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Avalara Announces Code-Focused Virtual Event for Developers: Avalara NEXT

Avalara Announces Code-Focused Virtual Event for Developers: Avalara NEXT

SEATTLE–(BUSINESS WIRE)–Avalara (NYSE:AVLR), a leading provider of tax compliance automation software for businesses of all sizes, today announced its first code-focused event for global tax compliance designed exclusively for developers — Avalara NEXT. The completely virtual conference will take place January 27, 2021. Bringing together developers at the forefront of global commerce and tax technology, Avalara NEXT offers digital attendees the opportunity to learn about Avalara’s new products, APIs, tools, and best practices to help developers easily build tax compliance into their business applications.

“As businesses continue to grow through digital commerce, they’re running into increased tax compliance regulations on a global scale, creating the need for a next-generation tax compliance platform to manage expanding tax obligations,” said Sanjay Parthasarathy, Chief Product Officer at Avalara. “Avalara NEXT will provide a forum for developers to connect and learn about the technology and best practices to integrate global tax compliance with their business applications.”

Avalara NEXT attendees — including Avalara customers, independent software vendors, system integrators, technology partners, and other industry experts — will walk away with an understanding of the innovation taking place at the intersection of tax compliance and commerce, and will learn about the tools and technology necessary to build tax compliance into business applications.

Avalara NEXT highlights:

  • Live coding: Watch live coding demonstrations and learn how to build a tax integration to your business application in a few hours.
  • Technical thought leaders: Hear from Avalara’s senior technical experts to learn how to optimize Avalara integrations.
  • Partner success stories: Network with technology platform partners to learn how they’ve successfully leveraged Avalara’s solutions.
  • New solutions: Learn about new global solutions from Avalara to drive value and efficiencies for your customers.

For more information or to reserve your spot for Avalara NEXT, please visit avalaranext.com.

Follow Avalara:

  • Twitter: For Avalara NEXT news and event updates, follow @Avalara and join the conversations using #AvalaraNEXT.
  • Facebook: Like Avalara on Facebook to view updates from Avalara NEXT.

About Avalara

Avalara helps businesses of all sizes get tax compliance right. In partnership with leading ERP, accounting, ecommerce, and other financial management system providers, Avalara delivers cloud-based compliance solutions for various transaction taxes, including sales and use, VAT, GST, excise, communications, lodging, and other indirect tax types. Headquartered in Seattle, Avalara has offices across the U.S. and around the world in Brazil, Europe, and India. More information at avalara.com.

Media Contact

Tommy Morgan

[email protected]

540-448-7551

Investor Contact

Jennifer Gianola

Avalara

[email protected]

650-499-9837

KEYWORDS: United States North America Washington

INDUSTRY KEYWORDS: Technology Finance Other Retail Accounting Professional Services Software Internet Retail Online Retail

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Alarm.com to Participate in Upcoming Virtual Investor Conferences

Alarm.com to Participate in Upcoming Virtual Investor Conferences

TYSONS, Va.–(BUSINESS WIRE)–
Alarm.com Holdings, Inc. (Nasdaq: ALRM), the leading platform for the intelligently connected property, today announced that Steve Valenzuela, Chief Financial Officer, will participate in and/or host one-on-one investor meetings at the following upcoming virtual investor conferences: the Credit Suisse 24th Annual Technology Conference, the Imperial Security Investor Conference, the Northland Tech Virtual Conference, the Raymond James Technology Investors Conference, and the Barclays Global Technology, Media, and Telecommunications Conference.

Event Details:

Credit Suisse 24th Annual Technology Conference

Tuesday, December 1, 2020

Hosting Investor Meetings

Imperial Security Investor Conference

Wednesday, December 2, 2020

Hosting Investor Meetings

Northland Tech Virtual Conference

Monday, December 7, 2020

Fireside Chat at 8:00 a.m. ET

Raymond James Technology Investors Conference

Tuesday, December 8, 2020

Fireside Chat at 8:50 a.m. ET

Barclays Global Technology, Media, and Telecommunications Conference

Thursday, December 10, 2020

Fireside Chat at 9:30 a.m. ET

About Alarm.com Holdings, Inc.

Alarm.com is the leading platform for the intelligently connected property. Millions of consumers and businesses depend on Alarm.com’s technology to manage and control their property from anywhere. Our platform integrates with a growing variety of Internet of Things (IoT) devices through our apps and interfaces. Our security, video, access control, intelligent automation, energy management, and wellness solutions are available through our network of thousands of professional service providers in North America and around the globe. Alarm.com’s common stock is traded on Nasdaq under the ticker symbol ALRM. For more information, please visit www.alarm.com.

Investor Relations:

David Trone

Alarm.com

[email protected]

Media Relations:

Matt Zartman

Alarm.com

[email protected]

KEYWORDS: United States North America Virginia

INDUSTRY KEYWORDS: Software Technology Security

MEDIA:

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BiomX Presents Preclinical Results of Phage Targeting Klebsiella pneumoniae for Primary Sclerosing Cholangitis and Inflammatory Bowel Disease

BiomX Presents Preclinical Results of Phage Targeting Klebsiella pneumoniae for Primary Sclerosing Cholangitis and Inflammatory Bowel Disease

– Presentation featured at The Liver Meeting® 2020, the AASLD Annual Meeting, details support for the design of phage therapy candidate BX003 –

NESS ZIONA, Israel–(BUSINESS WIRE)–
BiomX Inc. (NYSE American: PHGE), a clinical stage company developing natural and engineered phage therapies targeting specific pathogenic bacteria, today announced that phages identified by BiomX with a broad host range were able to target and eradicate 89 percent of distinct gut-harbored Klebsiella pneumoniae strains isolated from samples obtained from patients with inflammatory bowel disease (IBD) and primary sclerosing cholangitis (PSC). The study included over 1,000 strains isolated from over 300 patients with (IBD) or (PSC). In addition, oral administration of selected phage demonstrated efficacy in reducing target bacterial load in an in vivo model.

“These results support the potential of a phage therapy approach for the treatment of both IBD and PSC, demonstrating the ability to identify and select phage with direct relevance to patients,” commented Eran Elinav, M.D., Ph.D., Professor in the Department of Immunology at the Weizmann Institute of Science, a scientific founder of BiomX and a scientific advisor. “Our analysis of these results has informed the design and broad host range of BX003, an orally delivered candidate phage therapy targeting Klebsiella pneumoniae for the treatment of both IBD and PSC.“

The results will be featured in a poster presentation at The Liver Meeting® 2020, the annual meeting of the American Association for the Study of Liver Diseases (AASLD) taking place Nov. 13-16, 2020.Presentation details are as follows:

Title: Broad Host Range Bacteriophage for Reduction of Klebsiella Pneumoniae as Potential Therapy in Primary Sclerosing Cholangitis (PSC) (Poster #1230)

Lead Author: Maya Kahan-Hanum, Ph.D., BiomX

Presentations will be available at the Company’s website at https://www.biomx.com/publications-2/.

About BiomX

BiomX is a clinical-stage biotechnology company developing both natural and engineered phage cocktails designed to target and destroy bacteria that affect the appearance of skin, as well as target bacteria in the treatment of chronic diseases, such as inflammatory bowel disease, primary sclerosing cholangitis, colorectal cancer, and cystic fibrosis. BiomX discovers and validates proprietary bacterial targets and customizes phage compositions against these targets.

Additional information is available at www.biomx.com.

Safe Harbor Language

This press release contains express or implied “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “target,” “believe,” “expect,” “will,” “may,” “anticipate,” “estimate,” “would,” “positioned,” “future,” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. For example, when this press release discusses the potential of a phage therapy approach for treatment of certain medical conditions and the ability to identify and select phage with direct relevance to patients, BiomX is making forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on BiomX management’s current beliefs, expectations and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of BiomX control. Actual results and outcomes may differ materially from those indicated in the forward-looking statements. Therefore, invest should not rely on any of these forward-looking statements and should review the risks and uncertainties described under the caption “Risk Factors” in BiomX’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q and additional disclosures BiomX makes in its filings with the Securities and Exchange Commission (the “SEC”), which are available on the SEC’s website at www.sec.gov. Forward-looking statements are made as of the date of this press release, and except as provided by law BiomX expressly disclaims any obligation or undertaking to update forward-looking statements.

