedule and we are well positioned to execute our plan. During the quarter, we have reduced our inventory levels and improved our net working capital and liquidity position. With a diversified portfolio of brands, entertainment franchises and digital games across our global platform and a very solid financial base, we remain focused on investing to create long term value.”

Q3 2020 Financial Highlights as compared to the same period in 2019

Revenue of US$571.6 million increased by 4.3% from US$548.1 million. In Constant Currency¹ terms, revenue increased by 3.5%.
Gross Product Sales¹ increased by 0.7% to US$587.4 million from US$583.3 million. Increases in Boys Action & Construction, Activities, Games & Puzzles and Plush, as well as Outdoor were offset by declines in Remote Control & Interactive Characters and Pre-School & Girls. In Constant Currency¹ terms, Gross Product Sales¹increased by 0.2%.
Gross Product Sales¹ increased by 15.6% in Europe and declined 2.6% North America and 10.8% in Rest of World. International Gross Product Sales¹ were 38.3% of total Gross Product Sales¹, compared to 36.2%.
Other revenue increased by 80.9% to US$48.3 million. Growth was driven by strong digital games revenue, primarily from the Toca Life World platform, as well as higher television distribution revenue, partially offset by lower royalty income from products marketed by third parties using Spin Master’s owned intellectual property.
Sales Allowances¹increased by US$2.2 million to US$64.1 million. As a percentage of Gross Product Sales¹, Sales Allowances¹ increased 0.3% to 10.9% from 10.6%, primarily driven by a change in geographic mix due to higher sales in Europe relative to North America.
Gross profit was US$277.9 million, representing 48.6% of revenue, compared to US$286.9 million or 52.3% of revenue. The decrease in gross margin was primarily due to product mix, the sale of inventory arising from the operational challenges experienced in Q4 2019 as well as an increase in freight-related expenses. The decrease was partially offset by higher other revenue.
Selling, general and administrative expenses (“SG&A”)² increased 3.4%. The increase was a result of higher administrative, selling and distribution expenses, partially offset by lower marketing costs. As a percentage of revenue, SG&A² was 27.9% compared to 28.1%.
Net income was US$86.8 million or earnings per share of US$0.83 (diluted), compared to US$92.2 million or US$0.89 (diluted).
Adjusted Net Income¹ was US$95.1 million or adjusted earnings per share of US$0.91 (diluted), compared to US$93.3 million or US$0.91 (diluted).
Adjusted EBITDA¹ was US$139.9 million compared to US$150.2 million. Adjusted EBITDA Margin¹ was 24.5% compared to 27.4%.
Free Cash Flow¹ was US$108.3 million compared to US$128.6 million. Including changes in working capital, Free Cash Flow¹ was US$96.0 million compared to US$86.5 million.
As at September 30th, 2020, the Company had cash on hand of US$207.3 million. During the quarter, the Company repaid in full the balance of US$300.0 million previously outstanding on its Credit Facility.
On October 27, 2020, the Company announced it reached an agreement to acquire London-based Rubik’s Brand Ltd, which owns the rights to the Rubik’s Cube, for $50.0 million. The transaction is expected to close on January 4, 2021.

Q3 2020 Gross Product Sales ¹ by Business Segment (US$ millions)
	Q3 2020	Q3 2019	$ Change	% Change
Activities, Games & Puzzles and Plush	$172.5	$152.4	20.1	13.2	%
Remote Control & Interactive Characters	$88.6	$117.3	(28.7)	(24.5)	%
Boys Action & Construction	$131.6	$103.2	28.4	27.5	%
Pre-School & Girls	$182.4	$204.0	(21.6)	(10.6)	%
Outdoor	$12.3	$6.4	5.9	92.2	%
Gross Product Sales¹	$587.4	$583.3	4.1	0.7	%
Sales Allowances¹	$(64.1)	$(61.9)	(2.2)	3.6	%
Net Sales¹	$523.3	$521.4	1.9	0.4	%
Other Revenue	$48.3	$26.7	21.6	80.9	%
Revenue	$571.6	$548.1	23.5	4.3	%

Q3 2020 Gross Product Sales¹ by Business Segment as compared to the same period in 2019

Gross Product Sales¹were US$587.4 million, an increase of US$4.1 million or 0.7%, with a favourable foreign exchange impact of US$3.2 million or 0.6%. Excluding the impact of foreign exchange, Gross Product Sales¹ increased by US$0.9 million or 0.2%. The increase was driven by Boys Action & Construction, Activities, Games & Puzzles and Plush and Outdoor, offset by declines in Remote Control & Interactive Characters and Pre-School & Girls.

Gross Product Sales¹ in Activities, Games & Puzzles and Plush increased by US$20.1 million or 13.2% to US$172.5 million. The increase was driven primarily by Kinetic Sand, the Games & Puzzles portfolio, Cool Maker,Rainbow Jellies and Orbeez, partially offset by declines in GUND and Bunchems.

Gross Product Sales¹ in Remote Control & Interactive Characters decreased by US$28.7 million or 24.5% to US$88.6 million, primarily due to lower sales of Owleez and Hatchimals, partially offset by increases in Monster Jam RC and Ninja Bots.

Gross Product Sales¹ in Boys Action & Construction increased by US$28.4 million or 27.5% to US$131.6 million. The increase was primarily driven by DC licensed products, Present Pets and Tech Deck, offset in part by declines in DreamWorks Dragons, Boxer and Bakugan.

Gross Product Sales¹ in Pre–School & Girls decreased by US$21.6 million or 10.6% to US$182.4 million. The decrease was driven primarily by declines in PAW Patrol, Twisty Petz, Candylocks and Awesome Blossems, offset in part by higher sales of Pre Cool.

Gross Product Sales¹ in Outdoor increased by US$5.9 million or 92.2% to US$12.3 million.

Financial Highlights for Nine Months Ended September 30, 2020 as compared to the same period in 2019

Revenue of US$1,080.0 million decreased 2.5% from US$1,108.1 million. In Constant Currency¹terms, revenue decreased by 2.5%.
Gross Product Sales¹decreased by US$28.6 million or 2.5% to US$1,111.9 million. In Constant Currency¹terms, Gross Product Sales¹ decreased by 2.4%.
Gross Product Sales¹decreased by 0.9% in North America and 24.8% in Rest of World and increased by 6.3% in Europe. International Gross Product Sales¹ represented 36.1% of total Gross Product Sales¹ compared to 37.1%.
Other revenue increased by US$12.7 million or 14.8% to US$98.7 million, driven by higher digital games revenue from Toca Boca and Sago Mini offset in part by lower royalty income from products marketed by third parties using Spin Master’s owned intellectual property.
Sales Allowances¹ increased by US$12.2 million to US$130.6 million. As a percentage of Gross Product Sales¹, Sales Allowances¹ were 11.7% compared to 10.4%, primarily driven by an increase in non-compliance charges arising from operational issues in Q4 2019 and growth in Europe, which has a higher Sales Allowance¹ rate structure.
Gross profit decreased to US$486.9 million, representing 45.1% of revenue compared to US$558.9 million or 50.4% of revenue. The decline in gross margin was primarily due to product mix, the sale of inventory arising from the operational challenges experienced in Q4 2019, an increase in freight-related expenses, higher Sales Allowances¹ and supplier liabilities as a result of realigning inventory as part of the Company’s ongoing operational improvement initiatives. These decreases were partially offset by an increase in other revenue.
SG&A² increased US$8.7 million or 2.1%. The increase in SG&A² was driven by higher distribution and administrative expenses, offset by lower marketing expenses.
Net income was US$45.2 million or earnings per share of US$0.43 (diluted), compared to US$81.5 million or US$0.79 (diluted).
Adjusted Net Income¹ was US$38.8 million or adjusted earnings per share of US$0.37 (diluted), compared to US$100.6 million or US$0.98 (diluted).
Adjusted EBITDA¹ was US$129.1 million compared to US$212.3 million. Adjusted EBITDA Margin¹ was 12.0% compared to 19.2%.
Free Cash Flow¹ decreased to US$23.6 million compared to US$107.3 million. Including changes in working capital, Free Cash Flow increased by $84.4 million to US$108.4 million compared to US$24.0 million.

September 30, 2020 Year to Date Gross Product Sales¹ by Business Segment (US$ millions)
	2020	2019	$ Change		% Change
Activities, Games & Puzzles and Plush	$346.1	$295.6	$	50.5	17.1	%
Remote Control & Interactive Characters	$142.0	$192.8	$	(50.8)	(26.3)	%
Boys Action & Construction	$235.2	$216.6	$	18.6	8.6	%
Pre-School & Girls	$313.2	$363.8	$	(50.6)	(13.9)	%
Outdoor	$75.4	$71.7	$	3.7	5.2	%
Gross Product Sales¹	$1,111.9	$1,140.5	$	(28.6)	(2.5)	%
Sales Allowances	$(130.6)	$(118.4)	$	(12.2)	10.3	%
Net Sales¹	$981.3	$1,022.1	$	(40.8)	(4.0)	%
Other Revenue	$98.7	$86.0	$	12.7	14.8	%
Revenue	$1,080.0	$1,108.1	$	(28.1)	(2.5)	%

September 30, 2020 Year to Date Gross Product Sales¹ by Business Segment as compared to the same period in 2019

Gross Product Sales¹ were US$1,111.9 million, a decrease of US$28.6 million or 2.5%, with an unfavourable foreign exchange impact of US$1.3 million or 0.1%. The decrease was driven by Remote Control & Interactive Characters and Pre-School & Girls, offset by increases in Activities, Games & Puzzles and Plush, Boys Action & Construction and Outdoor.

Gross Product Sales¹ in Activities, Games & Puzzles and Plush increased by US$50.5 million or 17.1% to US$346.1 million, primarily driven by Kinetic Sand, the Games & Puzzles portfolio, Rainbow Jellies and Orbeez, offset in part by declines in GUND and Bunchems.

Gross Product Sales¹ in Remote Control & Interactive Characters decreased by US$50.8 million or 26.3% to US$142.0 million, due to declines in Hatchimals, Owleez and Juno, partially offset by higher sales of Monster Jam RC and Ninja Bots.

