HydraFacial, A BeautyHealth Company, Opens HFX Experience Center in New York City

HydraFacial, A BeautyHealth Company, Opens HFX Experience Center in New York City

New Global Training Center Designed to Turn Aestheticians into Expert HydraFacialists

LONG BEACH, Calif.–(BUSINESS WIRE)–
The BeautyHealth Company “BeautyHealth” or the “Company”; (NASDAQ:SKIN), a global category-creator in beauty health leading the charge with HydraFacial™, its flagship brand, today announced the opening of the HydraFacial HFX Experience Center in New York City. The New York Experience Center is the 9th global HFX location, others include Long Beach, Orlando, Chicago, Dallas, Tokyo, Shanghai, Madrid, and Mexico.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220127006025/en/

Opening Day at HydraFacial HFX Experience Center in New York City. (Photo: Hai Ngo)

Opening Day at HydraFacial HFX Experience Center in New York City. (Photo: Hai Ngo)

HydraFacial HFX launched in 2018 as the first of its kind, two-day immersive educational experience designed to advance aesthetic professionals’ skills and help them develop client engagement techniques, hone their protocols skills, and grow their businesses, with a focus on selling skills, social media and marketing techniques. In addition, these experience centers allow the brand to host consumer, provider, HydraFacialist, press, and influencer events throughout the year.

“Education is a significant area of investment for HydraFacial,” said Ben Baum, HydraFacial’s Executive Vice President and Chief Experience Officer. “We offer in-person, virtual, short-form and long-form training opportunities, providing an option for every BeautyHealth expert who strives to deliver a superior experience. The HFX Experience Centers are an important part of our educational platform, and we are thrilled to finally have one in New York City.”

HydraFacial HFX participants can expect to gain:

  • Increased client retention by utilizing HydraFacial as a beauty health essential
  • Confidence in client consultations to effectively up−sell and personalize treatments
  • Menu strategy and creation concepts
  • Knowledge of our exceptional industry partnerships
  • Expertise in combining HydraFacial with other treatments
  • A strategy to implement an action plan for business growth
  • Enhanced experience with HydraFacial boosters, products and modalities
  • A structure to accelerate revenue through positioning memberships at Signature Events
  • Creative ideas on how to position HydraFacial Perk™ for improved treatment outcomes
  • Ability to leverage resources for increased profits

To register or learn more about the HFX courses, visit connect.hydrafacial.com/hfx-franchise/

About The Beauty Health Company

BeautyHealth is a category-creating beauty health company focused on bringing innovative products to market. Our flagship brand, HydraFacial, is a non-invasive and approachable beauty health platform and ecosystem with a powerful community of estheticians, consumers and partners, bridging medical and consumer retail to democratize and personalize skin care solutions for the masses. HydraFacial uses a unique delivery system to cleanse, extract and hydrate with our patented hydradermabrasion technology and super serums that are made with nourishing ingredients, providing an immediate outcome and creating an instantly gratifying glow in just three steps and 30 minutes. HydraFacial® and Perk™ products are available in over 87 countries with over 19,000 Delivery Systems globally and millions of treatments performed each year. For more information, visit the brand on LinkedIn, Facebook, Instagram, or at HydraFacial.com. For our Investor Relations website, please visit https://investors.beautyhealth.com/.

HydraFacial Product Contact: EvolveMKD |  [email protected]

The HydraFacial Company Contact:  [email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Cosmetics Retail Specialty Other Retail

MEDIA:

Photo
Photo
Opening Day at HydraFacial HFX Experience Center in New York City. (Photo: Hai Ngo)
Logo
Logo

First Interstate BancSystem Announces New Members of Executive Team

First Interstate BancSystem Announces New Members of Executive Team

BILLINGS, Mont.–(BUSINESS WIRE)–
First Interstate BancSystem, Inc. (NASDAQ: FIBK) (“FIBK”), parent company of First Interstate Bank, announced today that it expects Scott Erkonen and Karlyn Knieriem to join the FIBK executive team upon the closing of the previously announced merger of Great Western Bancorp, Inc. (“GWB”) into FIBK. At the effective time of the merger, Mr. Erkonen will serve as the Chief Information Officer and Ms. Knieriem will serve as the Chief Risk Officer.

“I look forward to working alongside Scott, Karlyn, and the rest of the Executive Team as we establish First Interstate as one of the country’s premier community banking franchises,” said FIBK President and CEO Kevin Riley.

The First Interstate Executive Team will be as follows:

  • Kevin Riley – President/Chief Executive Officer
  • Marcy Mutch – Chief Financial Officer
  • Jodi Delahunt Hubbell – Chief Operating Officer
  • Scott Erkonen – Chief Information Officer
  • Kirk Jensen – General Counsel
  • Karlyn Knieriem – Chief Risk Officer
  • Russ Lee – Chief Banking Officer
  • David Redmon – Chief of Staff
  • Rachel Turitto – Chief HR Officer

As previously announced, the merger of GWB into FIBK and the transaction is expected to close on or around February 1, 2022, subject to customary closing conditions set forth in the merger agreement between FIBK and GWB. The combined holding company will operate under the First Interstate name and brand with the company’s headquarters remaining in Billings, Montana.

About First Interstate BancSystem, Inc.

First Interstate BancSystem, Inc. is a financial services holding company headquartered in Billings, Montana. It is the parent company of First Interstate Bank, a community bank with $19.3 billion in assets as of September 30, 2021. First Interstate proudly delivers financial solutions across Idaho, Montana, Oregon, South Dakota, Washington, and Wyoming. A recognized leader in community banking services, First Interstate is driven by strong values as well as a commitment to delivering a rewarding experience to its employees, strong returns to shareholders, exceptional products and services to its clients, and resources to the communities it serves. More information is available at www.firstinterstate.com.

Cautionary Note Regarding Forward Looking Statements

This communication contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder, which involve inherent risks and uncertainties. Any statements about FIBK’s, GWB’s or the combined company’s plans, objectives, expectations, strategies, beliefs, or future performance or events constitute forward-looking statements. Such statements are identified as those that include words or phrases such as “believes,” “expects,” “anticipates,” “plans,” “trend,” “objective,” “continue,” or similar expressions or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “may,” or similar expressions. Forward-looking statements involve known and unknown risks, uncertainties, assumptions, estimates, and other important factors that change over time and could cause actual results to differ materially from any results, performance, or events expressed or implied by such forward-looking statements. Such forward-looking statements include but are not limited to statements about the benefits of the business combination transaction between FIBK and GWB (the “Transaction”), including future financial and operating results, the combined company’s plans, objectives, expectations and intentions, and other statements that are not historical facts.

These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. In addition to factors previously disclosed in FIBK’s and GWB’s reports filed with the U.S. Securities and Exchange Commission (the “SEC”) and those identified elsewhere in this document, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the occurrence of any event, change, or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between FIBK and GWB; the outcome of any legal proceedings that may be instituted against FIBK or GWB; the possibility that the Transaction does not close when expected or at all because required conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the Transaction); the risk that the benefits from the Transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which FIBK and GWB operate; the ability to promptly and effectively integrate the businesses of FIBK and GWB; the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of FIBK’s or GWB’s customers, employees or other business partners, including those resulting from the announcement or completion of the Transaction; the dilution caused by FIBK’s issuance of additional shares of its capital stock in connection with the Transaction; the diversion of management’s attention and time from ongoing business operations and opportunities on merger-related matters; and the impact of the global COVID-19 pandemic on FIBK’s or GWB’s businesses, the ability to complete the Transaction or any of the other foregoing risks.

These factors are not necessarily all of the factors that could cause FIBK’s, GWB’s or the combined company’s actual results, performance, or achievements to differ materially from those expressed in or implied by any of the forward-looking statements. Other unknown or unpredictable factors also could harm FIBK’s, GWB’s or the combined company’s results.

All forward-looking statements attributable to FIBK, GWB, or the combined company, or persons acting on FIBK’s or GWB’s behalf, are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date they are made and FIBK and GWB do not undertake or assume any obligation to update publicly any of these statements to reflect actual results, new information or future events, changes in assumptions, or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If FIBK or GWB update one or more forward-looking statements, no inference should be drawn that FIBK or GWB will make additional updates with respect to those or other forward-looking statements. Further information regarding FIBK, GWB and factors which could affect the forward-looking statements contained herein can be found in the registration statement on Form S-4, as amended, as well as FIBK’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, its Quarterly Reports on Form 10-Q, and its other filings with the SEC, and in GWB’s Annual Report on Form 10-K for the fiscal year ended September 30, 2021, and its other filings with the SEC.

Category: Mergers & Acquisitions

Media:

Brittany Cremer

PR & Communications Manager

406-255-5310

[email protected]

Investors:

John R. Stewart, CFA

Deputy Chief Financial Officer

406-255-5311

[email protected]

KEYWORDS: United States North America Montana

INDUSTRY KEYWORDS: Banking Professional Services Finance

MEDIA:

Logo
Logo

The RMR Group Inc. Announces First Quarter Fiscal 2022 Results

The RMR Group Inc. Announces First Quarter Fiscal 2022 Results

Net Income of $18.3 Million, or $0.49 Per Diluted Share

Adjusted Net Income of $0.46 Per Diluted Share, a 12% Increase from Last Year

Adjusted EBITDA of $23.3 Million, a 9% Increase from Last Year

Total AUM Grows to $33.4 Billion, with Managed Private Real Estate Capital AUM Growing to $3.2 Billion

NEWTON, Mass.–(BUSINESS WIRE)–The RMR Group Inc. (Nasdaq: RMR) today announced its financial results for the fiscal quarter ended December 31, 2021.

Adam Portnoy, President and Chief Executive Officer, made the following statement regarding the first quarter fiscal 2022 results:

“During the first fiscal quarter, RMR reported management and advisory services revenues of $46.0 million, an increase of 11% from last year, despite the continued impact of COVID-19 variants across many aspects of our clients’ businesses. Similarly, adjusted earnings per share and Adjusted EBITDA increased 12% and 9%, respectively, over the prior year. This growth was driven primarily by increases in the enterprise values of our Managed Equity REITs, the expanded scale of Sonesta leading to greater business management fees and increased client redevelopment activities leading to higher construction management fees.

“This quarter, RMR made significant progress in growing its private capital assets under management, announcing approximately $1.9 billion of private capital transactions. In addition, the pending Monmouth industrial real estate transaction valued at approximately $4.0 billion is expected to be partly funded with private capital raised from large institutional joint venture partners. Not only do these transactions grow RMR’s assets under management, but they also highlight RMR’s alignment with our clients’ shareholders by expanding their access to capital and growth opportunities with high quality assets.

“With over $181 million of cash and no debt, we remain well positioned to pursue a range of capital allocation strategies, with a primary focus on driving private capital growth across the platform.”

First Quarter Fiscal 2022 Highlights:

  • As of December 31, 2021, The RMR Group LLC had $33.4 billion of assets under management, or AUM, compared to $32.1 billion as of December 31, 2020.
  • Total management and advisory services revenues for the quarter ended December 31, 2021 were $46.0 million, compared to $41.3 million for the quarter ended December 31, 2020.
  • The RMR Group LLC’s AUM and management and advisory services revenues by source are as follows (dollars in thousands):

 

 

 

 

 

 

Total

 

 

 

 

Management

 

 

 

 

and Advisory

 

 

AUM

 

Services Revenues

As of or for the Three Months Ended December 31, 2021

Managed Public Real Estate Capital (1)

 

$

28,224,926

 

84.4

%

 

$

36,992

 

80.4

%

Managed Private Real Estate Capital (2)

 

 

3,213,978

 

9.6

%

 

 

2,453

 

5.3

%

Managed Operating Companies (3)

 

 

2,000,706

 

6.0

%

 

 

6,570

 

14.3

%

Total

 

$

33,439,610

 

100.0

%

 

$

46,015

 

100.0

%

 

 

 

 

 

 

 

 

 

As of or for the Three Months Ended December 31, 2020

Managed Public Real Estate Capital (1)

 

$

28,846,470

 

89.8

%

 

$

33,866

 

81.9

%

Managed Private Real Estate Capital (2)

 

 

1,332,336

 

4.1

%

 

 

1,829

 

4.5

%

Managed Operating Companies (3)

 

 

1,950,548

 

6.1

%

 

 

5,638

 

13.6

%

Total

 

$

32,129,354

 

100.0

%

 

$

41,333

 

100.0

%

(1)

Managed Public Real Estate Capital includes: Diversified Healthcare Trust (DHC), Industrial Logistics Properties Trust (ILPT), Office Properties Income Trust (OPI) and Service Properties Trust (SVC), which are collectively referred to as the Managed Equity REITs, as well as Seven Hills Realty Trust (SEVN) and, until its merger with and into SEVN on September 30, 2021, Tremont Mortgage Trust (TRMT).

(2)

Managed Private Real Estate Capital primarily consists of private entities that own commercial real estate, some of which certain of the Managed Equity REITs own minority interests.

(3)

Managed Operating Companies include: AlerisLife Inc. (formerly known as Five Star Senior Living Inc.) (ALR), Sonesta International Hotels Corporation (Sonesta) and TravelCenters of America Inc. (TA).

  • No incentive business management fees were earned for the 2021 or 2020 calendar years from the Managed Equity REITs based upon the three year measurement periods ended December 31, 2021 and 2020, respectively.
  • For the three months ended December 31, 2021, net income was $18.3 million and net income attributable to The RMR Group Inc. was $8.0 million, or $0.49 per diluted share, compared to net income of $19.8 million and net income attributable to The RMR Group Inc. of $8.9 million, or $0.51 per diluted share, for the three months ended December 31, 2020.
  • For the three months ended December 31, 2021, adjusted net income attributable to The RMR Group Inc. was $7.6 million, or $0.46 per diluted share, compared to $6.9 million, or $0.41 per diluted share, for the three months ended December 31, 2020. The adjustments to net income attributable to The RMR Group Inc. this quarter included $0.5 million, or $0.03 per diluted share, of unrealized gains on our equity method investments in SEVN and TA.
  • For the three months ended December 31, 2021, Adjusted EBITDA was $23.3 million, Operating Margin was 43.7% and Adjusted EBITDA Margin was 48.2%, compared to Adjusted EBITDA of $21.4 million, Operating Margin of 33.2% and Adjusted EBITDA Margin of 49.0% for the three months ended December 31, 2020.
  • As of December 31, 2021, The RMR Group Inc. had $181.9 million in cash and cash equivalents with no outstanding debt obligations.

