Author: Newsdesk

St. Louis, May 04, 2021 (GLOBE NEWSWIRE) — ESCO Technologies Inc. (NYSE: ESE) (ESCO, or the Company) today reported its operating results for the second quarter and six months ended March 31, 2021 (Q2 2021 and YTD 2021) compared to the second quarter and six months ended March 31, 2020 (Q2 2020 and YTD 2020).

Vic Richey, Chairman and Chief Executive Officer, commented, “We continue to successfully manage through the COVID-19 global pandemic and our primary focus remains the health and safety of our employees, customers and suppliers. I’m proud of our entire team for how they’ve responded to the challenges over the past year, and I’m confident that we are positioning ourselves to be a stronger, more profitable company as we emerge from the pandemic and our end-markets fully recover.

“Our second quarter and year-to-date operating results reflect the importance of maintaining diversity across our end-markets, as this diversity, coupled with our substantial liquidity will continue to support our long-term growth. Our multi-segment platform enabled us to substantially mitigate the pandemic’s impact on our operating results, and our disciplined approach around working capital management allowed us to generate record cash flow in 2021.

“Given the strength of the first half of 2020 pre-COVID, we previously communicated that we expected the first half of 2021 to be slightly lower, comparatively. Through March 31^st, we are ahead of our original profit expectations as our continued focus on operating execution and effective cost management drove our first-half Adjusted EPS to $1.15 per share, an increase of 4 percent over the Adjusted EPS of $1.11 per share reported in the first half of 2020. This was accomplished despite a 6 percent decrease in sales primarily due to COVID’s impact.

“Regarding our upcoming executive management team retirements announced previously, I’m pleased to welcome Chris Tucker to our executive leadership team as Senior Vice President and Chief Financial Officer replacing Gary Muenster, who’s retiring after 31 years at ESCO, with the past 18 years serving as Executive Vice President and Chief Financial Officer. Chris possesses a strong financial skill-set and a keen understanding of strategy, capital allocation, ROIC, and shareholder value creation developed during his 24 year career at Emerson.

“Additionally, Dave Schatz, who has been with ESCO for the past 23 years, has been promoted to Senior Vice President, General Counsel & Secretary replacing Alyson Barclay who is retiring after 33 years with the Company, most recently serving as Senior Vice President and with the past 21 years as General Counsel & Secretary. I look forward to working with Chris and Dave in their new roles, and I’d like to thank Gary and Alyson for their substantial contributions to ESCO’s success over their long careers.”

Discrete Items

During Q2 2021, the Company recorded a $1.9 million pretax gain from the contingent cash settlement of the fiscal 2019 sale of the former Doble headquarters property in Watertown, Massachusetts, partially offset by $0.7 million of facility shut-down costs related to the closure of a former USG manufacturing facility in Toronto (described in the November 2020 earnings release). The combined impact resulted in a net after-tax gain of $0.03 per share which is excluded from the calculation of Adjusted EBITDA and Adjusted EPS in Q2 2021.

There were no Discrete Items identified in Q2 2020 impacting GAAP EPS or Adjusted EPS.

During Q1 2020, the company completed the sale of its Technical Packaging segment which resulted in gross cash proceeds of $191 million and a net gain on the sale of $77 million, or $2.93 per share, which is recorded as discontinued operations. The impact of discontinued operations is excluded from the calculation of Adjusted EBITDA and Adjusted EPS in 2020.

The financial results presented include certain non-GAAP financial measures such as EBIT, EBITDA, Adjusted EBITDA and Adjusted EPS, as defined within the “Non-GAAP Financial Measures” described below. Any non-GAAP financial measures presented are reconciled to their respective GAAP equivalents.

Management believes these non-GAAP financial measures are useful in assessing the ongoing operational profitability of the Company’s business segments, and therefore, allow shareholders better visibility into the Company’s underlying operations. See “Non-GAAP Financial Measures” described below.

Earnings Summary

Q2 2021 GAAP EPS was $0.62 per share (GAAP net earnings of $16.3 million) and included the net earnings’ impact of the Q2 2021 Discrete Items described above. Excluding the net earnings impact of the Discrete Items, Q2 2021 Adjusted EPS was $0.59 per share.

Q2 2020 GAAP EPS and Adjusted EPS was $0.68 per share (GAAP net earnings of $17.8 million).

Adjusted EBITDA was $31 million in Q2 2021 and Q2 2020, and YTD Adjusted EBITDA increased to $60 million, from $59 million YTD 2020.

Operating Highlights – Q2

• Net sales were $167 million in Q2 2021, compared to $180 million in Q2 2020, pre-COVID.
• A&D segment sales decreased $12 million in Q2 2021, resulting from lower commercial aerospace sales due to COVID, partially offset by a $4 million increase in Navy sales.
• Driven by an increase in chamber project deliveries internationally, Test sales increased to $44 million in Q2 2021 from $42 million in Q2 2020.
• USG sales were $40 million in Q2 2021 compared to $44 million in Q2 2020 as a result of COVID restrictions impacting on-site personnel at substations, large transformers and other customer locations. Q2 2021 sales were also impacted by the higher volume of sales reported in Q1 2021 as several utility customers accelerated calendar year-end spending for equipment and software requirements. The quarterly timing of YTD 2021 sales resulted in a modest decrease in sales from YTD 2020, pre-COVID.
• Consolidated gross margin percentage increased to 38.1 percent in Q2 2021 from 37.3 percent in Q2 2020 driven by a favorable sales mix coupled with manufacturing cost reduction actions previously implemented across the company.
• SG&A expenses decreased $1.2 million in Q2 2021 compared to Q2 2020 as a result of lower spending (lower headcount, less travel, no pension costs) which helped to offset the reduced sales due to COVID.
• Interest expense decreased $0.9 million in Q2 2021 compared to Q2 2020 due to lower debt outstanding.
• The effective income tax rate increased to 23.5 percent in Q2 2021 from 11 percent in Q2 2020. The significantly lower tax rate in Q2 2020 reflected the favorable impact of certain one-time tax strategies implemented in the prior year which were not repeated.
• Entered orders were $176 million in Q2 2021 (book-to-bill of 1.06x) with all three operating segments reporting backlog growth, resulting in ending backlog of $522 million at March 31, 2021.
• YTD 2021 net cash provided by operating activities was $57 million, resulting in a net cash position (total cash on hand, less total borrowings) of $24 million at March 31, 2021 reflecting a 0.23x leverage ratio.

Chairman’s Commentary

Vic Richey, Chairman and Chief Executive Officer, commented, “While still being impacted by COVID within our commercial aerospace and utility businesses, I’m really pleased with our Q2 and YTD results as we continue to see numerous highlights across the company which offset the obvious headwinds.

“Driven by our increased focus on working capital management and cash conversion, a clear highlight for the first half of the year is the strength of our cash generation which continued to increase our liquidity. Our strong balance sheet has us positioned favorably as we move forward on current acquisition opportunities and continue to expand our internal investments in new product development across the company.

“From an operations perspective, A&D clearly led our Q2 2021 success by substantially exceeding our internal expectations on both sales and earnings, as the segment reported an Adjusted EBIT margin of nearly 22 percent in the Quarter. A&D’s margin contribution was impressive given the noted decrease in commercial aerospace sales, which have historically been a meaningful profit contributor to the segment. This solid margin was achieved as a result of our actions to reduce costs and resize the business during 2020 in response to the downturn in commercial air travel.