Gross Product Sales¹ in Boys Action & Construction increased by US$18.6 million or 8.6% to US$235.2 million, due to DC licensed products, Present Pets and Tech Deck, partially offset by declines in DreamWorks Dragons, Boxer, Bakugan, Meccano and Fugglers.

Gross Product Sales¹ in Pre–School & Girls decreased by US$50.6 million or 13.9% to US$313.2 million, driven by declines in PAW Patrol, Twisty Petz, Candylocks, Awesome Blossems and Off the Hook, offset in part by higher sales of Pre Cool.

Gross Product Sales¹ in Outdoor increased by US$3.7 million or 5.2% to US$75.4 million.

Outlook

Spin Master continues to focus on driving long-term growth. Its principle strategies include:

Innovate using our global internal and external research and development network;
Developing evergreen global entertainment and digital toys properties;
Increasing international sales in developed and emerging markets; and
Leveraging the Company’s global platform through strategic acquisitions.

On March 19, 2020 Spin Master withdrew its 2020 outlook, which was previously provided on March 4, 2020. Given the uncertain environment associated with COVID-19, the company has elected to continue to suspend providing guidance until circumstances warrant.

Conference call

Ronnen Harary, Chairman and Co-Chief Executive Officer and Mark Segal, Executive Vice President and Chief Financial Officer will host a conference call to discuss these results on Thursday, November 12, 2020 at 9:30 a.m. (ET).

The call-in numbers for participants are (647) 427-7450 or (888) 231-8191. A live webcast of the call will be accessible via Spin Master’s website at: http://www.spinmaster.com/events.php. Following the call, both an audio recording and transcript of the call will be archived on the same website page.

About Spin Master

Spin Master Corp. (TSX:TOY) is a leading global children’s entertainment company creating exceptional play experiences through a diverse portfolio of innovative toys, entertainment franchises and digital toys and games. Spin Master is best known for award-winning brands PAW Patrol®, Bakugan®, Kinetic Sand®, Air Hogs®, Hatchimals® and GUND®, and is the toy licensee for other popular properties. Spin Master Entertainment creates and produces compelling multiplatform content, stories and endearing characters through its in-house studio and partnerships with outside creators, including the preschool success PAW Patrol and 10 other television series, which are distributed in more than 160 countries. The Company has an established digital presence anchored by the Toca Boca® and Sago Mini® brands, which combined have more than 25 million monthly active users. With over 1,800 employees in 28 offices globally, Spin Master distributes products in more than 100 countries. For more information visit spinmaster.com or follow on Instagram, Facebook and Twitter @spinmaster.

Non-IFRS Financial Measures

In addition to using financial measures prescribed under IFRS, references are made in this Press Release to “EBITDA”, “Adjusted EBITDA”, “Adjusted EBITDA Margin”, “Adjusted Net Income”, “Free Cash Flow”, “Gross Product Sales”, “Constant Currency”, “Sales Allowances” and “Net Sales” which are non-IFRS financial measures. Non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers.

EBITDA is calculated as net earnings before finance costs, income tax expense (recovery) and depreciation and amortization.

Adjusted EBITDA is calculated as EBITDA excluding normalization adjustments, non-recurring items that do not necessarily reflect the Company’s underlying financial performance. Normalization adjustments include restructuring costs, foreign exchange gains or losses, and equity-settled share based compensation expenses. Adjusted EBITDA is used by management as a measure of the Company’s profitability.

Adjusted Net Income is calculated as net income excluding adjustments, as defined above, in addition to a one-time tax recovery and the corresponding impact these items have on income tax expense (recovery). Management uses Adjusted Net Income to measure the underlying financial performance of the business on a consistent basis over time.

Constant Currency represents Revenue and Gross Product Sales results that are presented excluding the impact from changes in foreign currency exchange rates. The current period and prior period results for entities reporting in currencies other than the US dollar are translated using consistent exchange rates, rather than using the actual exchange rate in effect during the respective periods. The difference between the current period and prior period results using the consistent exchange rates reflects the changes in the underlying performance results, excluding the impact from fluctuations in foreign currency exchange rates.

Free Cash Flow is calculated as cash flows provided by/used in operating activities before changes in net working capital and after cash flows used in investing activities before cash used in license, brand and business acquisitions. Management uses the Free Cash Flow metric to analyze the cash flow being generated by the Company’s business.

Gross Product Sales represent sales of the Company’s products to customers, excluding the impact of Sales Allowances. As Sales Allowances are generally not associated with individual products, the Company uses changes in Gross Product Sales to provide meaningful comparisons across product category and geographical segment results to highlight trends in Spin Master’s business. For a reconciliation of Gross Product Sales to Revenue, please see the table “Q3 2020 Gross Product Sales by Business Segment” in this Press Release.

Sales Allowances represent marketing and sales credits requested by customers relating to factors such as cooperative advertising, contractual discounts, negotiated discounts, customer audits, volume rebates, defective products and costs incurred by customers to sell the Company’s products and are recorded as a reduction to Gross Product Sales. Management uses Sales Allowances to identify and compare the cost of doing business with individual retailers, different geographic markets and amongst various distribution channels.

Net Sales represents Gross Product Sales less Sales Allowances. Management uses Net Sales to evaluate the Company’s total net revenue generating capacity compared to internal targets and as a measure of Company performance.

Management believes the non-IFRS measures defined above are important supplemental measures of operating performance and highlight trends in the core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management believes that these measures allow for assessment of the Company’s operating performance and financial condition on a basis that is more consistent and comparable between reporting periods. The Company believes that lenders, securities analysts, investors and other interested parties frequently use these non-IFRS financial measures in the evaluation of issuers.

		Three Months Ended Sep 30
(in US$ millions, except percentages)		2020	2019	$ Change	% Change
Reconciliation of Non-IFRS Financial Measures
Net income		86.8	92.2	(5.4)	(5.9)	%
	Income tax expense	14.7	33.0	(18.3)	(55.5)	%
	Finance costs	2.6	3.2	(0.6)	(18.8)	%
	Depreciation and amortization	26.4	22.2	4.2	18.9	%
EBITDA¹		130.5	150.6	(20.1)	(13.3)	%
Normalization adjustments:
	Restructuring expense²	1.4	0.3	1.1	366.7	%
	Foreign exchange loss (gain)³	5.1	(4.1)	9.2	(224.4)	%
	Share based compensation⁴	2.9	3.4	(0.5)	(14.7)	%
Adjusted EBITDA¹		139.9	150.2	(10.3)	(6.9)	%
	Income tax expense	14.7	33.0	(18.3)	(55.5)	%
	Finance costs	2.6	3.2	(0.6)	(18.8)	%
	Depreciation and amortization	26.4	22.2	4.2	18.9	%
	Tax effect of adjustments⁵	1.1	(1.5)	2.6	(173.3)	%
Adjusted Net Income¹		95.1	93.3	1.8	1.9	%

Cash provided by operations		117.2	106.4	10.8	10.2	%
Changes in net working capital		12.3	42.1	(29.8)	(70.8)	%
Cash provided by operations before net working capital changes		129.5	148.5	(19.0)	(12.8)	%
Cash used in investing activities		(20.2)	(29.3)	9.1	(31.1)	%
Plus:
Cash used for license, brand and business acquisitions		(1.0)	9.4	(10.4)	n.m.
Free Cash Flow¹		108.3	128.6	(20.3)	(15.8)	%

1) See “Non-IFRS Financial Measures”.
2) Restructuring expense primarily relates to personnel related costs.
3) Includes foreign exchange losses (gains) generated by the translation of monetary assets/liabilities denominated in a currency other than the functional currency of the applicable entity and losses (gains) related to the Company’s hedging programs.
4) Related to non-cash expenses associated with subordinate voting shares granted to equity participants at the time of the IPO, share option expense and long-term incentive plan (“LTIP”).
5) Tax effect of adjustments (Footnotes 2-4). Adjustments are tax effected at the effective tax rate of the given period.

		Nine Months Ended Sep 30
(in US$ millions, except percentages)		2020	2019	$ Change	% Change
Reconciliation of Non-IFRS Financial Measures
Net income		45.2	81.5	(36.3)	(44.5)	%
	Income tax (recovery) expense	(31.4)	28.2	(59.6)	(211.3)	%
	Finance costs	8.7	8.5	0.2	2.4	%
	Depreciation and amortization	75.4	68.4	7.0	10.2	%
EBITDA¹		97.9	186.6	(88.7)	(47.5)	%
Adjustments:
	Restructuring expense²	4.8	8.1	(3.3)	(40.7)	%
	Foreign exchange loss³	17.1	5.9	11.2	189.8	%
	Share based compensation⁴	9.3	11.7	(2.4)	(20.5)	%
Adjusted EBITDA¹		129.1	212.3	(83.2)	(39.2)	%
	Income tax (recovery) expense	(31.4)	28.2	(59.6)	(211.3)	%
	Finance costs	8.7	8.5	0.2	2.4	%
	Depreciation and amortization	75.4	68.4	7.0	10.2	%
	One-time income tax recovery⁵	33.3	—	33.3	n.m.
	Tax effect of adjustments⁶	4.3	6.6	(2.3)	(34.8)	%
Adjusted Net Income¹		38.8	100.6	(61.8)	(61.4)	%

Cash provided by operating activities		172.6	87.6	85.0	97.0	%
Changes in net working capital		(84.8)	83.3	(168.1)	(201.8)	%
Cash provided by operating activities before net working capital changes		87.8	170.9	(83.1)	(48.6)	%
Cash used in investing activities		(65.6)	(73.0)	7.4	(10.1)	%
Plus:
Cash used for license, brand and business acquisitions		1.4	9.4	(8.0)	(85.1)	%
Free Cash Flow¹		23.6	107.3	(83.7)	(78.0)	%

1) See “Non-IFRS Financial Measures”.
2) Restructuring expense primarily relates to personnel related costs. Restructuring expense in the current period includes costs related to changes in senior leadership.
3) Includes foreign exchange losses generated by the translation of monetary assets/liabilities denominated in a currency other than the functional currency of the applicable entity and losses related to the Company’s hedging programs.
4) Related to expenses associated with subordinate voting shares granted to equity participants at the time of the IPO, share option expense and LTIP.
5) One-time income tax recovery relates to internal transfer of intangible property of $33.3 million.
6) Tax effect of adjustments (Footnotes 2-4). Adjustments are tax effected at the effective tax rate of the given period.