Reconciliations to U.S. Generally Accepted Accounting Principles, or GAAP:

Adjusted net income attributable to The RMR Group Inc., EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EBITDA less Cash Tax Obligation are non-GAAP financial measures. The GAAP financial measure that is most directly comparable to adjusted net income attributable to The RMR Group Inc. is net income attributable to The RMR Group Inc. The GAAP financial measure that is most directly comparable to EBITDA, Adjusted EBITDA and Adjusted EBITDA less Cash Tax Obligation is net income and the GAAP financial measure that is most directly comparable to Adjusted EBITDA Margin is Operating Margin, which represents operating income divided by total management and advisory services revenues. Reconciliations of net income attributable to The RMR Group Inc. determined in accordance with GAAP to adjusted net income attributable to The RMR Group Inc., and of net income to EBITDA and Adjusted EBITDA, as well as calculations of Operating Margin, Adjusted EBITDA Margin and Adjusted EBITDA less Cash Tax Obligation for each of the three months ended December 31, 2021 and 2020 are presented later in this press release.

Assets Under Management:

The calculation of AUM primarily includes: (i) the historical cost of real estate and related assets, excluding depreciation, amortization, impairment charges or other non-cash reserves, of the Managed Equity REITs and the Managed Private Real Estate Capital clients, plus (ii) the gross book value of real estate assets, property and equipment of the Managed Operating Companies, excluding depreciation, amortization, impairment charges or other non-cash reserves, plus (iii) the carrying value of loans held for investment at SEVN. Upon deconsolidation from a Managed Equity REIT, the respective real estate and related assets are characterized as Managed Private Real Estate Capital and their historical cost represents the fair value of the real estate at the time of deconsolidation.

All references in this press release to AUM on, or as of, a date are calculated at a point in time.

For additional information on the calculation of AUM for purposes of the fee provisions of the business management agreements, see The RMR Group Inc.’s Annual Report on Form 10-K for the fiscal year ended September 30, 2021, filed with the Securities and Exchange Commission, or SEC. The RMR Group Inc.’s SEC filings are available at the SEC website: www.sec.gov.

Conference Call:

On Friday, January 28, 2022 at 10:00 a.m. Eastern Time, President and Chief Executive Officer, Adam Portnoy, and Executive Vice President, Chief Financial Officer and Treasurer, Matt Jordan, will host a conference call to discuss The RMR Group Inc.’s fiscal first quarter ended December 31, 2021 financial results.

The conference call telephone number is (877) 270-2148. Participants calling from outside the United States and Canada should dial (412) 902-6510. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through 11:59 p.m. Eastern Time on Friday, February 4, 2022. To access the replay, dial (412) 317-0088. The replay pass code is 9199832.

A live audio webcast of the conference call will also be available in a listen only mode on The RMR Group Inc.’s website, at www.rmrgroup.com. Participants wanting to access the webcast should visit The RMR Group Inc.’s website about five minutes before the call. The archived webcast will be available for replay on The RMR Group Inc.’s website following the call for about one week. The transcription, recording and retransmission in any way of The RMR Group Inc.’s fiscal first quarter ended December 31, 2021 financial results conference call are strictly prohibited without the prior written consent of The RMR Group Inc.

About The RMR Group Inc.

The RMR Group (Nasdaq: RMR) is a leading U.S. alternative asset management company, unique for its focus on commercial real estate (CRE) and related businesses. RMR’s vertical integration is supported by nearly 600 real estate professionals in over 30 offices nationwide who manage over $33 billion in assets under management and leverage 35 years of institutional experience in buying, selling, financing and operating CRE. RMR benefits from a scalable platform, a deep and experienced management team and a diversity of direct real estate strategies across its clients. RMR is headquartered in Newton, MA and was founded in 1986. For more information, please visit www.rmrgroup.com.

The RMR Group Inc.

Condensed Consolidated Statements of Income

(amounts in thousands, except per share amounts)

(unaudited)

 

 

 

Three Months Ended December 31,

 

 

2021

 

2020

Revenues:

 

 

 

 

Management services (1)

 

$

44,897

 

 

$

40,747

 

Advisory services

 

 

1,118

 

 

 

586

 

Total management and advisory services revenues

 

 

46,015

 

 

 

41,333

 

Reimbursable compensation and benefits

 

 

14,397

 

 

 

13,225

 

Reimbursable equity based compensation

 

 

1,598

 

 

 

3,003

 

Other reimbursable expenses

 

 

119,558

 

 

 

99,385

 

Total reimbursable costs

 

 

135,553

 

 

 

115,613

 

Total revenues

 

 

181,568

 

 

 

156,946

 

 

 

 

 

 

Expenses:

 

 

 

 

Compensation and benefits

 

 

31,791

 

 

 

29,494

 

Equity based compensation

 

 

2,219

 

 

 

3,561

 

Separation costs

 

 

 

 

 

4,159

 

Total compensation and benefits expense

 

 

34,010

 

 

 

37,214

 

General and administrative

 

 

7,671

 

 

 

6,260

 

Other reimbursable expenses

 

 

119,558

 

 

 

99,385

 

Transaction and acquisition related costs

 

 

 

 

 

117

 

Depreciation and amortization

 

 

236

 

 

 

238

 

Total expenses

 

 

161,475

 

 

 

143,214

 

Operating income

 

 

20,093

 

 

 

13,732

 

Interest and other income

 

 

57

 

 

 

231

 

Equity in earnings of investees

 

 

 

 

 

424

 

Unrealized gain on equity method investments accounted for under the fair value option

 

 

1,196

 

 

 

8,122

 

Income before income tax expense

 

 

21,346

 

 

 

22,509

 

Income tax expense

 

 

(3,054

)

 

 

(2,756

)

Net income

 

 

18,292

 

 

 

19,753

 

Net income attributable to noncontrolling interest

 

 

(10,250

)

 

 

(10,856

)

Net income attributable to The RMR Group Inc.

 

$

8,042

 

 

$

8,897

 

 

 

 

 

 

Weighted average common shares outstanding – basic (2)

 

 

16,325

 

 

 

16,252

 

Weighted average common shares outstanding – diluted (2)

 

 

31,325

 

 

 

31,252

 

 

 

 

 

 

Net income attributable to The RMR Group Inc. per common share – basic (2)

 

$

0.49

 

 

$

0.54

 

Net income attributable to The RMR Group Inc. per common share – diluted (2)

 

$

0.49

 

 

$

0.51

 

 

See Notes beginning on page 6.

The RMR Group Inc.

Notes to Condensed Consolidated Statements of Income

(dollars in thousands)

(unaudited)

 

(1)

Includes base business management fees earned from the Managed Equity REITs monthly based upon the lower of (i) the average historical cost of each REIT’s properties and (ii) each REIT’s average market capitalization. The following table presents a summary of each Managed Equity REIT’s primary strategy and the lesser of the historical cost of its assets under management and its market capitalization as of December 31, 2021 and 2020, as applicable:

 

 

 

 

Lesser of Historical Cost of Assets

 

 

 

 

Under Management or

 

 

 

 

Total Market Capitalization (a)

 

 

 

 

As of December 31,

REIT

 

Primary Strategy

 

2021

 

2020

DHC

 

Medical office and life science properties, senior living communities and wellness centers

 

$

4,457,630

 

$

4,523,958

ILPT

 

Industrial and logistics properties

 

 

1,897,426

 

 

1,963,013

OPI

 

Office properties primarily leased to single tenants, including the government

 

 

3,813,203

 

 

3,340,627

SVC

 

Hotels and net lease service and necessity-based retail properties

 

 

8,651,159

 

 

8,158,795

 

 

 

 

$

18,819,418

 

$

17,986,393

(a)

The basis on which base business management fees are calculated for the three months ended December 31, 2021 and 2020 may differ from the basis at the end of the periods presented in the table above. As of December 31, 2021, the market capitalization was lower than the historical cost of assets under management for DHC, OPI and SVC. The historical cost of assets under management for DHC, OPI and SVC as of December 31, 2021, were $7,364,743, $6,117,252 and $12,306,220, respectively. For ILPT, the historical cost of assets under management were lower than its market capitalization of $2,470,395 as of December 31, 2021.

The RMR Group Inc.

Notes to Condensed Consolidated Statements of Income (Continued)

(amounts in thousands, except per share amounts)

(unaudited)

 

(2)

The RMR Group Inc. calculates earnings per share, or EPS, using the two-class method. As such, earnings attributable to unvested participating shares are excluded from earnings before calculating per share amounts. In addition, diluted EPS includes the assumed issuance of Class A Common Shares pursuant to The RMR Group Inc.’s equity compensation plan and the issuance of Class A Common Shares related to the assumed redemption of the noncontrolling interest’s 15,000 Class A Units using the if-converted method. In computing the dilutive effect, if any, that the aforementioned redemption would have on EPS, The RMR Group Inc. considered that net income available to holders of Class A Common Shares would increase due to elimination of the noncontrolling interest offset by any tax effect, which may be dilutive. For the three months ended December 31, 2021 and 2020, the assumed redemption is dilutive to earnings per share as presented in the table below. The calculation of basic and diluted EPS is as follows:

 

 

Three Months Ended December 31,

 

 

2021

 

2020

Numerators:

 

 

 

 

Net income attributable to The RMR Group Inc.

 

$

8,042

 

 

$

8,897

 

Income attributable to unvested participating securities

 

 

(78

)

 

 

(78

)

Net income attributable to The RMR Group Inc. used in calculating basic EPS

 

 

7,964

 

 

 

8,819

 

Effect of dilutive securities:

 

 

 

 

Add back: income attributable to unvested participating securities

 

 

78

 

 

 

78

 

Add back: net income attributable to noncontrolling interest

 

 

10,250

 

 

 

10,856

 

Add back: income tax expense

 

 

3,054

 

 

 

2,756

 

Income tax expense assuming redemption of noncontrolling interest’s Class A Units for Class A Common Shares (a)

 

 

(6,064

)

 

 

(6,515

)

Net income used in calculating diluted EPS

 

$

15,282

 

 

$

15,994

 

 

 

 

 

 

Denominators:

 

 

 

 

Common shares outstanding

 

 

16,485

 

 

 

16,396

 

Unvested participating securities

 

 

(160

)

 

 

(144

)

Weighted average common shares outstanding – basic

 

 

16,325

 

 

 

16,252

 

Effect of dilutive securities:

 

 

 

 

Assumed redemption of noncontrolling interest’s Class A Units for Class A Common Shares

 

 

15,000

 

 

 

15,000

 

Weighted average common shares outstanding – diluted

 

 

31,325

 

 

 

31,252

 

 

 

 

 

 

Net income attributable to The RMR Group Inc. per common share – basic

 

$

0.49

 

 

$

0.54

 

Net income attributable to The RMR Group Inc. per common share – diluted

 

$

0.49

 

 

$

0.51

 

(a)

Income tax expense assumes the hypothetical conversion of the noncontrolling interest, which results in estimated tax rates of 28.4% and 28.9% for the three months ended December 31, 2021 and 2020, respectively.

The RMR Group Inc.

Reconciliation of Adjusted Net Income and Adjusted Net Income Per Diluted Share

(amounts in thousands, except per share amounts)

(unaudited)

 

The RMR Group Inc. is providing the reconciliations below regarding certain individually significant items occurring or impacting its financial results for the three months ended December 31, 2021 and 2020 for supplemental informational purposes in order to enhance the understanding of The RMR Group Inc.’s condensed consolidated statements of income and to facilitate a comparison of The RMR Group Inc.’s current operating performance with its historical operating performance. This information should be considered in conjunction with net income, net income attributable to The RMR Group Inc. and operating income as presented in The RMR Group Inc.’s condensed consolidated statements of income.

 

The following tables present the impact of certain individually significant items on the financial results for the three months ended December 31, 2021 and 2020, assuming the redemption of the noncontrolling interest’s 15,000 Class A Units is dilutive to earnings per share as presented in Note 2 on page 7:

 

 

Net Income

Attributable

to The RMR

Group Inc.

 

Add:

Net Income

Attributable to

Noncontrolling

Interest

 

Add:

Income Tax

Expense

 

Income

Before

Income Tax

Expense

 

Less:

Estimated

Income Tax

Expense (1)

 

Net Income

Used in

Calculating

Diluted EPS

 

Weighted

Average

Common

Shares

Outstanding

– Diluted

 

Net Income

Attributable to The

RMR Group Inc. per

Common Share –

Diluted

Three Months Ended December 31, 2021:

Net income attributable to The RMR Group Inc.

 

$

8,042

 

 

$

10,250

 

 

$

3,054

 

 

$

21,346

 

 

$

(6,064

)

 

$

15,282

 

 

31,325

 

$

0.49

 

Unrealized gain on equity method investments accounted for under the fair value option

 

 

(455

)

 

 

(570

)

 

 

(171

)

 

 

(1,196

)

 

 

340

 

 

 

(856

)

 

31,325

 

 

(0.03

)

Adjusted net income attributable to The RMR Group Inc.

 

$

7,587

 

 

$

9,680

 

 

$

2,883

 

 

$

20,150

 

 

$

(5,724

)

 

$

14,426

 

 

31,325

 

$

0.46

 

 

Three Months Ended December 31, 2020:

Net income attributable to The RMR Group Inc.

