Market Newsdesk

LONDON, Nov. 12, 2020 (GLOBE NEWSWIRE) — Horizonte Minerals Plc, (AIM: HZM; TSX: HZM) (the “Company” or “Horizonte”), the nickel development company focused on Brazil, announces its unaudited financial results for the three month period to 30 September 2020 and the Management Discussion and Analysis for the same period. Both of the aforementioned documents have been posted on the Company’s website www.horizonteminerals.com and are also available on SEDAR at www.sedar.com.

Highlights for the Period

• Horizonte remains well-funded to advance Araguaia towards being construction ready with strong cash position of £13.6m;
• Project financing process continues to progress with a number of key milestones delivered;
• A syndicate of five international financial institutions mandated for a US$325 million senior debt facility to part fund the development of Araguaia;
• BNP Paribas, ING Capital LLC, Mizuho Bank, Ltd., Natixis (New York Branch), and Société Générale will act as the Mandated Lead Arrangers;
• Inaugural Sustainability Report published on 17 August 2020. The Company recognises the importance of conveying its efforts and achievements around the areas of environmental stewardship, social responsibility and corporate governance to its various stakeholders as it moves towards construction at Araguaia;
• The Company has continued to support local communities around the project through the provision of food parcels and health and hygiene guidance in response to the pandemic; and
• Nickel market fundamentals remain strong and are expected to benefit from global stimulus measures, with nickel price returning to pre-Covid levels of approximately US$15,700/t.

Horizonte Minerals plc

Condensed Consolidated Interim Financial Statements for the nine and three months ended 30 September 2020

Condensed consolidated statement of comprehensive income

		9 months ended 30 September				3 months ended 30 September
		2020		2019		2020		2019
		Unaudited		Unaudited		Unaudited		Unaudited
	Notes	£		£		£		£
Continuing operations
Revenue		–		–		–		–
Cost of sales		–		–		–		–
Gross profit		–		–		–		–
Administrative expenses		(2,342,989	)	(1,910,913	)	(777,847	))	(941,996	)
Charge for share options granted		–		(290,833	)	–		(53,662	)
Change in value of contingent consideration		(79,425	)	145,561		311,735		(46,640	)
Gain/(Loss) on foreign exchange		410,804		(21,706	)	(716,018	)	(17,657	)
Loss from operations		(2,011,610	)	(2,077,891	)	(1,182,130	)	(1,059,955	)
Finance income		122,907		50,085		32,177		16,294
Finance costs		(2,969,053	)	(222,788	)	(1,027,349	)	(75,951	)
Loss before taxation		(4,857,756	)	(2,250,594	)	(2,177,302	)	( 1,119,612	)
Taxation		(51,071	)	–		(51,071	)	–
Loss for the year from continuing operations		( 4,908,827	)	(2,250,594	)	(2,228,373	)	(1,119,612	)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss Change in value of available for sale financial assets
Currency translation differences on translating foreign operations		(9,232,975	)	(1,093,862	)	(1,165,298	)	(1,559,385	)
Other comprehensive income for the period, net of tax		( 9,232,975	)	(1,093,862	)	( 1,165,298	)	(1,559,385	)
Total comprehensive income for the period
attributable to equity holders of the Company		(14,141,802	)	(3,344,456	)	(3,393,671	)	(2,678,997	)
Earnings per share from continuing operations attributable to the equity holders of the Company
Basic and diluted (pence per share)	9	(0.339	)	(0.157	)	(0.154	)	(0.078	)

Condensed consolidated statement of financial position

		30 September 2020		31 December 2019
		Unaudited		Audited
	Notes	£		£
Assets
Non-current assets
Intangible assets	6	8,241,277		39,317,506
Property, plant & equipment		24,924,599		483
		33,165,876		39,317,989
Current assets
Trade and other receivables		2,391,659		2,381,535
Cash and cash equivalents		13,584,055		17,760,330
		15,975,714		20,141,865
Total assets		49,141,590		59,459,854
Equity and liabilities
Equity attributable to owners of the parent
Issued capital	7	14,463,773		14,463,773
Share premium	7	41,785,306		41,785,306
Other reserves		(13,899,906	)	(4,666,930	)
Accumulated losses		(24,743,918	)	(19,835,092	)
Total equity		17,698,255		31,747,057
Liabilities
Non-current liabilities
Contingent consideration		6,666,016		6,246,071
Royalty Finance		23,594,661		–
Deferred tax liabilities		155,692		212,382
		30,416,369		6,458,453
Current liabilities
Trade and other payables		1,026,966		21,254,344
Deferred consideration		–		–
		1,026,966		21,254,344
Total liabilities		31,443,335		27,712,797
Total equity and liabilities		49,141,590		59,459,854

Condensed statement of changes in shareholders’ equity

	Attributable to the owners of the parent
	Share capital £		Share premium £		Accumulated losses £		Other reserves £		Total £
As at 1 January 2019	14,325,218		41,664,018		(16,990,291	)	(2,039,991	)	36,958,954
Comprehensive income
Loss for the period	–		–		(2,250,594	)	–		(2,250,594	)
Other comprehensive income
Currency translation differences	–		–		–		(1,093,862	)	(1,093,862	)
Total comprehensive income	–		–		(2,250,594	)	(1,093,862	)	(3,344,456	)
Transactions with owners
Issue of ordinary shares	138,555		121,288		–		–		259,843
Issue costs	–		–		–		–		–
Share based payments	–		–		290,833		–		290,833
Total transactions with owners	138,555		121,288		290,833		–		550,676
As at 30 September 2019 (unaudited)	14,463,773		41,785,306		(18,950,052	)	(3,133,853	)	34,165,174

	Attributable to the owners of the parent
	Share capital £		Share premium £		Accumulated losses £		Other reserves £		Total £
As at 1 January 2020	14,463,773		41,785,306		(19,835,092	)	(4,666,930	)	31,747,057
Comprehensive income
Loss for the period	–		–		(4,908,827	)	–		(4,908,827	)
Other comprehensive income
Currency translation differences	–		–		–		(9,232,975	)	(9,232,975	)
Total comprehensive income	–		–		(4,908,827	)	(9,232,975	)	(14,141,802	)
Transactions with owners
Issue of ordinary shares	30,000		63,000		–		–		93,000
Issue costs	–		–		–		–		–
Share based payments	–		–		–		–		–
Total transactions with owners	30,000		63,000		–		–		93,000
As at 30 September 2020 (unaudited)	14,493,773		41,848,306		(24,743,919	)	(13,899,905	)	17,698,255

Condensed Consolidated Statement of Cash Flows

		9 months ended 30 September				3 months ended 30 September
		2020		2019		2020		2019
		Unaudited		Unaudited		Unaudited		Unaudited
		£		£		£		£
Cash flows from operating activities
Loss before taxation		(4,908,827	)	(2,250,594	)	(2,228,373	)	(1,119,612	)
Interest income		(122,907	)	(50,085	)	(32,177	)	(16,294	)
Finance costs		2,790,062		222,788		947,785		75,951
Exchange differences		(410,804	)	21,706		716,018		17,657
Employee share options charge		–		290,833		–		53,662
Change in fair value of contingent consideration		79,425		(145,561	)	(311,735	)	46,640
Change in fair value of derivative asset		178,991		–		79,564		–
Depreciation		–		–		–		–
Operating loss before changes in working capital		(2,394,060	)	(1,910,913	)	(828,918	)	(941,996	)
Decrease/(increase) in trade and other receivables		50,742		(45,771	)	(2,384	)	(42,496	)
(Decrease)/increase in trade and other payables		152,845		468,782		290,166		442,376
Net cash outflow from operating activities		(2,190,473	)	(1,487,902	)	(541,136	)	(542,116	)
Cash flows from investing activities
Purchase of intangible assets		(2,006,910	)	(1,944,388	)	(680,325	)	(655,180	)
Purchase of property, plant and equipment		(605,603	)	–		(198,360	)	–
Interest received		122,907		50,085		32,177		16,294
Net cash used in investing activities		(2,489,606	)	(1,894,303	)	(846,508	)	(638,886	)
Cash flows from financing activities
Proceeds form issue of ordinary shares		93,000		–		93,000		–
Issue costs		–		–		–		–
Net cash used in financing activities		93,000		–		93,000		–
Net decrease in cash and cash equivalents		(4,587,079	)	(3,382,205	)	(1,294,644	)	(1,181,002	)
Cash and cash equivalents at beginning of period		17,760,330		6,527,115		15,594,717		4,322,699
Exchange gain/(loss) on cash and cash equivalents		410,804		(20,870	)	(716,018	)	(17,657	)
Cash and cash equivalents at end of the period		13,584,055		3,124,040		13,584,055		3,124,040

                                                                                                                                        

Notes to the Financial Statements

1.  General information

The principal activity of the Company and its subsidiaries (together ‘the Group’) is the exploration and development of precious and base metals. There is no seasonality or cyclicality of the Group’s operations.

The Company’s shares are listed on the Alternative Investment Market of the London Stock Exchange (AIM) and on the Toronto Stock Exchange (TSX). The Company is incorporated and domiciled in the United Kingdom. The address of its registered office is Rex House, 4-12 Regent Street, London SW1Y 4RG.

2. 

Basis of preparation

The condensed consolidated interim financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards and in accordance with International Accounting Standard 34 Interim Financial Reporting. The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2019, which have been prepared in accordance with International Financial Reporting Standards (IFRS).

The condensed consolidated interim financial statements set out above do not constitute statutory accounts within the meaning of the Companies Act 2006. They have been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS). Statutory financial statements for the year ended 31 December 2019 were approved by the Board of Directors on 7 April 2020 and delivered to the Registrar of Companies. The report of the auditors on those financial statements was unqualified.

The condensed consolidated interim financial statements of the Company have not been audited or reviewed by the Company’s auditor, BDO LLP.

Going concern

The Directors, having made appropriate enquiries, consider that adequate resources exist for the Group to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt the going concern basis in preparing the condensed consolidated interim financial statements for the period ended 30 September 2020. Please refer to note 2.2 in the annual report for 2019 for the assessment of the current Covid-19 pandemic on the operations of the Group.

Risks and uncertainties

The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Group’s medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Group’s 2019 Annual Report and Financial Statements, a copy of which is available on the Group’s website: www.horizonteminerals.com and on Sedar: www.sedar.com The key financial risks are liquidity risk, foreign exchange risk, credit risk, price risk and interest rate risk.

Critical accounting estimates

The preparation of condensed consolidated interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in note 4 of the Group’s 2019 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period.

3.  Significant accounting policies

The condensed consolidated interim financial statements have been prepared under the historical cost convention as modified by the revaluation of certain of the subsidiaries’ assets and liabilities to fair value for consolidation purposes.

The same accounting policies, presentation and methods of computation have been followed in these condensed consolidated interim financial statements as were applied in the preparation of the Group’s Financial Statements for the year ended 31 December 2019.

4  Segmental reporting

The Group operates principally in the UK and Brazil, with operations managed on a project by project basis within each geographical area. Activities in the UK are mainly administrative in nature whilst the activities in Brazil relate to exploration and evaluation work. The reports used by the chief operating decision maker are based on these geographical segments.