Forward-Looking Statements

Certain statements, other than statements of historical fact, contained in this Press Release constitute “forward-looking information” within the meaning of certain securities laws, including the Securities Act (Ontario), and are based on expectations, estimates and projections as of the date on which the statements are made in this Press Release. The words “plans”, “expects”, “projected”, “estimated”, “forecasts”, “anticipates”, “indicative”, “intend”, “guidance”, “outlook”, “potential”, “prospects”, “seek”, “strategy”, “targets” or “believes”, or variations of such words and phrases or statements that certain future conditions, actions, events or results “will”, “may”, “could”, “would”, “should”, “might” or “can”, or negative versions thereof, “be taken”, “occur”, “continue” or “be achieved”, and other similar expressions, identify statements containing forward-looking information. Statements of forward-looking information in this Press Release include, without limitation, statements with respect to: the Company’s intentions to issue guidance in the future; future growth expectations; financial position, cash flows and financial performance; drivers for such growth; the resolution of logistics problems; the program to achieve operational efficiencies; the successful execution of its strategies for growth; the creation of long term shareholder value; the impacts of the COVID-19 pandemic on the Company; the completion and timing of the proposed acquisition; and consumer demand and the seasonality of financial results and performance.

Forward-looking statements are necessarily based upon management’s perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by management as of the date on which the statements are made in this Press Release, are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in the forward-looking statements ultimately being incorrect. In addition to any factors and assumptions set forth above in this Press Release, the material factors and assumptions used to develop the forward-looking information include, but are not limited to: ability of factories to manufacture products, including labour size and allocation, tooling, raw material and component availability, ability to shift between product mix, and customer acceptance of delayed delivery dates; that the program designed to gain operational efficiencies will achieve the desired results; that the steps taken will create long term shareholder value; the expanded use of advanced technology, robotics and innovation the Company applies to its products will have a level of success consistent with its past experiences; the Company will continue to successfully secure broader licenses from third parties for major entertainment properties consistent with past practices; the expansion of sales and marketing offices in new markets will increase the sales of products in that territory; the Company will be able to successfully identify and integrate strategic acquisition opportunities; the Company will be able to maintain its distribution capabilities; the Company will be able to leverage its global platform to grow sales from acquired brands; the Company will be able to recognize and capitalize on opportunities earlier than its competitors; the Company will be able to continue to build and maintain strong, collaborative relationships; the Company will maintain its status as a preferred collaborator; the culture and business structure of the Company will support its growth; the current business strategies of the Company will continue to be desirable on an international platform; the Company will be able to expand its portfolio of owned branded intellectual property and successfully license it to third parties; use of advanced technology and robotics in the Company’s products will expand; access of entertainment content on mobile platforms will expand; fragmentation of the market will continue to create acquisition opportunities; the Company will be able to maintain its relationships with its employees, suppliers and retailers; the Company will continue to attract qualified personnel to support its development requirements; and the Company’s key personnel will continue to be involved in the Company products and entertainment properties will be launched as scheduled and that the risk factors noted in this Press Release, collectively, do not have a material impact on the Company.

By its nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. Known and unknown risk factors, many of which are beyond the control of the Company, could cause actual results to differ materially from the forward-looking information in this Press Release. Such risks and uncertainties include, without limitation, the magnitude and length of economic disruption as a result of the COVID-19 pandemic, there can be no assurance that the proposed acquisition will occur, and the terms of the proposed acquisition could be modified, restructured or terminated; and the factors discussed in the Company’s disclosure materials, including the Annual MD&A and the Company’s most recent Annual Information Form, filed with the securities regulatory authorities in Canada and available under the Company’s profile on SEDAR (www.sedar.com) These risk factors are not intended to represent a complete list of the factors that could affect the Company and investors are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements.

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. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.

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SOURCE Spin Master Corp.

November 11, 2020 5:03 pm

Bright Scholar Announces US$50 million Share Repurchase Program

PR Newswire

FOSHAN, China, Nov. 11, 2020 /PRNewswire/ — Bright Scholar Education Holdings Limited (“Bright Scholar” or the “Company”) (NYSE: BEDU), a global premier education service company, today announced that its board of directors (the “Board”) has approved a US$50 million share repurchase program, effective from November 20, 2020 and expiring on November 19, 2021.

Under the share repurchase program, the Company may repurchase up to US$50 million worth of its outstanding American depositary shares (“ADSs”) representing its Class A ordinary shares within the 12 months, subject to market conditions. The Company may periodically repurchase its ADSs for cash in open market purchases, in compliance with applicable federal securities laws. In addition, the share repurchase program may be modified, suspended or terminated by the Board any time without prior notice. The number of ADSs repurchased and the timing of repurchases will depend on a number of factors, including without limitation, price, trading volume and general market conditions, along with the Company’s working capital requirements, general business conditions and other factors. Repurchases under the share repurchase program will be funded from the Company’s existing cash and cash equivalents or future cash provided by operating activities.

About Bright Scholar Education Holdings Limited

Bright Scholar is a global premier education service company, dedicated to providing quality international education to global students and equipping them with the critical academic foundation and skillsets necessary to succeed in the pursuit of higher education. Bright Scholar also complements its international offerings with Chinese government-mandated curriculum for students who wish to maintain the option of pursuing higher education in China. As of August 31, 2020, Bright Scholar operated 81 schools across ten provinces in China and eight schools overseas, covering the breadth of K-12 academic needs of its students. In the fiscal year ended August 31, 2020, Bright Scholar had an average of 51,825 students enrolled at its schools.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, the Company’s business plans and development, which can be identified by terminology such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control, which may cause the Company’s actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

IR Contact:

GCM Strategic Communications
Email: [email protected]

Media Contact:
Email: [email protected]
Phone: +86-757-6683-2507

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SOURCE Bright Scholar Education Holdings Ltd.

November 11, 2020 5:03 pm

Sienna Senior Living Inc. Provides Operations Update and Reports 2020 Third Quarter Financial Results

MARKHAM, Ontario, Nov. 11, 2020 (GLOBE NEWSWIRE) — Sienna Senior Living Inc. (“Sienna” or the “Company”) (TSX: SIA) today provided an update on its operations and announced its financial results for the three and nine months ended September 30, 2020. The Unaudited Condensed Interim Consolidated Financial Statements and accompanying Management’s Discussion and Analysis (“MD&A”) are available on the Company’s website at www.siennaliving.ca and on SEDAR at www.sedar.com.

“Eight months into the pandemic, we are continuing with our tireless efforts to fight COVID-19 and to minimize the impact of new outbreaks,” said Nitin Jain, President and Chief Executive Officer of Sienna. “While managing through a difficult environment, our initiatives have helped us adjust and strengthen our operations, made us more knowledgeable and better prepared in our response to the second wave, while maintaining our strong financial position. As we look beyond the pandemic, overall sector fundamentals remain strong. An aging population, long waiting lists for long-term care and a slowdown in future supply of retirement residences are all expected to support our sector’s outlook.”

Operations Update

Sienna has leveraged the knowledge and skills of Canada’s foremost health and long-term care experts and has invested in its frontline teams and processes to enhance the way it cares for its residents and to limit the spread of COVID-19.

COVID-19
C
ases – As of November 11, 2020, 14 residences of Sienna’s 83 owned or managed residences are in outbreak with active cases COVID-19, including 5 retirement and 9 long-term care residences.
Strengthened Resident Quality Platform
- Appoint
  
  ed
  
  Dr. Andrea Moser as Chief Medical Officer
  to lead and implement all aspects of medical services, build up Sienna’s virtual care capacity, and enhance our resident quality platform; and
- Establish
  
  ed
  
  Quality Committee
  to enhance oversight of key clinical quality and resident safety measures, including resident care, resident and team member satisfaction and safety;
- Join
  
  ing
  
  the
  
  Seniors Quality Leap Initiative
  to benchmark quality indicators against international standards and to participate in the sharing of best practices to improve clinical quality and quality of life for seniors.
Increased
Staffing – From March to October, Sienna added approximately 1,400 full-time and 1,100 part-time team members increasing net new hires by 800 and growing its total pool of full-time team members by 20% to over two thirds of Sienna’s workforce.
Launched Centralized
Call Centre – New call centre strengthens communications with residents and their families and support marketing efforts in retirement (“Retirement”) operations.
Improved
O
ccupancy
in
R
etirement
P
ortfolio – Occupancy in Sienna’s Retirement portfolio increased to 83.4% at the end of Q3 2020, a 180 basis point increase from 81.6% at the end of Q2 2020, as a result of intensified marketing and sales initiatives.
Pursuit of Long-Term Care Campus
Redevelopment – Sienna is actively pursuing the development of a new 320-bed long-term care campus to provide integrated care in partnership with Scarborough Health Network.

Third

Quarter

Operating and

Financial Performance

The Company’s financial performance has been significantly impacted by extraordinary expenses incurred to manage the pandemic in excess of government funding received. With the strength in overall fundamentals in the seniors living sector and the encouraging recent developments with respect to a potentially effective COVID-19 vaccine, coupled with Sienna’s solid balance sheet and liquidity, we are confident we will see significant improvements in the Company’s operational and financial performance once the pandemic subsides.

Revenue decreased by 0.7% to $166.9 million in Q3 2020, compared to Q3 2019;
Operating expenses, net were $137.9 million in Q3 2020, an increase of 7.9% compared to Q3 2019;
Total same property NOI decreased by 28.3% (or $11.4 million) to $29.0 million in Q3 2020, compared to Q3 2019, mainly due to net pandemic expenses of $7.2 million;
Net income decreased by $10.2 million year-over-year to a net loss of $6.5 million;
Average occupancy in Sienna’s Long-Term Care (“LTC”) portfolio was 87.4%;
Average same property occupancy in Sienna’s Retirement portfolio was 81.4%;
Operating Funds from Operations (“OFFO”) per share decreased by 44.2% year-over-year to $0.203 per share; excluding net pandemic expenses, OFFO per share decreased by 14.8% year-over-year to $0.310 per share;
Adjusted Funds from Operations (“AFFO”) per share decreased by 42.4% year-over-year to $0.212 per share; excluding net pandemic expenses, AFFO per share decreased by 14.9% year-over-year to $0.313 per share;
Payout ratio was 110.4% for the three months ended September 30, 2020; excluding net pandemic expenses, payout ratio was 74.8%.