“Delivering a solid operating margin in A&D during COVID reflects the strength of our program, product and end-market diversity, as the Navy and defense markets remained resilient. A&D’s longer-term operating margins are expected to improve as the commercial aerospace market recovers over time, while further benefitting from our lower operating cost structure. The defense portion of A&D, both military aerospace and Navy products, is expected to remain strong for the foreseeable future given its sizeable backlog coupled with the timing of expected platform deliveries.

“We continue to see tangible signs of recovery in commercial aerospace as passenger boardings continue to increase and we’ve noted that more airlines are adding idled aircraft back into the fleet. We believe as COVID vaccinations become more widespread, the hesitance within the traveling public will diminish and this will accelerate pent-up travel demand.

“The performance of the Test segment continues to be solid as we increased our Q2 2021 sales by over 5 percent and delivered an EBIT margin of 13 percent. While not immune from COVID’s impact, our Test business continues to demonstrate its resilience by delivering consistently solid operating results, and we expect Test’s outlook to remain positive given the strength of its served markets, primarily related to new communications technologies such as 5G, and our growing shielding business. Our view of 5G’s future is favorable given the size of the investments being made by numerous large, global companies leading its development.

“While USG’s Q2 2021 sales were softer than originally projected, primarily due to the timing within the respective quarters in the first half of 2021, I’m pleased with their performance year-to-date both from a sales and Adjusted EBIT perspective. Doble was most impacted by the sales timing profile in Q2 2021, while NRG’s renewable energy business significantly exceeded our internal expectations and prior year.

“USG’s YTD 2021 sales were down modestly from prior year due to COVID’s impact on the utility industry world-wide, but I’m pleased to see the YTD 2021 Adjusted EBIT margin of 20 percent, up from 15 percent YTD 2020. A favorable sales mix in addition to our cost reduction actions implemented last year are having a positive impact on our operating margins, and we expect that trend to continue.

“We expect to see some continued deferrals of test equipment purchases and maintenance-related projects for the next few months, but our positive outlook for the second half of the year remains unchanged.

“I’m encouraged by the enthusiasm being generated in the market surrounding several new products and solutions recently introduced at Doble, and we continue to see NRG’s end markets gaining momentum as investments in renewable energy have been increasing in both wind and solar. Sales of our recently upgraded solar products have been growing far better than anticipated and we expect that growth to continue.

“Wrapping up, I’m pleased that we continue to generate substantial cash from operations and were able to increase our Q2 2021 Adjusted EBITDA margin to 19 percent, up from 17 percent in Q2 2020, despite the lower contribution from our commercial aerospace business and the timing of USG’s quarterly sales.

“Given our strong financial condition, we expect to fund future acquisitions while organically growing our business through continued investment in new products and solutions. We are evaluating a solid pipeline of M&A opportunities and we are confident that we will add to our current portfolio. We are clearly focused on targets that will increase shareholder value by adding complementary businesses that deliver meaningful returns.

“We have positioned ourselves favorably from a cost structure standpoint and we anticipate a gradual return to a more normal operating environment in the second half of 2021. I continue to have a strong, favorable view of our future.”

Dividend Payment

The next quarterly cash dividend of $0.08 per share will be paid on July 16, 2021 to stockholders of record on July 1, 2021.

Business Outlook –2021 (COVIDUncertainty)

Our current Business Outlook for the remainder of 2021 is consistent with the commentary included in the Company’s previous earnings releases and is summarized below.

In mid-year 2020, business disruptions related to the pandemic began to affect the Company’s operations and continued throughout the balance of the year. During 2021, the commercial aerospace and utility end-markets have seen some degree of customer stabilization, as well as notable pockets of recovery; however, there is still uncertainty as to the timing and pace of the recovery in these areas.

The wide distribution of viable COVID-19 vaccines is anticipated to benefit and accelerate the recovery of commercial air travel and utility spending with customers resuming normal testing protocols and equipment purchases, but Management has determined that it is advisable to wait before resuming specific guidance.

Given this uncertainty, it is difficult to predict how the balance of 2021 will be affected using normal forecasting methodologies, therefore, the Company will continue its suspension of forward-looking guidance.

To assist shareholders and analysts, Management will continue offering “directional” guidance for the balance of 2021, by stating that the Company continues to see tangible signs of recovery that point to a solid outlook for the back half of the year, and the second half of 2021 is expected to compare favorably to the second half of 2020 given the anticipated elements of recovery.

Management’s current expectations for 2021 show growth in Sales, Adjusted EBITDA, Adjusted EPS, and cash flow from operating activities compared to 2020, with Adjusted EBITDA reasonably consistent with 2019, pre-COVID.

Conference Call

The Company will host a conference call today, May 4, at 4:00 p.m. Central Time, to discuss the Company’s Q2 2021 results. A live audio webcast will be available on the Company’s website at www.escotechnologies.com. Please access the website at least 15 minutes prior to the call to register, download and install any necessary audio software. A replay of the conference call will be available on the Company’s website noted above or by phone (dial 1-855-859-2056 and enter the pass code 9334419).

Forward-Looking Statements

Statements in this press release regarding the timing and magnitude of recovery in the Company’s end markets resulting from the availability of viable COVID-19 vaccines, the continuing impacts of COVID-19 on the Company’s results, Sales, Adjusted EBITDA, Adjusted EPS, cash flow, results of cost reduction efforts, margins, growth, the financial success of the Company, the strength of its end markets, the outlook for the A&D, Test and USG segments, the ability to increase shareholder value, the timing and success of acquisition efforts, internal investments in new products and solutions, the long-term success of the Company, and any other statements which are not strictly historical are “forward-looking” statements within the meaning of the safe harbor provisions of the federal securities laws.

Investors are cautioned that such statements are only predictions and speak only as of the date of this release, and the Company undertakes no duty to update them except as may be required by applicable laws or regulations. The Company’s actual results in the future may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the Company’s operations and business environment including but not limited to those described in Item 1A, “Risk Factors”, of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020; the availability and acceptance of viable COVID-19 vaccines by enough of the U.S. and world’s population to curtail the pandemic; the continuing impact of the COVID-19 pandemic including labor shortages, facility closures, shelter in place policies or quarantines, material shortages, transportation delays, termination or delays of Company contracts, and the inability of our suppliers or customers to perform; the impacts of natural disasters on the Company’s operations and those of the Company’s customers and suppliers; the timing and content of future contract awards or customer orders; the appropriation, allocation and availability of Government funds; the termination for convenience of Government and other customer contracts or orders; weakening of economic conditions in served markets; the success of the Company’s competitors; changes in customer demands or customer insolvencies; competition; intellectual property rights; technical difficulties; the success of the Company’s acquisition efforts; delivery delays or defaults by customers; performance issues with key customers, suppliers and subcontractors; material changes in the costs and availability of certain raw materials; labor disputes; changes in U.S. tax laws and regulations; other changes in laws and regulations including but not limited to changes in accounting standards and foreign taxation; changes in interest rates; costs relating to environmental matters arising from current or former facilities; uncertainty regarding the ultimate resolution of current disputes, claims, litigation or arbitration; and the integration of recently acquired businesses.

Non-GAAP Financial Measures

The financial measures EBIT, EBITDA, Adjusted EBITDA and Adjusted EPS are presented in this press release. The Company defines “EBIT” as earnings before interest and taxes, “EBITDA” as earnings before interest, taxes, depreciation and amortization, “Adjusted EBITDA” as EBITDA excluding certain defined charges, and “Adjusted EPS” as GAAP earnings per share (EPS) excluding the net impact of the items described above which were ($0.03) per share in Q2 2021.