2020	UK		Brazil		Other		Total
	9 months ended 30 September 2020 £		9 months ended 30 September 2020 £		9 months ended 30 September 2020 £		9 months ended 30 September 2020 £
Revenue	–		–				–
Administrative expenses	(1,636,689	)	(407,779	)	(298,521	)	(2,342,989	)
Loss0020on foreign exchange	731,429		(338,984	)	18,359		410,804
(Loss) from operations per reportable segment	(905,260	)	(746,763	)	(280,162	)	(1,932,185	)
Inter segment revenues	–		–		–		–
Depreciation charges	–		–		–		–
Additions and foreign exchange movements to non-current assets			(6,482,508	)	–		(6,482,508	)
Reportable segment assets	7,303,457		39,264,577		2,573,556		49,141,590
Reportable segment liabilities	7,076,456		763,181		23,603,698		31,443,33
2019	UK		Brazil		Other		Total
	9 months ended 30 September 2019 £		9 months ended 30 September 2019 £		9 months ended 30 September 2019 £		9 months ended 30 September 2019 £
Revenue	–		–		–		–
Administrative expenses	(1,433,182	)	(477,731	)	–		(1,910,913	)
Loss on foreign exchange	(6,655	)	(15,051	)	–		(21,706	)
(Loss) from operations per reportable segment	(1,439,837	)	(492,782	)	–		(1,932,619	)
Inter segment revenues	–		–		–		–
Depreciation charges	–		–		–		–
Additions and foreign exchange movements to non-current assets	–		774,255		–		774,255
Reportable segment assets	2,767,328		36,932,142		–		39,699,470
Reportable segment liabilities	5,172,502		361,794		–		5,534,296

2020	UK		Brazil		Other		Total
	3 months ended 30 September 2020		3 months ended 30 September 2020		3 months ended 30 September 2020		3 months ended 30 September 2020
	£		£		£		£
Revenue	–		–		–		–
Administrative expenses	(609,868	)	(158,942	)	(9,037	)	(777,847	)
Loss on foreign exchange	(334,566	)	(374,326	)	(7,126	)	(716,018	)
(Loss) from operations per	(944,434	)	(533,268	)	(16,163	)	(1,493,865	)
reportable segment
Inter segment revenues	–		–		–		–
Depreciation charges	–		–		–		–
Additions and foreign exchange movements to non-current assets	–		(230,005	)	–		(230,005	)

2019	UK		Brazil		Other		Total
	3 months ended 30 September 2019		3 months ended 30 September 2019		3 months ended 30 September 2019		3 months ended 30 September  2019
	£		£		£		£
Revenue	–		–		–		–
Administrative expenses	(794,076	)	(147,920	)	–		(941,996	)
Profit/(Loss) on foreign exchange	5,689		(23,346	)	–		(17,657	)
(Loss) from operations per	(788,387	)	(171,266	)	–		(959,653	)
reportable segment
Inter segment revenues	–		–		–		–
Depreciation charges	–		–		–		–
Additions and foreign exchange movements to non-current assets	–		(969,007	)	–		(969,007	)

A reconciliation of adjusted loss from operations per reportable segment to loss before tax is provided as follows:

	9 months ended 30 September 2020		9 months ended 30 September 2019		3 months ended 30 September 2020		3 months ended 30 September 2019
	£		£		£		£
Loss from operations per reportable segment	(1,932,185	)	(1,932,619	)	(1,493,865	)	(959,653	)
– Change in fair value of contingent consideration	(79,425	)	145,561		311,735		(46,640	)
– Change in fair value of derivative asset	(178,991	)			(79,564	)
– Charge for share options granted	–		(290,833	)	–		(53,662	)
– Finance income	122,907		50,085		32,177		16,294
– Finance costs	(2,790,062	)	(222,788	)	(947,785	)	(75,951	)
Loss for the period from continuing operations	(4,857,756	)	(2,250,594	)	(2,177,302	)	(1,119,612	)

5  Change in Fair Value of Contingent Consideration

Contingent Consideration payable to Xstrata Brasil Mineração Ltda.

The contingent consideration payable to Xstrata Brasil Mineração Ltda has a carrying value of £3,176,017 at 30 September 2020 (30 September 2019: £4,640,847). It comprises US$5,000,000 consideration in cash as at the date of first commercial production from any of the resource areas within the Enlarged Project area. The key assumptions underlying the treatment of the contingent consideration the US$5,000,000 are based on the current rates of tax on profits in Brazil of 34% and a discount factor of 7.0% along with the estimated date of first commercial production.  

As at 30 September 2020, there was a finance expense of £162,240 (2019: £222,788) recognised in finance costs within the Statement of Comprehensive Income in respect of this contingent consideration arrangement, as the discount applied to the contingent consideration at the date of acquisition was unwound.

The change in the fair value of contingent consideration payable to Xstrata Brasil Mineração Ltda generated a loss of £37,842 for the nine months ended 30 September 2020 (30 September 2019: £145,561 debit) due to changes in the exchange rate of the functional currency in which the liability is payable.

Contingent Consideration payable to Vale Metais Basicos S.A.

The contingent consideration payable to Vale Metais Basicos S.A. has a carrying value of £3,489,996 at 30 September 2020 (2019: £nil). It comprises US$6,000,000 consideration in cash as at the date of first commercial production from the Vermelho project and was recognised for the first time in December 2019, following the publication of a PFS on the project. The key assumptions underlying the treatment of the contingent consideration the US$6,000,000 are the same as those for the Xstrata contingent consideration and are based on the current rates of tax on profits in Brazil of 34% and a discount factor of 7.0% along with the estimated date of first commercial production.

As at 30 September 2020, there was a finance expense of £178,280 (2019: £nil ) recognised in finance costs within the Statement of Comprehensive Income in respect of this contingent consideration arrangement, as the discount applied to the contingent consideration at the date of acquisition was unwound.

The change in the fair value of contingent consideration payable to Vale Metais Basicos S.A. generated a loss of £41,583 for the nine months ended 30 September 2020 (2019: £nil) due to changes in the value of the functional currency in which the liability is payable (USD).

6 Finance income and costs

	9 months ended 30 September 2020		9 months ended 30 September 2019
	£		£
Finance income
– Interest income on cash and short-term deposits	122,907		–
Finance costs			–
– Contingent and deferred consideration: unwinding of discount	(340,520	)	–
– Amortisation of Royalty Finance	(2,449,542	)	–
– Royalty Fair Value Adjustment	(178,991	)	–
– Movement in fair value of derivative asset	–		–
Total finance costs	(2,969,053	)	–
Net finance costs	(2,846,146	)	–

7  Intangible assets

Intangible assets comprise exploration and evaluation costs and goodwill. Exploration and evaluation costs comprise internally generated and acquired assets.

	Goodwill		Exploration licences		Exploration and evaluation costs		Total
	£		£		£		£
Cost
At 1 January 2020	210,585		4,534,392		2,312,467		7,057,444
Additions	–		–		1,893,618		1,893,618
Exchange rate movements	(56,209	)	95,439		(749,015	)	(709,785	)
Net book amount at 30 September 2020	154,376		4,629,831		3,457,070		8,241,277

8  Share Capital and Share Premium       

Issued and fully paid	Number of shares		Ordinary shares £		Share premium £		Total £
At 1 January 2020	1,446,377,287		14,463,773		41,785,306		56,249,079
Issue of equity	3,000,000		30,000		63,000		93,000
At 30 September 2020	1,449,377,287		14,493,773		41,848,306		56,342,079

9  Dividends

No dividend has been declared or paid by the Company during the nine months ended 30 September 2020 (2019: nil).

10  Earnings per share

The calculation of the basic loss per share of 0.339 pence for the 9 months ended 30 Sept 2020 (30 Sept 2019 loss per share: 0.157 pence) is based on the loss attributable to the equity holders of the Company of £ (4,908,827) for the nine month period ended 30 Sept 2020 (30 Sept 2019: (2,250,594)) divided by the weighted average number of shares in issue during the period of 1,446,643,856 (weighted average number of shares for the 9 months ended 30 Sept 2019: 1,435,584,489).

The calculation of the basic loss per share of 0.154 pence for the 3 months ended 30 Sept 2020 (30 Sept 2019 loss per share: 0.078 pence) is based on the loss attributable to the equity holders of the Company of £ (2,228,373) for the three month period ended 30 June 2020 (3 months ended 30 Sept 2019: (£1,169,612) divided by the weighted average number of shares in issue during the period of 1,447,217,722 (weighted average number of shares for the 3 months ended 30 Sept 2019: 1,435,866,256).

The basic and diluted loss per share is the same, as the effect of the exercise of share options would be to decrease the loss per share.

Details of share options that could potentially dilute earnings per share in future periods are disclosed in the notes to the Group’s Annual Report and Financial Statements for the year ended 31 December 2019 and in note 10 below.

11  Issue of Share Options

On 12 February 2019, the Company awarded 2,000,000 share options to leading members of the Brazilian operations team. All of these share options have an exercise price of 4.80 pence. One third of the options are exercisable from August 2019, one third from February 2019 and one third from August 2020.

12  Ultimate controlling party

The Directors believe there to be no ultimate controlling party.

13  Related party transactions

The nature of related party transactions of the Group has not changed from those described in the Group’s Annual Report and Financial Statements for the year ended 31 December 2019.

14  Events after the reporting period

There are no events which have occurred after the reporting period which would be material to the financial statements.

Approval of interim financial statements

These Condensed Consolidated Interim Financial Statements were approved by the Board of Directors on 10 November 2020.

For further information contact:

Horizonte Minerals plc
Jeremy Martin (CEO) Anna Legge (Corporate Communications)	+44 (0)203 356 2901 [email protected]
Peel Hunt (NOMAD & Joint Broker)
Ross Allister David McKeown	+44 (0)207 418 8900

About Horizonte Minerals:

Horizonte Minerals plc is an AIM and TSX-listed nickel development company focused in Brazil. The Company is developing the Araguaia project, as the next major ferronickel mine in Brazil, and the Vermelho nickel-cobalt project, with the aim of being able to supply nickel and cobalt to the EV battery market. Both projects are 100% owned.

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION

Except for statements of historical fact relating to the Company, certain information contained in this press release constitutes “forward-looking information” under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the potential of the Company’s current or future property mineral projects; the success of exploration and mining activities; cost and timing of future exploration, production and development; the estimation of mineral resources and reserves and the ability of the Company to achieve its goals in respect of growing its mineral resources; the realization of mineral resource and reserve estimates. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, and are inherently subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks related to: exploration and mining risks, competition from competitors with greater capital; the Company’s lack of experience with respect to development-stage mining operations; fluctuations in metal prices; uninsured risks; environmental and other regulatory requirements; exploration, mining and other licences; the Company’s future payment obligations; potential disputes with respect to the Company’s title to, and the area of, its mining concessions; the Company’s dependence on its ability to obtain sufficient financing in the future; the Company’s dependence on its relationships with third parties; the Company’s joint ventures; the potential of currency fluctuations and political or economic instability  in countries in which the Company operates; currency exchange fluctuations; the Company’s ability to manage its growth effectively; the trading market for the ordinary shares of the Company; uncertainty with respect to the Company’s plans to continue to develop its operations and new projects; the Company’s dependence on key personnel; possible conflicts of interest of directors and officers of the Company, and various risks associated with the legal and regulatory framework within which the Company operates. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

ST HELIER, Jersey, Nov. 12, 2020 (GLOBE NEWSWIRE) — Caledonia Mining Corporation Plc (NYSE AMERICAN: CMCL; AIM: CMCL) (“Caledonia” or the “Company”) announces its operating and financial results for the quarter and the nine months ended September 30, 2020 (the “Quarter” and “Nine Months ” respectively). Further information on the financial and operating results for the Quarter and Nine Months can be found in the management discussion and analysis (“MD&A”) and the unaudited financial statements which are available on the Company’s website and have been filed on SEDAR.

Financial
Highlights
for the Quarter

• Gross revenues of $25.4 million, a 27 per cent increase on the $20.0 million achieved in the third quarter of 2019 (“Q3 2019”).
• Gross profit¹ of $12.5 million, a 47 per cent increase on the $8.5 million in Q3 2019 at a gross margin of 49 per cent (Q3 2019, 43 per cent).
• EBITDA² (excluding net foreign exchange gains and share based payments) of $11.2 million, a 34 per cent increase on the $8.3 million in Q3 2019 at a margin of 44 per cent (Q3 2019, 42 per cent).
• The on-mine cost per ounce³ increased from $686 in Q3 2019 to $758 due to costs associated with COVID-19, a share-based payment expense and increased use of the diesel generators.
• The all-in sustaining cost per ounce³ increased from $872 in Q3 2019 to $1,119 due to a higher insurance premium and an increased share-based payment expense.
• Basic IFRS earnings per share (“EPS”) of 36.6 cents (Q3 2019, 63.4 cents). IFRS earnings for the Quarter were adversely affected by a lower foreign exchange gain and higher taxation.
• Adjusted EPS³ of 34.1 cents (Q3 2019, 15.8 cents).
• Net cash from operating activities of $5.3 million (Q3 2019, $4.9 million).
• Net cash and cash equivalents of $21.6 million (December 31, 2019, $8.9 million).
• Total dividend paid in the Quarter of 8.5 cents per share; a further dividend at the increased rate of 10 cents per share was paid in October.

Operating Highlights

• 15,155 ounces of gold produced in the Quarter (Q3 2019, 13,646 ounces); 42,887 ounces produced in the Nine Months (first nine months of 2019, 38,306 ounces).
• Tonnes mined and milled in the Quarter increased by 10 per cent compared to Q3 2019; recoveries were also slightly improved.
• Equipping of Central Shaft continued in the Quarter at an increased rate as operations returned to normal following the relaxation of measures to prevent the spread of COVID-19.