Solid Financial Position

The Company maintained a strong financial position and debt rating during Q3 2020:

Confirmed the Company’s issuer rating of “BBB” with a “Stable” trend from DBRS, highlighting the Company’s high-quality balanced portfolio and sophisticated operating platform;
Liquidity increased to $210.3 million as at September 30, 2020, from $144.0 million as at December 31, 2019, comprised of cash and cash equivalents and available credit facilities; subsequent to Q3 2020, the Company repaid $30.0 million of its credit facilities; and
Weighted average cost of debt lowered by 40 basis points to 3.3% as at September 30, 2020, from 3.7% compared to September 30, 2019.

On October 2, 2020, Sienna successfully completed $275 million of debt financings which were used for general corporate purposes and to repay existing indebtedness, including the redemption of all of the outstanding 3.474% Series B Senior Secured Debentures due February 3, 2021. These financings significantly reduced near-term debt maturities, improved Sienna’s long-term debt ladder and resulted in further liquidity improvements, including:

Fair value of unencumbered asset pool increased to $840 million from $540 million as at September 30, 2020; and
Extending the Company’s weighted average term to maturity to 4.9 years on a pro forma basis from 4.0 years as at September 30, 2020.

Financial and Operating

Results

The following table represents key performance indicators for the periods ended September 30:

$000s except occupancy, per share and ratio data	Three months ended September 30, 2020			Three months ended September 30, 2019			Nine months ended September 30, 2020			Nine months ended September 30, 2019
Retirement – Average same property occupancy ⁽¹⁾⁽²⁾		81.4	%		86.9	%		8 3.2	%		88.6	%
Retirement – As at same property occupancy ⁽¹⁾⁽²⁾		83.4	%		86.3	%		8 3.4	%		86.3	%
LTC – Average total occupancy ⁽³⁾		87.4	%		98.2	%		9 2.6	%		98.3	%
LTC – Average private occupancy		86.3	%		98.0	%		9 1.7	%		98.1	%
Revenue	$	16 6 , 850		$	167,947		$	495,399		$	497,573
Operating expenses , net	$	13 7,895		$	127,785		$	398,042		$	378,570
NOI ⁽ ⁴ ⁾	$	28,955		$	40,162		$	97,357		$	119,003
Net (loss) income	$	(6, 484	)	$	3,763		$	(15,758	)	$	6,435
Operating Funds from Operations (OFFO) ⁽ ⁵ ⁾	$	1 3,624		$	24,208		$	54,741		$	69,132
Adjusted Funds from Operations (AFFO) ⁽ ⁵ ⁾	$	1 4,187		$	24,492		$	56,394		$	72,303
Net (loss) income per share	$	(0. 097	)	$	0.057		$	(0. 235	)	$	0.097
OFFO per share ⁽ ⁵ ⁾⁽ ⁶ ⁾	$	0. 2 03		$	0.364		$	0. 817			1.042
AFFO per share ⁽ ⁵ ⁾ ⁽⁶ ⁾	$	0.2 12		$	0.368		$	0. 842			1.089
Dividends declared per share	$	0.234		$	0.233		$	0. 702		$	0.692
Payout Ratio		110 .4	%		63.3	%		83.4	%		63.5	%

Notes:

(1) Retirement same property occupancy excludes the results from the expansion at Island Park Retirement Residence, which opened in July 2019 and is in lease-up. Retirement total average occupancy is 80.7% for Q3 2020 (2019 – 85.8%) and 82.3% for the nine months ended September 30, 2020 (2019 – 88.2%).
(2) The quarter-over-quarter and year-over-year declines in Retirement occupancy are primarily related to a decline in new residents moving in as a result of access restrictions and the general impact from the COVID-19 pandemic.
(3) Long-term care residences are receiving occupancy protection funding for vacancies caused by temporary closure of admissions due to an outbreak, including COVID-19, and for capacity limitations of two beds per room as residents cannot be placed in rooms with three or four beds.
(4) NOI for the three and nine months ended September 30, 2020 includes net pandemic expenses of $7,177 and $14,942, respectively.
(5) OFFO and AFFO for the three and nine months ended September 30, 2020 includes an after-tax mark-to-market expense (recovery) on share based compensation of $647 and ($3,189), respectively (2019 – after-tax (recovery) expense of ($155) and $1,065, respectively).
(6) OFFO and AFFO per share for the three months ended September 30, 2020 excluding the after-tax mark-to-market adjustments on share-based compensation would have increased by $0.010 to $0.213 and $0.222, respectively (2019 – increased by $0.002 to $0.362 and $0.366, respectively). OFFO and AFFO per share for the nine months ended September 30, 2020 excluding the after-tax mark-to-market adjustments on share-based compensation would have decreased by $0.048 to $0.769 and $0.794, respectively (2019 – increased by $0.016 to $1.058 and $1.105, respectively).

Financial and Operating Results

, excluding net pandemic expenses

The following table represents key performance indicators excluding net pandemic expenses for the periods ended September 30:

$000s except occupancy, per share and ratio data	Three months ended September 30, 2020			Three months ended September 30, 2019			Nine months ended September 30, 2020			Nine months ended September 30, 2019
Operating expenses , excluding net pandemic expenses ⁽¹⁾	$	13 0 , 718		$	127,785		$	3 83 , 100		$	378,570
NOI , excluding net pandemic expenses ⁽ ¹ ⁾	$	36 , 132		$	40,162		$	112 , 299		$	119,003
Net income (loss), excluding net pandemic expenses ⁽² ⁾	$	666		$	3,763		$	(695	)	$	6,435
Operating Funds from Operations (OFFO) , excluding net pandemic expenses ⁽ ² ⁾ ⁽⁴⁾	$	20 , 774		$	24,208		$	69 , 804		$	69,132
Adjusted Funds from Operations (AFFO) , excluding net pandemic expenses and pandemic capital expenditures ⁽ ³ ⁾ ⁽⁴⁾	$	20 , 926		$	24,492		$	71 , 901		$	72,303
Net income (loss) per share , excluding net pandemic expenses ⁽²⁾	$	0.0 10		$	0.057		$	(0.0 10	)	$	0.097
OFFO per share , excluding net pandemic expenses ⁽ ² ⁾ ⁽⁴⁾ ⁽ ⁵ ⁾	$	0. 310		$	0.364		$	1 . 042			1.042
AFFO per share , excluding net pandemic expenses and pandemic capital expenditures ⁽ ³ ⁾⁽ ⁴ ⁾ ⁽⁵⁾	$	0. 313		$	0.368		$	1 . 073			1.089
Payout Ratio , excluding net pandemic expenses ⁽⁶⁾		74 . 8	%		63.3	%		65 . 4	%		63.6	%

Notes:

(1) Operating expenses, same property NOI and total NOI for the three and nine months ended September 30, 2020 exclude net pandemic expenses of $7,177 and $14,942, respectively.
(2) Net income (loss) and OFFO for the three and nine months ended September 30, 2020 exclude net pandemic expenses (after tax) of $7,150 and $15,063, respectively.
(3) AFFO for the three months ended September 30, 2020 excludes net pandemic expenses (after tax) of $7,150 and pandemic capital recovery of $411. AFFO for the nine months ended September 30, 2020 excludes net pandemic expenses (after tax) of $15,063 and pandemic capital expenditures of $444.
(4) OFFO and AFFO for the three and nine months ended September 30, 2020 include an after-tax mark-to-market expense (recovery) on share-based compensation of $647 and ($3,189), respectively (2019 – after-tax (recovery) expense of ($155) and $1,065, respectively).
(5) OFFO and AFFO per share, excluding net pandemic expenses and pandemic capital expenditures for the three months ended September 30, 2020 and further excluding the after-tax mark-to-market adjustments on share-based compensation would have increased by $0.117 to $0.320 and by $0.111 to $0.323, respectively (2019 – increased by $0.002 to $0.362 and $0.366, respectively). OFFO and AFFO per share, excluding net pandemic expenses and pandemic capital expenditures for the nine months ended September 30, 2020 further excluding the after-tax mark-to-market adjustments on share-based compensation would have increased by $0.177 to $0.994 and by $0.183 to $1.025, respectively (2019 – increased by $0.016 to $1.058 and $1.105, respectively).
(6) Payout ratio, excluding net pandemic expenses for the three and nine months ended September 30, 2020 and further excluding mark-to-market adjustments on share-based compensation (after tax) would be 72.6% and 68.5%, respectively.

2020

Third

Quarter

Summary

Average o
ccupancy in LTC was 87.4% in Q3 2020, a decrease from 98.2% in Q3 2019. Long-term care residences are fully funded for vacancies caused by temporary closure of admissions due to an outbreak, including COVID-19, and for capacity limitations of two beds per room as residents cannot be placed in rooms with three or four beds. The Governments of Ontario and British Columbia have announced that the occupancy protection funding will be in place for long-term care residences until December 31, 2020. This funding protection does not compensate for the loss of preferred accommodation premiums from private and semi-private room vacancies.

Average
same property
o
ccupancy in
Retirement was 81.4% in Q3 2020, a decrease from 86.9% in Q3 2019, primarily related to a decline in new residents moving in due to the impact of the COVID-19 pandemic, including access restrictions.

The following table provides an update on the monthly average same property occupancy and rent collections in Sienna’s Retirement portfolio during and subsequent to the end of Q3 2020:

	2020
	July		Aug		Sep		Oct
Retirement same property occupancy (average)	81.2	%	81.1	%	81.7	%	82.7	%
Retirement rent collection (%)	99.8	%	99.6	%	99.4	%	99.5	%

Improvements in the average monthly occupancy rates in September and October were the result of a successful marketing and sales campaign ahead of the second wave. As at October 31, 2020, Retirement same property occupancy was 81.9%, reflecting the impact of the second wave of COVID-19, including reinstated access restrictions.