 

$

8,897

 

 

$

10,856

 

 

$

2,756

 

 

$

22,509

 

 

$

(6,515

)

 

$

15,994

 

 

31,252

 

$

0.51

 

Income tax benefit (2)

 

 

(520

)

 

 

 

 

 

520

 

 

 

 

 

 

(520

)

 

 

(520

)

 

31,252

 

 

(0.02

)

Unrealized gain on equity method investment accounted for under the fair value option

 

 

(3,059

)

 

 

(3,881

)

 

 

(1,182

)

 

 

(8,122

)

 

 

2,351

 

 

 

(5,771

)

 

31,252

 

 

(0.18

)

Separation costs

 

 

1,567

 

 

 

1,987

 

 

 

605

 

 

 

4,159

 

 

 

(1,204

)

 

 

2,955

 

 

31,252

 

 

0.10

 

Transaction and acquisition related costs

 

 

44

 

 

 

56

 

 

 

17

 

 

 

117

 

 

 

(34

)

 

 

83

 

 

31,252

 

 

 

Adjusted net income attributable to The RMR Group Inc.

 

$

6,929

 

 

$

9,018

 

 

$

2,716

 

 

$

18,663

 

 

$

(5,922

)

 

$

12,741

 

 

31,252

 

$

0.41

 

(1)

Estimated income tax expense assumes the hypothetical conversion of the noncontrolling interest and the resulting consolidated entities’ estimated tax rate of approximately 28.4% and 28.9% for the three months ended December 31, 2021 and 2020, respectively.

(2)

Represents the income tax benefit recorded during the three months ended December 31, 2020 as a result of final tax regulations released in December 2020 establishing the effective date as it relates to the deductibility of certain executive compensation. The final regulations provided that the application of the limit applies to deductions after December 18, 2020. As such, during the three months ended December 31, 2020, The RMR Group Inc. reduced its provision for income taxes for limitations applied prior to the effective date by $520.

The RMR Group Inc.

Reconciliation of EBITDA and Adjusted EBITDA from Net Income

and Calculation of Operating Margin, Adjusted EBITDA Margin

and Adjusted EBITDA less Cash Tax Obligation (1) (2)

(dollars in thousands)

(unaudited)

 

 

Three Months Ended December 31,

 

2021

 

2020

Reconciliation of EBITDA and Adjusted EBITDA from net income:

 

 

 

Net income

$

18,292

 

 

$

19,753

 

Income tax expense

 

3,054

 

 

 

2,756

 

Depreciation and amortization

 

236

 

 

 

238

 

EBITDA

 

21,582

 

 

 

22,747

 

Other asset amortization

 

2,354

 

 

 

2,354

 

Operating expenses paid in the form of The RMR Group Inc.’s common shares

 

621

 

 

 

558

 

Separation costs

 

 

 

 

4,159

 

Transaction and acquisition related costs

 

 

 

 

117

 

Straight line office rent

 

(66

)

 

 

15

 

Unrealized gain on equity method investments accounted for under the fair value option

 

(1,196

)

 

 

(8,122

)

Equity in earnings of investees

 

 

 

 

(424

)

Distributions from equity method investment

 

 

 

 

17

 

Adjusted EBITDA

$

23,295

 

 

$

21,421

 

 

Calculation of Operating Margin:

 

 

 

Total management and advisory services revenues

$

46,015

 

 

$

41,333

 

Operating income

$

20,093

 

 

$

13,732

 

Operating Margin

 

43.7

%

 

 

33.2

%

 

Calculation of Adjusted EBITDA Margin:

 

 

 

Contractual management and advisory fees (excluding incentive business management fees, if any) (3)

$

48,369

 

 

$

43,687

 

Adjusted EBITDA

$

23,295

 

 

$

21,421

 

Adjusted EBITDA Margin

 

48.2

%

 

 

49.0

%

 

Calculation of Adjusted EBITDA less Cash Tax Obligation:

 

 

 

Adjusted EBITDA

$

23,295

 

 

$

21,421

 

Less: Tax distributions to members (4)

 

(4,158

)

 

 

(5,855

)

Adjusted EBITDA less Cash Tax Obligation

$

19,137

 

 

$

15,566

 

Common share distributions

$

10,764

 

 

$

10,730

 

(1)

EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures calculated as presented in the tables above. The RMR Group Inc. considers EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin to be appropriate supplemental measures of its operating performance, along with net income, net income attributable to The RMR Group Inc., operating income and operating margin. The RMR Group Inc. believes that EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to investors because by excluding the effects of certain amounts, such as those outlined in the tables above, EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin may facilitate a comparison of current operating performance with The RMR Group Inc.’s historical operating performance and with the performance of other asset management businesses. In addition, The RMR Group Inc. believes that providing Adjusted EBITDA Margin may help investors assess The RMR Group Inc.’s performance of its business by providing the margin that Adjusted EBITDA represents to its contractual management and advisory fees (excluding incentive business management fees, if any). EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin do not represent cash generated by operating activities in accordance with GAAP and should not be considered as alternatives to net income, net income attributable to The RMR Group Inc., operating income or operating margin as an indicator of The RMR Group Inc.’s financial performance or as a measure of The RMR Group Inc.’s liquidity. Other asset management businesses may calculate EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin differently than The RMR Group Inc. does.

 

(2)

Adjusted EBITDA less Cash Tax Obligation is a non-GAAP financial measure calculated as presented in the table above. The RMR Group Inc. considers Adjusted EBITDA less Cash Tax Obligation to be an appropriate measure of its operating performance, along with net income attributable to The RMR Group Inc. The RMR Group Inc. believes that Adjusted EBITDA less Cash Tax Obligation provides useful information to investors because by excluding amounts payable for tax obligations, it increases comparability between periods and more accurately reflects earnings that may be available for distribution to shareholders. Adjusted EBITDA less Cash Tax Obligation is among the factors The RMR Group Inc.’s Board of Directors considers when determining the amount of dividends to its shareholders. Other asset management businesses may calculate Adjusted EBITDA less Cash Tax Obligation differently than The RMR Group Inc. does.

 

(3)

Contractual management and advisory fees are the base business management fees, property management fees and advisory fees The RMR Group Inc. or its subsidiaries earns pursuant to its management agreements. These amounts are calculated pursuant to the contractual formulas and do not deduct other asset amortization of $2,354 for each of the three months ended December 31, 2021 and 2020, required to be recognized as a reduction to management services revenues in accordance with GAAP.

 

(4)

Under the RMR LLC operating agreement, RMR LLC is required to make quarterly pro rata cash distributions to The RMR Group Inc. and its noncontrolling interest based on each’s estimated tax liabilities and respective ownership percentages. Estimated tax liabilities are determined quarterly on a cumulative basis. As such, there may be fluctuations from quarter to quarter to account for prior periods where pro rata cash distributions were more or less than amounts determined cumulatively through a particular quarter. For the three months ended December 31, 2021 and 2020, RMR LLC made required quarterly tax distributions as follows:

 

 

Three Months Ended December 31,

 

 

2021

 

2020

RMR LLC tax distributions to The RMR Group Inc.

 

$

2,179

 

$

3,035

RMR LLC tax distributions to non-controlling interest

 

 

1,979

 

 

2,820

Total RMR LLC tax distributions to members

 

$

4,158

 

$

5,855

The RMR Group Inc.

Condensed Consolidated Balance Sheets

(dollars in thousands, except per share amounts)

(unaudited)

 

 

 

 

 

 

 

December 31,

 

September 30,

 

 

2021

 

2021

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

181,887

 

 

$

159,835

 

Due from related parties

 

 

83,911

 

 

 

88,661

 

Prepaid and other current assets

 

 

4,932

 

 

 

6,021

 

Total current assets

 

 

270,730

 

 

 

254,517

 

 

 

 

 

 

Property and equipment, net

 

 

2,157

 

 

 

2,218

 

Due from related parties, net of current portion

 

 

25,022

 

 

 

14,331

 

Equity method investments accounted for under the fair value option

 

 

40,672

 

 

 

39,476

 

Goodwill and intangible assets, net of amortization

 

 

2,084

 

 

 

2,094

 

Operating lease right of use assets

 

 

31,607

 

 

 

32,293

 

Deferred tax asset

 

 

18,173

 

 

 

18,671

 

Other assets, net of amortization

 

 

131,957

 

 

 

134,311

 

Total assets

 

$

522,402

 

 

$

497,911

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

Current liabilities:

 

 

 

 

Other reimbursable expenses

 

$

57,238

 

 

$

55,115

 

Accounts payable and accrued expenses

 

 

22,313

 

 

 

15,027

 

Operating lease liabilities

 

 

5,057

 

 

 

4,922

 

Employer compensation liability

 

 

5,057

 

 

 

6,076

 

Total current liabilities

 

 

89,665

 

 

 

81,140

 

 

 

 

 

 

Operating lease liabilities, net of current portion

 

 

28,261

 

 

 

29,148

 

Amounts due pursuant to tax receivable agreement, net of current portion

 

 

25,577

 

 

 

25,577

 

Employer compensation liability, net of current portion

 

 

25,022

 

 

 

14,331

 

Total liabilities

 

 

168,525

 

 

 

150,196

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

Class A common stock, $0.001 par value; 31,600,000 shares authorized; 15,485,011 and 15,485,236 shares issued and outstanding, respectively

 

 

15

 

 

 

15

 

Class B-1 common stock, $0.001 par value; 1,000,000 shares authorized, issued and outstanding

 

 

1

 

 

 

1

 

Class B-2 common stock, $0.001 par value; 15,000,000 shares authorized, issued and outstanding

 

 

15

 

 

 

15

 

Additional paid in capital

 

 

110,523

 

 

 

109,910

 

Retained earnings

 

 

329,987

 

 

 

321,945

 

Cumulative common distributions

 

 

(243,030

)

 

 

(236,766

)

Total shareholders’ equity

 

 

197,511

 

 

 

195,120

 

Noncontrolling interest

 

 

156,366

 

 

 

152,595

 

Total equity

 

 

353,877

 

 

 

347,715

 

Total liabilities and equity

 

$

522,402

 

 

$

497,911

 

WARNING CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Forward-looking statements can be identified by use of words such as “outlook,” “believe,” “expect,” “potential,” “will,” “may,” “estimate,” “anticipate” and derivatives or negatives of such words or similar words. Forward-looking statements in this press release are based upon present beliefs or expectations. However, forward-looking statements and their implications are not guaranteed to occur and may not occur for various reasons, including some reasons beyond The RMR Group Inc.’s control. For example:

  • Mr. Portnoy states that during the first fiscal quarter, management and advisory services revenues of $46.0 million increased 11% from last year, despite the continued impact of COVID-19 variants across many aspects of The RMR Group Inc.’s clients’ businesses. Mr. Portnoy also states that similarly, adjusted earnings per share and Adjusted EBITDA increased 12% and 9%, respectively, over the prior year, and that this growth was driven primarily by increases in the enterprise values of its Managed Equity REITs, the expanded scale of Sonesta leading to greater business management fees and increased client redevelopment activities leading to higher construction management fees. These statements may imply that The RMR Group Inc. will continue to earn increased management and advisory services revenues, adjusted earnings per share and Adjusted EBITDA in the future. However, The RMR Group Inc.’s and its clients’ businesses are subject to various risks, including risks outside its and their control. Further, the impact and duration of the COVID-19 pandemic is not known and economic conditions could deteriorate for a prolonged period and negatively impact The RMR Group Inc.’s and its clients’ businesses operating and financial results;
  • Mr. Portnoy states that this quarter, The RMR Group Inc. has made significant progress in growing its private capital assets under management, announcing approximately $1.9 billion of private capital transactions. In addition, Mr. Portnoy states that the pending Monmouth industrial real estate transaction valued at approximately $4.0 billion is expected to be partly funded with private capital raised from large institutional joint venture partners. Mr. Portnoy also states that not only do these transactions grow The RMR Group Inc.’s assets under management, but they also highlight its alignment with its clients’ shareholders by expanding their access to capital and growth opportunities with high quality assets. These statements may imply that the $1.9 billion of private capital transactions will be successful and that they will benefit those companies and The RMR Group Inc. as a result. However, these transactions may not be successful and the fees earned from clients may decline or not meet expectations as a result. In addition, the pending Monmouth transaction is subject to customary closing conditions, including shareholder approval. There can be no assurance that the acquisition will close on the current terms, anticipated timing or at all, or that the transaction will be partly funded with private capital raised from large institutional joint venture partners as expected. Further, there can be no assurance that these transactions will grow The RMR Group Inc.’s assets under management or highlight The RMR Group Inc.’s alignment with its clients’ shareholders by expanding their access to capital and growth opportunities with high quality assets; and
  • Mr. Portnoy states that The RMR Group Inc. has over $181 million of cash and no debt, and that it remains well positioned to pursue a range of capital allocation strategies, with a primary focus on driving private capital growth across the platform. This statement may imply that The RMR Group Inc. will successfully identify and execute one or more capital allocation strategies, including continued growth of its private capital business, and that any capital allocation strategy it may pursue will be successful and benefit it and its shareholders. However, identifying and executing on capital allocation strategies are subject to various uncertainties and risks and any benefits that may be realized may take an extended period to be realized. In addition, The RMR Group Inc. may elect to not continue pursuing a capital allocation strategy or abandon any such strategy it may pursue.

The information contained in The RMR Group Inc.’s filings with the SEC, including under the caption “Risk Factors” in The RMR Group Inc.’s periodic reports, or incorporated therein, identifies important factors that could cause differences from the forward-looking statements in this press release. The RMR Group Inc.’s filings with the SEC are available on its website and at www.sec.gov.

You should not place undue reliance on forward-looking statements.