Noel Kurdi, BiomX

VP Investor Relations and Strategy

(646) 241-4400

[email protected]

Media contact:

Rich Allan, Solebury Trout

(646) 378-2958

[email protected]

KEYWORDS: United States North America Israel Middle East

INDUSTRY KEYWORDS: Biotechnology Pharmaceutical Health Clinical Trials

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SOTI Launches Aerospace Division

Collaboration with Ryerson University will bring together top researchers, scientists, engineers and academia to create and build the next generation of aerial drones and robotics research in Canada

MISSISSAUGA, Ontario, Nov. 16, 2020 (GLOBE NEWSWIRE) — SOTI, the world’s most trusted provider of mobility and IoT management solutions, today announced the launch of its new aerospace division, SOTI Aerospace, which will focus on advanced aerial drone and robotics research. Working with industry-leading researchers, scientists, engineers, and academia from around the world, SOTI will initially invest $20 million (USD) to fund its new aerospace division.

The new division will focus its research on vision systems for indoor environments, including self-learning, situational understanding, automatic location of people and objects, self-navigation, and smart avoidance. Initial applications will be focused on the medical sector and search & rescue operations.

As part of its commitment to innovation, SOTI is also announcing a multi-year collaboration with Ryerson University. This initiative will bring together SOTI’s top talent and Ryerson’s world-class researchers to focus on advancing aerospace research. Ryerson’s aerospace expertise will support SOTI’s research and development of aerial drone technology. SOTI will support a research chair in this field and provide real-world experience in applied aerospace technology for Ryerson students.

“SOTI Aerospace represents an exciting new era for the company and continues our commitment to invest in Canada’s technology ecosystem and work with the best and brightest minds around the world in aerial technology,” said Carl Rodrigues, President and CEO, SOTI. “Ryerson University is an ideal collaborator. Together, we aim to nurture talent and entrepreneurship, and ultimately leverage technology for good. We look forward to working together to develop aerospace innovations that enhance student education while also bringing new technology to market.”

“Ryerson University is pleased to join with SOTI to advance innovative aerospace research and technology in Canada,” said Mohamed Lachemi, Ryerson University President and Vice-Chancellor. “This collaboration unites leading aerospace researchers and industry experts, to accelerate the development of aerial drone research through dedicated funding. The agreement will also create new opportunities for our students to work on cutting-edge projects through enriched learning experiences, internships and scholarships.”

For over two decades, SOTI has been at the forefront of the mobile revolution. The new aerospace division will lean heavily on SOTI’s management team’s extensive engineering experience, as well as bring together the best and brightest from around the globe to reimagine how technology can be used to transform the world.

About SOTI

SOTI is the world’s most trusted provider of mobile and IoT management solutions, with more than 17,000 enterprise customers and millions of devices managed worldwide. SOTI’s innovative portfolio of solutions and services provide the tools organizations need to truly mobilize their operations and optimize their mobility investments. SOTI extends secure mobility management to provide an integrated solution to manage and secure all mobile devices and connected peripherals in an organization.

About Ryerson University
Ryerson University is Canada’s leader in innovative, career-oriented education. Urban, culturally diverse and inclusive, the University is home to more than 46,000 students, including 2,900 Master’s and PhD students, 3,800 faculty and staff, and over 200,000 alumni worldwide. Learn more at ryerson.ca.

For media inquiries, please contact:

SOTI Media Relations
[email protected]
1 (519) 998-1966



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Cerevel Therapeutics Announces Third Quarter 2020 Financial Results and Key Business Highlights

Participants dosed in clinical trials for lead programs in
schizophrenia, epilepsy, anxiety and Parkinson’s disease

Debuted as publicly traded entity under symbol CERE

Net proceeds of approximately $440 million raised from completed business combination transaction with ARYA Sciences Acquisition Corp II and concurrent PIPE financing

BOSTON, Nov. 16, 2020 (GLOBE NEWSWIRE) — Cerevel Therapeutics (Nasdaq: CERE), a company dedicated to unraveling the mysteries of the brain to treat neuroscience diseases, today announced financial results for the third quarter ended September 30, 2020 and provided recent business updates.

“During the third quarter of 2020 we made substantial progress towards our goal of becoming the premier neuroscience company,” said Tony Coles, M.D., chief executive officer and chairperson of Cerevel Therapeutics. “As a result of our business combination with Arya II and the accompanying PIPE financing, we now have the financial resources expected to fund our operating plan into 2023 and advance each of our lead programs in the clinic. Our goal is to make a profound impact in the lives of people with schizophrenia, anxiety, epilepsy and Parkinson’s disease and we have initiated enrollment in each of our clinical trials for these diseases.”


Third Quarter


and


Key Business Highlights

  • Dosed
    participants in clinical trials for all three lead programs.

°
CVL-231: the first participant was dosed in Part B of the Phase 1b trial of CVL-231 in patients with schizophrenia. The Phase 1b trial consists of Part A, a multiple ascending dose trial and Part B, a pharmacokinetic/pharmacodynamic trial. Dosing in Part A of the trial had started in the second half of 2019. Data from the Phase 1b trial are expected in the second half of 2021.
° CVL-865: the first participant was dosed in the Phase 2 REALIZE trial evaluating CVL-865 as an adjunctive therapy in adults with drug-resistant focal onset seizures. Data from the REALIZE trial are expected in the second half of 2022. Additionally, the first participant was dosed in the Phase 1 proof-of-principle trial for acute anxiety in healthy volunteers. Data from this Phase 1 trial are expected in the second half of 2021.
° Tavapadon: the first participants have been dosed in all three of the ongoing clinical trials in the Phase 3 program evaluating tavapadon in patients with Parkinson’s disease. Preliminary data readouts from the Phase 3 program are expected to be available beginning in the first half of 2023.

  • Debuted as publicly traded neuroscience company
    . On October 28, 2020, Cerevel began trading as a public company via one of the largest go-public transactions in the biopharma industry to date. Following the completion of its business combination with ARYA Sciences Acquisition Corp II (Arya II), a special purpose acquisition company or SPAC, sponsored by Perceptive Advisors, Cerevel Therapeutics Holdings, Inc., the resulting combined company, commenced trading its shares under the symbol “CERE” and its warrants under the symbol “CEREW” on the Nasdaq Capital Market.

  • Raised net
    proceeds of approximately $440 million
    through completed business combination
    . On July 29, 2020, Cerevel Therapeutics and Arya II entered into a definitive business combination agreement. Concurrently, a group of premier healthcare investors committed to participate in the transaction through a concurrent private investment in public equity (“PIPE”) financing. On October 27, 2020, the business combination was completed and net proceeds from the transaction totaled approximately $440 million, which included funds held in Arya II’s trust account and proceeds from the PIPE financing, less transaction expenses.


Third Quarter Financial Results

  • Cash and cash equivalents: Cash and cash equivalents were $13 million as of September 30 2020. Following receipt of the net proceeds from the business combination with Arya II and the concurrent PIPE financing, Cerevel Therapeutics expects its cash and cash equivalents will be sufficient to fund its current operating plan into 2023.
  • Research and Development (R&D) Expenses: R&D expenses were $24 million for the third quarter of 2020 as compared to $17 million for the third quarter of 2019. The increase in research and development expense was primarily due to higher program costs related to advancing our pipeline and increased personnel costs as we grew our organization.
  • General and Administrative (G&A) Expenses: G&A expenses were $10 million for the third quarter of 2020 as compared to $10 million for the third quarter of 2019.
  • Net Loss: Net loss was $39 million for the third quarter of 2020, as compared to net loss of $36 million for the third quarter of 2019.