Effect of COVID-19
and
Outlook

• COVID-19 had no effect on production in the Quarter which was above target for the Nine Months.
• Production guidance for 2020 increased from 53,000 to 56,000 ounces to 55,000 to 58,000 ounces.
• Progress on the Central Shaft returned to the planned rate as travel and transport restrictions were lifted. Central Shaft is expected to be fully equipped by the end of 2020 and to be commissioned in the first quarter of 2021 – approximately three months later than expected due to the delays arising from COVID-19. Production guidance for 2021 is 61,000 to 67,000 ounces; guidance for 2022 is approximately 80,000 ounces.
• Voltalia, an international renewable energy provider, has been appointed as the contractor for the 12MW solar project which is expected to be commissioned before the end of 2021 and is expected to provide approximately 27 per cent of Blanket’s average daily electricity requirements.

Dividend

• The July dividend was increased by 13.3 per cent to 8.5 cents per share and the October dividend was further increased to 10 cents per share following the continued strong financial and operating performance.
• The cumulative increase in the dividend per share since January 2020 is 45 per cent.
• Further dividend increases will depend on the balance between delivering returns to shareholders and pursuing the significant growth opportunities within Zimbabwe.

Steve Curtis, Chief Executive
O
fficer
,
commented
:

“I am delighted by Blanket Mine’s continued strong operating performance in the Quarter.Despite the disruption caused by the COVID-19 pandemic, the management initiatives which were implemented in 2019 have continued into 2020 and have resulted in a12 per cent increase in gold production in the first nine months of 2020 compared to the same period of 2019. The resilience of Blanket’s operations during this difficult period is testament to the outstanding commitment of the entire team at Blanket Mine. Production for the first nine months of 2020 exceeded expectations and this trend continued into October.We have therefore increased our gold production guidance for 2020 from a range of 53,000 to 56,000 ounces to a range of 55,000 to 58,000 ounces.

“
Cost control in the
Quarter
continued to be excellent, but
a comparison of the costs for the Quarter
to
costs in the
third
quarter of 2019
is
complicated by factors which
somewhat increased
the costs in th
is
Quarter
. The on-mine cost per ounce
i
n the Quarter w
as
$
758
compared to $
686
in Q
3
2019. However, the costs in Q
3
20
20
include
approximately $73 per ounce of
costs relating to COVID-19, a non-cash charge in respect of share-based payments
and the cost of increased usage of the diesel generators.
After adjusting for these items, the on-mine cost per ounce of the Quarter
was $685 per ounce
–
virtually unchanged from Q3 2019 and lowe
r
than budget.

“
T
he
a
ll-in sustaining cost per ounce for the
Q
uarter
was $1,119 per ounce – an increase of
28 per cent compared to Q3 2019. This increase was
due to a higher royalty charge, which reflects the increased gold price,
increased administrative expenses, which is largely due to
higher insurance premiums
and an increased charge for share-based payments, which reflects the increased share price.

“
Notwithstanding these and other factors, we remain
on track to achieve our cost guidance for 2020 of
between $
693 and $767 per ounce for
o
n-mine costs and between $951 and $1,033 per ounce for all-in sustaining costs.

“
The
excellent
performance was also reflected in
continued
strong
cash generation:
net cash flow from
operating
activities (i.e. before
interest, taxation payments and capital expenditure) was $
7.4
million
in the
Quarter
compared to $
4.9
million in
Q
3
2019.
Net cash flow from operating activities for the Quarter was after an increase
in working capital of $1.5 million as we replenished our inventories to increase our
business
resilience
to guard against
any
resurgence of the COVID-19 pandemic which could affect Blank
e
t’s supply chain.

“During the
Q
uarter we raised $13 million (before
e
xpenses)
from the issue of equity
,
and the proceeds
will be used to construct the 12 MW s
o
lar
plant
.

“
Caledonia ended the
Quarter
with net cash and cash equiv
a
lents of
$
21.6
million
(
excluding $1 million of a gold ETF which we purchased in the Quarter to protect
cash in South Africa
against
devaluation of the
S
o
uth African Rand
)
.

“
T
he
continued strong performance
was achieved with
out
compromis
ing
o
n safety performance.
The
T
otal Injury Frequency
R
ate has bee
n
subst
antially
reduced
from
the levels in 2019 after a
concerted effort by management
over the last
18
months
to improve and enforce safety standards.
I am also very pleased to report that
in the Quarter we achieved
one
million
manhours at the Central Shaft project without incurring any serious injury
.

“
I
nterruptions to the
supply of
electricity
from the grid
have continued, but Blanket
manage
s
the
se
using
its
increase
d
su
i
te of diesel generators.
In the previous quarter we
resolved to construct a 12MW solar plant at a cost of approximately
$12 million, which is expected to provide 100
per cent
of Blanket’s
baseload
electricity demand during daylight hours and approximately
27
per cent
of Blanket’s tot
al
daily
electr
i
c
i
ty
demand.
Whilst
expected to
deliver an acceptable
financial retu
r
n
,
this investment
is primarily
intended to protect Blanket fr
om
a
further deterioration in its electric
i
ty supply
as well as to reduce
Blanket’s environmental footprint
. We have raised the funds to construct this project and have appointedVoltalia as the contractor for the project which could be operational by the end of 2021.

“T
he coron
a
virus pandemic had no appreciable effect on Blanket
’s production in
the Quarter
and a minor effect on costs.
However,
w
ork on Central Shaft
has been
slower than planned
because trav
e
l restrict
i
ons
imposed to control the spread of COVID-19
affected the movement of
speciali
s
ed
equipment and
contractors
between
South Africa
and Blanket.
The project is approximately 12 weeks be
h
ind schedule
: it is currently expected that the shaft will be equipped before the end of 2020 and will be commissioned during
the first quarter of
2021. As a result of this delay,
the
build-up in production
will also be affected
: gold production in 2021 is now expected t
o
be in the range of
61,000 to 67,000 ounces
; there is no change to the
production target of approximately
80,000 ounces of gold from 2022 onwards

⁴

.

“
I
n light of the
improved performance
and the brighter outlook for 2020
and beyond
, Caledonia
increase
d
its quarterly dividend from 6.875 cents per share to 7.5 cents per share
in January 2020
.
A
t the end of
June
, in light of Blanket’s strong perf
o
rmance
, the higher gold price
and the return to normal levels of production
including renewed access to supply chains
,
Caledonia increased its quarterly dividend further to 8.5 cents per share
. In October,
due to the continued strong operational performance, the dividend was further increased to 10 cents
per share. This
means the
cumu
l
ative increase in the quar
t
er
ly
dividend
in 2020 is
45
per cent. The
board will review Caledonia’s future dividend distributions as appropriate while considering the balance between delivering returns to shareholders and pursuing the significant growth opportunities within Zimbabwe and in line with a prudent approach to financial management.
” 

___________________
¹ Gross profit is after deducting royalties, production costs and depreciation but before administrative expenses, other income, interest and finance charges and taxation.
² EBITDA is after deducting royalties, production costs and administrative expenses, but is before depreciation, net other income, profit on sale of a subsidiary, net foreign exchange gains, cash-settled share-based payments, hedging expenses, finance charges and taxation.
³ Non-IFRS measures such as “on-mine cost per ounce”, “all-in sustaining cost” and “adjusted EPS” are used throughout this announcement. Refer to section 10 of the MD&A for a discussion of non-IFRS measures.
⁴Mr Dana Roets (B Eng (Min.), MBA, Pr.Eng., FSAIMM, AMMSA), Chief Operating Officer, is the Company’s qualified person as defined by Canada’s National Instrument 43-101 and has approved any scientific or technical information contained in this news release.

For further information please contact:

Caledonia Mining Corporation Plc Mark Learmonth Camilla Horsfall	Tel: +44 1534 679 800 Tel: +44 7817841 793
WH Ireland (Nomad & Broker) Adrian Hadden/James Sinclair-Ford	Tel: +44 20 7220 1751
Blytheweigh Tim Blythe/Megan Ray	Tel: +44 207 138 3204
3PPB Patrick Chidley Paul Durham	Tel: +1 917 991 7701 Tel: +1 203 940 2538

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

Cautionary Note Concerning Forward-Looking Information

Information and statements contained in this news release that are not historical facts are “forward-looking information” within the meaning of applicable securities legislation that involve risks and uncertainties relating, but not limited to Caledonia’s current expectations, intentions, plans, and beliefs. Forward-looking information can often be identified by forward-looking words such as “anticipate”, “
envisage
”, “believe”, “expect”, “goal”, “plan”, “target”, “intend”, “estimate”, “could”, “should”, “may” and “will” or the negative of these terms or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Examples of forward-looking information in this news release
include:
production guidance, estimates of future/targeted production rates, and our plans and timing regarding further exploration and drilling and development. This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information. Such factors and assumptions include, but are not limited to: failure to establish estimated resources and reserves, the grade and recovery of ore which is mined varying from estimates, success of future exploration and drilling programs, reliability of drilling, sampling and assay data, assumptions regarding the representativeness of mineralization being inaccurate, success of planned metallurgical test-work, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors.

Securityholders, potential securityholders and other prospective investors should be aware that these statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Such factors include, but are not limited to: risks relating to estimates of mineral reserves and mineral resources proving to be inaccurate, fluctuations in gold price, risks and hazards associated with the business of mineral exploration, development and mining, risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company
does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards, employee relations; relationships with and claims by local communities and indigenous populations; political risk;
risks related to natural disasters, terrorism, civil unrest, public health concerns (including health epidemics or outbreaks of communicable diseases such as the coronavirus
(COVID-19)
)
;
availability and increasing costs associated with mining inputs and
labour
; the speculative nature of mineral exploration and development, including the risks of obtaining or maintaining necessary licenses and permits, diminishing quantities or grades of mineral reserves as mining occurs; global financial condition, the actual results of current exploration activities, changes to conclusions of economic evaluations, and changes in project parameters to deal with unanticipated economic or other factors, risks of increased capital and operating costs, environmental, safety or regulatory risks, expropriation, the Company’s title to properties including ownership thereof, increased competition in the mining industry for properties, equipment, qualified personnel and their costs, risks relating to the uncertainty of timing of events including targeted production rate increase and currency fluctuations. Shareholders are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent
risks
and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Caledonia undertakes no obligation to update publicly or otherwise revise any forward-looking information whether
as a result of
new information, future events or other such factors which affect this information, except as required by law.

This news release is not an offer of the common shares of Caledonia for sale in the United States. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the common shares of Caledonia, in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such province, state or jurisdiction.

Condensed consolidated statements of profit and loss and other comprehensive income ( in thousands of United States dollars, unless indicated otherwise)
	Three months ended							Nine months ended
Unaudited	September 30,							September 30,
	2020			2019				2020			2019
Revenue	25,359			19,953				71,874			52,393
Less: Royalty	(1,271	)		(999	)			(3,599	)		(2,682	)
Production costs	(10,399	)		(9,410	)			(32,537	)		(26,750	)
Depreciation	(1,143	)		(1,059	)			(3,457	)		(3,159	)
Gross profit	12,546			8,485				32,281			19,802
Other income	27			5				4,736			2,043
Other expenses	(305	)		(173	)			(1,827	)		(482	)
Administrative expenses	(2,539	)		(1,246	)			(5,361	)		(3,951	)
Cash-settled share-based payment	(231	)		(36	)			(1,177	)		(406	)
Net foreign exchange gain	985			3,345				4,694			28,270
Profit on sale of subsidiary	–			–				–			5,409
Fair value gain/ (loss) on derivative assets	27			–				(121	)		(324	)
Operating profit	10,510			10,380				33,225			50,361
Finance income	4			30				36			80
Finance cost	(91	)		(46	)			(390	)		(116	)
Profit before tax	10,423			10,364				32,871			50,325
Tax expense	(4,993	)		(1,858	)			(11,410	)		(3,154	)
Profit for the period	5,430			8,506				21,461			47,171
Other comprehensive income
Items that are or may be reclassified to profit or loss
Exchange differences on translation of foreign operations	(88	)		(353	)			(1,146	)		(353	)
Reclassification of accumulated exchange differences on the sale of subsidiary	–			–				–			(2,109	)
Total comprehensive income for the period	5,342			8,153				20,315			44,709
Profit attributable to:
Owners of the Company	4,433			7,007				17,807			39,628
Non-controlling interests	997			1,499				3,654			7,543
Profit for the period	5,430			8,506				21,461			47,171
Total comprehensive income attributable to:
Owners of the Company	4,345			6,654				16,661			37,166
Non-controlling interests	997			1,499				3,654			7,543
Total comprehensive income for the period	5,342			8,153				20,315			44,709
Earnings per share
Basic earnings per share ($)	0.37			0.63				1.50			3.60
Diluted earnings per share ($)	0.37			0.63				1.50			3.60