EBIT, EBITDA, Adjusted EBITDA and Adjusted EPS are not recognized in accordance with U.S. generally accepted accounting principles (GAAP). However, Management believes that EBIT, EBITDA and Adjusted EBITDA are useful in assessing the operational profitability of the Company’s business segments because they exclude interest, taxes, depreciation and amortization, which are generally accounted for across the entire Company on a consolidated basis. EBIT is also one of the measures used by Management in determining resource allocations within the Company as well as incentive compensation. The presentation of EBIT, EBITDA, Adjusted EBITDA and Adjusted EPS provides important supplemental information to investors by facilitating comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. The use of non-GAAP financial measures is not intended to replace any measures of performance determined in accordance with GAAP.

ESCO, headquartered in St. Louis, Missouri: Manufactures highly-engineered filtration and fluid control products for the aviation, Navy, space and process markets worldwide, as well as composite-based products and solutions for Navy, defense and industrial customers; is the industry leader in RF shielding and EMC test products; and provides diagnostic instruments, software and services for the benefit of industrial power users and the electric utility and renewable energy industries. Further information regarding ESCO and its subsidiaries is available on the Company’s website at www.escotechnologies.com.
   
   

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share amounts)
						Three Months Ended March 31, 2021				Three Months Ended March 31, 2020
Net Sales					$	166,644				180,492
Cost and Expenses:
		Cost of sales				103,113				113,242
		Selling, general and administrative expenses				38,746				39,982
		Amortization of intangible assets				4,917				5,220
		Interest expense				432				1,320
		Other (income) expenses, net				(1,903	)			703
			Total costs and expenses			145,305				160,467
Earnings before income taxes						21,339				20,025
Income tax expense						5,025				2,203
			Net earnings		$	16,314				17,822
			Diluted EPS:
			Diluted – GAAP
				Net earnings	$	0.62				0.68
			Diluted – As Adjusted Basis
				Continuing operations	$	0.59		(1	)	0.68
			Diluted average common shares O/S:			26,201				26,088
(1	)	Q2 2021 Adjusted EPS excludes $0.03 per share of after-tax income associated with the final settlement from the sale of the Doble Watertown facility partially offset by charges related to the Doble Manta facility consolidation.

   

   

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share amounts)
						Six Months Ended March 31, 2021				Six Months Ended March 31, 2020
Net Sales					$	329,593				352,220
Cost and Expenses:
		Cost of sales				201,890				219,969
		Selling, general and administrative expenses				79,746				82,087
		Amortization of intangible assets				9,865				11,030
		Interest expense				973				3,741
		Other (income) expenses, net				(1,880	)			998
			Total costs and expenses			290,594				317,825
Earnings before income taxes						38,999				34,395
Income tax expense						8,999				5,809
			Earnings from continuing operations			30,000				28,586
(Loss) earnings from discontinued operations, net of tax
		expense of $269				–				(601	)
Gain on sale of discontinued operations, net of
		tax expense of $23,734				–				76,614
			Earnings from discontinued operations			–				76,013
			Net earnings		$	30,000				104,599
			Diluted EPS:
			Diluted – GAAP
				Continuing operations	$	1.15				1.09
				Discontinued operations		0.00				2.91
				Net earnings	$	1.15				4.00
			Diluted – As Adjusted Basis
				Continuing operations	$	1.15		(1	)	1.11		(2	)
			Diluted average common shares O/S:			26,192				26,126
(1	)	YTD Q2 2021 Adjusted EPS excludes after-tax income associated with the final settlement from the sale of the Doble Watertown facility which was offset by charges related to the Doble Manta facility consolidation and ATM acquisition inventory step-up.
(2	)	YTD Q2 2020 Adjusted EPS excludes $0.02 per share of after-tax charges primarily related to the move of the Doble headquarters facility.

   

   

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Business Segment Information (Unaudited)
(Dollars in thousands)
				GAAP						As Adjusted
				Q2 2021			Q2 2020			Q2 2021			Q2 2020
Net Sales
	Aerospace & Defense		$	83,278			95,124			83,278			95,124
	USG			39,555			43,768			39,555			43,768
	Test			43,811			41,600			43,811			41,600
		Totals	$	166,644			180,492			166,644			180,492
EBIT
	Aerospace & Defense		$	18,196			21,736			18,236			21,736
	USG			6,725			4,866			5,461			4,866
	Test			5,688			5,651			5,688			5,651
	Corporate			(8,838	)		(10,908	)		(8,548	)		(10,908	)
		Consolidated EBIT		21,771			21,345			20,837			21,345
		Less: Interest expense		(432	)		(1,320	)		(432	)		(1,320	)
		Less: Income tax expense		(5,025	)		(2,203	)		(4,810	)		(2,203	)
		Net earnings from cont ops	$	16,314			17,822			15,595			17,822
Note 1: Adjusted net earnings of $15.6 million in Q2 2021 excludes $0.03 per share of after-tax income associated with the final settlement from the sale of the Doble Watertown facility partially offset by charges related to the Doble Manta facility consolidation.
EBITDA Reconciliation to Net earnings from continuing operations:
										Adjusted			Adjusted
				Q2 2021			Q2 2020			Q2 2021			Q2 2020
Consolidated EBITDA			$	31,874			31,388			30,940			31,388
Less: Depr & Amort				(10,103	)		(10,043	)		(10,103	)		(10,043	)
Consolidated EBIT				21,771			21,345			20,837			21,345
Less: Interest expense				(432	)		(1,320	)		(432	)		(1,320	)
Less: Income tax expense				(5,025	)		(2,203	)		(4,810	)		(2,203	)
Net earnings from cont ops			$	16,314			17,822			15,595			17,822

   

   

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Business Segment Information (Unaudited)
(Dollars in thousands)
				GAAP						As Adjusted
				YTD Q2 2021			YTD Q2 2020			YTD Q2 2021			YTD Q2 2020
Net Sales
	Aerospace & Defense		$	150,169			172,635			150,169			172,635
	USG			94,095			96,602			94,095			96,602
	Test			85,329			82,983			85,329			82,983
		Totals	$	329,593			352,220			329,593			352,220
EBIT
	Aerospace & Defense		$	27,576			34,249			27,936			34,319
	USG			19,456			14,153			18,842			14,773
	Test			11,030			10,307			11,030			10,307
	Corporate			(18,090	)		(20,573	)		(17,740	)		(20,573	)
		Consolidated EBIT		39,972			38,136			40,068			38,826
		Less: Interest expense		(973	)		(3,741	)		(973	)		(3,741	)
		Less: Income tax		(8,999	)		(5,809	)		(9,021	)		(5,975	)
		Net earnings from cont ops	$	30,000			28,586			30,074			29,110
Note 1: Adjusted net earnings of $30.1 million in YTD Q2 2021 excludes income from the final settlement on the sale of the Doble Watertown facility offset by charges related to the Doble Manta facility consolidation and ATM acquisition inventory step-up.
Note 2: Adjusted net earnings of $29.1 million in YTD Q2 2020 excludes $0.02 per share of after-tax charges related primarily to the facility move at Doble.
EBITDA Reconciliation to Net earnings from continuing operations:
										Adjusted			Adjusted
				YTD Q2			YTD Q2			YTD Q2			YTD Q2
				2021			2020			2021			2020
Consolidated EBITDA			$	60,087			58,719			60,183			59,409
Less: Depr & Amort				(20,115	)		(20,583	)		(20,115	)		(20,583	)
Consolidated EBIT				39,972			38,136			40,068			38,826
Less: Interest expense				(973	)		(3,741	)		(973	)		(3,741	)
Less: Income tax expense				(8,999	)		(5,809	)		(9,021	)		(5,975	)
Net earnings from cont ops			$	30,000			28,586			30,074			29,110