About Cerevel Therapeutics

Cerevel Therapeutics is dedicated to unraveling the mysteries of the brain to treat neuroscience diseases. The company is tackling neuroscience diseases with a differentiated approach that combines expertise in neurocircuitry with a focus on receptor selectivity. Cerevel Therapeutics has a diversified pipeline comprising five clinical-stage investigational therapies and several preclinical compounds with the potential to treat a range of neuroscience diseases, including schizophrenia, epilepsy, Parkinson’s disease and substance use disorder. Headquartered in Boston, Cerevel Therapeutics is advancing its current research and development programs while exploring new modalities through internal research efforts, external collaborations or potential acquisitions. For more information, visit www.cerevel.com.

Special Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that are based on management’s beliefs and assumptions and on information currently available to management. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. Forward-looking statements in this press release include, but are not limited to, statements about the potential attributes and benefits of our product candidates, the format and timing of our product development activities and clinical trials,
including the expected timing of data announcements, and the sufficiency of our financial resources. We cannot assure you that the forward-looking statements in this press release will prove to be accurate. Furthermore, if the forward-looking statements prove to be inaccurate, the inaccuracy may be material. Actual performance and results may differ materially from those projected or suggested in the forward-looking statements due to various risks and uncertainties, including, among others: that clinical trial results may not be favorable; uncertainties inherent in the product development process (including with respect to the timing of results and whether such results will be predictive of future results); the impact of COVID-19 on the timing, progress and results of ongoing or planned clinical trials; other impacts of COVID-19, including operational disruptions or delays or to our ability to raise additional capital; whether and when, if at all, our product candidates will receive approval from the FDA or other regulatory authorities, and for which, if any, indications; competition from other biotechnology companies; uncertainties regarding intellectual property protection; and other risks identified in our SEC filings, including those under the heading “Risk Factors” in our definitive proxy statement/prospectus filed with the SEC on October 7, 2020. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.

Media Contact:

Rachel Eides
W2O pure
[email protected]

I
nvestor Contact:

Matthew Calistri
Cerevel Therapeutics
[email protected]

TABLE 1
 
CEREVEL THERAPEUTICS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts)
                       
  For the Three Months   For the Nine Months
  Ended September 30,   Ended September 30,
  2019     2020     2019     2020  
                       
Operating expenses:                      
Research and development $              17,342     $              24,026     $            28,326     $              73,168  
General and administrative 9,643     10,336     18,740     34,052  
Total operating expenses 26,985     34,362     47,066     107,220  
Loss from operations (26,985 )   (34,362 )   (47,066 )   (107,220 )
Interest income, net 368     1     1,360     210  
Other income (expense), net (8,980 )   (4,684 )   (26,423 )   (11,976 )
Loss before income taxes (35,597 )   (39,045 )   (72,129 )   (118,986 )
Income tax (provision) benefit, net –     5     –     21  
Net loss and comprehensive loss $             (35,597 )   $             (39,040 )   $           (72,129 )   $           (118,965 )
Net loss per share, basic and diluted $                 (7.73 )   $                 (5.49 )   $             (15.66 )   $               (17.89 )
Weighted-average shares used in calculating net loss per share, basic and diluted 4,608     7,112     4,605     6,648  

TABLE 2
             
CEREVEL THERAPEUTICS HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
   
    As of     As of  
    December 31, 2019     September 30, 2020  
ASSETS            
Current assets:            
Cash and cash equivalents   $ 79,551     $ 12,808  
Prepaid expenses and other current assets   7,526     3,076  
Total current assets   87,077     15,884  
Property and equipment, net   1,476     16,620  
Operating lease assets   26,015     24,727  
Restricted cash   4,131     4,200  
Other long-term assets   2,107     5,606  
Total assets   $ 120,806     $ 67,037  
             
LIABILITIES, CONVERTIBLE STOCK AND STOCKHOLDERS’ (DEFICIT) EQUITY            
Current liabilities:            
Accounts payable   $ 2,109     $ 4,822  
Accrued expenses and other current liabilities   10,175     22,181  
Operating lease liabilities, current portion   2,592     2,206  
Total current liabilities   14,876     29,209  
Operating lease liabilities, net of current portion   25,819     29,515  
Other long-term liabilities   2,288     9,060  
Total liabilities   42,983     67,784  
Convertible stock and stockholders’ (deficit) equity   77,823     (747 )
Total liabilities, convertible stock and stockholders’ (deficit) equity   $ 120,806     $ 67,037  

TABLE 3
 
CEREVEL THERAPEUTICS HOLDINGS, INC.
SUMMARY OF CASH FLOWS
(unaudited, in thousands)
 
      For the Nine Months
      Ended September 30,
CASH FLOWS   2019     2020  
               
Net cash flows used in operating activities   $             (34,907 )   $             (76,099 )
Net cash flows used in investing activities   (550 )   (11,341 )
Net cash flows provided by financing activities   58     20,766  
Net decrease in cash, cash equivalents and restricted cash   (35,399 )   (66,674 )
Cash, cash equivalents and restricted cash, beginning of the period   95,443     83,682  
Cash, cash equivalents and restricted cash, end of the period   $              60,044     $              17,008  
               
Note:            
Cash, cash equivalents and restricted cash balances include restricted cash of $4.2 million and $4.1 million as of September 30, 2020 and December 31, 2020, respectively.  

TABLE 4
 
CEREVEL THERAPEUTICS HOLDINGS, INC.
GAAP TO NON-GAAP RECONCILIATION
(unaudited, in thousands, except per share amounts)
 
An itemized reconciliation between net loss per share on a GAAP basis and on a Non-GAAP basis is as follows:
                 
    For the Three Months   For the Nine Months
    Ended September 30,   Ended September 30,
    2019     2020     2019     2020  
                         
GAAP net loss per share, basic and diluted   $ (7.73 )   $ (5.49 )   $ (15.66 )   $ (17.89 )
Adjustments to GAAP net loss per share (as detailed below)   2.54     1.15     6.56     3.65  
Non-GAAP net loss per share, basic and diluted   $ (5.19 )   $ (4.34 )   $ (9.10 )   $ (14.24 )
Weighted-average shares used in calculating net loss per share   4,608     7,112     4,605     6,648  
                         
                         
An itemized reconciliation between net loss on a GAAP basis and on a Non-GAAP basis is as follows:
                         
    For the Three Months   For the Nine Months
    Ended September 30,   Ended September 30,
    2019     2020     2019     2020  
                         
GAAP net loss   $ (35,597 )   $ (39,040 )   $ (72,129 )   $ (118,965 )
Adjustments:                        
Research and development: equity-based compensation expense   879     1,059     1,530     2,883  
General and administrative: equity-based compensation expense   1,820     2,413     2,262     6,981  
General and administrative: write-off of deferred financing costs   –     –     –     2,485  
Other income (expense), net: loss (gain) on fair value remeasurement of Equity Commitment   11,880     4,650     30,202     11,300  
Other income (expense), net: loss (gain) on fair value remeasurement of Share Purchase Option   (2,900 )   30     (3,780 )   670  
Non-GAAP net loss   $ (23,918 )   $ (30,888 )   $ (41,915 )   $ (94,646 )

Use of Non-GAAP Financial Measures
We supplement our consolidated financial statements presented on the basis of U.S. generally accepted accounting principles, or GAAP, by providing additional measures which may be considered “Non-GAAP” financial measures under applicable SEC rules. Our “Non-GAAP net loss per share” and “Non-GAAP net loss” financial measures exclude the following items included in our reported, or GAAP, net loss and net loss per share financial measures: equity-based compensation expense, changes in the fair value remeasurement of our Equity Commitment and Share Purchase Option and a $2.5 million charge for the write-off of deferred financing costs associated with our IPO and other financing activities that were abandoned in June 2020 upon signing of the term sheet for our business combination agreement with ARYA Sciences Acquisition Corp II, or ARYA. We exclude equity-based compensation expense because it is a non-cash item, which is excluded from our internal operating plans and measurement of financial performance, although we consider the dilutive impact to our investors when awarding stock-based compensation and value such awards accordingly. We exclude changes in the fair value remeasurement of our Equity Commitment and Share Purchase Option because, in connection our business combination with ARYA, these instruments were terminated and the exclusion of such non-cash charges provides better period-over-period comparability of our results of operations as viewed by management. We exclude the charge for the write-off of deferred financing costs associated with our abandoned IPO and other financing activities because these were one-time, non-recurring costs and their exclusion provides better period-over-period comparability of our results of operations as viewed by management. These non-GAAP financial measures are not in accordance with GAAP in the United States and should not be viewed in isolation or as a substitute for reported, or GAAP, net loss and net loss per share. In making any comparisons to other companies, investors should be aware that companies use different non-GAAP measures to evaluate their financial performance and should pay close attention to the specific definition being used and to the reconciliation between such measures and the corresponding GAAP measures provided by each company under applicable SEC rules.