Condensed consolidated statements of financial position (in thousands of United States dollars, unless indicated otherwise)
Unaudited		September 30,		December 31,
As at		2020		2019
Assets
Property, plant and equipment		123,923		113,651
Deferred tax asset		105		63
Total non-current assets		124,028		113,714
Inventories		14,280		11,092
Prepayments		4,254		2,350
Trade and other receivables		6,839		6,912
Derivative financial assets		1,160		102
Cash and cash equivalents		21,562		9,383
Total current assets		48,095		29,839
Total assets		172,123		143,553
Equity and liabilities
Share capital		74,696		56,065
Reserves		137,337		140,730
Retained loss		(73,240	)	(88,380	)
Equity attributable to shareholders		138,793		108,415
Non-controlling interests		15,913		16,302
Total equity		154,706		124,717
Provisions		3,404		3,346
Deferred tax liabilities		1,724		3,129
Term loan facility – long term portion		193		1,942
Cash-settled share-based payment – long term portion		1,692		540
Total non-current liabilities		7,013		8,957
Term loan facility – short term portion		322		529
Cash-settled share-based payment – short term portion		285		–
Income taxes payable		1,902		163
Trade and other payables		7,895		8,697
Overdraft		–		490
Total current liabilities		10,404		9,879
Total liabilities		17,417		18,836
Total equity and liabilities		172,123		143,553

Condensed consolidated statements of cash flows (in thousands of United States dollars, unless indicated otherwise)
Unaudited	Three months ended					Nine months ended
	September 30,					September 30,
	2020		2019			2020		2019
Cash generated from operations	7,393		4,886			23,764		14,003
Net interest paid	(74	)	(33	)		(337	)	(129	)
Tax paid	(2,048	)	–			(4,082	)	(608	)
Net cash from operating activities	5,271		4,853			19,345		13,266
Cash flows used in investing activities
Acquisition of property, plant and equipment	(8,007	)	(5,583	)		(15,928	)	(14,909	)
Purchase of derivative financial asset	–		–			(1,058	)	–
Proceeds from disposal of subsidiary	–		–			900		1,000
Net cash used in investing activities	(8,007	)	(5,583	)		(16,086	)	(13,909	)
Cash flows from financing activities
Dividends paid	(1,129	)	(883	)		(3,110	)	(2,503	)
Payment of lease liabilities	(30	)	–			(87	)	–
Shares issued – equity raise	12,538		–			12,538		–
Share options exercised	–		–			30		–
Net cash used in financing activities	11,379		(883	)		9,371		(2,503	)
Net increase/ (decrease) in cash and cash equivalents	8,643		(1,613	)		12,630		(3,146	)
Effect of exchange rate fluctuations on cash held	1,280		1,063			39		(15	)
Net cash and cash equivalents at the beginning of the period	11,639		9,742			8,893		11,187
Net cash and cash equivalents at the end of the period	21,562		9,192			21,562		8,026

Highlights

• GAAP net loss attributable to shareholders of Teekay of $35.4 million, or $0.35 per share (inclusive of $66.3 million of impairment charges), and adjusted net income attributable to shareholders of Teekay⁽¹⁾ of $15.2 million, or $0.15 per share, in the third quarter of 2020 (excluding items listed in Appendix A to this release).
• Total adjusted EBITDA⁽¹⁾ of $227.0 million in the third quarter of 2020, an 18 percent increase over the same period of the prior year.
• Reduced consolidated net debt by $88 million in the third quarter of 2020; and total pro forma consolidated liquidity increased to $1.1 billion⁽²⁾ as of September 30, 2020.
• Teekay Parent is nearing completion of Phase I of the Banff FPSO decommissioning project according to plan; repurchased $14.4 million in principal amount of its existing convertible bond and secured bond at average prices of 81.55 and 92.23, respectively; and completed $150 million refinancing of equity margin revolver.
• Teekay LNG extended a charter contract to early-2022 for a 52 percent-owned LNG carrier; LNG fleet is now 100 percent fixed for the remainder of 2020 and 96 percent fixed for 2021.
• Teekay Tankers secured a new time charter-out contract for an Aframax tanker and currently has 20 percent of its existing fleet on fixed-rate charters at levels well above current market rates.

HAMILTON, Bermuda, Nov. 12, 2020 (GLOBE NEWSWIRE) — Teekay Corporation (Teekay or the Company) (NYSE:TK) today reported results for the third quarter ended September 30, 2020. These results include the Company’s two publicly-listed consolidated subsidiaries, Teekay LNG Partners L.P. (Teekay LNG) (NYSE:TGP) and Teekay Tankers Ltd. (Teekay Tankers) (NYSE:TNK) (collectively, the Daughter Entities), and all remaining subsidiaries and equity-accounted investments. Teekay, together with its subsidiaries other than the Daughter Entities, is referred to in this release as Teekay Parent. Please refer to the third quarter 2020 earnings releases of Teekay LNG and Teekay Tankers, which are available on Teekay’s website at www.teekay.com, for additional information on their respective results.

Financial Summary

	Three Months Ended
	September 30,		June 30,		September 30,
	2020		2020		2019(3)
(in thousands of U.S. dollars, except per share amounts)	(unaudited)		(unaudited)		(unaudited)
TEEKAY CORPORATION CONSOLIDATED
GAAP FINANCIAL COMPARISON
Revenues	396,517		482,805		425,836
Income (loss) from vessel operations	11,384		148,504		(130,389	)
Equity income	24,392		35,343		21,514
Net (loss) income attributable to
shareholders of Teekay	(35,407	)	21,723		(198,178	)
(Loss) earnings per share attributable to
shareholders of Teekay	(0.35	)	0.21		(1.97	)
NON-GAAP FINANCIAL COMPARISON
Total adjusted revenues (1)	498,115		592,658		511,825
Total adjusted EBITDA (1)	226,998		315,869		192,880
Adjusted net income (loss) attributable
to shareholders of Teekay (1)	15,229		39,713		(24,070	)
Adjusted net income (loss) per share
attributable to shareholders of Teekay (1)	0.15		0.39		(0.24	)
TEEKAY PARENT
NON-GAAP FINANCIAL COMPARISON
Teekay Parent adjusted EBITDA (1)	3,271		9,694		(10,068	)
Total Teekay Parent free cash flow (1)	(17,135	)	(1,908	)	(18,782	)

(1)		These are non-GAAP financial measures. Please refer to “Definitions and Non-GAAP Financial Measures” and the Appendices to this release for definitions of these terms and reconciliations of these non-GAAP financial measures as used in this release to the most directly comparable financial measures under United States generally accepted accounting principles (GAAP).
(2)		Pro forma for Teekay Parent’s equity margin revolver refinancing completed in early-October 2020.
(3)		Comparative balances relating to the three months ended September 30, 2019 have been recast to reflect results consistent with the presentation in the Company’s 2019 Annual Report on Form 20-F and this report for the three and nine months ended September 30, 2020.

CEO Commentary

“In the third quarter of 2020, we reported another adjusted profit, with adjusted net income of approximately $15 million, or $0.15 per share, and total adjusted EBITDA increased by approximately $34 million, or 18 percent, from the prior year period,” commented Kenneth Hvid, Teekay’s President and Chief Executive Officer.

“Teekay LNG, which accounted for approximately 82 percent of our total adjusted EBITDA in the third quarter of 2020, generated strong earnings and cash flows despite a heavy scheduled drydock program. Teekay Tankers also reported positive adjusted net income and outperformed a weak spot tanker market on the strength of fixed-rate charters secured over the past several quarters at attractive levels. Teekay Parent’s adjusted EBITDA improved by $13 million in the third quarter of 2020 compared to the same period of the prior year, primarily as a result of higher cash distributions from Teekay LNG, lower net general and administrative expenses, and improved results from the Foinaven and Hummingbird FPSOs, partially offset by lower earnings from the Banff FPSO, which ceased production and commenced decommissioning in June 2020. We are nearing completion of Phase I of the Banff FPSO decommissioning project, which has been progressing well in terms of both schedule and budget. The FPSO unit left the field, as scheduled, in late-August 2020 and is now preparing for green recycling, with Phase II of the decommissioning project expected to be carried out in the summer of 2021,” commented Mr. Hvid.

“We have continued to increase our financial strength across the Teekay group,” added Mr. Hvid. “During the past year, we have reduced our consolidated net debt by over $940 million, or approximately 22 percent, and increased our consolidated liquidity from $0.6 billion to $1.1 billion⁽¹⁾ on a pro forma basis as of September 30, 2020. In addition, at Teekay Parent, we used some of our cash balances to opportunistically repurchase $14.4 million in principal amount of our existing convertible and secured bonds for total consideration of $11.9 million at all-in average prices of 81.55 and 92.23, respectively.”

Mr. Hvid concluded, “I want to thank our seafarers and onshore colleagues for their continued dedication to providing safe and uninterrupted service to our customers throughout the course of the pandemic. With our balance sheets continuing to strengthen, extensive contracted revenues at Teekay LNG and no committed growth capital expenditures or significant near-term debt maturities, we believe that we have made significant progress insulating our companies from near-term market volatility and positioning the Teekay Group to create long-term shareholder value.”

(1)

Pro forma for Teekay Parent’s equity margin revolver refinancing completed on October 1, 2020.

Summary of Results

Teekay Corporation Consolidated

The Company’s consolidated results during the third quarter of 2020 improved compared to the same period of the prior year, primarily due to: higher revenues from Teekay Tankers as a result of several fixed-rate charters secured during the past year at higher rates and higher average spot tanker rates in the third quarter of 2020 compared to the third quarter of 2019; improved results from the commencement of the Foinaven FPSO unit’s new bareboat charter contract in March 2020; lower interest expense due to debt reduction over the past year and lower interest rates; Teekay LNG’s earnings from the delivery and contract start-up on three equity-accounted LNG carrier newbuildings; fewer off-hire days for scheduled drydockings and repairs; and the commencement of terminal use payments to Teekay LNG’s equity-accounted Bahrain LNG Terminal in January 2020. These improvements were partially offset by: a reduction in Teekay Tankers’ earnings resulting from the sale of four Suezmax tankers during December 2019 and the first quarter of 2020; a reduction in Teekay LNG’s earnings following the sale of two non-core LNG carriers in early-2020; and a reduction in Teekay Parent’s earnings from the Banff FPSO unit due to the decommissioning of the Banff oil field, which commenced in June 2020.

In addition, consolidated GAAP net loss decreased as the Company recognized fewer impairment charges in the third quarter of 2020, including write-downs totaling $66.3 million relating to five Aframax tankers, one FPSO unit and one in-chartered FSO unit under an operating lease, compared to write-downs of vessels totaling $175.8 million in the third quarter of 2019; and a gain of $1.1 million recognized in the third quarter of 2020 relating to the repurchase of Teekay’s 5 percent Convertible Senior Notes. These items were partially offset by an increase in unrealized credit loss provision adjustments and foreign currency exchange losses incurred in the third quarter of 2020, as compared to unrealized gains in the third quarter of 2019.

Teekay Parent

Total Teekay Parent Free Cash Flow⁽¹⁾ was negative $17.1 million during the third quarter of 2020, compared to negative $18.8 million for the same period of the prior year, primarily due to: the elimination of the operating losses on the Foinaven FPSO unit as a result of the commencement of the new bareboat contract in the first quarter of 2020; higher distributions received from Teekay LNG as a result of Teekay LNG’s 32 percent increase in its quarterly cash distributions commencing in May 2020 and the newly-issued Teekay LNG common units Teekay Parent received as consideration for the Teekay LNG incentive distribution rights (IDR) transaction completed in May 2020; lower net general and administrative expenses; and a higher contribution from the Hummingbird FPSO unit mainly due to a new contract that took effect in the fourth quarter of 2019 at a higher rate. These increases are partially offset by: a lower contribution from the Banff FPSO unit due to the decommissioning of the Banff oil field, which commenced in June 2020, and the associated decommissioning costs incurred during the third quarter of 2020. The Banff FPSO unit’s estimated remaining net asset retirement obligation relating to the remediation of the subsea infrastructure was $34.2 million as of September 30, 2020 (net of customer recoveries and excluding any remaining operating expenses and recycling costs relating to the FPSO unit).