   

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)
				March 31, 2021		September 30, 2020
Assets
	Cash and cash equivalents		$	45,653		52,560
	Accounts receivable, net			124,580		144,082
	Contract assets			95,002		96,746
	Inventories			145,342		136,189
	Other current assets			17,523		17,053
		Total current assets		428,100		446,630
	Property, plant and equipment, net			143,401		139,870
	Intangible assets, net			345,261		346,632
	Goodwill			411,661		408,063
	Operating lease assets			18,929		21,390
	Other assets			10,050		10,938
			$	1,357,402		1,373,523
Liabilities and Shareholders’ Equity
	Current maturities of long-term debt & short-term borrowings		$	20,000		22,368
	Accounts payable			47,091		50,525
	Contract liabilities			106,622		100,551
	Other current liabilities			72,870		82,585
		Total current liabilities		246,583		256,029
	Deferred tax liabilities			59,949		60,938
	Non-current operating lease liabilities			14,501		16,785
	Other liabilities			39,362		38,176
	Long-term debt			2,000		40,000
	Shareholders’ equity			995,007		961,595
			$	1,357,402		1,373,523

   

   

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
(Dollars in thousands)
		Six Months Ended March 31, 2021
Cash flows from operating activities:
Net earnings	$	30,000
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization		20,115
Stock compensation expense		2,745
Changes in assets and liabilities		7,401
Gain on sale of building and land		(1,950	)
Effect of deferred taxes		(989	)
Net cash provided by operating activities		57,322
Cash flows from investing activities:
Acquisition of business, net of cash acquired		(6,684	)
Proceeds from sale of building and land		1,950
Capital expenditures		(13,153	)
Additions to capitalized software		(3,973	)
Net cash used by investing activities		(21,860	)
Cash flows from financing activities:
Proceeds from long-term debt		34,000
Principal payments on long-term debt and short-term borrowings		(74,368	)
Dividends paid		(4,167	)
Net cash used by financing activities		(44,535	)
Effect of exchange rate changes on cash and cash equivalents		2,166
Net decrease in cash and cash equivalents		(6,907	)
Cash and cash equivalents, beginning of period		52,560
Cash and cash equivalents, end of period	$	45,653

   

   

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Other Selected Financial Data (Unaudited)
(Dollars in thousands)
Backlog And Entered Orders – Q2 2021				Aerospace & Defense			Test			USG			Total
	Beginning Backlog – 1/1/21		$	343,212			124,010			44,859			512,081
	Entered Orders			88,206			44,403			43,639			176,248
	Sales			(83,278	)		(43,811	)		(39,555	)		(166,644	)
	Ending Backlog – 3/31/21		$	348,140			124,602			48,943			521,685
Backlog And Entered Orders – YTD Q2 2021				Aerospace & Defense			Test			USG			Total
	Beginning Backlog – 10/1/20		$	344,661			122,032			50,688			517,381
	Entered Orders			153,648			87,899			92,350			333,897
	Sales			(150,169	)		(85,329	)		(94,095	)		(329,593	)
	Ending Backlog – 3/31/21		$	348,140			124,602			48,943			521,685

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures (Unaudited)
EPS – Adjusted Basis Reconciliation – Q2 2021
	EPS – GAAP Basis – Q2 2021	$	0.62
	Adjustments (defined below)		(0.03	)
	EPS – As Adjusted Basis – Q2 2021	$	0.59
	Adjustments exclude $0.03 per share consisting of income associated with the final
	settlement from the sale of the Doble Watertown facility partially offset by charges
	related to the Doble Manta facility consolidation in the second quarter of 2021.
	(The $0.03 of EPS adjustments per share consists of $934K of pre-tax income
	offset by $215K of tax expense for net impact of $719K.)
EPS – Adjusted Basis Reconciliation – YTD Q2 2020
	EPS from Continuing Ops – GAAP Basis – YTD Q2 2020	$	1.09
	Adjustments (defined below)		0.02
	EPS from Continuing Ops – As Adjusted Basis – YTD Q2 2020	$	1.11
	Adjustments exclude $0.02 per share consisting of move costs associated with the
	Doble facility consolidation in the first six months of 2020.
	(The $0.02 of EPS adjustments per share consists of $690K of pre-tax charges
	offset by $166K of tax benefit for net impact of $524K.)

   

SOURCE ESCO Technologies Inc.
Kate Lowrey, Director of Investor Relations, (314) 213-7277
   
   
   

LORDSTOWN, Ohio, May 04, 2021 (GLOBE NEWSWIRE) — Lordstown Motors Corp. (Nasdaq: RIDE), (“Lordstown Motors”), a leader in electric light duty trucks focused on the commercial fleet market, today announced that it will release its first quarter 2021 financial results before market open on May 17, 2021. The company will then host a conference call at 10:00 a.m. Eastern Time.

The call can be accessed via a live webcast accessible on the Events page of Lordstown Motors’ Investor Relations website at https://investor.lordstownmotors.com/. An archive of the webcast will be available shortly after the call.

About Lordstown Motors Corp.

Lordstown Motors Corp. is an Ohio-based original equipment manufacturer of light duty fleet vehicles, founded by CEO Steve Burns with the purpose of transforming Ohio’s Mahoning Valley and Lordstown, Ohio, into the epicenter of electric-vehicle manufacturing. The company owns the 785 acre, 6.2 million square foot Lordstown Assembly Plant where it plans to build the Lordstown Endurance, believed to be the world’s first full-size, all-electric pickup truck designed to serve the commercial fleet market. For additional information visit www.lordstownmotors.com.

Forward Looking Statements

This press release includes forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “feel,” “believes,” expects,” “estimates,” “projects,” “intends,” “should,” “is to be,” or the negative of such terms, or other comparable terminology. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein due to many factors, including, but not limited to: our limited operating history and our significant projected funding needs; risks associated with the conversion and retooling of our facility and ramp up of production; our inability to obtain binding purchase orders from customers and potential customers’ inability to integrate our electric vehicles into their existing fleets; our inability to retain key personnel and to hire additional personnel; competition in the electric pickup truck market; our inability to develop a sales distribution network; and the ability to protect our intellectual property rights. Any forward-looking statements speak only as of the date on which they are made, and Lordstown Motors Corp. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

Contacts:

Investors
Carter Driscoll
[email protected]  

Media
Ryan Hallett
[email protected]  

LITTLE ROCK, Ark., May 04, 2021 (GLOBE NEWSWIRE) — Uniti Group Inc. (“Uniti”) (Nasdaq: UNIT) announced today that its Board of Directors declared a quarterly cash dividend of $0.15 per share, payable on July 2, 2021 to stockholders of record on June 18, 2021.

ABOUT UNITI

Uniti, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure, and is a leading provider of wireless infrastructure solutions for the communications industry. As of December 31, 2020, Uniti owns over 123,000 fiber route miles, approximately 6.9 million fiber strand miles, and other communications real estate throughout the United States. Additional information about Uniti can be found on its website at www.uniti.com.