Except as required by law, The RMR Group Inc. undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Michael Kodesch, Director, Investor Relations

(617) 796-8230

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS: Other Construction & Property Commercial Building & Real Estate Construction & Property REIT

MEDIA:

Logo
Logo

PerkinElmer Board Declares Quarterly Dividend

PerkinElmer Board Declares Quarterly Dividend

WALTHAM, Mass.–(BUSINESS WIRE)–
The Board of Directors of PerkinElmer, Inc. (NYSE: PKI), declared a regular quarterly dividend of $0.07 per share of common stock January 27, 2022. This dividend is payable on May 13, 2022 to all shareholders of record at the close of business on April 22, 2022.

About PerkinElmer

PerkinElmer, Inc. is a global leader focused on innovating for a healthier world. The Company reported revenue of approximately $3.8 billion in 2020, has more than 16,000 employees serving customers in 190 countries, and is a component of the S&P 500 Index. Additional information is available at www.perkinelmer.com.

Investor Relations:

Steve Willoughby

(781) 663-5677

[email protected]

Media Relations:

Chet Murray

(781) 663-5719

[email protected]

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS: Technology Pharmaceutical Other Energy Environment Medical Devices Oil/Gas Coal Children Baby/Maternity Energy Biotechnology Health Satellite General Health Agriculture Natural Resources Consumer Engineering Chemicals/Plastics Hardware Manufacturing Consumer Electronics Other Health

MEDIA:

Logo
Logo

UMH PROPERTIES, INC. ANNOUNCES TAX TREATMENT FOR 2021 DISTRIBUTIONS

FREEHOLD, NJ, Jan. 27, 2022 (GLOBE NEWSWIRE) — UMH Properties, Inc. (NYSE:UMH) today announced the tax treatment of its 2021 distributions. The following tables summarize, for income tax purposes, the nature of cash distributions paid to stockholders of UMH’s common and preferred shares during the calendar year ended December 31, 2021. 

Common – CUSIP 903002103 

Shown as Dollars ($)
Payment Date Distributions Per Share Non-Qualifying Ord. Income (1a) Total Long-Term Capital Gain (2a) Unrecaptured Sec. 1250 Gain

(2b)
Return of Capital (3) Section 199A Dividends (5)
3/15/21 $ 0.19 $ 0.006159 $ 0.000502 $ 0.00 $ 0.183339 $ 0.006159
6/15/21 $ 0.19 $ 0.006159 $ 0.000502 $ 0.00 $ 0.183339 $ 0.006159
9/15/21 $ 0.19 $ 0.006159 $ 0.000502 $ 0.00 $ 0.183339 $ 0.006159
12/15/21 $ 0.19 $ 0.006159 $ 0.000502 $ 0.00 $ 0.183339 $ 0.006159
TOTAL $ 0.76 $ 0.024636 $ 0.002008 $ 0.00 $ 0.733356 $ 0.024636

 

Shown as a Percentage (%)
Payment Date Distributions Per Share Non-Qualifying Ord. Income (1a) Total Long-Term Capital Gain (2a) Unrecaptured Sec. 1250 Gain

(2b)
Return of Capital (3) Section 199A Dividends (5)
3/15/21 $ 0.19 3.241683 % 0.264344 % 0 % 96.493973 % 3.241683 %
6/15/21 $ 0.19 3.241683 % 0.264344 % 0 % 96.493973 % 3.241683 %
9/15/21 $ 0.19 3.241683 % 0.264344 % 0 % 96.493973 % 3.241683 %
12/15/21 $ 0.19 3.241683 % 0.264344 % 0 % 96.493973 % 3.241683 %
TOTAL $ 0.76 3.241683 % 0.264344 % 0 % 96.493973 % 3.241683 %

 6.75% Series C Cumulative Redeemable Preferred – CUSIP 903002400 

Shown as Dollars ($)
Payment Date Distributions Per Share Non-Qualifying Ord. Income (1a) Total Long-Term Capital Gain (2a) Unrecaptured Sec. 1250 Gain

(2b)
Return of Capital (3) Section 199A Dividends (5)
3/15/21 $ 0.421875 $ 0.390067 $ 0.031808 $ 0.00 $ 0.00 $ 0.390067
6/15/21 $ 0.421875 $ 0.390067 $ 0.031808 $ 0.00 $ 0.00 $ 0.390067
9/15/21 $ 0.421875 $ 0.390067 $ 0.031808 $ 0.00 $ 0.00 $ 0.390067
12/15/21 $ 0.421875 $ 0.390067 $ 0.031808 $ 0.00 $ 0.00 $ 0.390067
TOTAL $ 1.687500 $ 1.560268 $ 0.127232 $ 0.00 $ 0.00 $ 1.560268

  

Shown as a Percentage (%)
Payment Date Distributions Per Share Non-Qualifying Ord. Income (1a) Total Long-Term Capital Gain (2a) Unrecaptured Sec. 1250 Gain

(2b)
Return of Capital (3) Section 199A Dividends (5)
3/15/21 $ 0.421875 92.460304 % 7.539696 % 0 % 0 % 92.460304 %
6/15/21 $ 0.421875 92.460304 % 7.539696 % 0 % 0 % 92.460304 %
9/15/21 $ 0.421875 92.460304 % 7.539696 % 0 % 0 % 92.460304 %
12/15/21 $ 0.421875 92.460304 % 7.539696 % 0 % 0 % 92.460304 %
TOTAL $ 1.687500 92.460304 % 7.539696 % 0 % 0 % 92.460304 %

 6.375% Series D Cumulative Redeemable Preferred – CUSIP 903002509 

Shown as Dollars ($)
Payment Date Distributions Per Share Non-Qualifying Ord. Income (1a) Total Long-Term Capital Gain (2a) Unrecaptured Sec. 1250 Gain

(2b)
Return of Capital (3) Section 199A Dividends (5)
3/15/21 $ 0.398438 $ 0.3683965 $ 0.030041 $ 0.00 $ 0.00 $ 0.3683965
6/15/21 $ 0.398438 $ 0.3683965 $ 0.030041 $ 0.00 $ 0.00 $ 0.3683965
9/15/21 $ 0.398438 $ 0.3683965 $ 0.030041 $ 0.00 $ 0.00 $ 0.3683965
12/15/21 $ 0.398438 $ 0.3683965 $ 0.030041 $ 0.00 $ 0.00 $ 0.3683965
TOTAL $ 1.593750 $ 1.473586 $ 0.120164 $ 0.00 $ 0.00 $ 1.473586

 

Shown as a Percentage (%)
Payment Date Distributions Per Share Non-Qualifying Ord. Income (1a) Total Long-Term Capital Gain (2a) Unrecaptured Sec. 1250 Gain

(2b)
Return of Capital (3) Section 199A Dividends (5)
3/15/21 $ 0.398438 92.460304 % 7.539696 % 0 % 0 % 92.460304 %
6/15/21 $ 0.398438 92.460304 % 7.539696 % 0 % 0 % 92.460304 %
9/15/21 $ 0.398438 92.460304 % 7.539696 % 0 % 0 % 92.460304 %
12/15/21 $ 0.398438 92.460304 % 7.539696 % 0 % 0 % 92.460304 %
TOTAL $ 1.593750 92.460304 % 7.539696 % 0 % 0 % 92.460304 %

NOTE: Section 199A Dividends (Box 5) is a subset of, and is included in, the Total Non-Qualifying Ordinary Income reported in Box 1a. 

DIVIDEND REINVESTMENT PLAN DISCOUNTS

Common – CUSIP 903002103 

DISCOUNT DATE FAIR MARKET VALUE ($)   DISCOUNT PRICE ($)   DISCOUNT ON D/R ($)
1/15/2021 15.165   14.500   0.665
2/16/2021 16.365   15.875   0.490
3/15/2021 19.370   18.500   0.870
4/15/2021 19.405   18.500   0.905
5/17/2021 21.130   20.125   1.005
6/15/2021 22.480   21.500   0.980
7/15/2021 22.715   21.625   1.090
8/16/2021 23.240   22.250   0.990
9/15/2021 24.145   23.125   1.020
10/15/2021 23.755   22.625   1.130
11/15/2021 23.090   22.375   0.715
12/15/2021 25.220   24.000   1.220

Shareholders are encouraged to consult with their tax advisors as to the specific tax treatment of the distributions they received from the Company.

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 127 manufactured home communities with approximately 24,000 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland, Michigan, Alabama and South Carolina. UMH also owns and operates one community in Florida, containing 219 sites, through its joint venture with Nuveen Real Estate.

Contact: Nelli Madden

732-577-9997 

#####

 

 



CooperCompanies Announces Release Date for First Quarter 2022

SAN RAMON, Calif., Jan. 27, 2022 (GLOBE NEWSWIRE) — CooperCompanies (NYSE: COO) today announced it will release first quarter 2022 financial results on Thursday, March 3, 2022, at 4:15 PM ET. Following the release, the Company will host a conference call at 5:00 PM ET to discuss the results and current corporate developments.

The live dial-in number for the call is 855-643-4430 (U.S.) / 707-294-1332 (International). The participant passcode for the call is “Cooper”. A simultaneous webcast of the call will be available through the “Investor Relations” section of the CooperCompanies website at http://investor.coopercos.com and a transcript of the call will be archived on this site for a minimum of 12 months.  

A recording of the call will be available beginning at 8:00 PM ET on March 3, 2022 through March 10, 2022. To hear this recording, dial 855-859-2056 (U.S.) / 404-537-3406 (International) and enter code 266737.

About CooperCompanies

CooperCompanies (“Cooper”) is a global medical device company publicly traded on the NYSE (NYSE: COO). Cooper operates through two business units, CooperVision and CooperSurgical. CooperVision brings a refreshing perspective on vision care with a commitment to developing a wide range of high-quality products for contact lens wearers and providing focused practitioner support. CooperSurgical is committed to advancing the health of women, babies and families with its diversified portfolio of products and services focusing on medical devices and fertility & genomics. Headquartered in San Ramon, CA, Cooper has a workforce of more than 12,000 with products sold in over 100 countries. For more information, please visit www.coopercos.com.

Contact:
Kim Duncan
Vice President, Investor Relations and Risk Management
925-460-3663
[email protected] 



Beazer Homes Reports Strong First Quarter Fiscal 2022 Results

Beazer Homes Reports Strong First Quarter Fiscal 2022 Results

ATLANTA–(BUSINESS WIRE)–
Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its financial results for the three months ended December 31, 2021.

“Strong first quarter results and continuing strength in the housing market have positioned us well for our fiscal year,” said Allan P. Merrill, the company’s Chairman and Chief Executive Officer. “We generated significant gains in operating margin and adjusted EBITDA, leading to first quarter net income that was more than double the prior year. We also published our first ESG Summary, outlining both recent achievements and current initiatives.”

Commenting on market conditions and updated fiscal 2022 full-year expectations, Mr. Merrill said, “The new home market continues to be characterized by strong demand and limited supply, supported by growth in both employment and wages. Given this backdrop, the strength in our first quarter results and the visibility we have into our backlog, we are confident our full-year results will exceed our previously communicated target of $5.00 despite continuing industry-wide challenges in labor and material availability. Incrementally, we plan to realize full-year energy efficiency tax credits which should add about $0.40 to earnings. We also expect further growth in our active lot position as we achieve our multi-year goal of reducing total debt below $1 billion during the fiscal year.”

Looking further out, Mr. Merrill concluded, “We are positioned to continue growing profitability and returns, from a less leveraged and more efficient balance sheet, while expanding our ESG activities to create durable value for our stakeholders.”

Beazer Homes Fiscal First Quarter 2022 Highlights and Comparison to Fiscal First Quarter 2021

  • Net income from continuing operations of $34.9 million, or $1.14 per diluted share, compared to net income from continuing operations of $12.0 million, or $0.40 per diluted share, in fiscal first quarter 2021
  • Adjusted EBITDA of $61.1 million, up 40.1%
  • Homebuilding revenue of $446.7 million, up 5.3% on a 15.1% increase in average selling price to $438.4 thousand, partially offset by a 8.5% decrease in home closings to 1,019
  • Homebuilding gross margin was 20.9%, up 330 basis points. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 24.2%, up 210 basis points
  • SG&A as a percentage of total revenue was 11.8%, down 90 basis points year-over-year
  • Net new orders of 1,141, down 20.9% on a 16.2% decrease in average community count to 114 and a 5.6% decrease in orders/community/month to 3.3
  • Dollar value of backlog of $1,405.2 million, up 20.9%. The average selling price of homes in backlog was $483.2 thousand, up 17.9% from $409.7 thousand
  • Unrestricted cash at quarter end was $157.7 million; total liquidity was $407.7 million

The following provides additional details on the Company’s performance during the fiscal first quarter 2022:

Profitability. Net income from continuing operations was $34.9 million, generating diluted earnings per share of $1.14. This included the impact of energy efficiency tax credits of $3.2 million. Income from continuing operations before income taxes of $41.4 million increased by $25.2 million, or 155.9%, compared to $16.2 million in the prior year period. First quarter adjusted EBITDA of $61.1 million was up $17.5 million, or 40.1%, year-over-year. The increase in profitability was primarily driven by higher revenue, homebuilding gross margin and improved SG&A leverage.

Orders. Net new orders for the first quarter decreased to 1,141, down 20.9% from 1,442 in the prior year period. The decrease in net new orders was driven by a 16.2% decrease in average community count to 114 and a 5.6% decrease in sales pace to 3.3 orders per community per month, down from 3.5 in the prior year period. Sale pace, although down year-over-year, remained strong by historical standards. The cancellation rate for the quarter was 11.8%, an improvement of 50 basis points year-over-year.

Backlog. The dollar value of homes in backlog as of December 31, 2021 increased 20.9% to $1,405.2 million, representing 2,908 homes, compared to $1,162.4 million, representing 2,837 homes, at the same time last year. The average selling price of homes in backlog was $483.2 thousand, up 17.9% from $409.7 thousand in the previous year.

Homebuilding Revenue. First quarter homebuilding revenue was $446.7 million, up 5.3% year-over-year. The increase in homebuilding revenue was driven by a 15.1% increase in the average selling price to $438.4 thousand, partially offset by a 8.5% decrease in home closings to 1,019 homes.