NOI decreased by 27.9% (or $11.2 million) to $28.9 million in Q3 2020, compared to Q3 2019, mainly due to net pandemic expenses of $7.2 million. Excluding net pandemic expenses, NOI decreased by 10.0% (or $4.0 million) to $36.1 million mainly due to softness in Retirement occupancy, lower LTC preferred accommodation revenue from vacancies in private and semi-private accommodations during the COVID-19 pandemic, annual inflationary increases in labour costs and higher property expenses, partially offset by annual rental rate increases in Retirement.

The following table summarizes the government assistance and pandemic expenses recognized for the three and nine months ended September 30, 2020:

	Three months ended				Ni n e months ended
	September 30, 2020				September 30, 2020
	Retirement	LTC	Administrative	Total	Retirement	LTC	Administrative	Total
Total government assistance	2,594	24,905	—	27,499	4,735	48,492	—	53,227

Total pandemic expenses	3,382	31,294	2,560	37,236	6,909	61,260	5,572	73,741

Total net pandemic expenses	788	6,3 89	2, 560	9 , 737	2 , 174	12 , 768	5 , 572	2 0, 514

Included in total government assistance and total pandemic expenses in the table above is government-funded flow-through pandemic pay for frontline team members. In the Retirement segment, a total of $1,856 and $3,285, respectively, and in the Long-Term Care segment, a total of $11,776 and $22,716, respectively, of flow-through temporary pandemic pay was recognized for the three and nine months ended September 30, 2020.

LTC same property NOI decreased by 35.9% (or $8.4 million) to $14.9 million in Q3 2020, compared to Q3 2019, mainly due to net pandemic expenses of $6.4 million. Excluding net pandemic expenses, LTC same property NOI for Q3 2020 decreased by 8.5% or $2.0 million to $21.3 million, compared to Q3 2019, primarily due to lower preferred accommodation revenue from vacancies in private and semi-private accommodations during the COVID-19 pandemic, annual inflationary increases in labour costs, and higher property expenses.

Retirement same property NOI decreased by 17.7% (or $3.0 million) to $13.9 million in Q3 2020, compared to Q3 2019, including net pandemic expenses of $0.8 million recognized in Q3 2020. Excluding net pandemic expenses, Retirement same property NOI for Q3 decreased by 13.1% (or $2.2 million) to $14.7 million, compared to Q3 2019, primarily attributable to lower occupancy, annual inflationary increases in labour costs and higher property expenses, partially offset by annual rental rate increases in line with market conditions.

Revenue decreased by 0.7% (or $1.1 million) to $166.9 million in Q3 2020, compared to Q3 2019. In the Retirement segment, the decrease of $0.9 million was mainly a result of occupancy softness, partially offset by annual rental rate increases. LTC’s revenues decreased by $0.2 million. However, $1.6 million of government funding, which would have typically been included in LTC revenues, has been recorded against eligible operating expenses related to the pandemic.

Operating
expenses
, net increased by 7.9% (or $10.1 million) to $137.9 million in Q3 2020, compared to Q3 2019. The increase was mainly a result of net pandemic expenses of $7.2 million, annual inflationary increases in labour costs and higher property expenses.

The Company generated a net loss of $6.5 million in Q3 2020, representing a decrease of $10.3 million compared to Q3 2019. The decrease was primarily related to net pandemic expenses, non-recurring restructuring costs, softer Retirement occupancy and mark-to-market adjustments on share-based compensation, partially offset by annual rental rate increases in Retirement, lower interest expense and lower income taxes.

OFFO decreased by 43.7% (or $10.6 million) to $13.6 million in Q3 2020, compared to Q3 2019. The decrease was primarily due to net pandemic expenses of $9.7 million, softer Retirement occupancy, an increase in share-based compensation from mark-to-market adjustments of $1.1 million, annual inflationary increases in labour costs and higher property expenses, partially offset by annual rental rate increases in Retirement, lower interest expense and lower current income taxes of $4.1 million.

A
FFO decreased by 42.1% (or $10.3 million) to $14.2 million in Q3 2020, compared to Q3 2019. The decrease was primarily related to the decrease in OFFO noted above and timing of funding for pandemic related capital expenditures.

2020

Nine

Months Summary

NOI decreased by 18.2% (or $21.6 million) to $97.4 million over the comparable prior year period, mainly due to net pandemic expenses of $14.9 million. Excluding net pandemic expenses, NOI decreased by 5.6% (or $6.7 million) to $112.3 million mainly due to lower Retirement occupancy.

LTC same property NOI decreased by 22.0% (or $14.7 million) year-over-year, primarily attributable to net pandemic expenses of $12.8 million. Excluding net pandemic expenses, LTC same property NOI for the nine months ended September 30, 2020 decreased by 2.9% (or $1.9 million) to $64.9 million, over the comparable prior year period, mainly due to lower preferred accommodation revenue from vacancies in private and semi-private accommodations during the COVID-19 pandemic, annual inflationary increases in labour costs and higher property expenses.

Retirement same property NOI decreased 14.0% (or $7.3 million) year-over-year, including net pandemic expenses of $2.2 million recognized for the nine months ended September 30, 2020. Excluding net pandemic expenses, Retirement same property NOI for the nine months ended September 30, 2020 decreased by 9.9% (or $5.1 million) to $47.0 million, over the comparable prior year period, primarily attributable to lower occupancy, annual inflationary increases in labour costs and higher property expenses, partially offset by annual rental rate increases in line with market conditions.

Revenue decreased by 0.4% (or $2.2 million) to $495.4 million over the comparable prior year period. In the Retirement segment, the decrease of $2.4 million was due to lower Retirement occupancy, partially offset by annual rental rate increases in line with market conditions. LTC’s revenues increased by $0.2 million due to annual inflationary increases, partially offset by $6.7 million of government funding, which would have typically been included in LTC revenues, has been recorded against eligible operating expenses related to the pandemic and lower LTC preferred accommodation revenue from vacancies in private and semi-private accommodations during the COVID-19 pandemic.

Operating expenses, net increased by 5.1% (or $19.5 million) to $398.0 million over the comparable prior year period. The increase was mainly a result of net pandemic expenses of $14.9 million, annual inflationary increases in labour costs and higher property expenses.

The Company generated a net loss of $15.8 million, representing a decrease of $22.2 million over the comparable prior year period. The decrease was primarily related to net pandemic expenses and non-recurring restructuring costs, partially offset by lower income taxes and mark-to-market adjustments on share-based compensation.

OFFO decreased by 20.8% (or $14.4 million) to $54.7 million over the comparable prior year period. The decrease was primarily attributable to net pandemic expenses of $20.5 million, softer Retirement occupancy and annual inflationary increases in labour costs and higher property expenses, partially offset by annual rental rate increases in Retirement, a decrease in share-based compensation from mark-to-market adjustments of $5.8 million, lower interest expense and lower current income taxes of $8.0 million.

AFFO decreased by 22.0% (or $15.9 million) to $56.4 million over the comparable prior year period, mainly due to the increase in OFFO noted above, timing of maintenance capital expenditures and pandemic related capital expenditures in excess of government assistance.

Conference Call

The conference call will be on Thursday November 12, 2020 at 9:30 a.m. (ET). The toll-free dial-in number for participants is 1-844-543-5234, conference ID: 5877615. A webcast of the call will be accessible via Sienna’s website at: www.siennaliving.ca/investors/events-presentations. The webcast of the call will be available for replay until November 12, 2021 and archived on Sienna’s website.

About Sienna Senior Living

Sienna Senior Living Inc. (TSX:SIA) offers a full range of seniors’ living options, including independent living, assisted living, long-term care, and specialized programs and services. Sienna’s approximately 13,000 employees are passionate about helping residents live fully every day. For more information, please visit www.siennaliving.ca.

Risk Factors

Refer to the risk factors on “General Business Risks” and “COVID-19 and Other Outbreaks” disclosed in the Company’s MD&A for the three and nine months ended September 30, 2020, and other risk factors disclosed in its most recent annual MD&A and Annual Information Form for more information.

Forward-Looking Statements

Certain of the statements contained in this news release are forward-looking statements and are provided for the purpose of presenting information about management’s current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. These statements generally use forward-looking words, such as “anticipate,” “continue,” “could,” “expect,” “may,” “will,” “estimate,” “believe,” “goals” or other similar words and include,
without limitation
, statements with respect to
business strategy and financial condition, and in particular in respect of the impact of COVID-19
and measures taken to mitigate the impact, supply-chain integrity and availability of PPE,
the availability of various government programs
, government funding
and financial assistance
.
These statements are subject to significant known and unknown risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied by such statements and, accordingly, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. The forward-looking statements in this news release are based on information currently available and what management currently believes are reasonable assumptions. The Company does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Karen Hon
Chief Financial Officer and Senior Vice President
(905) 489-0254
[email protected]

Nancy Webb
Senior Vice President, Public Affairs and Marketing
(905) 415-7623
[email protected]

November 11, 2020 5:03 pm

Delta 9 Reports Financials for Q3 2020

WINNIPEG, Manitoba, Nov. 11, 2020 (GLOBE NEWSWIRE) — DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: VRNDF) (“Delta 9” or the “Company”), is pleased to announce financial and operating results for the three-month and nine-month period ending September 30, 2020.

Financial Highlights for
the three-month and nine-month period ending September 30
, 20
20

Net revenue of $13.1 million for the third quarter of 2020, an increase of 97%, from $6.7 million for the same quarter last year.
- Net revenue of $37.9 million for the first nine months of 2020, an increase of 79%, from $21.2 million for the same period last year.
Gross profit of $3.96 million for the third quarter of 2020, an increase of 95%, from $2.03 million for the same quarter last year.
- Gross profit of $13.5 million for the first nine months of 2020, an increase of 98%, from $6.8 million for the same period last year.
Net income (loss) from operations and Adjusted EBITDA (loss) was $(5.5) million and $(0.5) million respectively for the third quarter of 2020, largely a result of an unrealized loss on the fair value of biological assets in inventory, a non-cash item.
- Net income (loss) from operations and Adjusted EBITDA for the first nine months of 2020 was a loss of $(0.4) million and gain of $1.9 million respectively.
The Company reported a strong financial position, with $7.2 million in cash, $25.6 million in working capital and total assets of $77.5 million.