Please refer to Appendix D of this release for additional information about Teekay Parent’s Free Cash Flow⁽¹⁾.

(1)

This is a non-GAAP financial measure. Please refer to “Definitions and Non-GAAP Financial Measures” and the Appendices to this release for a definition of this term and a reconciliation of this non-GAAP financial measure as used in this release to the most directly comparable financial measures under GAAP.

Summary Results of Daughter Entities

Teekay LNG

Teekay LNG’s net income, adjusted net income⁽¹⁾ and total adjusted EBITDA⁽¹⁾ for the third quarter of 2020, compared to the same quarter of the prior year, were positively impacted by: additional earnings from the delivery and contract start-up of three 50 percent-owned LNG carrier newbuildings in late-2019 and the commencement of terminal use payments to the Bahrain LNG Terminal in one of Teekay LNG’s joint ventures; and fewer off-hire days. These increases were partially offset by a reduction in earnings as a result of the sale of non-core vessels and lower charter rates earned by three, 52 percent-owned LNG carriers. Teekay LNG’s net income and adjusted net income⁽¹⁾ were further positively impacted by lower net interest expense in the third quarter of 2020 as a result of debt repayments over the past year.

In addition, Teekay LNG’s GAAP net income was negatively impacted by unrealized credit loss provision adjustments related to the adoption of new accounting standards (ASC 326) at the beginning of 2020 and unrealized foreign currency exchange losses incurred in the third quarter of 2020 as compared to unrealized gains in the third quarter of 2019; partially offset by unrealized gains on non-designated derivative instruments in the third quarter of 2020 compared to unrealized losses in the third quarter of 2019.

Please refer to Teekay LNG’s third quarter 2020 earnings release for additional information on the financial results for this entity.

Teekay Tankers

Teekay Tankers’ GAAP net loss increased for the third quarter of 2020, while non-GAAP adjusted net income⁽¹⁾ and total adjusted EBITDA⁽¹⁾ improved compared to the same period of the prior year. These measures were positively impacted primarily by higher revenues from several fixed-rate charters secured during the past year at higher rates and higher spot tanker rates in the third quarter of 2020 compared to the prior year, partially offset by the sale of four Suezmax tankers during December 2019 and the first quarter of 2020, as well as the sale of the non-US portion of the ship-to-ship support services and LNG terminal management business in the second quarter of 2020. Teekay Tankers’ GAAP net loss in the third quarter of 2020 also included a $45.0 million write-down of assets.

Following three strong quarters, spot tanker rates came under pressure during the third quarter of 2020 as a result of seasonal weakness, lower oil demand, record OPEC+ production cuts, and the unwinding of floating storage. Teekay Tankers was able to partially mitigate the impact of these weaker rates with 22 percent of its fleet on fixed-rate charters during the third quarter at an average rate of $37,600 per day. The weakness in spot tanker rates has continued into the fourth quarter of 2020, with rates so far averaging below the levels in the third quarter of 2020.

Please refer to Teekay Tankers’ third quarter 2020 earnings release for additional information on the financial results for this entity.

(1)

This is a non-GAAP financial measure. Please refer to “Definitions and Non-GAAP Financial Measures” and the Appendices to this release for a definition of this term and a reconciliation of this non-GAAP financial measure as used in this release to the most directly comparable financial measures under GAAP.

Summary of Recent Events

Teekay Parent

In early-October 2020, Teekay Parent closed on a new equity margin revolver of up to $150 million maturing in June 2022 to refinance the previous facility which was scheduled to mature in December 2020. The new revolver has substantially similar terms to the previous facility and currently remains fully undrawn.

Since mid-September 2020, Teekay Parent has repurchased $12.8 million in principal amount of its existing 5 percent Convertible Senior Notes for total consideration of $10.5 million at an average all-in price of 81.55, and $1.6 million in principal amount of its existing 9.25 percent Secured Senior Notes for total consideration of $1.5 million at an average all-in price of 92.23.

Teekay LNG

In August 2020, Teekay LNG issued the equivalent of $112 million of unsecured, 5-year notes in the Norwegian Bond market at an all-in fixed coupon rate of 5.74 percent. The net proceeds from the bond issuance were used to repay drawings on the Partnership’s revolving credit facilities and as a result, the new bond issuance did not increase Teekay LNG’s financial leverage.

In October 2020, the charterer of the 52 percent-owned Marib Spirit exercised its options to extend the current charter by 14 months at a higher charter rate, extending the vessel’s charter coverage to early-2022.

Teekay Tankers

In August 2020, Teekay Tankers secured a three-year, $67 million term loan to refinance four Suezmax tankers. The net proceeds from the new debt facility, along with existing cash balances, were used to repay approximately $85 million outstanding on Teekay Tankers’ existing debt facility with respect to these vessels that was scheduled to mature in 2021.

In September 2020, Teekay Tankers entered into a one-year time charter-out contract for an Aframax tanker at $18,700 per day, which commenced in early-October 2020.

In October 2020, Teekay Tankers repurchased two of its Aframax vessels that were previously subject to long-term finance leases for a total purchase price of $29.6 million. The purchase was funded with existing cash balances and therefore, the two vessels are currently unencumbered. 

Liquidity

As at September 30, 2020, Teekay Parent had total liquidity of approximately $142.5 million (consisting of $54.7 million of cash and cash equivalents and $87.8 million of undrawn capacity from a revolving credit facility), compared to Teekay Parent liquidity of $165.5 million as at June 30, 2020. Including Teekay Parent’s equity margin revolver refinancing completed on October 1, 2020, Teekay Parent’s pro forma total liquidity would have been approximately $173.5 million as of September 30, 2020.

On a consolidated basis, as at September 30, 2020, Teekay had consolidated total liquidity of approximately $1.0 billion (consisting of $376.6 million of cash and cash equivalents and $666.5 million of undrawn capacity from its credit facilities), up from total consolidated liquidity of $939.4 million as at June 30, 2020. Including Teekay Parent’s equity margin revolver refinancing completed on October 1, 2020, Teekay’s pro forma consolidated total liquidity would have been approximately $1.1 billion as of September 30, 2020.

Conference Call

The Company plans to host a conference call on Thursday, November 12, 2020 at 11:00 a.m. (ET) to discuss its results for the third quarter of 2020. All shareholders and interested parties are invited to listen to the live conference call by choosing from the following options:

• By dialing (800) 367-2403 or (647) 490-5367, if outside North America, and quoting conference ID code 9588810.

• By accessing the webcast, which will be available on Teekay’s website at www.teekay.com (the archive will remain on the website for a period of one year).

An accompanying Third Quarter 2020 Earnings Presentation will also be available at www.teekay.com in advance of the conference call start time.

About Teekay

Teekay is a leading provider of international crude oil and gas marine transportation services. Teekay provides these services primarily through its directly-owned fleet and its controlling ownership interests in Teekay LNG Partners L.P. (NYSE:TGP), one of the world’s largest independent owners and operators of LNG carriers, and Teekay Tankers Ltd. (NYSE:TNK), one of the world’s largest owners and operators of mid-sized crude tankers. The consolidated Teekay entities manage and operate total assets under management of approximately $9 billion, comprised of approximately 140 liquefied gas, offshore, and conventional tanker assets. With offices in 10 countries and approximately 5,500 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world’s leading oil and gas companies.

Teekay’s common stock is listed on the New York Stock Exchange where it trades under the symbol “TK”.

For Investor Relations enquiries contact:

Ryan Hamilton
Tel: +1 (604) 609-2963
Website: www.teekay.com

Definitions and Non-GAAP Financial Measures

This release includes various financial measures that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission (SEC). These non-GAAP financial measures, which include Adjusted Net Income (Loss) Attributable to Shareholders of Teekay, Teekay Parent Free Cash Flow, Total Adjusted Revenues, Net Interest Expense, Adjusted Equity Income and Adjusted EBITDA, are intended to provide additional information and should not be considered substitutes for measures of performance prepared in accordance with GAAP. In addition, these measures do not have standardized meanings across companies, and therefore may not be comparable to similar measures presented by other companies. The Company believes that certain investors use this information to evaluate the Company’s financial performance, as does management.

Non-GAAP Financial Measures

Total Adjusted EBITDA represents net income (loss) before interest, taxes, depreciation and amortization, and is adjusted to exclude certain items whose timing or amount cannot be reasonably estimated in advance or that are not considered representative of core operating performance. Such adjustments include foreign currency exchange gains and losses, any write-downs and/or gains and losses on sale of operating assets, adjustments for direct financing and sales-type leases to a cash basis, amortization of in-process revenue contracts, unrealized gains and losses on derivative instruments, credit loss provision adjustments, write-downs related to equity-accounted investments, our share of the above items in non-consolidated joint ventures which are accounted for using the equity method of accounting, and other income or loss. Total Adjusted EBITDA also excludes realized gains or losses on interest rate swaps as management, in assessing the Company’s performance, views these gains or losses as an element of interest expense and realized gains or losses on derivative instruments resulting from amendments or terminations of the underlying instruments.

Consolidated Adjusted EBITDA represents Adjusted EBITDA from vessels that are consolidated on the Company’s financial statements. Adjusted EBITDA from Equity-Accounted Vessels represents the Company’s proportionate share of Adjusted EBITDA from its equity-accounted vessels. The Company does not have the unilateral ability to determine whether the cash generated by its equity-accounted vessels is retained within the entity in which the Company holds the equity-accounted investments or distributed to the Company and other owners. In addition, the Company does not control the timing of any such distributions to the Company and other owners. Total Adjusted EBITDA represents Consolidated Adjusted EBITDA plus Adjusted EBITDA from Equity-Accounted Joint Ventures. Adjusted EBITDA is a non-GAAP financial measure used by certain investors and management to measure the operational performance of companies. Please refer to Appendices C and E of this release for reconciliations of Adjusted EBITDA to net income (loss) and equity (loss) income, respectively, which are the most directly comparable GAAP measures reflected in the Company’s consolidated financial statements.

Total Adjusted Revenues represents the Company’s revenues from its consolidated vessels, as shown in the Company’s Consolidated Statements of (Loss) Income, and its proportionate ownership percentage of the revenues from its equity-accounted joint ventures, as shown in Appendix E of this release, and commencing in 2020, less the Company’s proportionate share of revenues earned directly from its equity-accounted joint ventures. Please refer to Appendix E of this release for a reconciliation of this non-GAAP financial measure to revenues and equity income, the most directly comparable GAAP measure reflected in the Company’s consolidated financial statements. The Company does not have the unilateral ability to determine whether the cash generated by its equity-accounted vessels is retained within the entity in which the Company holds the equity-accounted investments or distributed to the Company and other owners. In addition, the Company does not control the timing of any such distributions to the Company and other owners.

Adjusted Net Income (Loss) Attributable to Shareholders of Teekay excludes items of income or loss from GAAP net income (loss) that are typically excluded by securities analysts in their published estimates of the Company’s financial results. The Company believes that certain investors use this information to evaluate the Company’s financial performance, as does management. Please refer to Appendix A of this release for a reconciliation of this non-GAAP financial measure to net (loss) income, and refer to footnote (6) of the statements of (loss) income for a reconciliation of adjusted equity income to equity income (loss), the most directly comparable GAAP measure reflected in the Company’s consolidated financial statements.

Teekay Parent Financial Measures

Teekay Parent Adjusted EBITDA represents the sum of (a) distributions or dividends (including payments-in-kind) relating to a given quarter (but received by Teekay Parent in the following quarter) as a result of ownership interests in its consolidated publicly-traded subsidiaries (Teekay LNG and Teekay Tankers), net of Teekay Parent’s corporate general and administrative expenditures for the given quarter and (b) Adjusted EBITDA attributed to Teekay Parent’s directly-owned and chartered-in assets.

Teekay Parent Free Cash Flow represents Teekay Parent Adjusted EBITDA, less Teekay Parent’s net interest expense and, commencing in the second quarter of 2020, asset retirement costs incurred for the given quarter. Net Interest Expense includes interest expense (excluding the amortization of prepaid loan costs), interest income and realized losses on interest rate swaps. Please refer to Appendices B, C, D and E of this release for further details and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures reflected in the Company’s consolidated financial statements.