TABLE 5
 
CEREVEL THERAPEUTICS HOLDINGS, INC.
GAAP TO NON-GAAP RECONCILIATION
(unaudited, in thousands, except per share amounts)
 
    For the Three Months   For the Three Months
    Ended September 30, 2019   Ended September 30, 2020  
    GAAP     Adjustments     Non-GAAP     GAAP     Adjustments     Non-GAAP  
                                     
Operating expenses:                                    
Research and development (1)   $ 17,342     $ (879 )   $ 16,463     $ 24,026     $ (1,059 )   $ 22,967  
General and administrative (2)   9,643     (1,820 )   7,823     10,336     (2,413 )   7,923  
Total operating expenses   26,985     (2,699 )   24,286     34,362     (3,472 )   30,890  
Loss from operations   (26,985 )   2,699     (24,286 )   (34,362 )   3,472     (30,890 )
Interest income, net   368     –     368     1     –     1  
Other income (expense), net (3)   (8,980 )   8,980     –     (4,684 )   4,680     (4 )
Loss before income taxes   (35,597 )   11,679     (23,918 )   (39,045 )   8,152     (30,893 )
Income tax (provision) benefit, net   –     –     –     5     –     5  
Net loss and comprehensive loss   $ (35,597 )   $ 11,679     $ (23,918 )   $ (39,040 )   $ 8,152     $ (30,888 )
Net loss per share, basic and diluted   $ (7.73 )   $ 2.54     $ (5.19 )   $ (5.49 )   $ 1.15     $ (4.34 )
Weighted-average shares used in calculating net loss per share, basic and diluted   4,608           4,608     7,112           7,112  
                                     
                                     
    For the Nine Months   For the Nine Months
    Ended September 30, 2019   Ended September 30, 2020
    GAAP     Adjustments     Non-GAAP     GAAP     Adjustments     Non-GAAP  
                                     
Operating expenses:                                    
Research and development (4)   $ 28,326     $ (1,530 )   $ 26,796     $ 73,168     $ (2,883 )   $ 70,285  
General and administrative (5) (6)   18,740     (2,262 )   16,478     34,052     (9,466 )   24,586  
Total operating expenses   47,066     (3,792 )   43,274     107,220     (12,349 )   94,871  
Loss from operations   (47,066 )   3,792     (43,274 )   (107,220 )   12,349     (94,871 )
Interest income, net   1,360     –     1,360     210     –     210  
Other income (expense), net (7)   (26,423 )   26,422     (1 )   (11,976 )   11,970     (6 )
Loss before income taxes   (72,129 )   30,214     (41,915 )   (118,986 )   24,319     (94,667 )
Income tax (provision) benefit, net   –     –     –     21     –     21  
Net loss and comprehensive loss   $ (72,129 )   $ 30,214     $ (41,915 )   $ (118,965 )   $ 24,319     $ (94,646 )
Net loss per share, basic and diluted   $ (15.66 )   $ 6.56     $ (9.10 )   $ (17.89 )   $ 3.65     $ (14.24 )
Weighted-average shares used in calculating net loss per share, basic and diluted   4,605           4,605     6,648           $ 6,648  

Notes For the Three Months Ended September 30, 2019 and 2020:                    
(1) GAAP Research and development expense includes $0.9 million and $1.1 million in equity-based compensation expense for the three months ended September 30, 2019 and 2020, respectively. 
(2) GAAP General and administrative expense includes $1.8 million and $2.4 million in equity-based compensation expense for the three months ended September 30, 2019 and 2020, respectively. 
(3) GAAP Other income (expense), net includes net losses of $9.0 million and $4.7 million on fair value remeasurement of our Equity Commitment and Share Purchase Option for the three months ended September 30, 2019 and 2020, respectively. 
                         
Notes For the Nine Months Ended September 30, 2019 and 2020:                    
(4) GAAP Research and development expense includes $1.5 million and $2.9 million in equity-based compensation expense for the nine months ended September 30, 2019 and 2020, respectively. 
(5) GAAP General and administrative expense includes $2.3 million and $7.0 million in equity-based compensation expense for the nine months ended September 30, 2019 and 2020, respectively. 
(6) GAAP General and administrative expense for the nine months ended September 30, 2020, includes a $2.5 million charge for the write-off of deferred financing costs associated with our IPO and other financing activities that were abandoned in June 2020, upon signing of the term sheet for our business combination agreement with ARYA Sciences Acquisition Corp II. 
(7) GAAP Other income (expense), net includes net losses of $26.4 million and $12.0 million on fair value remeasurement of our Equity Commitment and Share Purchase Option for the nine months ended September 30, 2019 and 2020, respectively. 

Use of Non-GAAP Financial Measures

We supplement our consolidated financial statements presented on the basis of U.S. generally accepted accounting principles, or GAAP, by providing additional measures which may be considered “Non-GAAP” financial measures under applicable SEC rules. Our “Non-GAAP net loss per share” and “Non-GAAP net loss” financial measures exclude the following items included in our reported, or GAAP, net loss and net loss per share financial measures: equity-based compensation expense, changes in the fair value remeasurement of our Equity Commitment and Share Purchase Option and a $2.5 million charge for the write-off of deferred financing costs associated with our IPO and other financing activities that were abandoned in June 2020 upon signing of the term sheet for our business combination agreement with ARYA Sciences Acquisition Corp II, or ARYA. We exclude equity-based compensation expense because it is a non-cash item, which is excluded from our internal operating plans and measurement of financial performance, although we consider the dilutive impact to our investors when awarding stock-based compensation and value such awards accordingly. We exclude changes in the fair value remeasurement of our Equity Commitment and Share Purchase Option because, in connection our business combination with ARYA, these instruments were terminated and the exclusion of such non-cash charges provides better period-over-period comparability of our results of operations as viewed by management. We exclude the charge for the write-off of deferred financing costs associated with our abandoned IPO and other financing activities because these were one-time, non-recurring costs and their exclusion provides better period-over-period comparability of our results of operations as viewed by management. These non-GAAP financial measures are not in accordance with GAAP in the United States and should not be viewed in isolation or as a substitute for reported, or GAAP, net loss and net loss per share. In making any comparisons to other companies, investors should be aware that companies use different non-GAAP measures to evaluate their financial performance and should pay close attention to the specific definition being used and to the reconciliation between such measures and the corresponding GAAP measures provided by each company under applicable SEC rules.



Posted on

PAE to Acquire Metis Solutions, Expanding and Differentiating Its Intelligence Community and National Security Portfolio

Highlights

  • PAE will acquire Metis Solutions Corporation in a $92 million all-cash transaction.
  • The acquisition further strengthens PAE’s intelligence, defense and national security businesses in areas of high priority for the U.S. federal government.
  • In conjunction with the previously announced CENTRA Technology acquisition, the combination expands and differentiates PAE’s capabilities in intelligence analysis, training and program support for intelligence and defense customers.
  • The acquisition is expected to be accretive to key financial metrics including organic revenue growth, adjusted EBITDA margins and free cash flow.
  • Metis’ business will further broaden PAE’s customer reach and adds additional attractive contract vehicles to PAE’s portfolio.

FALLS CHURCH, Va., Nov. 16, 2020 (GLOBE NEWSWIRE) — PAE (NASDAQ: PAE, PAEWW), a global leader in delivering smart solutions to the U.S. government and its allies, today announced that its subsidiary has entered into a definitive agreement to acquire Metis Solutions Corporation, a leading provider of intelligence analysis, operational and tactical training and program management, for approximately $92 million in cash. This represents a transaction multiple of approximately 9.7x CY2020 adjusted EBITDA, adjusted for estimated annual cost synergies.