Adjusted EBITDA is a non-IFRS measure, and is calculated as earnings before interest, tax, depreciation and amortization, share-based compensation expense, fair value changes and other non-cash items.

“Management believes that, given the relative novelty and uncertainty of the global cannabis industry, the Company’s diversified revenue and vertical integration approaches will allow it to better react to market challenges than its competitors with single business strategies,” said John Arbuthnot, CEO. “Management is confident that its renewed focus on revenue growth, gross profitability, and prudent cost controls will return the Company to profitability over the coming quarters.”

3
^nd
Quarter
and Subsequent
Operational Highlights

November 9, 2020, Delta 9 closed a transaction with Auxly Cannabis Group Inc. and Kolab Project Inc. to acquire a retail cannabis store in Lloydminster, Saskatchewan. The purchase price of $875,000 was satisfied through the issuance of 1,282,270 common shares of the Company (“Common Shares”) at a deemed price per Common Share of $0.5849 ($750,000) and $125,000 in cash, less customary adjustments. Delta 9’s strategy of vertical integration is further strengthened with the move into Saskatchewan, and unites Delta 9’s Western Canada retail strategy by joining its existing Manitoba and Alberta retail presence, and expands its base for future expansion opportunities.
October 20, 2020, Delta 9 announced that the Toronto Stock Exchange (“TSX”) approved the Company’s normal course issuer bid (the “NCIB”). Under the NCIB, the Company can purchase: (i) up to an aggregate of 2,802,503 Common Shares, representing 5% of the public float of Common Shares as at October 20 2020; and (ii) up to an aggregate of $1,180,000 principal amount of 8.5% unsecured convertible debentures of the Company (“Debentures”), representing 10% of the public float of Debentures as at October 20, 2020.
September 9, 2020, Delta 9 opened it 5th retail store in Manitoba. At 4,000 square feet, the newest Delta 9 Cannabis Store is located in one of Southwest Winnipeg’s premier shopping destinations with high traffic anchors including Dollarama, Walmart, Home Depot, Safeway, Home Sense and Tim Hortons. The traffic corridor in Southwest Winnipeg sees approximately over 50,000 vehicles every day. The new store is the largest cannabis retail store in the area, offering customers an open and modern shopping décor, highly trained staff and a wide range of products, including dried cannabis flower, cannabis oil, edibles, drinkables, vape pens, concentrates and a full assortment of cannabis accessories. Delta 9 now has five retail stores in Manitoba and eight in total across Canada.

“Our three-prong growth strategy for revenue going forward will focus on expanding our retail store network and continue to market our price leadership strategy at new and existing stores,” said John Arbuthnot, CEO of Delta 9. “We will continue to build momentum in the cannabis wholesale segment with a focus on expanding product distribution in Delta 9’s six provincial markets and continue to expand B2B business with a focus on creating relationships in the Canadian micro cultivation industry and expansion into emerging markets.”

Summary of Quarterly Results:

Consolidated Statement of Net Income (Loss)	Q4 2019	Q1 2020	Q2 2020	Q3 2020
Revenue	$ 10,585,484	$ 11,753,406	$ 13,013,610	$ 13,130,320
Cost of Sales	7,356,889	6,858,370	8,394,239	9,168,026
Gross Profit Before Unrealized Gain From Changes In Biological Assets	3,228,595	4,895,036	4,619,371	3,962,294
Unrealized gain from changes in fair value of biological assets (Net)	1,991,398	2,761,873	2,460,490	(2,338,699)
Gross Profit	$ 5,219,993	$ 7,656,909	$ 7,079,861	$ 1,623,595

Expenses
General and Administrative	3,118,669	3,198,840	3,676,326	4,047,063
Sales and Marketing	1,385,700	1,243,115	1,534,875	1,753,461
Share Based Compensation	234,503	314,231	174,779	776,705
Total Operating Expenses	$ 4,738,872	$ 4,756,186	$ 5,385,980	$ 6,577,229

Adjusted EBITDA (Loss) ¹	(91,760)	1,650,398	706,469	(474,039)
Income (Loss) from Operations	$ 481,121	$ 2,900,723	$ 1,693,881	$ (4,953,634 )
Other Income/ Expenses	(696,667)	(711,538)	(262,364)	(595,547)
Net Income (Loss)	$ (215,556 )	$ 2,189,185	$ 1,431,517	$ (5,549,181 )
Basic and Diluted Earnings (Loss) Per Share	$ (0.01 )	$ 0.02	$ 0.01	$ (0.07 )

Adjusted EBITDA is a non-IFRS measure, and is calculated as earnings before interest, tax, depreciation and amortization, share-based compensation expense, fair value changes and other non-cash items.

A comprehensive discussion of Delta 9’s financial position and results of operations is provided in the Company’s Management Discussion & Analysis for the three-month and nine-month period ending September 30, 2020 filed on SEDAR on November 11, 2020 and can be found at www.sedar.com.

2020 Third Quarter Results Conference Call

A conference call to discuss the above results is scheduled for November 12, 2020, pre-market. The conference call will be hosted that day at 9:00 a.m. Eastern Time by John Arbuthnot, Chief Executive Officer, and Jim Lawson, Chief Financial Officer, followed by a question and answer period.

DATE:	November 12, 2020

TIME:	9:00 am Eastern Time

Dial in #	1-888-886-7786

REPLAY:	1-877-674-6060 Available until 12:00 midnight Eastern Time, February 12, 2020

Replay passcode:	617905 #

For more information contact:

Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
Mobile: 204-898-7722
E-mail: [email protected]

About Delta 9 Cannabis Inc.

Delta 9 Cannabis Inc. is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market. The company sells cannabis products through its wholesale and retail sales channels and sells its cannabis grow pods to other businesses. Delta 9’s wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical and recreational cannabis and operates an 80,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9 owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand. Delta 9’s shares trade on the Toronto Stock Exchange under the symbol “DN” and on the OTCQX under the symbol “VRNDF”. For more information, please visit www.delta9.ca.

Disclaimer for Forward-Looking Information

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company’s future business plans and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include statements relating to: (i) management’s expectations with respect to the Company’s financial results; and (ii) the Company’s future expansion plans. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including all risk factors set forth in the annual information form of Delta 9
dated March 19, 2020 which has been filed on SEDAR. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are urged to consider these factors carefully in evaluating the forward-looking statements contained in this news release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. These forward-looking statements are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.

November 11, 2020 5:03 pm

IMAC Holdings, Inc. Expands Missouri Footprint with Acquisition of Lockwood Chiropractic in Webster Groves

BRENTWOOD, Tenn, Nov. 11, 2020 (GLOBE NEWSWIRE) — IMAC Holdings, Inc. (Nasdaq: IMAC) (“IMAC” or “the Company”), a provider of innovative medical advancements and care specializing in regenerative rehabilitation orthopedic treatments without the use of surgery or opioids, today announces the acquisition of Lockwood Chiropractic in Webster Groves, Mo.

With historical six-figure revenue as a chiropractic clinic and a presence in the community since 1990, the purchase of Lockwood Chiropractic’s assets represents an expansion of the Ozzie Smith Center brand within an established community near downtown St. Louis. The owner of the clinic, Sharon Whalen, D.C., will join IMAC’s team and continue to run the clinic in Webster Groves.

“The addition of the Lockwood clinic provides us with better access to St. Louis patients and is a turn-key opportunity, as the existing infrastructure and existing staff will deliver an immediate and seamless transition. Concurrently, our existing Ozzie Smith Center in St. Louis may help us to grow the Lockwood center and provide our services to an even wider patient base outside that city,” said Matthew Wallis, chief operations officer of IMAC. “The Lockwood acquisition is an excellent model for our expansion strategy to partner with successful clinic owners with a loyal clientele. We believe that this is an excellent example of managing cash outlay while expanding our patient base.”

The transition is scheduled to occur on Monday, November 16, 2020. Prospective patients may call 855-OZZIE01 to learn more about IMAC services.

About IMAC Holdings, Inc.

IMAC Holdings was created in March 2015 to expand on the footprint of the original IMAC Regeneration Center, which opened in Kentucky in August 2000. IMAC Regeneration Centers combine life science advancements with traditional medical care for movement restricting diseases and conditions. IMAC owns or manages 15 outpatient clinics that provide regenerative, orthopedic and minimally invasive procedures and therapies. It has partnered with several active and former professional athletes, opening six Ozzie Smith IMAC Regeneration Centers, two David Price IMAC Regeneration Centers, as well as Mike Ditka IMAC Regeneration Centers and a Tony Delk IMAC Regeneration Center. IMAC’s outpatient medical clinics emphasize its focus around treating sports and orthopedic injuries and movement-restricting diseases without surgery or opioids. More information about IMAC Holdings, Inc. is available at www.imacregeneration.com.

# # #

Safe Harbor Statement

This press release contains forward-looking statements. These forward-looking statements, and terms such as “anticipate,” “expect,” “believe,” “may,” “will,” “should” or other comparable terms, are based largely on IMAC’s expectations and are subject to a number of risks and uncertainties, certain of which are beyond IMAC’s control. Actual results could differ materially from these forward-looking statements as a result of, among other factors, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the skills and experience necessary to meet customers’ requirements, and its ability to protect its intellectual property. IMAC encourages you to review other factors that may affect its future results in its registration statement and in its other filings with the Securities and Exchange Commission. In light of these risks and uncertainties, there can be no assurance that the forward-looking information contained in this press release will in fact occur.

IMAC Press Contact:
Laura Fristoe
[email protected]

Investor Relations:
Bret Shapiro
(516) 222-2560
[email protected]

November 11, 2020 5:03 pm

Healthcare Services Group, Inc. Announces Leadership Updates

Healthcare Services Group, Inc. Announces Leadership Updates

BENSALEM, PA–(BUSINESS WIRE)–
Healthcare Services Group, Inc. (NASDAQ:HCSG) (the “Company”) announced that Michael E. McBryan, Chief Revenue Officer, will be retiring at year end. Mr. McBryan will continue to serve the Company in an advisory capacity and as a member of the Board of Directors. Patrick J. Orr, currently serving as Senior Vice President of Financial Services, will assume the role of Chief Revenue Officer as of January 1, 2021. Mr. Orr will be focused on optimizing the Company’s talent, expertise and leadership across its revenue life cycle including sales and contracts, customer relationships, and billing and collections.