Teekay Corporation
Summary Consolidated Statements of (Loss) Income
(in thousands of U.S. dollars, except share and per share data)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2020			2020			2019 (1)			2020			2019 (1)
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Revenues	396,517			482,805			425,836			1,453,376			1,375,106
Voyage expenses	(61,736		)	(66,896		)	(97,829		)	(250,196		)	(310,022		)
Vessel operating expenses	(153,764		)	(147,796		)	(159,616		)	(454,853		)	(479,229		)
Time-charter hire expense	(18,796		)	(17,714		)	(28,932		)	(63,566		)	(87,587		)
Depreciation and amortization	(64,352		)	(62,936		)	(73,633		)	(200,205		)	(219,589		)
General and administrative expenses	(18,073		)	(23,668		)	(20,016		)	(60,018		)	(63,856		)
Write-down and (loss) gain on sale of assets (2)	(66,273		)	(10,669		)	(175,785		)	(171,548		)	(179,113		)
Gain on commencement of sales-type lease (3)	—			—			—			44,943			—
Restructuring charges (4)	(2,139		)	(4,622		)	(414		)	(9,149		)	(10,404		)
Income (loss) from vessel operations	11,384			148,504			(130,389		)	288,784			25,306
Interest expense	(53,175		)	(59,245		)	(67,707		)	(174,940		)	(211,583		)
Interest income	1,754			2,314			1,485			6,871			6,407
Realized and unrealized losses on non-designated
derivative instruments (5)	(1,471		)	(9,270		)	(1,924		)	(32,404		)	(18,311		)
Equity income (loss) (6)	24,392			35,343			21,514			62,048			(46,423		)
Income tax (expense) recovery (7)	(3,702		)	17,175			(3,091		)	9,681			(11,531		)
Foreign exchange (loss) gain	(5,943		)	(8,922		)	5,628			(8,219		)	(2,853		)
Other loss – net (8)	(14,627		)	(399		)	(1,424		)	(15,707		)	(12,495		)
Net (loss) income	(41,388		)	125,500			(175,908		)	136,114			(271,483		)
Net loss (income) attributable to
non-controlling interests	5,981			(103,777		)	(22,270		)	(199,603		)	(50,437		)
Net (loss) income attributable to the shareholders
of Teekay Corporation	(35,407		)	21,723			(198,178		)	(63,489		)	(321,920		)
Earnings (loss) per common share of Teekay Corporation
– Basic	$	(0.35	)	$	0.21		$	(1.97	)	$	(0.63	)	$	(3.20	)
– Diluted	$	(0.35	)	$	0.21		$	(1.97	)	$	(0.63	)	$	(3.20	)
Weighted-average number of common shares outstanding
– Basic	101,107,371			101,107,362			100,784,683			101,034,362			100,697,251
– Diluted	101,107,371			101,196,383			100,784,683			101,034,362			100,697,251

(1)		Comparative balances relating to the three and nine months ended September 30, 2019 have been recast to reflect results consistent with the presentation in the Company’s 2019 Annual Report on Form 20-F and this report for the three and nine months ended September 30, 2020.
(2)		Write-down and (loss) gain on sale of assets for the three and nine months ended September 30, 2020 includes write-downs of $66.3 million relating to five Aframax tankers, the Hummingbird FPSO unit, and the Suksan Salamander FSO unit, an operating lease right-of-use (ROU) asset. The five Aframax tankers were written down to their estimated fair values. In 2020, the Company made changes to the Hummingbird’s expected future cash flows based on the market environment and oil prices, and contract discussions with the customer, which resulted in the vessel being fully written down. In the third quarter of 2020, the Company also made changes to the Suksan Salamander’s expected future cash flows based on recent progress on the early termination of the in-charter and the corresponding novation of the charter contract to Altera Infrastructure LP (Altera). Write-down and (loss) gain on sale of assets for the nine months ended September 30, 2020 also includes a $13.6 million provision incurred in the second quarter of 2020 relating to an adjustment in the Banff FPSO unit’s estimated asset retirement obligation and the write-down of the unit’s remaining residual value, write-downs of six multi-gas carriers totaling $45.0 million and other write-downs of two FPSO units totaling $46.5 million, both of which were incurred in the first quarter of 2020. Write-down and (loss) gain on sale of assets for the three and nine months ended September 30, 2019 includes $175.0 million relating to the write-down of two FPSO units owned by Teekay Parent.
(3)		Gain on commencement of sales-type lease of $44.9 million for the nine months ended September 30, 2020 relates to the commencement of the sales-type lease for the Foinaven FPSO unit as a result of a new bareboat charter agreement.
(4)		Restructuring charges for the three and nine months ended September 30, 2020 includes redundancy accruals arising from the cessation of production of the Petrojarl Banff FPSO unit in June 2020, the restructuring of the Company’s tanker operations, and the reorganization and realignment of resources of the Company’s shared services functions, of which a portion of the costs are recoverable from the customer, Altera. Restructuring charges for the nine months ended September 30, 2020 also includes severance costs resulting from the expected termination of the contract for an FSO unit based in Australia, which are expected to be fully recoverable from the customer. Recoverable severance costs totaling $1.0 million and $6.7 million are presented in revenue for the three and nine months ended September 30, 2020, respectively.
(5)		Realized and unrealized losses related to derivative instruments that are not designated in qualifying hedging relationships for accounting purposes are included as a separate line item in the consolidated statements of (loss) income. The realized losses relate to the amounts the Company actually paid to settle such derivative instruments and the unrealized gains (losses) relate to the change in fair value of such derivative instruments, as detailed in the table below:

	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2020		2020		2019		2020		2019
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
Realized (losses) gains relating to
Interest rate swap agreements	(5,349	)	(3,879	)	(2,247	)	(11,905	)	(5,720	)
Stock purchase warrants (i)	—		—		—		—		(25,559	)
Foreign currency forward contracts	379		—		—		138		—
Forward freight agreements	(183	)	(201	)	435		(433	)	393
	(5,153	)	(4,080	)	(1,812	)	(12,200	)	(30,886	)
Unrealized gains (losses) relating to
Interest rate swap agreements	3,956		(5,251	)	(623	)	(20,107	)	(14,839	)
Foreign currency forward contracts	(53	)	53		(435	)	202		(536	)
Stock purchase warrants (i)	—		—		—		—		26,900
Forward freight agreements	(221	)	8		946		(299	)	1,050
	3,682		(5,190	)	(112	)	(20,204	)	12,575
Total realized and unrealized losses on derivative instruments	(1,471	)	(9,270	)	(1,924	)	(32,404	)	(18,311	)

(i)

Stock purchase warrants for the nine months ended September 30, 2019 relates to the sale of the Company’s remaining interest in Altera in May 2019. Also refer to footnote (6)(i) below.

(6)

The Company’s proportionate share of items within equity income (loss) as identified in Appendix A of this release is detailed in the table below. By excluding these items from equity income (loss) as reflected in the consolidated statements of (loss) income , the Company believes the resulting adjusted equity income is a normalized amount that can be used to evaluate the financial performance of the Company’s equity-accounted investments. Adjusted equity income is a non-GAAP financial measure.

	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,	September 30,
	2020		2020		2019		2020	2019
	(unaudited)		(unaudited)		(unaudited)		(unaudited)	(unaudited)
Equity income (loss)	24,392		35,343		21,514		62,048	(46,423	)
Proportionate share of unrealized (gains)
losses on derivative instruments	(2,680	)	3,806		5,170		23,330	19,138
Loss on sale of investment in Altera (i)	—		—		—		—	72,753
Other (ii)	8,266		(61	)	(150	)	16,646	873
Equity income adjusted for items in Appendix A	29,978		39,088		26,534		102,024	46,341

	(i)		During the nine months ended September 30, 2019, the Company recognized a loss of $7.9 million on sale of its investment in Altera to affiliates of Brookfield Business Partners L.P., which occurred in May 2019. In connection with the sale, the Company also recognized a write-down of $64.9 million on its equity-accounted investment in Altera during the nine months ended September 30, 2019. Also refer to footnote (5)(i) above in respect of gains and losses on stock purchase warrants.
	(ii)		Other for the three and nine months ended September 30, 2020, and three months ended June 30, 2020, includes unrealized credit loss provision adjustments to the Company’s financial instruments as a result of the adoption in 2020 of ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (ASU 2016-13).

(7)		Income tax (expense) recovery for the three months ended June 30, 2020 and nine months ended September 30, 2020, includes a reduction in freight tax accruals of $16.8 million related to periods prior to 2020.
(8)		Other loss – net for the three and nine months ended September 30, 2020, and three months ended June 30, 2020 includes unrealized credit loss provision adjustments of $15.0 million, $15.2 million and $0.2 million, respectively, as a result of the adoption of ASU 2016-13 effective January 1, 2020. Other loss – net for the nine months ended September 30, 2019 includes a $10.7 million loss relating to the repurchase of the Company’s 2020 Unsecured Senior Notes, which matured in January 2020.

Teekay Corporation
Summary Consolidated Balance Sheets
(in thousands of U.S. dollars)

		As at September 30,	As at June 30,	As at December 31,
		2020	2020	2019
		(unaudited)	(unaudited)	(unaudited)
ASSETS
Cash and cash equivalents – Teekay Parent		54,655	66,917	104,196
Cash and cash equivalents – Teekay LNG		201,036	226,328	160,221
Cash and cash equivalents – Teekay Tankers		120,872	167,907	88,824
Assets held for sale		—	—	65,458
Accounts receivable and other current assets		274,408	318,726	393,406
Restricted cash – Teekay Parent		4,060	3,915	2,048
Restricted cash – Teekay LNG		53,801	66,147	93,070
Restricted cash – Teekay Tankers		8,123	8,203	6,508
Vessels and equipment – Teekay Parent		—	13,964	95,984
Vessels and equipment – Teekay LNG		2,908,182	2,931,602	3,027,342
Vessels and equipment – Teekay Tankers		1,616,518	1,672,976	1,750,166
Operating lease right-of-use assets		61,796	81,255	159,638
Net investment in direct financing and sales-type leases		537,142	554,986	818,809
Investments in and loans to equity-accounted investments		1,111,660	1,102,386	1,173,728
Other non-current assets		128,867	130,200	133,466
Total Assets		7,081,120	7,345,512	8,072,864
LIABILITIES AND EQUITY
Accounts payable and other current liabilities		461,664	441,857	430,497
Liabilities related to assets held for sale		—	—	2,980
Short-term debt – Teekay Tankers		20,000	10,000	50,000
Current portion of long-term debt – Teekay Parent		—	—	86,674
Current portion of long-term debt – Teekay LNG		363,161	366,237	463,047
Current portion of long-term debt – Teekay Tankers		37,756	53,830	68,930
Long-term debt – Teekay Parent		346,178	354,065	349,403
Long-term debt – Teekay LNG		2,488,953	2,568,258	2,779,253
Long-term debt – Teekay Tankers		573,381	661,627	905,537
Operating lease liabilities		63,529	72,982	148,602
Other long-term liabilities		196,568	229,415	216,348
Equity:
Non-controlling interests		2,033,112	2,058,273	2,089,730
Shareholders of Teekay		496,818	528,968	481,863
Total Liabilities and Equity		7,081,120	7,345,512	8,072,864
Net debt – Teekay Parent (1)		287,463	283,233	329,833
Net debt – Teekay LNG (1)		2,597,277	2,642,020	2,989,009
Net debt – Teekay Tankers (1)		502,142	549,347	929,135

(1)

Net debt is a non-GAAP financial measure and represents short-term debt, current portion of long-term debt and long-term debt, less cash and cash equivalents, and, if applicable, restricted cash.