PAE President and CEO John Heller commented:

“This acquisition expands and builds scale in intelligence analysis, training and program support, all of which are well-funded market areas of the U.S. government and our allied nations. Moreover, the acquisition of Metis is expected to be accretive to adjusted EBITDA margins and free cash flow. Additionally, in combination with CENTRA Technology, PAE will have significant breadth and depth across the Intelligence and National Security communities in capability and customer access.”

Metis is a leading provider of intelligence analysis, operational and tactical training and program management focused on supporting intelligence community, national security and defense customers. Headquartered in Arlington, Virginia, Metis has more than 450 employees, a majority of whom have top secret clearances with subject matter expertise across a broad range of critical national security issues.

“We are excited to join PAE and its heritage of service. Our shared cultures of service excellence and innovation make this a compelling combination. Together, we will pursue exciting new revenue opportunities,” said Christopher Wynes, Metis president and CEO. “Joining together with PAE will help accelerate growth in our intelligence and national security business and enable us to pursue a broader customer base across more markets.”

Strategic and Financial Benefits of the Acquisition

  • Breadth of Contract Vehicles
    : The transaction brings more than eight strategic indefinite delivery, indefinite quantity contract vehicles, representing more than $60 billion of ceiling value that is expected to improve PAE’s business development pipeline in terms of number, size and win-rate percentage of opportunities.
  • Broadens Offerings
    and Capabilities
    : Expands and builds scale in PAE’s intelligence analysis, training and program support business areas. These market areas are all well-funded by the U.S. government and our allied nations.
  • Expands
    Whitespace Opportunity
    : Strategically positions PAE with new customers across the intelligence and defense communities.
  • Attractive Financial Profile
    :
     Metis’ current financial profile, coupled with expected cost synergies, is expected to be accretive to organic revenue growth, adjusted EBITDA margins and free cash flow per share.

Financing and Approvals

The transaction has been unanimously approved by the boards of directors of both PAE and Metis. It is expected to close this quarter. PAE expects to fund the purchase price of approximately $92 million with cash on hand and utilization of its delayed draw term loan.

PAE is reiterating its fiscal year 2020 financial outlook provided on November 5th, 2020. The 2020 financial outlook does not incorporate anticipated financial results of CENTRA or Metis.

Advisors

Crowell & Moring LLP acted as legal advisor to PAE in connection with the transaction.

Miles & Stockbridge P.C. acted as legal advisor and Raymond James & Associates, Inc. acted as financial advisor to Metis in connection with the transaction.

Conference Call and Webcast

PAE will host a conference call and webcast, November 16, 2020, at 8 a.m. ET and will post an investor presentation to its website. Management will review details of the acquisition, followed by a question-and-answer session. Listeners and other interested parties will be able to access a presentation summarizing the transaction on the PAE Investor Relations website.

Interested parties are invited to join the webcast from the PAE Investor Relations website. Due to the COVID-19 pandemic, teleconference providers globally are experiencing significant increases in conference call volume. As such, PAE recommends that parties participate by joining the webcast. Alternatively, if the webcast is not practical, attendees may listen to the conference call by dialing (855) 982-6676 and entering conference ID 2168537. The international dial-in access number is (614) 999-9188.

PAE will post an archive of the webcast following the call on the PAE Investor Relations website.

About PAE

For 65 years, PAE has tackled the world’s toughest challenges to deliver agile and steadfast solutions to the U.S. government and its allies. With a global workforce of approximately 20,000 on all seven continents and in approximately 60 countries, PAE delivers a broad range of operational support services to meet the critical needs of our clients. Our headquarters is in Falls Church, Virginia. Find us online at pae.com, on Facebook, Twitter and LinkedIn.

Forward-Looking Statements

This press release contains a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our expectations and projections regarding the acquisition of Metis Solutions Corporation, PAE’s possible or assumed future results of operations, financial results, backlog, estimation of resources for contracts, strategy for and management of growth, needs for additional capital, risks related to government contracting generally, including failures to properly manage projects and subcontractors, susceptibility to claims, litigation and other disputes, and risks related to public health crises. These forward-looking statements are based on PAE’s management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events.

These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside PAE’s management’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.

Forward-looking statements included in this release speak only as of the date of this release. PAE does not undertake any obligation to update its forward-looking statements to reflect events or circumstances after the date of this release except as may be required by the federal securities laws.

Non-GAAP Financial Measures

PAE Incorporated (the “Company”) uses adjusted EBITDA, adjusted EBITDA margin and free cash flow as supplemental non-GAAP measures of performance. PAE defines EBITDA as net income excluding (i) interest expense, (ii) provision for or benefit from income taxes and (iii) depreciation and amortization. Adjusted EBITDA excludes certain amounts included in EBITDA. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenues expressed as a percentage. Free cash flow is defined as cash flow provided by operating activities less capital expenditures.

PAE believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating the acquisition by PAE of Metis Solutions Corporation and the projected future operating and financial results of PAE. The non-GAAP financial measures provided in this press release are forward-looking.

PAE is not providing a quantitative reconciliation of adjusted EBITDA or adjusted EBITDA margin in reliance on the “unreasonable efforts” exception for forward-looking non-GAAP measures set forth in SEC rules because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated without unreasonable effort and expense. In this regard, the Company does not provide a reconciliation of forward-looking adjusted EBITDA (non-GAAP) to GAAP net income, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because certain deductions for non-GAAP exclusions used to calculate projected net income may vary significantly based on actual events, the Company is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income at this time. The amounts of these deductions may be material and, therefore, could result in projected GAAP net income being materially less than is indicated by estimated adjusted EBITDA (non-GAAP). In addition, the Company does not provide a reconciliation of forward-looking free cash flow (non-GAAP) to GAAP cash flows provided by operating activities and GAAP cash used in investing activities, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because certain line items used to calculate projected cash flows provided by operating activities and cash used in investing activities may vary significantly based on actual events, the Company is not able to forecast on a GAAP basis with reasonable certainty all line items needed in order to provide a GAAP calculation of projected free cash flow at this time.

Use of Projections

This press release contains projections with respect to the Company and Metis Solutions Corporation. The Company’s independent auditors have not audited, reviewed, compiled, or performed any procedures with respect to the projections for the purpose of their inclusion in this press release, and accordingly, did not express an opinion or provide any other form of assurance with respect thereto for the purpose of this press release. These projections should not be relied upon as being necessarily indicative of future results.

For investor inquiries regarding PAE:

Mark Zindler
Vice President Investor Relations
PAE
703-717-6017
[email protected]

For media inquiries regarding PAE:

Terrence Nowlin
Senior Communications Manager
PAE
703-656-7423
[email protected]



Posted on

InfuSystem to Present at Craig-Hallum Capital Group and Sidoti & Company Investment Conferences

ROCHESTER HILLS, Michigan, Nov. 16, 2020 (GLOBE NEWSWIRE) — InfuSystem Holdings, Inc. (NYSE American: INFU), (“InfuSystem” or the “Company”), a leading national health care service provider, facilitating outpatient care for durable medical equipment manufacturers and health care providers, announced today that Rich DiIorio, Chief Executive Officer and Barry Steele, Chief Financial Officer, will present at the following investor conferences:

  • Craig-Hallum Capital Group 11th Annual Alpha Select Conference
    Tuesday, November 17, 2020
    One-on-one virtual meeting event

A webcast of the Sidoti conference presentation will be posted under the investor relations section of InfuSystem’s website at www.infusystem.com. A replay of the presentation will be available following the event.

Management is scheduled to meet with investors on Tuesday, November 17 and Thursday, November 19, with one-on-one meetings to be held throughout the two days.  Investors interested in arranging one-on-one meetings should contact your conference representative. Conversely, you may also call or email Lytham Partners at 602-889-9700, or [email protected].


About InfuSystem Holdings, Inc.