Mr. McBryan started with HCSG in 1988 as a Manager-In-Training in the Philadelphia area and rose through various roles in operations and sales, making significant contributions to the growth and success of the Company. Most recently, he has been instrumental in the development and leadership of the Revenue Office, which he has championed since its inception.

Ted Wahl, Chief Executive Officer, stated, “There are certainly mixed emotions for all of us as Mike moves on to the next phase of his life. On behalf of the entire HCSG family, I would like to thank Mike for his years of dedicated service and the many lasting contributions he leaves as his legacy.”

Mr. Orr joined HCSG in 2014 as Vice President of Financial Services and has since served as the leader of Financial Services, making significant contributions as the head of that group and a member of the Senior Leadership Team. Prior to joining the Company in 2014, Mr. Orr was a partner at the law firm of Klestadt & Winters, LLP in New York, where he advised clients in evaluating and navigating complex business transactions.

Mr. Wahl, added, “Pat is a growth-oriented leader and has significantly enhanced our Financial Services department since his arrival, most notably as the architect of our weekly customer payment model. He has played an integral role in supporting client relationships and new business opportunities. Pat’s background and intimate knowledge of the industry and our customer base uniquely positions him to lead effectively, work collaboratively and drive results.”

View source version on businesswire.com: https://www.businesswire.com/news/home/20201111005882/en/

Theodore Wahl

President and Chief Executive Officer

Matthew J. McKee

Chief Communications Officer

215-639-4274

[email protected]

KEYWORDS: United States North America Pennsylvania

INDUSTRY KEYWORDS: Managed Care Hospitals Health Nursing

MEDIA:

Logo

November 11, 2020 5:03 pm

D-BOX Technologies Reports Second Quarter and reaches a significant milestone in its home entertainment strategy

LONGUEUIL, Quebec, Nov. 11, 2020 (GLOBE NEWSWIRE) — D-BOX Technologies Inc. (TSX: DBO), a world leader in haptic and immersive entertainment experiences, announced today its financial results for the second quarter ended September 30, 2020. All amounts in this press release are in Canadian dollars.

FINANCIAL HIGHLIGHTS

Highlights for the Second Quarter Ended September 30, 2020

Cash and cash equivalents was $5.0 million as at September 30, 2020 compared to $4.1 million as at March 31, 2020, while during the same period, cash flow provided by working capital has generated $2.6 million, the line of credit balance decreased by $1.0 million and long-term debt increased by $2.0 million.
Total revenues decreased to $2.9 million from $6.3 million for the same period last year as a result of the adverse impact of the COVID-19 pandemic.
Net loss remained flat at $0.9 million compared to the same period last year.
Adjusted EBITDA* decreased to ($0.6) million from $0.1 million for the same period last year.

Highlights for the six-month period ended September 30, 2020

Total revenues decreased to $5.1 million from $13.9 million for the same period last year as a result of the adverse impact of the COVID-19 pandemic.
Net loss increased to $1.9 million from $1.5 million for the same period last year.
Adjusted EBITDA* decreased to ($0.7) million from $0.3 million for the same period last year.

This quarter’s results continued to be impacted by the COVID-19 global pandemic, but the Corporation made progress on generating royalties as some movie theatres have resumed its activities. While we do not know the future impact COVID-19 will have on our business, or when our business will fully return to normal operations, the Corporation expects to see a continued impact from COVID-19 on its results in the upcoming quarters, especially in the commercial entertainment business where some commercial entertainment venues are forced to close temporarily.

Second quarter and Six-month period ended September 30 (in thousands of dollars, except per share amounts)
	Second Quarter				Six-month Period
	2020		2019		2020		2019
Revenues	2,917		6,329		5,146		13,862
Net loss	(954	)	(933	)	(1,920	)	(1,539	)
Adjusted EBITDA*	(571	)	114		(667	)	329
Basic and diluted net loss per share	(0.005	)	(0.005	)	(0.010	)	(0.008	)
Information from the consolidated balance sheet
	As at September 30, 2020				As at March 31, 2020
Cash and cash equivalents	4,979				4,116

* See the “Non-IFRS” measures” section in the Management’s Discussion and Analysis dated November 11, 2020.

“We are pleased with the progress that D-BOX has accomplished on multiple fronts in the past few months. Ensuring a healthy balance sheet has always been a top priority and we are proud that we have been able to manage our spending and get some additional financing to maintain a cash position that is greater than at the beginning of the COVID-19 pandemic. With the expectation of a progressive recovery of our recurring revenue from the theatrical market in the next months and the future contribution of home entertainment revenue, we are cautiously optimistic that the brunt of the situation is at a tail end,” mentioned Mr. Sébastien Mailhot, President and CEO of D-BOX.

“This quarter, recovery on our business has been encouraging with total revenues growing at 31% sequentially between Q2 over Q1. The simulation and training segments grew 44% sequentially and 17% compared to the same period last year in large part due to the increasing penetration of simracing at home and great value proposition of our simulation and training offering. With the recent endorsement of the FIA, we do expect to see continued sequential growth,” stated Mr. Mailhot.

“Our long-awaited immersive and haptic home entertainment system is now ready! We are proud to launch a home entertainment recliner, in partnership with Jaymar, that will integrate D-BOX’s haptic technology. It is an important milestone given the size of the market opportunity; U.S. consumers spent over $25 billion in 2019, up 8.4% from the year before, in home entertainment streaming services, video-on-demand and electronic title purchases. By leveraging D-BOX’s strong brand and market leadership in haptics, D-BOX has a unique opportunity to enhance the experience of consumers by providing a true-to-life experience from their home. Consumers will be able to enjoy over 2,000 pieces of content and growing, including movies, TV series, music, video games, and a relaxation mode. Over time, D-BOX will add new content types of all sorts and will constantly update the existing content. The movements, vibrations and textures will make entertainment lovers feel their favorite theme park ride, the beats of a live concert or experience floating on the moon. The possibilities are endless!” added Mr. Mailhot.

In other news, the Corporation is pleased to announce the appointment this day of Eve Laurier to the Corporation’s Board of Directors. Mrs. Laurier brings more than 20 years of experience in communication and marketing strategy. Currently, she is General Manager of Edelman Montreal’s communications firm and is also a member of Edelman Canada’s management team, a global public relations firm. Prior to joining Edelman, Mrs. Laurier worked for Richter, an accounting and financial consulting firm, where she held the position of Vice-President, Strategic Relations. In 2020, she earned the ‘Revelation’ of the Quebec Association of Women in Finance, as well as a finalist at the Mercuriades for the Women of Exception Award. Mrs. Laurier holds an Executive MBA from McGill University and HEC Montréal. As well, she sits on the board of the Marie-Vincent Foundation (2017) and the Metropolitan Orchestra (2017). “We welcome Mrs. Laurier to D-BOX’s board. Her appointment comes with perfect timing, just as we are about to launch our home entertainment strategy. Her
strong credentials in communications and marketing and her vast business network will be a great asset as we maximize D-BOX awareness”, stated Mr. Denis Chamberland.

OPERATIONAL HIGHLIGHTS

D-BOX and Jaymar, a leading manufacturer of upholstered furniture in Canada, partnered to offer consumers a recliner which integrates D-BOX haptic technology, providing fans of series, movies and video games with immersive and haptic experiences.
Part of its gaming strategy, D-BOX has been locking a lineup of video game franchises such as Ubisoft latest Assassin’s Creed Valhalla, Microsoft’s Flight Simulator, and Slightly Mad Studios’ Project CARS 3.
The Fédération Internationale de l’Automobile (FIA), the governing body of motor sport and mobility, announced the exclusive endorsement of D-BOX products. The D-BOX haptic system enables drivers to feel an incredibly powerful and reliable simulator that responds precisely to any in-game situation. The experience features subtle cues based on pavement variations, vehicle physics, acceleration, deceleration, braking, cornering, suspension feedback, traction, weather conditions and speed.

ADDITIONAL INFORMATION

The financial information relating to the second quarter ended September 30, 2020 should be read in conjunction with the Corporation’s unaudited condensed consolidated financial statements and the Management’s Discussion and Analysis dated November 11, 2020. These documents are available at www.sedar.com.

RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)*

Adjusted EBITDA provides useful and complementary information, which can be used, in particular, to assess profitability and cash flows from operations. It consists of net income (loss) excluding amortization, financial expenses net of income, income taxes, impairment charges, share-based payments, foreign exchange loss (gain) and non-recurring expenses related to restructuring costs. The following table reconciles adjusted EBITDA to net loss:

All amounts are in thousands of Canadian dollars

	Second quarter ended September 30				Six-month Period ended September 30
	2020		2019		2020		2019
Net loss	(954	)	(933	)	(1,920	)	(1,539	)
Amortization of property and equipment	401		439		876		856
Amortization of intangible assets	189		204		380		462
Amortization of other assets	—		1		—		2
Loss on disposal of property and equipment	—		2		—		2
Financial expenses (income)	98		280		191		373
Income taxes (recovery)	(1	)	6		(1	)	(1	)
Share-based payments	31		16		77		61
Foreign exchange loss(gain)	(335	)	99		(270	)	113
Adjusted EBITDA	(571	)	114		(667	)	329

* See the “Non-IFRS measures” section in the Management’s Discussion and Analysis dated November 11, 2020.

ABOUT D-BOX

D-BOX redefines and creates realistic, haptic and immersive entertainment experiences by providing feedback to the whole body and sparking the imagination through motion. Haptic essentially allows to feel sensations that would be felt if the body was interacting directly with physical objects. D-BOX has collaborated with some of the best companies in the world to deliver new ways to enhance great stories. Whether it’s movies, video games, virtual reality applications, themed entertainment or professional simulation, D-BOX creates a feeling of presence that makes life resonate like never before.

D-BOX Technologies Inc. (TSX: DBO) is headquartered in Montreal with offices in Los Angeles, USA and Beijing, China. Visit d-box.com

DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS

This news release contains statements that may constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding the future plans, activities, objectives, operations, strategy, financial performance and condition of the Corporation, or the assumptions underlying any of the foregoing. In this news release, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur. Forward-looking information is based on information available at the time and/or management’s good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Corporation’s control.