INVESTOR AND MEDIA CONTACTS:

Mark A. Wallace, 501-850-0866
Executive Vice President, Chief Financial Officer & Treasurer
[email protected]

Bill DiTullio, 501-850-0872
Vice President, Finance and Investor Relations
[email protected]

TORONTO, May 04, 2021 (GLOBE NEWSWIRE) — Data On Tap Inc. (dotmobile), Canada’s first Full Mobile Virtual Network Operator (MVNO), is asking the Minister of Innovation, Science and Industry (ISI) to review and vary the Canadian Radio-television and Telecommunications Commission’s (CRTC) recent Telecom Regulatory Policy 2021-130.

“The CRTC decision misinterprets Canada’s wireless policy. Industry analysts, telecom experts, competitive regional providers and even the dominant carriers all recognise that this decision will not have any meaningful, immediate or nation-wide effect on the wireless market,” said Algis Akstinas, CEO of Data on Tap Inc. “It is not addressing the pain points that kicked off the Review of Mobile Wireless Services and were validated by the Commission and Competition Bureau Canada during the proceeding.”

When the CRTC issued the notice of consultation in 2019, two days after being issued a new policy direction, they presumed that a mandated MVNO framework would be required to meet the policy direction: “[I]t is the Commission’s preliminary view that it would be appropriate to mandate that the national wireless carriers provide wholesale MVNO access as an outcome of this proceeding. The Commission considers that, on balance, it is likely that the benefits that a well-developed MVNO market would deliver to Canadians are now more likely to outweigh any negative impacts that a policy of mandated wholesale MVNO access might have on wireless carriers’ network investments[.]”

Despite this and mounting evidence of market power and coordination, the CRTC decided to mandate temporary access to dominant networks for existing wireless carriers, but only where they already have unused spectrum licenses. The decision was announced shortly after the deadline for participating in the next spectrum auction had passed.

The CRTC issued this decision on their Review of Mobile Wireless Services on April 15th, 2021. This ruling will define the Canadian national wireless market, similar to home internet regulations, for the next 5-10 years.

“Fixed or wireless. Rural or urban. The need for better, more affordable connectivity exists across Canada. This decision was made to benefit a handful of Canadian families instead of all Canadians, no matter who they are or where they live,” said Alex Bauman, CXO of Data on Tap Inc.

In the petition, Data On Tap proposes that wholesale access to national Radio-Access Networks (RAN) be made available to the CRTC registered Full MVNOs, removing all spectrum requirements and RAN facilities requirements. The company also proposes maximum wholesale rates for talk, text, and data in order for Full MVNOs to offer the mandated affordable and occasional use plans.

Data On Tap believes the evidence presented during the Review of Mobile Wireless Services shows that mandating a wholesale framework for the Full MVNO model delivers the greatest impact on service innovation and differentiated pricing, while preserving the investments into expansions of networks.

“The interpretation that telecom investment is predominantly in building cell towers is outdated, an idea from 2006 before hyperscalers like AWS and GCP existed and Netflix was still mailing DVDs. The industry is consolidating or sharing radio access networks. Ignoring this industry trend and the opportunity for innovation is a typical telecom mistake, a la Nortel or BlackBerry,” says Alex Bauman, CXO of Data On Tap Inc.

“The impending market consolidation between Shaw and Rogers, a big change that is not factored into the CRTC decision, is proof that meaningful and sustainable competition is not possible without a mandated wholesale framework and much lower barriers of entry. The Canadian government needs to remedy this policy and send a message about fair equitable access to the essential national network infrastructure that all Canadians contribute to each and every month,” said Algis Akstinas, CEO of Data on Top Inc.

Data On Tap Inc. has been approved as Canada’s first Full Mobile Virtual Network Operator (Full MVNO) by The Canadian Radio-television and Telecommunications Commission (CRTC). A Full MVNO operates essentially the same technology as a mobile network operator, but without owning the radio access network (ie. cell towers). Instead, the core network connects to one or more existing radio access networks, similar to a mobile network operator sharing or roaming on another operator’s network.

Earlier this year the company encouraged the Competition Bureau to re-evaluate its support for facilities-based competition as part of its assessment of impending Rogers acquisition of Shaw.

About Data On Tap Inc.

Data on Tap Inc. is building dotmobile™, a smart tiny telecom with a simple goal – to make wireless more affordable and awesome for youth, seniors, students, new Canadians, visitors to the country, small businesses, and families that want to save.

Data On Tap™, dotmobile™, dot.™ and the dotmobile logo are trademarks of Data On Tap Inc.

Contacts

[email protected]

LUXEMBOURG, May 04, 2021 (GLOBE NEWSWIRE) — NeoGames S.A. (Nasdaq: NGMS) (“NeoGames” or the “Company”), a technology-driven provider of end-to-end iLottery solutions, announced today that it will release its first quarter 2021 results after the market closes on Thursday, May 13, 2021.

The Company will host a conference call and audio webcast on Friday, May 14, 2021 at 8:30 am Eastern Time to discuss the results. To listen to the audio webcast and live Q&A, please visit the NeoGames’ investor relations website at ir.neogames.com. Interested parties may also dial (833) 301-1152 or, for international callers, (914) 987-7393. The conference call access code is 9281315.

An audio replay of the webcast will be available on NeoGames’ investor relations website shortly after the call for one year.

About NeoGames

NeoGames is a technology-driven innovator and a global provider of iLottery solutions for national and state-regulated lotteries. NeoGames’ full-service solution combines proprietary technology platforms with the experience and expertise required for successful iLottery operations. NeoGames’ pioneering game studio encompasses an extensive portfolio of engaging online lottery games that deliver an entertaining player experience. As a trusted partner to lotteries worldwide, the Company works with its customers to maximize their success, offering a comprehensive solution that empowers them to deliver enjoyable and profitable iLottery programs to their players, generate more revenue, and direct proceeds to good causes.

Contacts

Investor Contact:
[email protected]

Media Relations:
[email protected]

SAN FRANCISCO, May 04, 2021 (GLOBE NEWSWIRE) — Dolby Laboratories, Inc. (NYSE:DLB) today announced the company’s financial results for the second quarter of fiscal 2021. For the second quarter, Dolby reported total revenue of $319.6 million, compared to $351.8 million for the second quarter of fiscal 2020.

“We continue to see growing momentum in the number of Dolby experiences being enabled by our partners across a broad range of content,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “We have expanded our reach within music and gaming, and Dolby.io is opening the door to bring Dolby to more content experiences.”

Second quarter GAAP net income was $76.2 million, or $0.73 per diluted share, compared to GAAP net income of $88.5 million, or $0.86 per diluted share, for the second quarter of fiscal 2020. On a non-GAAP basis, second quarter net income was $94.8 million, or $0.91 per diluted share, compared to $106.6 million, or $1.04 per diluted share for the second quarter of fiscal 2020. Second quarter cash flows from operations was $83.5 million, compared to $65.7 million for the second quarter of fiscal 2020. A complete listing of Dolby’s non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release. 

COVID-19

Dolby continues to monitor the COVID-19 pandemic and its impact on our company. The safety and well-being of our employees and supporting our communities continue to be priorities. Since the initial outbreak of COVID-19, our revenue  continues to be impacted across various markets within licensing and products and services. The implications of COVID-19 on our future results of operations remain uncertain.