InfuSystem Holdings, Inc. (NYSE American: INFU), is a leading national health care service provider, facilitating outpatient care for durable medical equipment manufacturers and health care providers. INFU services are provided under a two-platform model. The lead platform is Integrated Therapy Services (“ITS”), providing the last-mile solution for clinic-to-home healthcare where the continuing treatment involves complex durable medical equipment and services. The ITS segment is comprised of the Oncology, Pain Management, and Wound Therapy businesses. The second platform, Durable Medical Equipment Services (“DME Services”), supports the ITS platform and leverages strong service orientation to win incremental business from its direct payor clients. The DME Services segment is comprised of direct payor rentals, pump and consumable sales, and biomedical services and repair.  Headquartered in Rochester Hills, Michigan, the Company delivers local, field-based customer support and also operates Centers of Excellence in Michigan, Kansas, California, Massachusetts and Ontario, Canada.


Forward-Looking Statements

Certain statements contained in this press release or made in the virtual conference are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, such as statements relating to future actions, business plans, objectives and prospects, future operating or financial performance. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “strategy,” “future,” “likely,” variations of such words, and other similar expressions, as they relate to the Company, are intended to identify forward-looking statements. Forward-looking statements are subject to factors, risks and uncertainties that could cause actual results to differ materially, including, but not limited to the uncertain impact of the COVID-19 pandemic,, our dependence on estimates of collectible revenue, potential litigation, changes in third-party reimbursement processes, changes in law and other risk factors disclosed in the Company’s most recent annual report on Form 10-K and, to the extent applicable, quarterly reports on Form 10-Q. All forward-looking statements made in this press release speak only as of the date hereof. We do not undertake any obligation to update any forward-looking statements to reflect future events or circumstances, except as required by law.

Additional information about InfuSystem Holdings, Inc. is available at

www.infusystem.com

.

# # #



CONTACT:
Joe Dorame, Joe Diaz & Robert Blum
Lytham Partners, LLC
602-889-9700

Posted on

Magic Reports Third Quarter 2020 Financial Results with Both Record-Breaking Revenues of $95 million, reflecting a 11% Year Over Year Growth and Record-Breaking Operating Income of $11 million, reflecting a 30% Year Over Year Growth

Non-GAAP operating income for the third quarter increased 21% year over year to a record breaking $14.2 million

OR YEHUDA, Israel, Nov. 16, 2020 (GLOBE NEWSWIRE) — Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC), a global provider of end-to-end integration and application development platforms solutions and IT consulting services, announced today its financial results for the third quarter and nine-months ended September 30, 2020.

Financial Highlights for the Third Quarter Ended September 30, 2020

  • Revenues for the third quarter increased 11% to a record breaking $94.9 million compared to $85.8 million in the same period last year.
  • Operating income for the third quarter increased 30% to a record breaking $11.0 million compared to $8.5 million in the same period last year.
  • Non-GAAP operating income for the third quarter increased 21% to a record breaking $14.2 million compared to $11.8 million in the same period last year.
  • Net income attributable to Magic’s shareholders for the third quarter increased 43% to a record breaking $7.1 million, or $0.14 per fully diluted share, compared to $5.0 million, or $0.10 per fully diluted share in the same period last year.
  • Non-GAAP net income attributable to Magic’s shareholders for the third quarter increased 17% to a record breaking $9.5 million, or $0.19 per fully diluted share, compared to $8.1 million, or $0.17 per fully diluted share, in the same period last year.

Financial Highlights for the Nine-month Period Ended September 30, 2020

  • Revenues for the nine-months of 2020 increased 14% to $266.6 million compared to $234.7 million in the same period last year.
  • Operating income for the nine-months of 2020 increased 19% to $29.6 million compared to $24.9 million in the same period last year.
  • Non-GAAP operating income for the nine-months of 2020 increased 15% to $37.4 million compared to $32.5 million in the same period last year.
  • Net income attributable to Magic’s shareholders for the nine-months of 2020 increased 23% to $18.7 million, or $0.38 per fully diluted share, compared to $15.1 million, or $0.29 per fully diluted share in the same period last year.
  • Non-GAAP net income attributable to Magic’s shareholders for the nine-months of 2020 increased 23% to $26.9 million, or $0.55 per fully diluted share, compared to $21.8 million, or $0.45 per fully diluted share, in the same period last year.
  • Cash flow from operating activities for the nine-months of 2020 amounted to $41.3 million compared to $32.7 million in the same period last year.
  • As of September 30, 2020, Magic’s net cash, cash equivalents, short and long-term bank deposits and marketable securities amounted to $85.6 million.
  • With the outlook for 2020 improving despite COVID-19 Magic is raising its May 2020 guidance for full year 2020 revenues of between $358 million to $365 million on a constant currency basis, reflecting annual growth of 9.9% to 11.5%, as compared to its prior range of $350 million to $360 million, overall increasing the midpoint of its guidance 1.8%.

Guy Bernstein, Chief Executive Officer of Magic Software Enterprises, said:

“Magic delivered strong execution during the quarter on all its fronts as we advance our business globally, signing new business and increasing our revenue from existing customers. Fueled by outstanding strategic performance in Israel and North America we will continue with our proven strategy to enhance our portfolio, organically and through acquisitions in order to offer the best one-stop-shop for digital transformation.”

Conference Call Details

Magic’s management will host a conference call on Monday, November 16, 2020 at 10:00 am Eastern Daylight Time (5:00 p.m. Israel Daylight Time) to review and discuss Magic’s results.

To participate, please call one of the following teleconferencing numbers. Please begin placing your calls at least 10 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, call the international dial-in number.

NORTH AMERICA: +1-888-668-9141

UK: 0-800-917-5108

ISRAEL: 03-918-0609

ALL OTHERS: +972-3-918-0609

For those unable to join the live call, a replay of the call will be available under the Investor Relations section of Magic’s website, www.magicsoftware.com. 

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: Non-GAAP gross profit, Non-GAAP operating income, Non-GAAP net income attributable to Magic’s shareholders and Non-GAAP basic and diluted earnings per share.

Magic believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Magic’s financial condition and results of operations. Magic’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analyses, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. These measures are used in financial reports prepared for management and in quarterly financial reports presented to the Company’s board of directors. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

Management of the Company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. Magic urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.

Non-GAAP measures used in this press release are included in the financial tables of this release. These non-GAAP measures exclude the following items:

  • Amortization of purchased intangible assets and other related costs;
  • In-process research and development capitalization and amortization;
  • Equity-based compensation expenses;
  • The related tax, non-controlling interests and redeemable non-controlling interests effects of the above items;
  • Change in valuation of contingent consideration related to acquisitions;
  • Acquisition-related costs;

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included in the financial tables of this release.

About Magic Software Enterprises

Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC) is a global provider of mobile and cloud-enabled application and business integration platforms.

For more information, visit www.magicsoftware.com. 

Forward Looking Statements

Some of the statements in this press release may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities and Exchange Act of 1934 and the United States Private Securities Litigation Reform Act of 1995. Words such as “will,” “look forward”, “expect,” “believe” and similar expressions are used to identify these forward-looking statements (although not all forward-looking statements include such words). These forward-looking statements, which may include, without limitation, projections regarding our future performance and financial condition, are made on the basis of management’s current views and assumptions with respect to future events. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward-looking statement. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment. New risks emerge from time to time and it is not possible for us to predict all risks that may affect us. For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to the Risk Factors detailed in our Annual Report on Form 20-F for the year ended December 31, 2019 and subsequent reports and filings made from time to time with the Securities and Exchange Commission.

Magic® is a registered trademark of Magic Software Enterprises Ltd. All other product and company names mentioned herein are for identification purposes only and are the property of, and might be trademarks of, their respective owners.