Homebuilding Gross Margin. Homebuilding gross margin (excluding impairments, abandonments and amortized interest) was 24.2% for the first quarter, up 210 basis points year-over-year, driven primarily by pricing increases and lower sales incentives.

SG&A Expenses. Selling, general and administrative expenses as a percentage of total revenue was 11.8% for the quarter, down 90 basis points year-over-year as a result of the Company’s continued focus on overhead cost management while benefiting from higher revenue driven by growth in average selling price.

Land Position. Controlled lots increased 22.6% to 23,049, compared to 18,801 from the prior year. Excluding land held for future development and land held for sale lots, active controlled lots were 22,426, up 23.6% year-over-year. The Company had 11,027 lots, or 49.2% of its total active lots, under option contracts as compared to 7,536 lots, or 41.5% of its total active lots, under option contracts as of December 31, 2020.

Liquidity. At the close of the first quarter, the Company had approximately $407.7 million of available liquidity, including $157.7 million of unrestricted cash and a fully undrawn revolving credit facility capacity of $250.0 million.

Commitment to ESG

The Company recently published its inaugural ESG Summary, which contains detailed disclosures of environmental, social and governance (ESG) initiatives, as well as metrics that are responsive to sustainability accounting standards promulgated by the Sustainability Accounting Standards Board (SASB) for companies within the homebuilding industry. The ESG Summary represents another step forward in the Company’s commitment to increased ESG accountability and provides a foundation to build increased transparency by directly reporting on relevant sustainability issues, risks and opportunities that impact the business.

As part of the Company’s ESG initiatives, in December 2020, Beazer became the first national builder to publicly commit to ensuring that by the end of 2025 every home the Company builds will be Net Zero Energy Ready. Net Zero Energy Ready means that each home will have a gross HERS® index score (before any benefit of renewable energy production) of 45 or less, and homeowners will be able to achieve net zero energy consumption by attaching a properly sized renewable energy system.

Summary results for the three months ended December 31, 2021 are as follows:

 

Three Months Ended December 31,

 

2021

 

2020

 

Change*

New home orders, net of cancellations

 

1,141

 

 

 

1,442

 

 

 

(20.9

) %

Orders per community per month

 

3.3

 

 

 

3.5

 

 

 

(5.6

) %

Average active community count

 

114

 

 

 

136

 

 

 

(16.2

) %

Actual community count at quarter-end

 

116

 

 

 

134

 

 

 

(13.4

) %

Cancellation rates

 

11.8

%

 

 

12.3

%

 

(50) bps

 

 

 

 

 

 

Total home closings

 

1,019

 

 

 

1,114

 

 

 

(8.5

) %

Average selling price (ASP) from closings (in thousands)

$

438.4

 

 

$

380.8

 

 

 

15.1

%

Homebuilding revenue (in millions)

$

446.7

 

 

$

424.2

 

 

 

5.3

%

Homebuilding gross margin

 

20.9

%

 

 

17.6

%

 

330 bps

Homebuilding gross margin, excluding impairments and abandonments (I&A)

 

20.9

%

 

 

17.8

%

 

310 bps

Homebuilding gross margin, excluding I&A and interest amortized to cost of sales

 

24.2

%

 

 

22.1

%

 

210 bps

 

 

 

 

 

 

Income from continuing operations before income taxes (in millions)

$

41.4

 

 

$

16.2

 

 

$

25.2

 

Expense from income taxes (in millions)

$

6.5

 

 

$

4.1

 

 

$

2.3

 

Income from continuing operations, net of tax (in millions)

$

34.9

 

 

$

12.0

 

 

$

22.9

 

Basic income per share from continuing operations

$

1.15

 

 

$

0.40

 

 

$

0.75

 

Diluted income per share from continuing operations

$

1.14

 

 

$

0.40

 

 

$

0.74

 

 

 

 

 

 

 

Net income

$

34.9

 

 

$

12.0

 

 

$

22.9

 

 

 

 

 

 

 

Land and land development spending (in millions)

$

130.7

 

 

$

109.6

 

 

$

21.1

 

 

 

 

 

 

 

Adjusted EBITDA (in millions)

$

61.1

 

 

$

43.6

 

 

$

17.5

 

LTM Adjusted EBITDA (in millions)

$

280.2

 

 

$

218.6

 

 

$

61.6

 

* Change and totals are calculated using unrounded numbers.

“LTM” indicates amounts for the trailing 12 months.

As of December 31,

 

2021

 

2020

 

Change

Backlog units

 

2,908

 

 

2,837

 

2.5

%

Dollar value of backlog (in millions)

$

1,405.2

 

$

1,162.4

 

20.9

%

ASP in backlog (in thousands)

$

483.2

 

$

409.7

 

17.9

%

Land and lots controlled

 

23,049

 

 

18,801

 

22.6

%

Conference Call

The Company will hold a conference call on January 27, 2022 at 5:00 p.m. ET to discuss these results. Interested parties may listen to the conference call and view the Company’s slide presentation on the “Investor Relations” page of the Company’s website, www.beazer.com. In addition, the conference call will be available by telephone at 800-475-0542 (for international callers, dial 517-308-9429). To be admitted to the call, enter the pass code “8571348″. A replay of the conference call will be available, until 10:00 PM ET on February 3, 2022 at 866-373-1992 (for international callers, dial 203-369-0266) with pass code “3740.”

About Beazer Homes

Headquartered in Atlanta, Beazer Homes (NYSE: BZH) is one of the country’s largest homebuilders. Every Beazer home is designed and built to provide Surprising Performance, giving you more quality and more comfort from the moment you move in – saving you money every month. With Beazer’s Choice Plans™, you can personalize your primary living areas – giving you a choice of how you want to live in the home, at no additional cost. And unlike most national homebuilders, we empower our customers to shop and compare loan options. Our Mortgage Choice program gives you the resources to easily compare multiple loan offers and choose the best lender and loan offer for you, saving you thousands over the life of your loan.

We build our homes in Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, North Carolina, South Carolina, Tennessee, Texas, and Virginia. For more information, visit beazer.com, or check out Beazer on Facebook, Instagram and Twitter.

This press release contains forward-looking statements. These forward-looking statements represent our expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including, among other things: (i) the cyclical nature of the homebuilding industry and a potential deterioration in homebuilding industry conditions; (ii) economic changes nationally or in local markets, changes in consumer confidence, wage levels, declines in employment levels, inflation and governmental actions, each of which is outside our control and affects the affordability of, and demand for, the homes we sell; (iii) potential negative impacts of the COVID-19 pandemic, which, in addition to exacerbating each of the risks listed above and below, may include a significant decrease in demand for our homes or consumer confidence generally with respect to purchasing a home, an inability to sell and build homes in a typical manner or at all, increased costs or decreased supply of building materials, including lumber, or the availability of subcontractors, housing inspectors, and other third-parties we rely on to support our operations, and recognizing charges in future periods, which may be material, for goodwill impairments, inventory impairments and/or land option contract abandonments; (iv) supply chain challenges negatively impacting our homebuilding production, including shortages of raw materials and other critical components such as windows, doors, and appliances; (v) shortages of or increased costs for labor used in housing production, and the level of quality and craftsmanship provided by such labor; (vi) the availability and cost of land and the risks associated with the future value of our inventory, such as asset impairment charges we took on select California assets during the second quarter of fiscal 2019; (vii) factors affecting margins, such as decreased land values underlying land option agreements, increased land development costs in communities under development or delays or difficulties in implementing initiatives to reduce our production and overhead cost structure; (viii) our ability to raise debt and/or equity capital, due to factors such as limitations in the capital markets (including market volatility) or adverse credit market conditions, and our ability to otherwise meet our ongoing liquidity needs (which could cause us to fail to meet the terms of our covenants and other requirements under our various debt instruments and therefore trigger an acceleration of a significant portion or all of our outstanding debt obligations), including the impact of any downgrades of our credit ratings or reduction in our liquidity levels; (ix) market perceptions regarding any capital raising initiatives we may undertake (including future issuances of equity or debt capital); (x) terrorist acts, protests and civil unrest, political uncertainty, natural disasters, acts of war or other factors over which the Company has no control; (xi) inaccurate estimates related to homes to be delivered in the future (backlog), as they are subject to various cancellation risks that cannot be fully controlled; (xii) increases in mortgage interest rates, increased disruption in the availability of mortgage financing, changes in tax laws or otherwise regarding the deductibility of mortgage interest expenses and real estate taxes or an increased number of foreclosures; (xiii) increased competition or delays in reacting to changing consumer preferences in home design; (xiv) natural disasters or other related events that could result in delays in land development or home construction, increase our costs or decrease demand in the impacted areas; (xv) the potential recoverability of our deferred tax assets; (xvi) increases in corporate tax rates; (xvii) potential delays or increased costs in obtaining necessary permits as a result of changes to, or complying with, laws, regulations or governmental policies, and possible penalties for failure to comply with such laws, regulations or governmental policies, including those related to the environment; (xviii) the results of litigation or government proceedings and fulfillment of any related obligations; (xix) the impact of construction defect and home warranty claims; (xx) the cost and availability of insurance and surety bonds, as well as the sufficiency of these instruments to cover potential losses incurred; (xxi) the impact of information technology failures, cybersecurity issues or data security breaches; (xxii) the impact of governmental regulations on homebuilding in key markets, such as regulations limiting the availability of water; and (xxiii) the success of our ESG initiatives, including our ability to meet our goal that every home we build will be Net Zero Energy Ready by 2025 as well as the success of any other related partnerships or pilot programs we may enter into in order to increase the energy efficiency of our homes and prepare for a Net Zero future.

Any forward-looking statement, including any statement expressing confidence regarding future outcomes, speaks only as of the date on which such statement is made and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible to predict all such factors.

-Tables Follow-

BEAZER HOMES USA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

Three Months Ended

December 31,

in thousands (except per share data)

2021

 

2020

Total revenue

$

454,149

 

 

$

428,539

 

Home construction and land sales expenses

 

356,749

 

 

 

352,781

 

Inventory impairments and abandonments

 

 

 

 

465

 

Gross profit

 

97,400

 

 

 

75,293

 

Commissions

 

15,813

 

 

 

16,507

 

General and administrative expenses

 

37,767

 

 

 

37,976

 

Depreciation and amortization

 

2,881

 

 

 

3,122

 

Operating income

 

40,939

 

 

 

17,688

 

Equity in income (loss) of unconsolidated entities

 

288

 

 

 

(75

)

Other income (expense), net

 

131

 

 

 

(1,452

)

Income from continuing operations before income taxes

 

41,358

 

 

 

16,161

 

Expense from income taxes

 

6,463

 

 

 

4,125

 

Income from continuing operations

 

34,895

 

 

 

12,036

 

Loss from discontinued operations, net of tax

 

(10

)

 

 

(39

)

Net income

$

34,885

 

 

$

11,997

 

Weighted-average number of shares:

 

 

 

Basic

 

30,336

 

 

 

29,771

 

Diluted

 

30,724

 

 

 

30,086

 

 

 

 

 

Basic income per share:

 

 

 

Continuing operations

$

1.15

 

 

$

0.40

 

Discontinued operations

 

 

 

 

 

Total

$

1.15

 

 

$

0.40

 

Diluted income per share:

 

 

 

Continuing operations

$

1.14

 

 

$

0.40

 

Discontinued operations

 

 

 

 

 

Total

$

1.14

 

 

$

0.40

 

 

 

Three Months Ended

 

December 31,

Capitalized Interest in Inventory

2021

 

2020

Capitalized interest in inventory, beginning of period

$

106,985

 

 

$

119,659

 

Interest incurred

 

18,311

 

 

 

19,902

 

Interest expense not qualified for capitalization and included as other expense

 

 

 

 

(1,600

)

Capitalized interest amortized to home construction and land sales expenses

 

(14,780

)

 

 

(18,813

)

Capitalized interest in inventory, end of period

$

110,516

 

 

$

119,148

 

BEAZER HOMES USA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

in thousands (except share and per share data)

December 31, 2021

 

September 30, 2021

ASSETS

 

 

 

Cash and cash equivalents

$

157,701

 

 

$

246,715

 

Restricted cash

 

29,196

 

 

 

27,428

 

Accounts receivable (net of allowance of $290 and $290, respectively)

 

20,802

 

 

 

25,685

 

Income tax receivable

 

9,604

 

 

 

9,929

 

Owned inventory

 

1,581,801

 

 

 

1,501,602

 

Investments in unconsolidated entities

 

4,590

 

 

 

4,464

 

Deferred tax assets, net

 

198,946

 

 

 

204,766

 

Property and equipment, net

 

22,898

 

 

 

22,885

 

Operating lease right-of-use assets

 

12,129

 

 

 

12,344

 

Goodwill

 

11,376

 

 

 

11,376

 

Other assets

 

11,148

 

 

 

11,616

 

Total assets

$

2,060,191

 

 

$

2,078,810

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Trade accounts payable

$

114,701

 

 

$

133,391

 

Operating lease liabilities

 

13,852

 

 

 

14,154

 

Other liabilities

 

121,441

 

 

 

152,351

 

Total debt (net of debt issuance costs of $8,592 and $8,983, respectively)

 

1,054,938

 

 

 

1,054,030

 

Total liabilities

 

1,304,932

 

 

 

1,353,926

 

Stockholders’ equity:

 

 

 

Preferred stock (par value $0.01 per share, 5,000,000 shares authorized, no shares issued)

 

 

 

 

 

Common stock (par value $0.001 per share, 63,000,000 shares authorized, 31,459,708 issued and outstanding and 31,294,198 issued and outstanding, respectively)

 

31

 

 

 

31

 

Paid-in capital

 

861,648

 

 

 

866,158

 

Accumulated deficit

 

(106,420

)

 

 

(141,305

)

Total stockholders’ equity

 

755,259

 

 

 

724,884

 

Total liabilities and stockholders’ equity

$

2,060,191

 

 

$

2,078,810

 

 

 

 

 

Inventory Breakdown

 

 

 

Homes under construction

$

726,379

 

 

$

648,283

 

Land under development

 

646,161

 

 

 

648,404

 

Land held for future development

 

19,879

 

 

 

19,879

 

Land held for sale

 

10,822

 

 

 

9,179

 

Capitalized interest

 

110,516

 

 

 

106,985

 

Model homes

 

68,044

 

 

 

68,872

 

Total owned inventory

$

1,581,801

 

 

$

1,501,602

 

BEAZER HOMES USA, INC.