Teekay Corporation
Summary Consolidated Statements of Cash Flows
(in thousands of U.S. dollars)

	Nine Months Ended
	September 30,
	2020		2019
	(unaudited)		(unaudited)
Cash, cash equivalents and restricted cash provided by (used for)
OPERATING ACTIVITIES
Net income (loss)	136,114		(271,483	)
Non-cash and non-operating items:
Depreciation and amortization	200,205		219,589
Unrealized loss on derivative instruments	22,373		38,803
Write-down and loss on sale	171,548		179,113
Gain on commencement of sales-type lease	(44,943	)	—
Equity (income) loss, net of dividends received	(29,751	)	71,797
Foreign currency exchange loss and other	33,747		13,602
Direct financing lease payments received	337,363		9,242
Change in operating assets and liabilities	92,310		41,729
Asset retirement obligation expenditures	(15,207	)	—
Expenditures for dry docking	(9,623	)	(46,266	)
Net operating cash flow	894,136		256,126
FINANCING ACTIVITIES
Proceeds from issuance of long-term debt, net of issuance costs	1,109,267		449,686
Prepayments of long-term debt	(1,639,223	)	(774,401	)
Scheduled repayments of long-term debt	(267,953	)	(171,946	)
Proceeds from short-term debt	235,000		125,000
Prepayment of short-term debt	(265,000	)	(75,000	)
Proceeds from financing related to sales-leaseback of vessels	—		381,526
Prepayment of obligations related to finance leases	—		(111,617	)
Repayments of obligations related to finance leases	(71,135	)	(72,559	)
Repurchase of Teekay LNG common units	(15,635	)	(25,729	)
Distributions paid from subsidiaries to non-controlling interests	(58,081	)	(46,982	)
Cash dividends paid	—		(5,523	)
Other financing activities	(798	)	(580	)
Net financing cash flow	(973,558	)	(328,125	)
INVESTING ACTIVITIES
Expenditures for vessels and equipment	(18,468	)	(98,713	)
Proceeds from sale of vessels and equipment	60,915		—
Proceeds from sale of assets, net of cash sold	24,977		100,000
Loan repayment by joint venture	4,650		—
Investment in equity-accounted investments	—		(42,171	)
Other investing activities	(6,430	)	—
Net investing cash flow	65,644		(40,884	)
Decrease in cash, cash equivalents and restricted cash	(13,778	)	(112,883	)
Cash, cash equivalents and restricted cash, beginning of the period	456,325		505,639
Cash, cash equivalents and restricted cash, end of the period	442,547		392,756

Teekay Corporation
Appendix A – Reconciliation of Non-GAAP Financial Measures
Adjusted Net Income (Loss)
(in thousands of U.S. dollars, except per share data)

	Three Months Ended								Nine Months Ended
	September 30,				June 30,				September 30,
	2020				2020				2020
	(unaudited)				(unaudited)				(unaudited)
			$ Per				$ Per				$ Per
	$		Share(1)		$		Share(1)		$		Share(1)
Net (loss) income – GAAP basis	(41,388	)			125,500				136,114
Adjust for: Net loss (income) attributable to
non-controlling interests	5,981				(103,777	)			(199,603	)
Net (loss) income attributable to
shareholders of Teekay	(35,407	)	(0.35	)	21,723		0.21		(63,489	)	(0.63	)
Add (subtract) specific items affecting net loss
Unrealized (gains) losses from
derivative instruments(2)	(6,362	)	(0.06	)	8,995		0.09		43,533		0.43
Foreign currency exchange losses (3)	4,275		0.04		7,492		0.07		3,304		0.03
Banff FPSO decommissioning costs
net of recoveries(4)	10,564		0.10		5,854		0.06		16,418		0.16
Write-down and (loss) gain on sale
of vessels and other assets(5)	66,872		0.66		10,669		0.11		172,147		1.70
Gain on commencement of sales-type lease(6)	—		—		—		—		(44,943	)	(0.44	)
Restructuring charges, net of recoveries	1,186		0.01		112		—		2,486		0.02
Other(7)	22,657		0.22		(17,598	)	(0.17	)	13,289		0.13
Non-controlling interests’ share of items above(8)	(48,556	)	(0.48	)	2,466		0.02		(62,544	)	(0.62	)
Total adjustments	50,636		0.49		17,990		0.18		143,690		1.42
Adjusted net income attributable to
shareholders of Teekay	15,229		0.15		39,713		0.39		80,201		0.79

(1)		Basic per share amounts.
(2)		Reflects unrealized gains (losses) relating to the change in the mark-to-market value of derivative instruments that are not designated in qualifying hedging relationships for accounting purposes, including those gains (losses) included in the Company’s proportionate share of equity income (loss) from joint ventures.
(3)		Foreign currency exchange losses (gains) primarily relate to the Company’s debt denominated in Euros and Norwegian Kroner (NOK) and unrealized losses on cross currency swaps used to economically hedge the principal and interest on NOK bonds.
(4)		In the first quarter of 2020, CNR International (U.K.) Limited (or CNR) provided formal notice to the Company of its intention to decommission the Banff field and remove the Banff FPSO and the Apollo Spirit FSO from the field in June 2020. The oil production under the existing contract for the Banff FPSO unit ceased in June 2020, and the Company commenced decommissioning activities during the second quarter of 2020.
(5)		Refer to footnote (2) of the Summary Consolidated Statements of (Loss) Income for additional information.
(6)		Gain on commencement of sales-type lease for the nine months ended September 30, 2020 relates to the commencement of the sales-type lease for the Foinaven FPSO unit as a result of a new bareboat charter agreement.
(7)		Other for the three and nine months ended September 30, 2020, and three months ended June 30,2020, includes credit loss provision adjustments to the Company’s financial instruments upon adoption of ASU 2016-13. Other for the nine months ended September 30, 2020 and three months ended June 30, 2020 also includes a reduction in freight tax accruals.
(8)		Items affecting net income include items from the Company’s consolidated non-wholly-owned subsidiaries. The specific items affecting net income are analyzed to determine whether any of the amounts originated from a consolidated non-wholly-owned subsidiary. Each amount that originates from a consolidated non-wholly-owned subsidiary is multiplied by the non-controlling interests’ percentage share in this subsidiary to determine the non-controlling interests’ share of the amount. The amount identified as “Non-controlling interests’ share of items above” in the table above is the cumulative amount of the non-controlling interests’ proportionate share of items listed in the table.

Teekay Corporation
Appendix A – Reconciliation of Non-GAAP Financial Measures
Adjusted Net Income (Loss)
(in thousands of U.S. dollars, except per share data)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019				2019
	(unaudited)				(unaudited)
			$ Per				$ Per
	$		Share(1)		$		Share(1)
Net loss – GAAP basis	(175,908	)			(271,483	)
Adjust for: Net income attributable to
non-controlling interests	(22,270	)			(50,437	)
Net loss attributable to
shareholders of Teekay	(198,178	)	(1.97	)	(321,920	)	(3.20	)
Add (subtract) specific items affecting net loss
Unrealized losses from non-designated derivative instruments(2)	5,283		0.05		6,565		0.07
Foreign currency exchange gains(3)	(7,059	)	(0.07	)	(1,099	)	(0.01	)
Write-down and (loss) gain on sale of vessels and
other assets(4)	175,785		1.74		251,866		2.50
Restructuring charges, net of recoveries	414		—		3,941		0.04
Other(5)	1,267		0.01		40,594		0.40
Non-controlling interests’ share of items above(6)	(1,582	)	(0.02	)	(30,340	)	(0.30	)
Total adjustments	174,108		1.71		271,527		2.70
Adjusted net loss attributable to
shareholders of Teekay	(24,070	)	(0.24	)	(50,393	)	(0.50	)

(1)		Basic per share amounts.
(2)		Reflects unrealized losses (gains) relating to the change in the mark-to-market value of derivative instruments that are not designated in qualifying hedging relationships for accounting purposes, including those losses (gains) included in the Company’s proportionate share of equity income (loss) from joint ventures.
(3)		Foreign currency exchange (gains) losses primarily relate to the Company’s debt denominated in Euros and Norwegian Kroner (NOK) and unrealized (gains) losses on cross currency swaps used to economically hedge the principal and interest on NOK bonds.
(4)		Refer to footnote (2) of the Summary Consolidated Statements of (Loss) Income for additional information.
(5)		Other for the three and nine months ended September 30, 2019 includes upfront fees on the refinancing of a vessel. Other for the nine months ended June 30, 2019 also includes the realized loss on sale of stock purchase warrants in Altera, a loss on the repurchase of 2020 Notes, and the loan extinguishment costs related to Teekay LNG’s refinancing of one of its debt facilities.
(6)		Items affecting net loss include items from the Company’s consolidated non-wholly-owned subsidiaries. The specific items affecting net loss are analyzed to determine whether any of the amounts originated from a consolidated non-wholly-owned subsidiary. Each amount that originates from a consolidated non-wholly-owned subsidiary is multiplied by the non-controlling interests’ percentage share in this subsidiary to determine the non-controlling interests’ share of the amount. The amount identified as “Non-controlling interests’ share of items above” in the table above is the cumulative amount of the non-controlling interests’ proportionate share of items listed in the table.

Teekay Corporation
Appendix B – Supplemental Financial Information
Summary Statement of Income (loss) for the Three Months Ended September 30, 2020 
(in thousands of U.S. dollars)
(unaudited)

	Teekay		Teekay		Teekay		Consolidation		Total
	LNG		Tankers		Parent		Adjustments(1)
Revenues	148,935		170,240		77,342		—		396,517
Voyage expenses	(3,950	)	(57,777	)	(9	)	—		(61,736	)
Vessel operating expenses	(30,642	)	(46,336	)	(76,786	)	—		(153,764	)
Time-charter hire expense	(5,980	)	(9,070	)	(3,746	)	—		(18,796	)
Depreciation and amortization	(32,601	)	(29,992	)	(1,759	)	—		(64,352	)
General and administrative expenses	(6,165	)	(9,887	)	(2,021	)	—		(18,073	)
Write-down of vessels	—		(44,973	)	(21,300	)	—		(66,273	)
Restructuring charges	—		(1,398	)	(741	)	—		(2,139	)
Income (loss) from vessel operations	69,597		(29,193	)	(29,020	)	—		11,384
Interest expense	(30,528	)	(12,553	)	(10,124	)	30		(53,175	)
Interest income	1,406		337		41		(30	)	1,754
Realized and unrealized (loss) gain on
non-designated derivative instruments	(1,327	)	(414	)	270		—		(1,471	)
Equity income	24,346		46		—		—		24,392
Equity in earnings of subsidiaries (2)	—		—		1,619		(1,619	)	—
Income tax expense	(1,420	)	(2,187	)	(95	)	—		(3,702	)
Foreign exchange (loss) gain	(7,853	)	(514	)	2,424		—		(5,943	)
Other (loss) income – net	(14,149	)	44		(522	)	—		(14,627	)
Net income (loss)	40,072		(44,434	)	(35,407	)	(1,619	)	(41,388	)
Net income attributable to
non-controlling interests (3)	203		—		—		5,778		5,981
Net income (loss) attributable to shareholders/
unitholders of publicly-listed entities	40,275		(44,434	)	(35,407	)	4,159		(35,407	)

(1)		Consolidation Adjustments column includes adjustments which eliminate transactions between Teekay LNG, Teekay Tankers and Teekay Parent.
(2)		Teekay Corporation’s proportionate share of the net earnings of its publicly-traded subsidiaries.
(3)		Net income attributable to non-controlling interests in the Teekay LNG column represents the joint venture partners’ share of the net income of its respective consolidated joint ventures. Net income attributable to non-controlling interest in the Consolidation Adjustments column represents the public’s share of the net income of Teekay’s publicly-traded consolidated subsidiaries.

Teekay Corporation
Appendix C – Supplemental Financial Information
Teekay Parent Summary Operating Results
For the Three Months Ended September 30, 2020
(in thousands of U.S. dollars)
(unaudited)

							Teekay
					Corporate		Parent
	FPSOs		Other(1)		G&A		Total
Revenues	16,245		61,097		—		77,342
Voyage expenses	(9	)	—		—		(9	)
Vessel operating expenses	(21,563	)	(55,223	)	—		(76,786	)
Time-charter hire expense	(2	)	(3,744	)	—		(3,746	)
Depreciation and amortization	(1,759	)	—		—		(1,759	)
General and administrative expenses	(398	)	—		(1,623	)	(2,021	)
Write-down of vessels (2)	(12,200	)	(9,100	)	—		(21,300	)
Restructuring charges	(900	)	159		—		(741	)
Loss from vessel operations	(20,586	)	(6,811	)	(1,623	)	(29,020	)
Depreciation and amortization	1,759		—		—		1,759
Amortization of operating lease liability							—
and other	(749	)	602		—		(147	)
Write-down of vessels (2)	12,200		9,100		—		21,300
Daughter Entities distributions (3)	—		—		9,379		9,379
Teekay Parent adjusted EBITDA	(7,376	)	2,891		7,756		3,271

(1)		Includes the results of one chartered-in FSO unit owned by Altera, which is largely on a flow-through basis with Teekay Parent earning a small margin.
(2)		Write-down of vessels for the three months ended September 30, 2020 relates to write-down of the Hummingbird FPSO unit and the Suksan Salamander FSO unit, an operating lease ROU asset. Please refer to footnote (2) of the Summary Consolidated Statements of (Loss) Income of this release for further details.
(3)		In addition to the adjusted EBITDA generated by its directly owned and chartered-in assets, Teekay Parent also receives cash distributions from its consolidated publicly-traded subsidiary, Teekay LNG. For the three months ended September 30, 2020, Teekay Parent received cash distributions of $9.4 million from Teekay LNG, including those made with respect to its general partner interests in Teekay LNG. Distributions received for a given quarter consist of the amount of distributions relating to such quarter but received by Teekay Parent in the following quarter. Please refer to Appendix D of this release for further details.