These risks, uncertainties and assumptions include, but are not limited to, those described under “Risk Factors” in the Corporation’s Annual Information Form for the fiscal year ended March 31, 2020, a copy of which is available on SEDAR at www.sedar.com, and could cause actual events or results to differ materially from those projected in any forward-looking statements. The Corporation does not intend, nor does the Corporation undertake any obligation, to update or revise any forward-looking information contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.

FOR FURTHER INFORMATION,
PLEASE CONTACT:

David Montpetit
Chief Financial Officer
D-BOX Technologies Inc.
450 442-3003, ext. 296
[email protected]

Steve Li
Vice President Investor Relations and Corporate Strategy
D-BOX Technologies Inc.
450 442-3003, ext. 403
sli@d-box.com

November 11, 2020 5:03 pm

Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Credit Acceptance Corporation, Precigen, Royal Caribbean, and Mesoblast and Encourages Investors to Contact the Firm

NEW YORK, Nov. 11, 2020 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Credit Acceptance Corporation (NASDAQ: CACC), Precigen, Inc. f/k/a Intrexon Corporation (NASDAQ: PGEN; XON), Royal Caribbean Group (NYSE: RCL), and Mesoblast Limited (NASDAQ: MESO). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link

Credit Acceptance Corporation (NASDAQ: CACC)

Class Period: November 1, 2019 to August 28, 2020

Lead Plaintiff Deadline: December 1, 2020

Credit Acceptance provides financing programs, and related products and services to independent and franchised automobile dealers in the United States. These programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing, as 95% of Credit Acceptance’s loans are considered subprime. The Company’s tag line is “We change lives!” and the Company asserts its financing programs give consumers “a second chance” in improving their credit scores.

The ugly truth about the Company’s predatory and illegal business practices was revealed on August 28, 2020 when the Massachusetts Attorney General filed the Mass AG Complaint against Credit Acceptance alleging that Credit Acceptance has, for years, been making unfair and deceptive automobile loans to thousands of Massachusetts consumers. In addition, the lawsuit specifically alleges that Credit Acceptance provided its investors with false and/or misleading information regarding the asset-backed securitizations they offered to investors, and that the Company engaged in unfair debt collection practices as well.

In response to the public disclosure of the Mass AG Complaint, Credit Acceptance’s stock price fell $85.36 per share, or over 18%, to close at $374.07 per share over two trading days ending on September 1, 2020.

The complaint, filed on October 2, 2020, alleges that defendants failed to disclose to investors: (i) that the Company was topping off the pools of loans that they packaged and securitized with higher-risk loans; (ii) that Credit Acceptance was making high interest subprime auto loans to borrowers that the Company knew borrowers would be unable to repay; (iii) that the borrowers were subject to hidden finance charges, resulting in loans exceeding the usury rate ceiling mandated by state law; (iv) that Credit Acceptance took excessive and illegal measures to collect debt from defaulted borrowers; (v) that, as a result, the Company was likely to face regulatory scrutiny and possible penalties from various regulators or lawsuits; and (vi) that, as a result of the foregoing, defendants positive statements about the Company’s business, operations, and adherence to appropriate laws and regulations were materially misleading and/or lacked a reasonable basis.

For more information on the Credit Acceptance class action go to: https://bespc.com/cases/CACC

Precigen, Inc. f/k/a Intrexon Corporation (NASDAQ: PGEN; XON)

Class Period: May 10, 2017 to September 25, 2020

Lead Plaintiff Deadline: December 4, 2020

On September 25, 2020, the U.S. Securities and Exchange Commission (“SEC”) issued a cease and desist order against Precigen. The cease and desist order involved “inaccurate reports concerning the company’s purported success converting relatively inexpensive natural gas into more expensive industrial chemicals using a proprietary methane bioconversion (‘MBC’) program.” The order noted that the Company was “primarily using significantly more expensive pure methane for the relevant laboratory experiments but was indicating that the results had been achieved using natural gas.” The cease-and-desist order further stated that although the Company “pitched the MBC program privately to numerous potential business partners over the course of 2017 and 2018” and “[a] number of these potential partners performed due diligence on the MBC program including reviewing lab results and plans for commercialization. [The Company] has not yet found a partner for the MBC program.”

The complaint, filed on October 5, 2020, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose to investors that: (1) the Company was using pure methane as feedstock for its announced yields for its methanotroph bioconversion platform instead of natural gas; (2) yields from natural gas as a feedstock were substantially lower than the aforementioned pure methane yields; (3) due to the substantial price difference between pure methane and natural gas, pure methane was not a commercially viable feedstock; (4) the Company’s financial statements for the quarter ended March 31, 2018 were false and could not be relied upon; (5) the Company had material weaknesses in its internal controls over financial reporting; (6) the Company was under investigation by the SEC since October 2018; and (7) as a result of the foregoing, defendants’ public statements were materially false and misleading at all relevant times.

For more information on the Precigen class action go to: https://bespc.com/cases/PGEN

Royal Caribbean Group (NYSE: RCL)

Class Period: February 4, 2020 to March 17, 2020

Lead Plaintiff Deadline: December 7, 2020

The complaint, filed on October 7, 2020, alleges that throughout the Class Period defendants failed to disclose material facts about the Company’s decrease in bookings outside China, instead maintaining that it was only experiencing a slowdown in bookings from China. The Action further alleges that defendants failed to disclose material facts about the Company’s inadequate policies and procedures to prevent the spread of COVID-19 on its ships. The truth about the scope of the impact that COVID-19 had on the Company’s overall bookings and the inability of Royal Caribbean to prevent the virus’ spread on its ships was revealed through a series of disclosures.

First, on February 13, 2020, Royal Caribbean issued a press release stating that it had canceled 18 voyages in Southeast Asia due to recent travel restrictions and further warning that recent bookings had been softer for its broader business.

On this news, Royal Caribbean shares fell over 3 percent.

Second, on February 25, 2020, Royal Caribbean filed its 2019 Form 10-K, indicating that COVID-19 concerns were negatively impacting its overall business.

On this news, Royal Caribbean shares fell over 14 percent.

Third, on March 10, 2020, Royal Caribbean withdrew its 2020 financial guidance, increased its revolving credit facility by $550 million, and announced that it would take cost-cutting actions due to the proliferation of COVID-19, further revealing that COVID-19 was severely impacting Royal Caribbean’s 2020 customer booking and that its safety measures were inadequate to prevent the spread of the virus on its ships.

On this news, Royal Caribbean shares fell over 14 percent.

Fourth, on March 11, 2020, Royal Caribbean’s largest competitor, Carnival, announced a 60-day suspension of all operations, prompting concern that Royal Caribbean would follow suit. At the same time, Royal Caribbean also cancelled two cruises, beginning a series of cancellations and suspensions to follow.

On this news, Royal Caribbean shares fell almost 32 percent.

Fifth, on March 14, 2020, Royal Caribbean announced a suspension of all global cruises for 30 days.

On this news, Royal Caribbean stock fell over 7 percent.

Sixth, on March 16, 2020, the Company revealed that global operations could be suspended longer than anticipated, announcing the cancellations of two additional cruises throughout April and into May.

On this news, Royal Caribbean shares fell over 7 percent.

Finally, on March 18, 2020, analysts downgraded Royal Caribbean’s stock and slashed their price targets.

On this news, Royal Caribbean shares fell more than 19 percent.

For more information on the Royal Caribbean class action go to: https://bespc.com/cases/RCL

Mesoblast Limited (NASDAQ: MESO)

Class Period: April 16, 2019 to October 1, 2020

Lead Plaintiff Deadline: December 7, 2020

Mesoblast develops allogeneic cellular medicines using its proprietary mesenchymal lineage cell therapy platform. Its lead product candidate, RYONCIL (remestemcel-L), is an investigational therapy comprising mesenchymal stem cells derived from bone marrow. In February 2018, the Company announced that remestemcel-L met its primary endpoint in a Phase 3 trial to treat children with steroid refractory acute graft versus host disease (“aGVHD”).

In early 2020, Mesoblast completed its rolling submission of its Biologics License Application (“BLA”) with the FDA to secure marketing authorization to commercialize remestemcel-L for children with steroid refractory aGVHD.

On August 11, 2020, the FDA released briefing materials for its Oncologic Drugs Advisory Committee (“ODAC”) meeting to be held on August 13, 2020. Therein, the FDA stated that Mesoblast provided post hoc analyses of other studies “to further establish the appropriateness of 45% as the null Day-28 ORR” for its primary endpoint. The briefing materials stated that, due to design differences between these historical studies and Mesoblast’s submitted study, “it is unclear that these study results are relevant to the proposed indication.”

On this news, the Company’s share price fell $6.09, or approximately 35%, to close at $11.33 per share on August 11, 2020.

On October 1, 2020, Mesoblast disclosed that it had received a Complete Response Letter (“CRL”) from the FDA regarding its marketing application for remestemcel-L for treatment of SR-aGVHD in pediatric patients. According to the CRL, the FDA recommended that the Company “conduct at least one additional randomized, controlled study in adults and/or children to provide further evidence of the effectiveness of remestemcel-L for SR-aGVHD.” The CRL also “identified a need for further scientific rationale to demonstrate the relationship of potency measurements to the product’s biologic activity.”

On this news, the Company’s share price fell $6.56, or 35%, to close at $12.03 per share on October 2, 2020.

The complaint, filed on October 8, 2020, alleges that throughout the Class Period defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants failed to disclose to investors: (1) that comparative analyses between Mesoblast’s Phase 3 trial and three historical studies did not support the effectiveness of remestemcel-L for steroid refractory aGVHD due to design differences between the four studies; (2) that, as a result, the FDA was reasonably likely to require further clinical studies; (3) that, as a result, the commercialization of remestemcel-L in the U.S. was likely to be delayed; and (4) that, as a result of the foregoing, defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

For more information on the Mesoblast class action go to: https://bespc.com/cases/MESO

About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.

Contact Information:

Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
Marion Passmore, Esq.
(212) 355-4648
[email protected]
www.bespc.com