CONSOLIDATED OPERATING AND FINANCIAL DATA – CONTINUING OPERATIONS

 

 

Three Months Ended December 31,

SELECTED OPERATING DATA

2021

 

 

 

2020

Closings:

 

 

 

 

 

West region

 

603

 

 

 

 

642

East region

 

245

 

 

 

 

223

Southeast region

 

171

 

 

 

 

249

Total closings

 

1,019

 

 

 

 

1,114

 

 

 

 

 

 

New orders, net of cancellations:

 

 

 

 

 

West region

 

655

 

 

 

 

782

East region

 

236

 

 

 

 

320

Southeast region

 

250

 

 

 

 

340

Total new orders, net

 

1,141

 

 

 

 

1,442

 

 

 

As of December 31,

Backlog units:

 

2021

 

 

 

2020

West region

 

 

1,705

 

 

 

 

1,505

East region

 

 

602

 

 

 

 

721

Southeast region

 

 

601

 

 

 

 

611

Total backlog units

 

 

2,908

 

 

 

 

2,837

Aggregate dollar value of homes in backlog (in millions)

 

$

1,405.2

 

 

 

$

1,162.4

ASP in backlog (in thousands)

 

$

483.2

 

 

 

$

409.7

 

in thousands

Three Months Ended December 31,

SUPPLEMENTAL FINANCIAL DATA

2021

 

 

 

2020

Homebuilding revenue:

 

 

 

 

 

West region

$

256,492

 

 

 

$

232,940

East region

 

114,287

 

 

 

 

97,964

Southeast region

 

75,950

 

 

 

 

93,325

Total homebuilding revenue

$

446,729

 

 

 

$

424,229

 

 

 

 

 

 

Revenue:

 

 

 

 

 

Homebuilding

$

446,729

 

 

 

$

424,229

Land sales and other

 

7,420

 

 

 

 

4,310

Total revenue

$

454,149

 

 

 

$

428,539

 

 

 

 

 

 

Gross profit:

 

 

 

 

 

Homebuilding

$

93,304

 

 

 

$

74,837

Land sales and other

 

4,096

 

 

 

 

456

Total gross profit

$

97,400

 

 

 

$

75,293

Reconciliation of homebuilding gross profit and the related gross margin excluding impairments and abandonments and interest amortized to cost of sales to homebuilding gross profit and gross margin, the most directly comparable GAAP measure, is provided for each period discussed below. Management believes that this information assists investors in comparing the operating characteristics of homebuilding activities by eliminating many of the differences in companies’ respective level of impairments and level of debt. These measures should not be considered alternative to homebuilding gross profit and gross margin determined in accordance with GAAP as an indicator of operating performance.

 

Three Months Ended December 31,

in thousands

2021

 

2020

Homebuilding gross profit/margin

$

93,304

20.9

%

 

$

74,837

17.6

%

Inventory impairments and abandonments (I&A)

 

 

 

 

465

 

Homebuilding gross profit/margin excluding I&A

 

93,304

20.9

%

 

 

75,302

17.8

%

Interest amortized to cost of sales

 

14,780

 

 

 

18,560

 

Homebuilding gross profit/margin excluding I&A and interest amortized to cost of sales

$

108,084

24.2

%

 

$

93,862

22.1

%

Reconciliation of Adjusted EBITDA to total company net income, the most directly comparable GAAP measure, is provided for each period discussed below. Management believes that Adjusted EBITDA assists investors in understanding and comparing the operating characteristics of homebuilding activities by eliminating many of the differences in companies’ respective capitalization, tax position, and level of impairments. These EBITDA measures should not be considered alternatives to net income determined in accordance with GAAP as an indicator of operating performance.

 

Three Months Ended December 31,

 

LTM Ended (a)

in thousands

2021

 

2020

 

2021

 

2020

Net income

$

34,885

 

$

11,997

 

 

$

144,909

 

$

61,477

Expense from income taxes

 

6,460

 

 

4,114

 

 

 

23,847

 

 

22,006

Interest amortized to home construction and land sales expenses and capitalized interest impaired

 

14,780

 

 

18,813

 

 

 

83,257

 

 

94,806

Interest expense not qualified for capitalization

 

 

 

1,600

 

 

 

1,181

 

 

8,626

EBIT

 

56,125

 

 

36,524

 

 

 

253,194

 

 

186,915

Depreciation and amortization

 

2,881

 

 

3,122

 

 

 

13,735

 

 

15,335

EBITDA

 

59,006

 

 

39,646

 

 

 

266,929

 

 

202,250

Stock-based compensation expense

 

2,108

 

 

3,511

 

 

 

10,764

 

 

11,236

Loss on extinguishment of debt

 

 

 

 

 

 

2,025

 

 

Inventory impairments and abandonments (b)

 

 

 

465

 

 

 

388

 

 

2,576

Restructuring and severance expenses

 

 

 

(10

)

 

 

 

 

1,307

Litigation settlement in discontinued operations

 

 

 

 

 

 

120

 

 

1,260

Adjusted EBITDA

$

61,114

 

$

43,612

 

 

$

280,226

 

$

218,629

(a)

“LTM” indicates amounts for the trailing 12 months.

(b)

In periods during which we impaired certain of our inventory assets, capitalized interest that is impaired is included in the line above titled “Interest amortized to home construction and land sales expenses and capitalized interest impaired.”

 

Beazer Homes USA, Inc.

David I. Goldberg

Sr. Vice President & Chief Financial Officer

770-829-3700

[email protected]

KEYWORDS: United States North America Georgia

INDUSTRY KEYWORDS: Construction & Property Residential Building & Real Estate

MEDIA:

Logo
Logo

Essex Included in 2022 Bloomberg Gender-Equality Index

Essex Included in 2022 Bloomberg Gender-Equality Index

SAN MATEO, Calif–(BUSINESS WIRE)–
Essex Property Trust, Inc. (NYSE:ESS) announced today that it is one of 418 companies across 45 countries and regions to join the 2022 Bloomberg Gender-Equality Index (GEI), a modified market capitalization-weighted index that aims to track the performance of public companies committed to transparency in gender-data reporting. This reference index measures gender equality across five pillars: female leadership & talent pipeline, equal pay & gender pay parity, inclusive culture, anti-sexual harassment policies, and pro-women brand.

“We are pleased that our practice in gender equality and diversity is being recognized with the inclusion in the Bloomberg Gender-Equality Index,” commented Michael J. Schall, President and CEO of the Company.

“We are proud to recognize Essex Property Trust, Inc. and the other 417 companies included in the 2022 GEI for their commitment to transparency and setting a new standard in gender-related data reporting,” said Peter T. Grauer, Chairman of Bloomberg and Founding Chairman of the U.S. 30% Club. “Even though the threshold for inclusion in the GEI has risen, the member list continues to grow. This is a testament that more companies are working to improve upon their gender-related metrics, fostering more opportunity for diverse talent to succeed in their organizations.”

Essex Property Trust, Inc. submitted a social survey created by Bloomberg, in collaboration with subject matter experts globally. Those included on this year’s index scored at or above a global threshold established by Bloomberg to reflect disclosure and the achievement or adoption of best-in-class statistics and policies.

Both the survey and the GEI are voluntary and have no associated costs. For more information on the GEI and how to submit information for next year’s index visit: https://www.bloomberg.com/gei.

About Essex Property Trust, Inc.

Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 247 apartment communities comprising approximately 60,000 apartment homes with an additional 3 properties in various stages of active development. Additional information about the Company can be found on the Company’s website at www.essex.com.

Rylan Burns

Group VP of Private Equity & Finance

(650) 655-7800

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Other Professional Services Women Construction & Property Professional Services REIT Consumer LGBTQ+ Residential Building & Real Estate

MEDIA:

Logo
Logo

Macatawa Bank Corporation Reports Fourth Quarter and Full Year 2021 Results

HOLLAND, Mich., Jan. 27, 2022 (GLOBE NEWSWIRE) — Macatawa Bank Corporation (NASDAQ: MCBC), the holding company for Macatawa Bank (collectively, the “Company”), today announced its results for the fourth quarter and full year of 2021.

  • Full year 2021 net income of $29.0 million versus $30.2 million in prior year
  • Net income of $6.2 million in fourth quarter 2021 versus $9.0 million in fourth quarter 2020
  • Decline in fourth quarter 2021 earnings from prior year fourth quarter earnings primarily due to decrease in Paycheck Protection Program (“PPP”) loan fees recognized
  • Provision for loan losses benefit of $750,000 in fourth quarter 2021 reflecting improvement in economic conditions
  • Continued expense management discipline – 5% decrease in total noninterest expense from fourth quarter 2020
  • Loan portfolio balances, excluding PPP loans, down for the year but showing growth in the fourth quarter
  • Further growth in deposit balances – up 12% from fourth quarter 2020
  • Grew investment securities portfolio by $174 million in fourth quarter 2021 to strategically deploy excess liquidity
  • Asset-sensitive balance sheet is well-positioned for a rising interest rate environment

The Company reported net income of $6.2 million, or $0.18 per diluted share, in the fourth quarter 2021 compared to $9.0 million, or $0.26 per diluted share, in the fourth quarter 2020.   For the full year 2021, the Company reported net income of $29.0 million, or $0.85 per diluted share, compared to $30.2 million, or $0.88 per diluted share, for the full year 2020.   

“We are pleased to report solid results for the fourth quarter of 2021 and for the full year 2021,” said Ronald L. Haan, President and CEO of the Company. “We are encouraged by our commercial loan origination activity and the resulting portfolio growth in the fourth quarter 2021, excluding run-off of PPP loans. Our credit quality remains strong and we had no commercial loan chargeoffs during the fourth quarter 2021, contributing to a provision for loan loss benefit of $750,000 for the quarter. Other fee income including wealth management fees, debit card interchange income and treasury management fees experienced healthy growth, offsetting most of the reduction in mortgage gains for the year while total non-interest expenses were flat for the year and down in the fourth quarter 2021 compared to the same period in the prior year.

“Through measured growth of our investment portfolio, we accelerated the deployment of excess liquid funds caused by our robust deposit growth. Focusing on short-term, high quality securities, we grew our investment portfolio by $174.0 million in the fourth quarter 2021.”

Mr. Haan concluded: “Despite a challenging environment, we produced strong earnings for the fourth quarter of 2021 and for the year. Our asset quality is strong and as we have managed our balance sheet to be asset-sensitive, we are very well-positioned to benefit from the rising interest rate environment that we expect in 2022. We look forward to building on our fourth quarter momentum and seizing more opportunities to strategically deploy the excess funds our customers have entrusted us with.”

Operating Results

Net interest income for the fourth quarter 2021 totaled $12.8 million, a decrease of $1.5 million from the third quarter 2021 and a decrease of $3.7 million from the fourth quarter 2020. Net interest margin for the fourth quarter 2021 was 1.85 percent, down 19 basis points from the third quarter 2021, and down 84 basis points from the fourth quarter 2020. Net interest income for the fourth quarter 2021 reflected amortization of $1.2 million in fees from loans originated under the PPP, compared to $2.8 million in the third quarter 2021 and $3.2 million in the fourth quarter 2020. These fees are amortized over the loans’ contractual maturity, which is 24 months or 60 months, as applicable. Upon SBA forgiveness, the remaining unamortized fees are recognized into interest income. During the fourth quarter 2021, the Company had approved and received forgiveness disbursements from the SBA on 245 loans with balances totaling $36.7 million. In the third quarter 2021, the Company had approved and received forgiveness disbursements from the SBA on 909 loans with balances totaling $92.4 million. Net interest margin was further negatively impacted in the fourth quarter 2021 versus the fourth quarter 2020 by our carrying significantly higher balances of federal funds sold due to the significant increase in balances held by depositors throughout the COVID-19 pandemic. These balances, which earn only 10-15 basis points in interest, increased by $582.4 million, on average, from the fourth quarter 2020 and caused a 49 basis point decrease in net interest margin in the fourth quarter 2021 compared to fourth quarter 2020. Floor rates established by the Company on its variable rate loans over recent years served to soften the negative impact on net interest income of the 2020 federal funds rate decreases. Without these floors, net interest income for the quarter would have been lower than stated by approximately $1.0 million.

On July 7, 2021, the Company redeemed its remaining $20.0 million of trust preferred securities. The Company estimates that this will save approximately $600,000 of interest expense annually, with regulatory capital remaining significantly above levels required to be categorized as well capitalized.

Non-interest income decreased $296,000 in the fourth quarter 2021 compared to the third quarter 2021 and decreased $1.7 million from the fourth quarter 2020. Gains on sales of mortgage loans in the fourth quarter 2021 were down $337,000 compared to the third quarter 2021 and were down $1.9 million from the fourth quarter 2020. The Company originated $16.4 million in mortgage loans for sale in the fourth quarter 2021 compared to $21.3 million in the third quarter 2021 and $36.2 million in the fourth quarter 2020. For the full year 2021 non-interest income decreased by only $281,000 despite a decrease in mortgage gains of $1.8 million. Higher deposit service charge income, wealth management fees and debit card interchange income from customer usage softened the effect of a lower level of mortgage gains recognized in the quarter and the full year.  