We expect continued uncertainty in global financial markets. Dolby’s financial results for the second quarter of fiscal 2021 rely on estimates of royalty-based revenue that take into consideration the macroeconomic effect of global events, including COVID-19, which may impact supply chain activities and consumer demand for electronic products.

Dividend

Today, Dolby announced a cash dividend of $0.22 per share of Class A and Class B common stock, payable on May 25, 2021, to stockholders of record as of the close of business on May 17, 2021.

Financial Outlook

The volume of shipments, aggregated across various end markets and devices, continues to be impacted and difficult to predict because of economic uncertainty due to COVID-19. The global cinema market has been adversely impacted by COVID-19, and it remains uncertain when and where cinemas will resume operating at full capacity.

Our actual results could differ materially from the estimates we are providing due in part to the challenging economic environment and highly uncertain effects of COVID-19. The estimates we are providing for future periods reflect certain assumptions about the potential impact of COVID-19, based upon a consideration of external and internal data and information. For more information, see “Forward-Looking Statements” in this press release for a description of certain risks that we face, and the section captioned “Risk Factors” in our Quarterly Report on Form 10-Q for the second quarter of fiscal 2021, filed on or around the date hereof.

Third Quarter Fiscal 2021

Dolby is providing the following estimates for its third quarter of fiscal 2021:

• Total revenue is estimated to range from $260 million to $290 million
• Gross margin percentages are anticipated to range from 88% to 89% on a GAAP basis and from 89% to 90% on a non-GAAP basis
• Operating expenses are anticipated to range from $210 million to $220 million on a GAAP basis and from $185 million to $195 million on a non-GAAP basis
• Effective tax rate is anticipated to range from 20% to 21% on both a GAAP and non-GAAP basis
• Diluted earnings per share is anticipated to range from $0.15 to $0.30 on a GAAP basis and from $0.37 to $0.52 on a non-GAAP basis

Second Half of Fiscal 2021

Dolby is also providing the following estimate for its second half of fiscal 2021:

• Total revenue is estimated to range from $560 million to $600 million

Conference Call Information

Members of Dolby management will lead a conference call open to all interested parties to discuss second quarter fiscal 2021 financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Tuesday, May 4, 2021. Access to the teleconference will be available at http://investor.dolby.com or by dialing 1-833-789-1331 (or dialing 1-236-714-2740 for international callers), and entering confirmation code 9817368.

A replay of the call will be available from 5:00 p.m. PT on Tuesday, May 4, 2021, until 8:59 p.m. PT on Tuesday, May 11, 2021, by dialing 1-800-585-8367 (international callers can access the replay by dialing 1-416-621-4642) and entering the confirmation code 9817368. An archived version of the teleconference will also be available on the Dolby website, http://investor.dolby.com.

Non-GAAP Financial Information

To supplement Dolby’s financial statements presented on a GAAP basis, Dolby provides certain non-GAAP financial measures to provide investors with an additional tool to evaluate Dolby’s operating results in a manner that focuses on what Dolby’s management believes to be its ongoing business operations. Specifically, we exclude the following as adjustments from one or more of our non-GAAP financial measures:

Stock-based compensation expense: Stock-based compensation, unlike cash-based compensation, utilizes subjective assumptions in the methodologies used to value the various stock-based award types that we grant. These assumptions may differ from those used by other companies. To facilitate more meaningful comparisons between our underlying operating results and those of other companies, we exclude stock-based compensation expense.

Amortization of acquisition-related intangibles: We amortize intangible assets acquired in connection with acquisitions. These intangible assets consist of patents and technology, customer relationships, and other intangibles. We record amortization charges relating to these intangible assets in our GAAP financial statements, and we view these charges as items arising from pre-acquisition activities that are determined by the timing and valuation of our acquisitions. As these amortization charges do not directly correlate to our operations during any particular period, and often remain unchanged between reporting periods, we exclude these charges to facilitate an evaluation of our current operating results and comparisons to our past operating performance.

Restructuring charges: Restructuring charges are costs associated with restructuring plans and primarily relate to costs associated with exit or disposal activities, employee severance benefits, and asset impairments. We exclude restructuring costs, including any adjustments to charges recorded in prior periods, as we believe that these costs are not representative of our normal operating activities and therefore, excluding these amounts enables a more effective comparison to our past operating performance.

Income tax adjustments: We believe that excluding the income tax effect of the aforementioned non-GAAP adjustments provides a more accurate view of our underlying operating results to management and investors.

Other operating income adjustments: We are excluding a one-time gain on the sale of property, which was previously classified as held for sale, finalized during the first quarter of fiscal 2021. The property was 51% owned by the controlling interest, therefore 51% of the gain recognized has been attributed to the controlling interest.

Using the aforementioned adjustments, Dolby provides various non-GAAP financial measures including, but not limited to: non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, and non-GAAP effective tax rate. Dolby’s management believes it is useful for itself and investors to review both GAAP and non-GAAP measures to assess the performance of Dolby’s business. Dolby’s management does not itself, nor does it suggest that investors should, consider non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Whenever Dolby uses non-GAAP financial measures, it provides a reconciliation of the non-GAAP financial measures to the most closely applicable GAAP financial measures. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures as detailed above. Investors are also encouraged to review Dolby’s GAAP financial statements as reported in its US Securities and Exchange Commission (SEC) filings. A reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release and on the Dolby investor relations website, http://investor.dolby.com.

Forward-Looking Statements

Certain statements in this press release, including, but not limited to, statements relating to Dolby’s expected financial results for the third quarter and second half of fiscal 2021, our ability to advance our long-term objectives, and future dividend payments are “forward-looking statements” that are subject to risks and uncertainties. These forward-looking statements are based on management’s current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those provided. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: the potential impacts of COVID-19 on Dolby’s business operations, financial results, and financial position (including the impact to Dolby partners and disruption of the supply chain and delays in shipments of consumer products; consumer demand for products that incorporate Dolby technologies; delays in the development and release of new products or services that contain Dolby technologies; delays in royalty reporting or delinquent payment by partners or licensees; the impact to the overall cinema market, including closures or limitations of cinema capacity and resulting adverse impact to Dolby’s revenue recognized on box-office sales and demand for cinema products and services; temporary Dolby office closures and other actions to protect Dolby’s workforce; and macroeconomic conditions that affect discretionary spending and access to products that contain Dolby technologies); risks associated with trends in the markets in which Dolby operates, including the Broadcast, Mobile, Consumer Electronics, PC, Cinema, and Other Markets; the loss of, or reduction in sales by, a key customer or licensee; pricing pressures; risks that the continued shift in content distribution from optical disc-based and other traditional media to online and streaming media content could result in fewer devices with Dolby technologies or less revenue from such devices; risks relating to conducting business internationally, including trade restrictions and changes in diplomatic or trade relationships; risks relating to the expiration of patents; the timing of Dolby’s receipt of royalty reports and payments from its licensees, including recoveries; changes in tax regulations; timing of revenue recognition under licensing agreements and other contractual arrangements; Dolby’s ability to develop, maintain, and strengthen relationships with industry participants; Dolby’s ability to develop and deliver innovative technologies in response to new and growing markets; competitive risks; risks associated with conducting business in China and other countries that have historically limited recognition and enforcement of intellectual property and contractual rights; risks associated with the health of the motion picture industry generally; Dolby’s ability to increase its revenue streams and to expand its business generally, and to continue to expand its business beyond its current technology offerings; risks associated with acquiring and successfully integrating businesses or technologies; and other risks detailed in Dolby’s SEC filings and reports, including the risks identified under the section captioned “Risk Factors” in our most recent quarterly report on Form 10-Q. Dolby disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

About Dolby Laboratories

Dolby Laboratories (NYSE: DLB) is based in San Francisco, California with offices around the globe. From movies and TV shows, to apps, music, sports and gaming, Dolby transforms the science of sight and sound into spectacular experiences for billions of people worldwide. We partner with artists, storytellers, developers, and businesses to revolutionize entertainment and communications with Dolby Atmos, Dolby Vision, Dolby Cinema, and Dolby.io.