Press Contact:

Noam Amir
Magic Software Enterprises
[email protected]

MAGIC SOFTWARE ENTERPRISES LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. Dollars in thousands

    September 30,     December 31,  
    2020     2019  
    Unaudited        
ASSETS            
CURRENT ASSETS:            
Cash and cash equivalents   $ 79,395     $ 81,915  
Short-term bank deposits     2,784       6,996  
Marketable securities     1,181       6,600  
Trade receivables, net     99,798       96,694  
Other accounts receivable and prepaid expenses     11,484       12,845  

Total current assets
 		    194,642       205,050  
                 
LONG-TERM RECEIVABLES:                
Severance pay fund     4,248       4,013  
Deferred tax assets     2,280       2,188  
Operating lease right-of-use assets     23,115       14,956  
Other long-term receivables     2,910       3,594  
Other long-term deposits     2,285       2,285  

Total long-term receivables
 		    34,838       27,036  
                 
PROPERTY AND EQUIPMENT, NET     5,910       3,649  
INTANGIBLE ASSETS AND GOODWILL, NET     187,108       168,871  
                 
TOTAL ASSETS   $ 422,498     $ 404,606  
                 
LIABILITIES AND EQUITY                
                 
CURRENT LIABILITIES:                
Short-term debt   $ 10,748     $ 7,079  
Trade payables     11,871       10,990  
Accrued expenses and other accounts payable     37,541       32,619  
Current maturities of operating lease liabilities     2,898       3,833  
Liabilities due to acquisition activities     5,510       3,638  
Deferred revenues and customer advances     8,958       8,724  

Total current liabilities
 		    77,526       66,883  
                 
NON-CURRENT LIABILITIES:                
Long-term debt     18,070       15,540  
Deferred tax liability     14,845       11,069  
Long-term operating lease liabilities     20,220       11,119  
Long-term liabilities due to acquisition activities     9,325       8,613  
Accrued severance pay     5,062       4,770  

Total non-current liabilities
 		    67,522       51,111  
                 
REDEEMABLE NON-CONTROLLING INTERESTS     16,588       21,915  
                 
EQUITY:                
Magic Software Enterprises equity     247,284       247,838  
Non-controlling interests     13,578       16,859  

Total equity
 		    260,862       264,697  
                 
TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY   $ 422,498     $ 404,606  

MAGIC SOFTWARE ENTERPRISES LTD.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

U.S. Dollars in thousands (except per share data)

    Three months ended     Nine months ended  
    September 30,     September 30,  
    2020     2019     2020     2019  
             
    Unaudited     Unaudited  
Revenues   $ 94,892     $ 85,843     $ 266,621     $ 234,703  
Cost of Revenues     65,794       58,458       187,914       160,442  
Gross profit     29,098       27,385       78,707       74,261  
Research and development, net     2,316       2,235       6,479       6,277  
Selling, marketing and general and administrative expenses     15,749       16,654       42,607       43,062  
Total operating costs and expenses     18,065       18,889       49,086       49,339  
Operating income     11,033       8,496       29,621       24,922  
Financial expenses, net     (589 )     (622 )     (1,207 )     (828 )
Income before taxes on income     10,444       7,874       28,414       24,094  
Taxes on income     2,039       1,380       6,108       4,897  
Net income   $ 8,405     $ 6,494     $ 22,306     $ 19,197  
Net income attributable to redeemable non-controlling interests     (500 )     (1,045 )     (1,061 )     (3,057 )
Net income attributable to non-controlling interests     (820 )     (491 )     (2,570 )     (995 )
Net income attributable to Magic’s shareholders   $ 7,085     $ 4,958     $ 18,675     $ 15,145  
                                 
Net earnings per share attributable to Magic’s shareholders :                                
Basic   $ 0.15     $ 0.10     $ 0.38     $ 0.29  
Diluted   $ 0.14     $ 0.10     $ 0.38     $ 0.29  
                                 
Weighted average number of shares used in computing net earnings per share                                
Basic     49,031       48,897       48,997       48,888  
Diluted     49,049       48,991       49,046       48,985  

MAGIC SOFTWARE ENTERPRISES LTD.

RECONCILIATION OF GAAP AND NON-GAAP RESULTS

U.S. Dollars in thousands (except per share data)

    Three months ended     Nine months ended  
    September 30,     September 30,  
    2020     2019     2020     2019  
             
    Unaudited     Unaudited  
                         
GAAP gross profit   $ 29,098     $ 27,385     $ 78,707     $ 74,261  
Amortization of capitalized software and acquired technology     1,284       1,246       3,965       3,679  
Amortization of other intangible assets     353       277       889       552  
Non-GAAP gross profit   $ 30,735     $ 28,908     $ 83,561     $ 78,492  
                                 
                                 
GAAP operating income   $ 11,033     $ 8,496     $ 29,621     $ 24,922  
Gross profit adjustments     1,637       1,523       4,854       4,231  
Amortization of other intangible assets     1,757       2,039       4,335       4,859  
Capitalization of software development     (784 )     (876 )     (2,474 )     (3,128 )
Costs related to acquisitions     538       314       1,039       1,294  
Increase in valuation of contingent consideration related to acquisitions             255               255  
Stock-based compensation     –       –       –       75  
Non-GAAP operating income   $ 14,181     $ 11,751     $ 37,375     $ 32,508  
                                 
                                 
GAAP net income attributable to Magic’s shareholders   $ 7,085     $ 4,958     $ 18,675     $ 15,145  
Operating income adjustments     3,148       3,255       7,754       7,586  
Expenses attributed to non-controlling interests and redeemable non-controlling interests     (232 )     (109 )     (407 )     (728 )
Changes in unsettled fair value of contingent consideration related to acquisitions     454       –       1,602       –  
Deferred taxes on the above items     (1,001 )     (25 )     (695 )     (181 )
Non-GAAP net income attributable to Magic’s shareholders   $ 9,454     $ 8,079     $ 26,929     $ 21,822  
                                 
Non-GAAP basic net earnings per share   $ 0.19     $ 0.17     $ 0.55     $ 0.45  
Weighted average number of shares used in computing basic net earnings per share     49,031       48,897       48,997       48,888  
                                 
Non-GAAP diluted net earnings per share   $ 0.19     $ 0.17     $ 0.55     $ 0.45  
Weighted average number of shares used in computing diluted net earnings per share     49,049       48,991       49,046       48,980  


Summary of Non-GAAP Financial Information


U.S. Dollars in thousands (except per share data)

    Three months ended     Nine months ended  
    September 30,     September 30,  
    2020     2019     2020     2019  
    Unaudited     Unaudited     Unaudited     Unaudited  
                                         
Revenues   $ 94,892   100 %   $ 85,843   100 %   $ 266,621   100 %   $ 234,703   100 %
Gross profit     30,735   32.4 %     28,908   33.7 %     83,561   31.3 %     78,492   33.4 %
Operating income     14,181   14.9 %     11,751   13.7 %     37,375   14.0 %     32,508   13.9 %
Net income attributable to Magic’s shareholders     9,454   10.0 %     8,079   9.4 %     26,929   10.1 %     21,822   9.3 %
                                                 
Basic earnings per share   $ 0.19         $ 0.17         $ 0.55         $ 0.45      
Diluted earnings per share   $ 0.19         $ 0.17         $ 0.55         $ 0.45      

MAGIC SOFTWARE ENTERPRISES LTD.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

U.S. Dollars in thousands

    For the Nine months ended September 30,  
    2020     2019  
    Unaudited     Unaudited  
             

Cash flows from operating activities:
 		           
             
Net income   $ 22,306     $ 19,197  
Adjustments to reconcile net income to net cash provided   by operating activities:                
Depreciation and amortization     10,096       10,037  
Stock-based compensation     –       75  
Change in deferred taxes, net     (382 )     (758 )
Amortization of marketable securities premium and accretion of discount     57       147  
Net change in operating assets and liabilities:                
Trade receivables, net     5,919       6,307  
Other long-term and short-term accounts receivable and prepaid expenses     158       2,761  
Trade payables     (179 )     (5,540 )
Exchange rate of loans     (44 )     1,712  
Accrued expenses and other accounts payable     3,803       (5,608 )
Deferred revenues     (401 )     4,365  
Net cash provided by operating activities     41,333       32,695  
                 

Cash flows from investing activities:
 		               