Non-interest expense was $11.3 million for the fourth quarter 2021, compared to $11.6 million for the third quarter 2021 and $12.0 million for the fourth quarter 2020. The largest component of non-interest expense was salaries and benefit expenses. Salaries and benefit expenses were down $254,000 compared to the third quarter 2021 and were down $569,000 compared to the fourth quarter 2020. The decreases compared to the third quarter 2021 and the fourth quarter 2020 were due largely to a lower level of commissions from mortgage production as volume decreased and also due to lower medical insurance costs. The table below identifies the primary components of the changes in salaries and benefits between periods.

Dollars in 000s

  Q4 2021
to
Q3 2021
  Q4 2021
to
Q4 2020
   
               
Salaries and other compensation   $ (149 )   $ (189 )    
Salary deferral from commercial loans     (32 )     24      
Bonus accrual     142       (16 )    
Mortgage production – variable comp     (41 )     (221 )    
401k matching contributions     (13 )     (80 )    
Medical insurance costs     (161 )     (87 )    
Total change in salaries and benefits   $ (254 )   $ (569 )    
                     

FDIC assessment expense was $217,000 in the fourth quarter 2021 compared to $204,000 in the third quarter 2021 and $194,000 in the fourth quarter 2020. FDIC assessment expense increased primarily as a result of the significant increase in deposit balances between periods. Data processing expenses were up $15,000 in the fourth quarter 2021 compared to the third quarter 2021 and were down $194,000 compared to the fourth quarter 2020 due to online banking conversion related expenses incurred in the fourth quarter 2020. Other categories of non-interest expense were relatively flat compared to the third quarter 2021 and the fourth quarter 2020 due to a continued focus on expense management.  

Federal income tax expense was $1.4 million for the fourth quarter 2021, $1.7 million for the third quarter 2021, and $1.8 million for the fourth quarter 2020. Federal income tax expense for the fourth quarter 2020 benefitted from the reversal of $92,000 deferred tax valuation allowance at the end of 2020. The effective tax rate was 18.0 percent for the fourth quarter 2021, compared to 19.4 percent for the third quarter 2021 and 16.8 percent for the fourth quarter 2020.  

Asset Quality

A provision for loan losses benefit of $750,000 was recorded in the fourth quarter 2021 compared to provision benefit of $550,000 in the third quarter 2021 and provision expense of $800,000 in the fourth quarter 2020. Net loan recoveries for the fourth quarter 2021 were $107,000, compared to third quarter 2021 net loan recoveries of $276,000 and fourth quarter 2020 net loan recoveries of $50,000. At December 31, 2021, the Company had experienced net loan recoveries in twenty-six of the past twenty-eight quarters.   Total loans past due on payments by 30 days or more amounted to $129,000 at December 31, 2021, down $308,000 from $437,000 at September 30, 2021 and down $452,000 from $581,000 at December 31, 2020. Delinquencies at December 31, 2021 were comprised of just four individual loans. Delinquency as a percentage of total loans was just 0.01 percent at December 31, 2021, well below the Company’s peer level.

The allowance for loan losses of $15.9 million was 1.43 percent of total loans at December 31, 2021, compared to $16.5 million or 1.45 percent of total loans at September 30, 2021, and $17.4 million or 1.22 percent at December 31, 2020. The ratio at December 31, 2021, September 30, 2021 and December 31, 2020 includes PPP loans, which are fully guaranteed by the SBA and receive no allowance allocation. The ratio excluding PPP loans was 1.49 percent at December 31, 2021, 1.56 percent at September 30, 2021 and 1.45 percent at December 31, 2020. The coverage ratio of allowance for loan losses to nonperforming loans continued to be strong and significantly exceeded 1-to-1 coverage at 173-to-1 as of December 31, 2021.

At December 31, 2021, the Company’s nonperforming loans were $92,000, representing 0.01 percent of total loans. This compares to $420,000 (0.04 percent of total loans) at September 30, 2021 and $533,000 (0.04 percent of total loans) at December 31, 2020. Other real estate owned and repossessed assets were $2.3 million at December 31, 2021, compared to $2.3 million at September 30, 2021 and $2.5 million at December 31, 2020. Total non-performing assets, including other real estate owned and nonperforming loans, were $2.4 million, or 0.08 percent of total assets, at December 31, 2021. Total nonperforming assets, including other real estate owned and nonperforming loans, decreased by $635,000 from December 31, 2020 to December 31, 2021.

A break-down of non-performing loans is shown in the table below.


Dollars in 000s
  Dec 31,
2021
  Sept 30,
2021
  June 30,
2021
  Mar 31,
2021
  Dec 31,
2020
 
                               
Commercial Real Estate   $ 5   $ 332   $ 341   $ 432   $ 438  
Commercial and Industrial     1                  
Total Commercial Loans     6     332     341     432     438  
Residential Mortgage Loans     86     88     92     93     95  
Consumer Loans                      
Total Non-Performing Loans   $ 92   $ 420   $ 433   $ 525   $ 533  
                                 

A break-down of non-performing assets is shown in the table below.


Dollars in 000s
  Dec 31,
2021
  Sept 30,
2021
  June 30,
2021
  Mar 31,
2021
  Dec 31,
2020
 
                               
Non-Performing Loans   $ 92   $ 420   $ 433   $ 525   $ 533  
Other Repossessed Assets                      
Other Real Estate Owned     2,343     2,343     2,343     2,371     2,537  
Total Non-Performing Assets   $ 2,435   $ 2,763   $ 2,776   $ 2,896   $ 3,070  
                                 

Balance Sheet, Liquidity and Capital

Total assets were $2.93 billion at December 31, 2021, an increase of $27.3 million from $2.90 billion at September 30, 2021 and an increase of $286.7 million from $2.64 billion at December 31, 2020. Assets were elevated at each period due to customers holding a higher level of deposits during the COVID-19 pandemic, including balances from PPP loan proceeds. Total loans were $1.11 billion at December 31, 2021, a decrease of $27.6 million from $1.14 billion at September 30, 2021 and a decrease of $320.3 million from $1.43 billion at December 31, 2020.

Commercial loans decreased by $281.2 million from December 31, 2020 to December 31, 2021, along with a decrease of $31.8 million in the residential mortgage portfolio, and a decrease of $7.4 million in the consumer loan portfolio. Within commercial loans, commercial real estate loans decreased by $36.1 million and commercial and industrial loans decreased by $57.0 million. However, the largest decrease in commercial loans was in PPP loans which decreased by $187.1 million due to forgiveness by the SBA, partially offset by new PPP loan originations of $126.9 million. Excluding PPP loans, total commercial loans increased by $10.4 million during the fourth quarter 2021.   

The composition of the commercial loan portfolio is shown in the table below:

Dollars in 000s

  Dec 31,
2021
  Sept 30,
2021
  June 30,
2021
  Mar 31,
2021
  Dec 31,
2020
 
                               
Construction and Development   $ 103,755   $ 104,636   $ 102,608   $ 117,178   $ 118,665  
Other Commercial Real Estate     412,346     422,574     427,291     423,424     433,508  
Commercial Loans Secured
by Real Estate
    516,101     527,210     529,899     540,602     552,173  
Commercial and Industrial     378,318     356,812     359,846     392,208     436,331  
Paycheck Protection Program     41,939     77,571     169,679     253,811     229,079  
Total Commercial Loans   $ 936,358   $ 961,593   $ 1,059,424   $ 1,186,621   $ 1,217,583  
                                 

Bank owned life insurance was $52.5 million at December 31, 2021, down $313,000 from $52.8 million at September 30, 2021 and up $10.0 million from $42.5 million at December 31, 2020 due to an additional $10.0 million in insurance policies purchased early in the second quarter 2021 and earnings on the underlying investments.

Total deposits were $2.58 billion at December 31, 2021, up $24.8 million, or 1.0 percent, from $2.55 billion at September 30, 2021 and up $279.4 million, or 12.2 percent, from $2.30 billion at December 31, 2020. Demand deposits were down $18.0 million in the fourth quarter 2021 compared to the third quarter 2021 and were up $170.3 million compared to the fourth quarter 2020. Money market deposits and savings deposits were up $47.3 million from the third quarter 2021 and were up $122.9 million from the fourth quarter 2020. Certificates of deposit were down $4.5 million at December 31, 2021 compared to September 30, 2021 and were down $13.8 million compared to December 31, 2020 as customers reacted to changes in market interest rates. As deposit rates have dropped, the Company has experienced some shifting between deposit types and, overall, deposit customers are holding higher levels of liquid deposit balances in the low interest rate environment and due to uncertainty related to the COVID-19 pandemic. The Company continues to be successful at attracting and retaining core deposit customers. Customer deposit accounts remain insured to the highest levels available under FDIC deposit insurance.

Other borrowed funds of $85.0 million at December 31, 2021 were unchanged compared to $85.0 million at September 30, 2021 and were up $15.0 million compared to $70.0 million at December 31, 2020. The increases were due to an additional $25.0 million advance taken in the third quarter 2021. This advance is putable quarterly by the FHLB and carries a rate of 0.01%. Considering the additional dividend provided by the FHLB on activity based stock, this advance effectively carries a negative interest rate, resulting in positive income for the Company from the advance. The put option on this advance was executed by the FHLB and the advance was repaid in full on January 21, 2022.

The Company’s total risk-based regulatory capital ratio at December 31, 2021 was consistent with the ratio at December 31, 2020 despite the redemption of the remaining trust preferred securities in the third quarter 2021. Macatawa Bank’s risk-based regulatory capital ratios continue to be at levels considerably above those required to be categorized as “well capitalized” under applicable regulatory capital guidelines. As such, the Bank was categorized as “well capitalized” at December 31, 2021.

About Macatawa Bank

Headquartered in Holland, Michigan, Macatawa Bank offers a full range of banking, retail and commercial lending, wealth management and ecommerce services to individuals, businesses and governmental entities from a network of 26 full-service branches located throughout communities in Kent, Ottawa and northern Allegan counties. The bank is recognized for its local management team and decision making, along with providing customers excellent service, a rewarding experience and superior financial products. Macatawa Bank has been recognized for ten years as “West Michigan’s 101 Best and Brightest Companies to Work For”. For more information, visit www.macatawabank.com.

CAUTIONARY STATEMENT: This press release contains forward-looking statements that are based on management’s current beliefs, expectations, assumptions, estimates, plans and intentions. Forward-looking statements are identifiable by words or phrases such as “anticipates,” “believe,” “expect,” “may,” “should,” “will,” ”intend,” “continue,” “improving,” “additional,” “focus,” “forward,” “future,” “efforts,” “strategy,” “momentum,” “positioned,” and other similar words or phrases. Such statements are based upon current beliefs and expectations and involve substantial risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These statements include, among others, statements related to risks and uncertainties related to, and the impact of, the global coronavirus (COVID-19) pandemic on the business, financial condition and results of operations of our company and our customers, trends in our key operating metrics and financial performance, future levels of earnings and profitability, future levels of earning assets, future asset quality, future growth, and future net interest margin. All statements with references to future time periods are forward-looking. Management’s determination of the provision and allowance for loan losses, the appropriate carrying value of intangible assets (including deferred tax assets) and other real estate owned and the fair value of investment securities (including whether any impairment on any investment security is temporary or other-than-temporary and the amount of any impairment) involves judgments that are inherently forward-looking. Our ability to sell other real estate owned at its carrying value or at all, reduce non-performing asset expenses, utilize our deferred tax asset, successfully implement new programs and initiatives, increase efficiencies, maintain our current level of deposits and other sources of funding, maintain liquidity, respond to declines in collateral values and credit quality, improve profitability, and produce consistent core earnings is not entirely within our control and is not assured. The future effect of changes in the real estate, financial and credit markets and the national and regional economy on the banking industry, generally, and Macatawa Bank Corporation, specifically, are also inherently uncertain. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions (“risk factors”) that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed in or implied by such forward-looking statements. Macatawa Bank Corporation does not undertake to update forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

Risk factors include, but are not limited to, the risk factors described in “Item 1A – Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2020. These and other factors are representative of the risk factors that may emerge and could cause a difference between an ultimate actual outcome and a preceding forward-looking statement.