Dolby, Dolby Atmos, Dolby Vision, Dolby Cinema, Dolby.io, and the double-D symbol are among the registered and unregistered trademarks of Dolby Laboratories, Inc. in the United States and/or other countries. Other trademarks remain the property of their respective owners. DLB-F

DOLBY LABORATORIES, INC.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts; unaudited)

	Fiscal Quarter Ended									Fiscal Year-To-Date Ended
	March 26, 2021				March 27, 2020					March 26, 2021				March 27, 2020
Revenue:
Licensing	$	303,585			$	328,865				$	676,590			$	586,548
Products and services	15,973				22,950					32,842				57,144
Total revenue	319,558				351,815					709,432				643,692
Cost of revenue:
Cost of licensing	16,060				13,243					29,006				25,585
Cost of products and services	16,318				23,587					38,676				48,560
Total cost of revenue	32,378				36,830					67,682				74,145
Gross margin	287,180				314,985					641,750				569,547
Operating expenses:
Research and development	65,808				60,086					129,580				117,736
Sales and marketing	78,046				88,485					153,491				183,603
General and administrative	59,398				60,800					113,852				113,329
Gain on sale of assets	—				—					(13,871		)		—
Restructuring charges/(credits)	741				(331		)			10,764				344
Total operating expenses	203,993				209,040					393,816				415,012
Operating income	83,187				105,945					247,934				154,535
Other income/(expense):
Interest income	962				4,721					1,936				9,653
Interest expense	(167		)		(25		)			(252		)		(97		)
Other income, net	1,385				138					2,711				1,142
Total other income	2,180				4,834					4,395				10,698
Income before income taxes	85,367				110,779					252,329				165,233
Provision for income taxes	(9,022		)		(22,105		)			(33,294		)		(27,968		)
Net income including controlling interest	76,345				88,674					219,035				137,265
Less: net income attributable to controlling interest	(128		)		(178		)			(7,620		)		(16		)
Net income attributable to Dolby Laboratories, Inc.	$	76,217			$	88,496				$	211,415			$	137,249
Net income per share:
Basic	$	0.75			$	0.88				$	2.09			$	1.36
Diluted	$	0.73			$	0.86				$	2.02			$	1.33
Weighted-average shares outstanding:
Basic	101,464				100,854					101,090				100,595
Diluted	104,581				102,773					104,414				103,133

DOLBY LABORATORIES, INC.

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands; unaudited)

	March 26, 2021				September 25, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	1,104,570			$	1,071,876
Restricted cash	8,926				8,103
Short-term investments	58,582				46,948
Accounts receivable, net	283,505				180,340
Contract assets, net	233,379				161,357
Inventories, net	14,881				25,550
Prepaid expenses and other current assets	47,305				53,022
Total current assets	1,751,148				1,547,196
Long-term investments	42,188				52,149
Property, plant, and equipment, net	542,702				541,963
Operating lease right-of-use assets	71,976				76,515
Goodwill and intangible assets, net	475,179				489,376
Deferred taxes	135,551				118,881
Other non-current assets	87,546				91,245
Total assets	$	3,106,290			$	2,917,325
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	8,385			$	12,617
Accrued liabilities	254,163				219,974
Income taxes payable	11,087				3,260
Contract liabilities	20,029				15,436
Operating lease liabilities	15,313				15,822
Total current liabilities	308,977				267,109
Non-current contract liabilities	23,369				24,342
Non-current operating lease liabilities	61,165				65,315
Other non-current liabilities	118,559				122,154
Total liabilities	512,070				478,920
Stockholders’ equity:
Class A common stock	59				58
Class B common stock	41				41
Retained earnings	2,591,870				2,443,138
Accumulated other comprehensive loss	(4,039		)		(10,594		)
Total stockholders’ equity – Dolby Laboratories, Inc.	2,587,931				2,432,643
Controlling interest	6,289				5,762
Total stockholders’ equity	2,594,220				2,438,405
Total liabilities and stockholders’ equity	$	3,106,290			$	2,917,325

DOLBY LABORATORIES, INC.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands; unaudited)

									Fiscal Year-to-Date Ended
									March 26, 2021								March 27, 2020
Operating activities:
Net income including controlling interest									$		219,035						$		137,265
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization									47,399								40,212
Stock-based compensation									50,726								43,565
Amortization of premium on investments									697								334
Provision/(benefit) for credit losses									(65				)				2,955
Deferred income taxes									(16,992				)				(15,141				)
Gain on sale of assets									(13,871				)				—
Other non-cash items affecting net income									(1,847				)				3,753
Changes in operating assets and liabilities:
Accounts receivable, net									(102,791				)				(60,870				)
Contract assets									(72,197				)				(28,086				)
Inventories									10,398								(5,376				)
Operating lease right-of-use assets									6,809								(20,102				)
Prepaid expenses and other assets									10,552								(16,068				)
Accounts payable and accrued liabilities									26,926								(21,431				)
Income taxes, net									9,982								13,238
Contract liabilities									3,589								452
Operating lease liabilities									(6,987				)				20,099
Other non-current liabilities									(5,735				)				2,100
Net cash provided by operating activities									165,628								96,899
Investing activities:
Purchases of investment securities									(26,449				)				(167,292				)
Proceeds from sales of investment securities									4,594								109,907
Proceeds from maturities of investment securities									18,620								54,599
Purchases of property, plant, and equipment									(28,887				)				(41,782				)
Proceeds from sale of assets									16,365								—
Purchase of intangible assets									—								(2,640				)
Net cash used in investing activities									(15,757				)				(47,208				)
Financing activities:
Proceeds from issuance of common stock									71,157								53,986
Repurchase of common stock									(110,775				)				(101,672				)
Payment of cash dividend									(44,574				)				(44,336				)
Distribution to controlling interest									(7,362				)				(283				)
Shares repurchased for tax withholdings on vesting of restricted stock									(29,216				)				(21,094				)
Payment related to prior purchases of intangible assets									—								(91				)
Payment of deferred consideration for prior business combination									—								(3,000				)
Net cash used in financing activities									(120,770				)				(116,490				)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash									4,416								(4,350				)
Net increase/(decrease) in cash, cash equivalents, and restricted cash									33,517								(71,149				)
Cash, cash equivalents, and restricted cash at beginning of period									1,079,979								805,593
Cash, cash equivalents, and restricted cash at end of period									$		1,113,496						$		734,444