Teekay Corporation
Appendix D – Reconciliation of Non-GAAP Financial Measures
Teekay Parent Free Cash Flow
(in thousands of U.S. dollars, except share and per share data)

	Three Months Ended
	September 30,		June 30,		September 30,
	2020		2020		2019
	(unaudited)		(unaudited)		(unaudited)
Daughter Entities distributions to Teekay Parent (1)
Teekay LNG
Limited Partner interests (2)	8,990		8,990		4,790
GP interests	389		389		300
Total Daughter Entity Distributions to Teekay Parent	9,379		9,379		5,090
FPSOs	(7,376	)	2,250		(13,087	)
Other income and corporate general and administrative expenses
Other Income	2,891		3,488		649
Corporate general and administrative expenses (3)	(1,623	)	(5,423	)	(2,720	)
TEEKAY PARENT ADJUSTED EBITDA (4)	3,271		9,694		(10,068	)
Net interest expense (5)	(8,237	)	(8,675	)	(8,714	)
Asset retirement costs incurred (6)	(12,169	)	(2,927	)	—
TOTAL TEEKAY PARENT FREE CASH FLOW	(17,135	)	(1,908	)	(18,782	)
Weighted-average number of common shares – Basic	101,107,371		101,107,362		100,784,683

(1)		Daughter Entities dividends and distributions for a given quarter consist of the amount of dividends and distributions relating to such quarter but received by Teekay Parent in the following quarter.
(2)		Common unit distribution cash flows to Teekay Parent are based on Teekay Parent’s ownership on the ex-dividend date for its publicly-traded subsidiary Teekay LNG for the periods as follows:

	Three Months Ended
		September 30,		June, 30		September 30,
		2020		2020		2019
		(unaudited)		(unaudited)		(unaudited)
Teekay LNG
Distribution per common unit	$	0.25	$	0.25	$	0.19
Common units owned by
Teekay Parent		35,958,274		35,958,274		25,208,274
Total distribution	$	8,989,569		8,989,569	$	4,789,572

(3)		Increase in corporate general and administrative expenses for the three months ended June 30, 2020 relates primarily to a change in timing of annual equity-based compensation grants in 2020 and professional fees associated with the IDR transaction completed in May 2020.
(4)		Please refer to Appendices C and E for additional financial information on Teekay Parent’s adjusted EBITDA.
(5)		Please see Appendix E to this release for a description of this measure and a reconciliation of this non-GAAP financial measure as used in this release to interest expense net of interest income, the most directly comparable GAAP financial measure.
(6)		Relates to decommissioning activities for the Banff FPSO unit, which have been accrued on the balance sheet as an asset retirement obligation. Please see Appendix C footnote (2) for additional information.

Teekay Corporation
Non-GAAP Financial Reconciliations

Teekay Corporation
Appendix E – Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA – Consolidated
(in thousands of U.S. dollars)

	Three Months Ended
	September 30,		June 30,		September 30,
	2020		2020		2019
	(unaudited)		(unaudited)		(unaudited)
Net (loss) income	(41,388	)	125,500		(175,908	)
Depreciation and amortization	64,352		62,936		73,633
Interest expense, net of interest income	51,421		56,931		66,222
Income tax expense (recovery)	3,702		(17,175	)	3,091
EBITDA	78,087		228,192		(32,962	)
Specific income statement items affecting EBITDA:
Write-down and (loss) gain on sale of assets	66,273		10,669		175,785
Adjustments for direct financing and sales-type lease to a cash basis and other	2,976		2,452		3,191
Realized and unrealized losses on derivative instruments	1,471		9,270		1,924
Realized gains (losses) from the settlements of non-designated derivative instruments	195		(200	)	435
Equity income	(24,392	)	(35,343	)	(21,514	)
Foreign currency exchange loss (gain)	5,943		8,922		(5,628	)
Other loss – net (1)	14,627		399		1,424
Consolidated Adjusted EBITDA	145,180		224,361		122,655
Adjusted EBITDA from equity-accounted vessels (See Appendix E)	81,818		91,508		70,225
Total Adjusted EBITDA	226,998		315,869		192,880

(1)

Please refer to footnote (8) of the Summary Consolidated Statements of (Loss) Income of this release for further details.

Teekay Corporation
Appendix E – Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA – Equity-Accounted Vessels
(in thousands of U.S. dollars)

	Three Months Ended
	September 30, 2020				June 30, 2020				September 30, 2019
	(unaudited)				(unaudited)				(unaudited)
	At		Company’s		At		Company’s		At		Company’s
	100%		Portion(1)		100 %		Portion(1)		100 %		Portion(1)
Revenues	248,474		107,619		266,539		115,422		207,749		91,490
Vessel and other operating expenses	(77,966	)	(34,522	)	(74,233	)	(32,468	)	(60,219	)	(26,779	)
Depreciation and amortization	(27,436	)	(13,804	)	(26,075	)	(13,006	)	(29,799	)	(14,416	)
Income from vessel operations of equity-accounted vessels	143,072		59,293		166,231		69,948		117,731		50,295
Net interest expense	(61,774	)	(25,228	)	(73,310	)	(29,465	)	(57,031	)	(23,423	)
Income tax (expense) recovery	(449	)	(235	)	225		110		(32	)	(16	)
Other items including realized and
unrealized loss on derivative
instruments (2)	(26,624	)	(9,438	)	(17,786	)	(5,250	)	(18,270	)	(5,492	)
Gain on sale of equity-accounted
investments			—				—				150
Net income / equity income of equity-accounted vessels	54,225		24,392		75,360		35,343		42,398		21,514
Net income / equity income
of equity-accounted vessels	54,225		24,392		75,360		35,343		42,398		21,514
Depreciation and amortization	27,436		13,804		26,075		13,006		29,799		14,416
Net interest expense	61,774		25,228		73,310		29,465		57,031		23,423
Income tax expense (recovery)	449		235		(225	)	(110	)	32		16
EBITDA	143,884		63,659		174,520		77,704		129,260		59,369
Specific income statement items affecting EBITDA:
Adjustments for direct financing and sales-type lease to a cash basis	26,752		9,677		26,381		9,499		17,701		6,470
Amortization of in-process contracts and other	(1,759	)	(956	)	(1,738	)	(945	)	(1,758	)	(956	)
Other items including realized and unrealized loss on derivative instruments(2)	26,624		9,438		17,786		5,250		18,270		5,492
Loss on sale of equity-accounted investments			—				—				(150	)
Adjusted EBITDA from equity-accounted vessels (3)	195,501		81,818		216,949		91,508		163,473		70,225

(1)		The Company’s proportionate share of its equity-accounted vessels and other investments ranged from 20% to 52%.
(2)		Includes credit loss provision adjustments recorded upon the adoption of ASU 2016-13 for the three months ended September 30, 2020 and June 30, 2020.
(3)		Adjusted EBITDA from equity-accounted vessels represents the Company’s proportionate share of adjusted EBITDA from its equity-accounted vessels and other investments.

Teekay Corporation
Appendix E – Reconciliation of Non-GAAP Financial Measures
Total Adjusted Revenues 
(in thousands of U.S. dollars)

		Three Months Ended
		September 30,		June 30,		September 30,
		2020		2020		2019 (1)
		(unaudited)		(unaudited)		(unaudited)
Revenues		396,517		482,805		425,836
Proportionate share of revenues
from equity-accounted joint ventures		107,619		115,422		91,490
Less proportionate share of voyage revenues
earned directly from equity-accounted joint ventures		(6,021	)	(5,569	)	(5,501	)
Total adjusted revenues		498,115		592,658		511,825

(1)

Comparative balances relating to the three months ended September 30, 2019 have been recast to reflect results consistent with the presentation in the Company’s 2019 Annual Report on Form 20-F and this report for the three and nine months ended September 30, 2020.

Teekay Corporation
Appendix E – Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA – Teekay Parent
(in thousands of U.S. dollars)

		Three Months Ended June 30, 2020
		(unaudited)
									Teekay
							Corporate		Parent
		FPSOs			Other		G&A		Total
Teekay Parent (loss) income from vessel operations			(11,540	)		2,892	(5,423	)		(14,071	)
Write-down of vessels			13,565			—	—			13,565
Depreciation and amortization			1,761			—	—			1,761
Amortization of operating lease liability and other			(1,536	)		596	—			(940	)
Daughter Entities distributions			—			—	9,401			9,401
Adjusted EBITDA – Teekay Parent			2,250			3,488	3,978			9,716

		Three Months Ended September 30, 2019
		(unaudited)
									Teekay
							Corporate		Parent
		FPSOs			Other		G&A		Total
Teekay Parent (loss) income from vessel operations			(194,415	)		8	(2,720	)		(197,127	)
Write-down of vessels			175,000			—	—			175,000
Depreciation and amortization			7,811			38	—			7,849
Amortization of in-process revenue contracts and other			(1,483	)		603	—			(880	)
Daughter Entities distributions			—			—	5,090			5,090
Adjusted EBITDA – Teekay Parent			(13,087	)		649	2,370			(10,068	)

Teekay Corporation
Appendix E – Reconciliation of Non-GAAP Financial Measures
Net Interest Expense – Teekay Parent
(in thousands of U.S. dollars)

			Three Months Ended
			September 30,		June 30,		September 30,
			2020		2020		2019
			(unaudited)		(unaudited)		(unaudited)
Interest expense			(53,175	)	(59,245	)	(67,707	)
Interest income			1,754		2,314		1,485
Interest expense net of interest income consolidated			(51,421	)	(56,931	)	(66,222	)
Less: Non-Teekay Parent interest expense net of interest income			(41,338	)	(46,371	)	(55,545	)
Interest expense net of interest income – Teekay Parent			(10,083	)	(10,560	)	(10,677	)
Teekay Parent non-cash accretion and loan cost amortization			2,188		2,191		2,204
Teekay Parent realized losses on interest rate swaps			(342	)	(306	)	(241	)
Net interest expense – Teekay Parent			(8,237	)	(8,675	)	(8,714	)

Forward Looking Statements

This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management’s current views with respect to certain future events and performance, including statements, among other things, regarding: the impact of COVID-19 and related global events on the Company’s business and financial results; fixed charter coverage for Teekay LNG’s and Teekay Tankers’ fleets for the remainder of 2020 and 2021; the timing and cost of the remediation of the Banff field’s subsea infrastructure and the Banff FPSO unit’s decommissioning and recycling; and the Company’s liquidity and the Teekay Group’s positioning for both near-term market volatility and to create long-term shareholder value. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: market or counterparty reaction to changes in exploration, production and storage of offshore oil and gas, either generally or in particular regions that would impact expected future growth; changes in the demand for oil, refined products, LNG or LPG; changes in trading patterns significantly affecting overall vessel tonnage requirements; greater or less than anticipated levels of vessel newbuilding orders and deliveries and greater or less than anticipated rates of vessel scrapping; changes in global oil prices or tanker rates; OPEC+ and non-OPEC production and supply levels; the duration and extent of the COVID-19 pandemic and any resulting effects on the markets in which the Company operates; the impact of the pandemic on the Company’s ability to maintain safe and efficient operations; issues with vessel operations; higher than expected costs and expenses, off-hire days or dry-docking requirements; higher than expected costs and/or delays associated with the remediation of the Banff field or the decommission/recycling of the Banff FPSO unit; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations, including IMO 2030; the potential for early termination of long-term contracts of existing vessels; changes in borrowing costs or equity valuations; declaration by Teekay LNG’s board of directors of common unit distributions; available cash to reduce financial leverage at Teekay Parent, Teekay LNG and Teekay Tankers; the impact of geopolitical tensions and changes in global economic conditions; and other factors discussed in Teekay’s filings from time to time with the SEC, including its Annual Report on Form 20-F for the fiscal year ended December 31, 2019. Teekay expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Teekay’s expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

 

Reflects unrealized gains (losses) relating to the change in the mark-to-market value of derivative instruments that are not designated in qualifying hedging relationships for accounting purposes, including those gains (losses) included in the Company’s proportionate share of equity income (loss) from joint ventures.