 
 
MACATAWA BANK CORPORATION
CONSOLIDATED FINANCIAL SUMMARY
(Unaudited)
(Dollars in thousands except per share information)
                             
            Quarterly   Twelve Months Ended
            4th Qtr   3rd Qtr   4th Qtr   December 31
EARNINGS SUMMARY             2021       2021       2020       2021       2020  
Total interest income           $ 13,334     $ 14,842     $ 17,401     $ 58,634     $ 67,224  
Total interest expense             508       546       888       2,565       5,687  
Net interest income             12,826       14,296       16,513       56,069       61,537  
Provision for loan losses             (750 )     (550 )     800       (2,050 )     3,000  
Net interest income after provision for loan losses             13,576       14,846       15,713       58,119       58,537  
                             
NON-INTEREST INCOME                            
Deposit service charges             1,206       1,183       1,073       4,446       4,030  
Net gains on mortgage loans             514       851       2,432       4,691       6,477  
Trust fees             1,114       1,079       957       4,331       3,758  
Other             2,512       2,529       2,610       10,227       9,711  
Total non-interest income             5,346       5,642       7,072       23,695       23,976  
                             
NON-INTEREST EXPENSE                            
Salaries and benefits             6,024       6,278       6,593       25,216       25,530  
Occupancy             963       992       971       3,986       3,955  
Furniture and equipment             1,011       1,014       974       3,940       3,678  
FDIC assessment             217       204       194       749       400  
Other             3,122       3,062       3,234       12,199       12,162  
Total non-interest expense             11,337       11,550       11,966       46,090       45,725  
Income before income tax             7,585       8,938       10,819       35,724       36,788  
Income tax expense             1,369       1,736       1,822       6,710       6,623  
Net income           $ 6,216     $ 7,202     $ 8,997     $ 29,014     $ 30,165  
                             
Basic earnings per common share           $ 0.18     $ 0.21     $ 0.26     $ 0.85     $ 0.88  
Diluted earnings per common share           $ 0.18     $ 0.21     $ 0.26     $ 0.85     $ 0.88  
Return on average assets             0.85 %     0.98 %     1.39 %     1.02 %     1.27 %
Return on average equity             9.84 %     11.52 %     15.24 %     11.74 %     13.19 %
Net interest margin (fully taxable equivalent)             1.85 %     2.04 %     2.69 %     2.09 %     2.75 %
Efficiency ratio             62.39 %     57.93 %     50.74 %     57.78 %     53.47 %
                             
BALANCE SHEET DATA                   December 31 September 30 December 31
Assets                     2021       2021       2020  
Cash and due from banks                   $ 23,669     $ 30,413     $ 31,480  
Federal funds sold and other short-term investments                     1,128,119       1,239,525       752,256  
Debt securities available for sale                     416,063       241,475       236,832  
Debt securities held to maturity                     137,003       137,569       79,468  
Federal Home Loan Bank Stock                     11,558       11,558       11,558  
Loans held for sale                     1,407       2,635       5,422  
Total loans                     1,108,993       1,136,613       1,429,331  
Less allowance for loan loss                     15,889       16,532       17,408  
Net loans                     1,093,104       1,120,081       1,411,923  
Premises and equipment, net                     41,773       42,343       43,254  
Bank-owned life insurance                     52,468       52,781       42,516  
Other real estate owned                     2,343       2,343       2,537  
Other assets                     21,244       20,777       24,780  
                             
Total Assets                   $ 2,928,751     $ 2,901,500     $ 2,642,026  
                             
Liabilities and Shareholders’ Equity                            
Noninterest-bearing deposits                   $ 886,115     $ 934,477     $ 809,437  
Interest-bearing deposits                     1,691,843       1,618,698       1,489,150  
Total deposits                     2,577,958       2,553,175       2,298,587  
Other borrowed funds                     85,000       85,000       70,000  
Long-term debt                                 20,619  
Other liabilities                     11,788       11,112       12,977  
Total Liabilities                     2,674,746       2,649,287       2,402,183  
                             
Shareholders’ equity                     254,005       252,213       239,843  
                             
Total Liabilities and Shareholders’ Equity                   $ 2,928,751     $ 2,901,500     $ 2,642,026  
                             
                             
MACATAWA BANK CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Unaudited)
(Dollars in thousands except per share information)
                             
    Quarterly   Year to Date
                             
    4th Qtr   3rd Qtr   2nd Qtr   1st Qtr   4th Qtr        
      2021       2021       2021       2021       2020       2021       2020  
EARNINGS SUMMARY                            
Net interest income   $ 12,826     $ 14,296     $ 14,457     $ 14,490     $ 16,513     $ 56,069     $ 61,537  
Provision for loan losses     (750 )     (550 )     (750 )           800       (2,050 )     3,000  
Total non-interest income     5,346       5,642       6,169       6,539       7,072       23,695       23,976  
Total non-interest expense     11,337       11,550       11,718       11,485       11,966       46,090       45,725  
Federal income tax expense     1,369       1,736       1,840       1,766       1,822       6,710       6,623  
Net income   $ 6,216     $ 7,202     $ 7,818     $ 7,778     $ 8,997     $ 29,014     $ 30,165  
                             
Basic earnings per common share   $ 0.18     $ 0.21     $ 0.23     $ 0.23     $ 0.26     $ 0.85     $ 0.88  
Diluted earnings per common share   $ 0.18     $ 0.21     $ 0.23     $ 0.23     $ 0.26     $ 0.85     $ 0.88  
                             
MARKET DATA                            
Book value per common share   $ 7.41     $ 7.38     $ 7.26     $ 7.09     $ 7.01     $ 7.41     $ 7.01  
Tangible book value per common share   $ 7.41     $ 7.38     $ 7.26     $ 7.09     $ 7.01     $ 7.41     $ 7.01  
Market value per common share   $ 8.82     $ 8.03     $ 8.75     $ 9.95     $ 8.37     $ 8.82     $ 8.37  
Average basic common shares     34,229,664       34,190,264       34,193,016       34,195,526       34,154,820       34,202,179       34,120,275  
Average diluted common shares     34,229,664       34,190,264       34,193,016       34,195,526       34,154,820       34,202,179       34,120,275  
Period end common shares     34,259,945       34,189,799       34,192,317       34,193,132       34,197,519       34,259,945       34,197,519  
                             
PERFORMANCE RATIOS                            
Return on average assets     0.85 %     0.98 %     1.11 %     1.17 %     1.39 %     1.02 %     1.27 %
Return on average equity     9.84 %     11.52 %     12.79 %     12.91 %     15.24 %     11.74 %     13.19 %
Net interest margin (fully taxable equivalent)     1.85 %     2.04 %     2.19 %     2.33 %     2.69 %     2.09 %     2.75 %
Efficiency ratio     62.39 %     57.93 %     56.81 %     54.62 %     50.74 %     57.78 %     53.47 %
Full-time equivalent employees (period end)     311       318       321       327       328       311       328  
                             
ASSET QUALITY                            
Gross charge-offs   $ 22     $ 22     $ 30     $ 50     $ 22     $ 124     $ 4,268  
Net charge-offs/(recoveries)   $ (107 )   $ (276 )   $ (104 )   $ (44 )   $ (50 )   $ (531 )   $ 2,792  
Net charge-offs to average loans (annualized)     -0.04 %     -0.09 %     -0.03 %     -0.01 %     -0.01 %     -0.04 %     0.19 %
Nonperforming loans   $ 92     $ 420     $ 433     $ 525     $ 533     $ 92     $ 533  
Other real estate and repossessed assets   $ 2,343     $ 2,343     $ 2,343     $ 2,371     $ 2,537     $ 2,343     $ 2,537  
Nonperforming loans to total loans     0.01 %     0.04 %     0.03 %     0.04 %     0.04 %     0.01 %     0.04 %
Nonperforming assets to total assets     0.08 %     0.10 %     0.09 %     0.11 %     0.12 %     0.08 %     0.12 %
Allowance for loan losses   $ 15,889     $ 16,532     $ 16,806     $ 17,452     $ 17,408     $ 15,889     $ 17,408  
Allowance for loan losses to total loans     1.43 %     1.45 %     1.36 %     1.26 %     1.22 %     1.43 %     1.22 %
Allowance for loan losses to total loans (excluding PPP loans)   1.49 %     1.56 %     1.57 %     1.55 %     1.45 %     1.49 %     1.45 %
Allowance for loan losses to nonperforming loans     17270.65 %     3936.19 %     3881.29 %     3324.19 %     3266.04 %     17270.65 %     3266.04 %
                             
CAPITAL                            
Average equity to average assets     8.66 %     8.48 %     8.70 %     9.04 %     9.11 %     8.71 %     9.62 %
Common equity tier 1 to risk weighted assets (Consolidated)     17.24 %     17.43 %     17.10 %     16.73 %     15.79 %     17.24 %     15.79 %
Tier 1 capital to average assets (Consolidated)     8.72 %     8.51 %     9.48 %     9.80 %     9.89 %     8.72 %     9.89 %
Total capital to risk-weighted assets (Consolidated)     18.32 %     18.58 %     19.66 %     19.33 %     18.29 %     18.32 %     18.29 %
Common equity tier 1 to risk weighted assets (Bank)     16.70 %     16.88 %     16.57 %     17.60 %     16.67 %     16.70 %     16.67 %
Tier 1 capital to average assets (Bank)     8.44 %     8.24 %     8.49 %     9.52 %     9.63 %     8.44 %     9.63 %
Total capital to risk-weighted assets (Bank)     17.77 %     18.02 %     17.73 %     18.81 %     17.84 %     17.77 %     17.84 %
Common equity to assets     8.67 %     8.69 %     8.44 %     8.87 %     9.08 %     8.67 %     9.08 %
Tangible common equity to assets     8.67 %     8.69 %     8.44 %     8.87 %     9.08 %     8.67 %     9.08 %
                             
END OF PERIOD BALANCES                            
Total portfolio loans   $ 1,108,993     $ 1,136,613     $ 1,238,327     $ 1,382,951     $ 1,429,331     $ 1,108,993     $ 1,429,331  
Earning assets     2,803,853       2,768,507       2,803,634       2,611,093       2,510,882       2,803,853       2,510,882  
Total assets     2,928,751       2,901,500       2,941,086       2,734,341       2,642,026       2,928,751       2,642,026  
Deposits     2,577,958       2,553,175       2,600,076       2,387,945       2,298,587       2,577,958       2,298,587  
Total shareholders’ equity     254,005       252,213       248,217       242,379       239,843       254,005       239,843  
                             
AVERAGE BALANCES                            
Total portfolio loans   $ 1,109,863     $ 1,182,633     $ 1,324,915     $ 1,401,399     $ 1,481,054     $ 1,253,706     $ 1,495,068  
Earning assets     2,780,236       2,804,157       2,669,862       2,537,300       2,457,746       2,698,846       2,247,850  
Total assets     2,917,569       2,948,664       2,809,487       2,666,802       2,590,875       2,836,627       2,376,523  
Deposits     2,564,961       2,605,043       2,468,398       2,321,012       2,249,679       2,490,838       2,044,643  
Total shareholders’ equity     252,606       249,994       244,516       241,023       236,127       247,075       228,692  



Contact:

Jon W. Swets
Chief Financial Officer
616-494-7645
[email protected]

AvalonBay Communities Earns Top Score for Best Places to Work for LGBTQ+ Equality

AvalonBay Communities Earns Top Score for Best Places to Work for LGBTQ+ Equality

AvalonBay Communities earns 100 on the Human Rights Campaign Foundation’s 2022 Corporate Equality Index

ARLINGTON, Va.–(BUSINESS WIRE)–AVALONBAY COMMUNITIES, INC. (NYSE: AVB), a leading multifamily real estate investment trust, proudly announced that it received a score of 100 on the Human Rights Campaign Foundation’s 2022 Corporate Equality Index, the nation’s foremost benchmarking survey and report measuring corporate policies and practices related to LGBTQ+ workplace equality. AvalonBay is the only publicly traded multifamily REIT on the list and joins the ranks of over 840 major U.S. businesses that also earned top marks this year.

“We believe that equality and equal opportunity extends to everyone, no matter who you are or who you love,” said Benjamin Schall, CEO and President of AvalonBay Communities. “We’re proud to have this external recognition and endorsement of what we, at AvalonBay, already knew — AvalonBay is a great place to work and is a company that welcomes and supports LGBTQ+ associates.”

“When the Human Rights Campaign Foundation created the Corporate Equality Index 20 years ago, we dreamed that LGBTQ+ workers — from the factory floor to corporate headquarters, in big cities and small towns — could have access to the policies and benefits needed to thrive and live life authentically,” said Jay Brown, Human Rights Campaign Senior Vice President of Programs, Research and Training. “We are proud that the Corporate Equality Index paved the way to that reality for countless LGBTQ+ workers in America and abroad. But there is still more to do, which is why we are raising the bar yet again to create more equitable workplaces and a better tomorrow for LGBTQ+ workers everywhere. Congratulations to AvalonBay Communities for achieving the title of ‘best places to work for LGBTQ+ equality’ and working to advance inclusion in the workplace.”

The results of the 2022 CEI showcase how 1,271 U.S.-based companies are not only promoting LGBTQ+-friendly workplace policies in the U.S., but also for the 56% of CEI-rated companies with global operations who are helping advance the cause of LGBTQ+ inclusion in workplaces abroad. AvalonBay’s efforts in satisfying all the CEI’s criteria earned a 100 percent ranking and the designation as one of the Best Places to Work for LGBTQ+ Equality.

The CEI rates employers providing these crucial protections to over 20 million U.S. workers and an additional 18 million abroad. Companies rated in the CEI include Fortune magazine’s 500 largest publicly traded businesses, American Lawyer magazine’s top 200 revenue-grossing law firms (AmLaw 200), and hundreds of publicly and privately held mid- to large-sized businesses.

The full report is available online at www.hrc.org/cei.

About AvalonBay Communities, Inc.

As of September 30, 2021, the Company owned or held a direct or indirect ownership interest in 293 apartment communities containing 87,416 apartment homes in 13 states and the District of Columbia, of which 17 communities were under development and one community was under redevelopment. The Company is an equity REIT in the business of developing, redeveloping, acquiring, and managing apartment communities in leading metropolitan areas in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in the Company’s expansion markets of Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado. More information may be found on the Company’s website at http://www.avalonbay.com.

About the Human Rights Campaign

The Human Rights Campaign Foundation is the educational arm of the Human Rights Campaign (HRC), America’s largest civil rights organization working to achieve equality for lesbian, gay, bisexual, transgender and queer (LGBTQ+) people. Through its programs, the HRC Foundation seeks to make transformational change in the everyday lives of LGBTQ+ people, shedding light on inequity and deepening the public’s understanding of LGBTQ+ issues, with a clear focus on advancing transgender and racial justice. Its work has transformed the landscape for more than 15 million workers, 11 million students, 1 million clients in the adoption and foster care system and so much more. The HRC Foundation provides direct consultation and technical assistance to institutions and communities, driving the advancement of inclusive policies and practices; it builds the capacity of future leaders and allies through fellowship and training programs; and, with the firm belief that we are stronger working together, it forges partnerships with advocates in the U.S. and around the globe to increase our impact and shape the future of our work.

Copyright © 2022 AvalonBay Communities, Inc. All Rights Reserved

Kurt Conway

Senior Vice President

Brand Strategy & Marketing

AvalonBay Communities, Inc.

703-317-4611

KEYWORDS: United States North America Virginia

INDUSTRY KEYWORDS: Men Professional Services LGBTQ+ Philanthropy Consumer Residential Building & Real Estate Commercial Building & Real Estate Construction & Property Foundation Women Human Resources REIT

MEDIA:

Logo
Logo