                 
Capitalized software development costs     (2,474 )     (3,128 )
Purchase of property and equipment     (2,448 )     (1,057 )
Cash paid in conjunction with acquisitions, net of acquired cash     (16,534 )     (20,889 )
Proceeds from maturity and sale of marketable securities     5,429       2,450  
Proceeds from short-term bank deposits     5,075       5,127  
Investment in marketable securities     –       (202 )
Net cash used in investing activities     (10,952 )     (17,699 )
                 

Cash flows from financing activities:
 		               
                 
Proceeds from exercise of options by employees     229       69  
Issuance of ordinary shares, net     –       (9 )
Dividend paid     (12,502 )     (14,963 )
Dividend paid to non-controlling interests     (6,408 )     (400 )
Dividend paid to redeemable non-controlling interests     (2,013 )     (2,589 )
Purchase of redeemable non-controlling interest     –       (1,237 )
Purchase of non-controlling interest     (18,016 )     –  
Short-term and long-term loans received     9,090       878  
Repayment of short-term and long-term loans     (2,811 )     (7,681 )
Net cash used in financing activities     (32,431 )     (25,932 )
                 
Effect of exchange rate changes on cash and cash equivalents     (470 )     699  
                 
Change in cash and cash equivalents     (2,520 )     (10,237 )
Cash and cash equivalents at the beginning of the year     81,915       87,126  
Cash and cash equivalents at end of the period   $ 79,395     $ 76,889  



Posted on

Manufacturing Industry at High Risk of Severe Impact from COVID-19 Pandemic

Print & publishing, Industrial Equipment, Apparel, and Textile Products among the top 5 most affected sectors

Allentown, PA, Nov. 16, 2020 (GLOBE NEWSWIRE) — The manufacturing industry in the United States is standing at the precipice of severe negative impacts due to COVID-19, according to a new report from the global business intelligence experts, Creditsafe. According to the report, many manufacturers could see a significant decrease in their revenue, which may bring about difficult decisions on how best to navigate these difficult times.  

 

The data shows that the following manufacturing sectors are the most likely to be severely impacted. 

 

  • Printing and Publishing
  • Miscellaneous Manufacturing
  • Industrial Machinery and Equipment
  • Fabricated Metal Products
  • Apparel and Other Textile Products 

 

When combined, these industries represent over half a million businesses across the United States, with over 17% of them expected to experience a severe negative impact from the Coronavirus. 

 

“Manufacturing represents a significant amount of revenue, jobs, and businesses within the US,” comments Matthew Debbage, Creditsafe Americas and Asia’s CEO, “Our research and analysis shows that the 10 most affected states could see a decrease $400 billion from the manufacturing industry alone. This type of impact will have long term effects for the entire country.” 

 

Mandatory closures, changes in buyer behavior, disruptions to the supply chain, amongst other factors, are all contributing to the overall risk that the manufacturing industry is facing. In turn, the industry could cause ripples of its own through a loss of employment, decreases in revenue, and notable delays in production. 

 

The pandemic has caused the U.S., and specifically manufacturers, to look to a more localized supply chain and bring several types of critical manufacturing sectors back to U.S. soil. John Boyd, president of Boyd Co., a corporate relocation consulting firm, says, “The pandemic has made it clear that overextended and risky supply chains can no longer be tolerated. The U.S. pharmaceutical and medical devices sectors—now dangerously concentrated in China—will be the first in line to disinvest there and reinvest back in the U.S. Bi-partisan legislation is being crafted in Washington to encourage this reshoring through tax breaks and other incentives.” 

 

Unfortunately, the return to US-based manufacturing will take time and money. The pandemic may impact $ 400 billion in revenue in 2020. The report describes how States such as Nevada and California are the top two most affected regarding manufacturing, according to Creditsafe. Leaders of these states will have to figure out how to help their local manufacturers survive while attracting new businesses to their regions. 

The outlook of the manufacturing industry is far from certain; one thing is sure, business, as usual, will no longer be enough, and manufacturers, like so many other industries, must find a way to adapt to an ever-evolving economic landscape. 

To learn more about the effects of COVID-19 on the manufacturing industry download the full report for free.

 

 

About Creditsafe USA

Creditsafe is the world’s most used supplier of company credit reports. Privately owned and independently minded, Creditsafe is looking to change the way business information is used by providing high-quality data in an easy to use format that everyone in an organization can benefit from.

Creditsafe’s global database is one of the most rapidly expanding in the industry and also one of the most comprehensive. Each day over 500,000 users around the world leverage the company’s database to gather strategic, insightful business information. Creditsafe’s database is updated over a million times a day with information gathered from thousands of sources. In 99.9% of the cases, reports requested by customers are delivered instantly. Over forty percent of Creditsafe’s customers leverage the company’s internationally reporting capabilities.  

Attachment 



Nathan Kolb
Creditsafe
4342297209
[email protected]

Posted on

Ada S. McKinley Community Services Sees Dramatic Increase of 33% in Youth Referrals to Its Foster Care Program; Boosts Efforts to Recruit Foster Parents

Chicago, Illinois, Nov. 16, 2020 (GLOBE NEWSWIRE) — Ada S. McKinley Community Services, one of the largest human service and education providers in Illinois, is seeing a 33 percent increase in the number of youth cases needing foster parents since the start of the COVID-19 pandemic, and is launching a new effort during the Holiday Season to urge eligible people to become foster parents. With the cancellation of face-to-face meetings and concerns about the spread of the Coronavirus, recruiting traditional and specialized foster parents has become more difficult. 

“We need loving people to open their hearts and homes to help these children. They are the unseen victims of COVID-19 who’ve faced the trauma of being removed from their homes in the midst of the pandemic,” said Jamal Malone, CEO of Ada S. McKinley Community Services. 

“Currently there are not enough licensed foster parents to help the youth who come to us. The foster parents who bring these children into their homes say it’s a rewarding experience to help a child in need,” said Malone.  

Malone assures potential foster parents that very extensive COVID-19 precautions are taken before placing children in homes. Ada S. McKinley Community Services also has a unique history for supporting foster children through other programs including Head Start Early Learning Centers and our nationally renowned College Placement Program which has placed over 70,000 youth in more than 400 U.S. colleges and universities. 

Sandra Minter is a foster parent who strongly encourages potential foster parents to attend an orientation class. She’s serving an eight-year-old girl with special needs, whom Minter describes as “a delight.”

“My third grader faced emotional challenges when I welcomed her to my home, and they are pretty much manageable. She has brought life back into my life. This child is a joy to be with. It’s rewarding just to know I’m helping somebody who needs help and cannot help themselves. All you need is the heart to do it. It’s not hard at all,” said Minter. 

Ada S. McKinley also operates an Emergency Foster Care Shelter on Chicago’s South Side, staffed 24 hours-a-day with professional Foster Parents for emergency placements. The shelter is one of just two emergency shelters in Chicago, and one of only five in Illinois. 

Individuals interested in becoming foster parents can learn more by calling the Ada S. McKinley Community Services’ Foster Parent Recruitment Hotline at 773-602-2660 ext. 3243 or attending online orientation classes scheduled for November 18, 2020 at 11 a.m., December 2, 2020 at 11 a.m., January 13, 2021 at 11 a.m.  

Those interested in donating to Ada S. McKinley can donate via this LINK.  


About Ada S. McKinley Community Services

Ada S. McKinley Community Services is one of Chicago’s largest, most respected and impactful Human Services organizations. Serving more than 7,000 people annually at over 70 program sites in the Chicago metropolitan area, Wisconsin and Indiana, Ada S. McKinley Community Services’ wide-ranging programs fall under the umbrellas of child development and youth, employment and community support, and behavioral health and clinical. The 101-year old nonprofit was founded during the Spanish Flu Pandemic with a mission to serve African American World War I veterans who were denied government services, and to help southern families fleeing to Chicago during the Great Migration. The organization’s mission is to empower, educate and employ people to change lives and strengthen communities. 

For more information and updates on how the agency continues to meet the needs of people affected by the COVID-19 pandemic, please visit www.adasmckinley.org and follow us on Facebook, YouTube, LinkedIn and Instagram. 

Attachments 



Michelle Damico
Michelle Damico Communications
312-423-6627
[email protected]