GAAP to Non-GAAP Reconciliations
(in millions, except per share data; unaudited)
The following tables present Dolby’s GAAP financial measures reconciled to the non-GAAP financial measures included in this release for the second quarter and year-to-date period ended March 26, 2021 and March 27, 2020:
Net income:	Fiscal Quarter Ended									Fiscal Year-To-Date Ended
	March 26, 2021				March 27, 2020					March 26, 2021				March 27, 2020
GAAP net income	$	76.2			$	88.5				$	211.4			$	137.2
Stock-based compensation (1)	24.4				21.0					50.7				43.6
Amortization of acquisition-related intangibles (2)	2.5				2.4					5.0				4.6
Restructuring charges	0.8				(0.3		)			10.8				0.4
Income tax adjustments	(9.1		)		(5.0		)			(23.0		)		(13.8		)
Other operating income adjustments	—				—					(6.8		)		—
Non-GAAP net income	$	94.8			$	106.6				$	248.1			$	172.0
(1) Stock-based compensation included in above line items:
Cost of products and services	$	0.5			$	0.5				$	1.1			$	1.0
Research and development		7.2				6.2					15.1				13.2
Sales and marketing		9.1				7.7					18.9				15.9
General and administrative		7.6				6.6					15.6				13.5
(2) Amortization of acquisition-related intangibles included in above line items:
Cost of licensing	$	0.7			$	1.1				$	1.4			$	1.7
Cost of products and services	0.9				0.8						1.8			1.2
Research and development	0.1				0.1						0.2			0.2
Sales and marketing	0.8				0.7						1.6			1.5
General and administrative	—				(0.3		)				—			—
Diluted earnings per share:	Fiscal Quarter Ended									Fiscal Year-To-Date Ended
	March 26, 2021				March 27, 2020					March 26, 2021				March 27, 2020
GAAP diluted earnings per share	$	0.73			$	0.86				$	2.02			$	1.33
Stock-based compensation	0.24				0.21					0.49				0.43
Amortization of acquisition-related intangibles	0.02				0.02					0.04				0.04
Restructuring charges	0.01				—					0.11				0.01
Income tax adjustments	(0.09		)		(0.05		)			(0.22		)		(0.13		)
Other operating income adjustments	—				—					(0.06		)		—
Non-GAAP diluted earnings per share	$	0.91			$	1.04				$	2.38			$	1.68
Shares used in computing diluted earnings per share	105				103					104				103
The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial amounts for the third quarter of fiscal 2021 included in this release:
Gross margin:					Q3 2021
GAAP gross margin (low – high end of range)					88% – 89%
Stock-based compensation					0.4			%
Amortization of acquisition-related intangibles					0.6			%
Non-GAAP gross margin (low – high end of range)					89% – 90%
Operating expenses:					Q3 2021
GAAP operating expenses (low – high end of range)					$210 – $220
Stock-based compensation					(24		)
Amortization of acquisition-related intangibles					(1		)
Non-GAAP operating expenses (low – high end of range)					$185 – $195
Diluted earnings per share:	Q3 2021
	Low				High
GAAP diluted earnings per share	$	0.15			$	0.30
Stock-based compensation	0.24				0.24
Amortization of acquisition-related intangibles	0.03				0.03
Income tax adjustments	(0.05		)		(0.05		)
Non-GAAP diluted earnings per share	$	0.37			$	0.52
Shares used in computing diluted earnings per share	104				104

Investor Contact:

Jason Dea
Dolby Laboratories, Inc.
415-357-7002
[email protected]

Media Contact:

Karen Hartquist
Dolby Laboratories, Inc.
415-505-8357
[email protected]

MONTREAL, May 04, 2021 (GLOBE NEWSWIRE) — DAVIDsTEA Inc. (Nasdaq:DTEA) (“DAVIDsTEA” or the “Company”), a leading tea merchant in North America, announces that it will seek authorization from the Québec Superior Court on Friday, May 7, 2021 to file its Plan of Arrangement under the Companies’ Creditors Arrangement Act (“CCAA”) and to call a creditors’ meeting to be held on June 11, 2021. The Plan of Arrangement to be submitted to the creditors for approval provides that DAVIDsTEA will distribute an aggregate amount of approximately CDN $18 million to its creditors and those of DAVIDsTEA (USA) Inc., the Company’s wholly-owned U.S. subsidiary, in full and final settlement of all claims affected by the Plan of Arrangement.

“The Plan of Arrangement results from extensive discussions with our creditors. We thank them for their understanding, co-operation and patience and look forward to completing the CCAA process following the creditors’ meeting on June 11,” said Herschel Segal, DAVIDsTEA’s Chairman and Founder.

Under the CCAA, the Plan of Arrangement must be approved by a simple majority of creditors of DAVIDsTEA and of DAVIDsTEA (USA) Inc., voting separately, whose claims are affected by the Plan of Arrangement, representing in each case at least two-thirds in dollar value of all such claims duly filed in accordance with the CCAA proceedings.

As previously announced, PwC is acting as Court-appointed Monitor in the CCAA proceedings. All documents relating to the CCAA proceedings, including the Plan of Arrangement, will be available at www.pwc.com/ca/davidstea. The Company will continue to provide updates throughout the CCAA restructuring process as events warrant.

DAVIDsTEA can provide no assurance that it will obtain authorization from the Québec Superior Court to file its Plan of Arrangement and call a creditors’ meeting, or that the proposed Plan of Arrangement will be accepted by the respective creditors of DAVIDsTEA Inc. and DAVIDsTEA (USA) Inc. on the terms set out therein, or at all.

Caution Regarding Forward-Looking Statements

This press release includes statements that express our opinions, expectations, beliefs, plans or assumptions regarding future events or future results and there are, or may be deemed to be, in this press release “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). The following cautionary statements are being made pursuant to the provisions of the Act and with the intention of obtaining the benefits of the “safe harbor” provisions of the Act. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes”, “expects”, “may”, “will”, “should”, “approximately”, “intends”, “plans”, “estimates” or “anticipates” or, in each case, their negatives or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our proceedings under the CCAA, authorization by the Québec Superior Court to file the Plan of Arrangement and call a creditors’ meeting, approval of the Plan of Arrangement by the creditors of DAVIDsTEA Inc. and DAVIDsTEA (USA) Inc., respectively, by the requisite majorities, the COVID-19 pandemic, our strategy of transitioning to e-commerce and wholesale sales, future sales through our e-commerce and wholesale channels, future lease liabilities, our results of operations, financial condition, liquidity and prospects, the impact of the COVID-19 pandemic on the global macroeconomic environment, and our ability to avoid the delisting of the Company’s common stock by Nasdaq due to the restructuring or our inability to maintain compliance with Nasdaq listing requirements.

While we believe these opinions and expectations are based on reasonable assumptions, such forward-looking statements are inherently subject to risks, uncertainties and assumptions about us, including the risk factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for our fiscal year ended January 30, 2021, filed with both the United States Securities and Exchange Commission and with the Autorité des marchés financiers, which could materially affect our business, financial condition or future results.

About DAVIDsTEA

DAVIDsTEA offers a specialty branded selection of high-quality proprietary loose-leaf teas, pre-packaged teas, tea sachets, tea-related accessories and gifts through its e-commerce platform at www.davidstea.com and the Amazon Marketplace, its wholesale customers which include over 2,500 grocery stores and pharmacies, and 18 company-owned stores across Canada. We offer primarily proprietary tea blends that are exclusive to DAVIDsTEA, as well as traditional single-origin teas and herbs. Our passion for and knowledge of tea permeates our culture and is rooted in an excitement to explore the taste, health and lifestyle elements of tea. With a focus on innovative flavours, wellness-driven ingredients and organic tea, the Company launches seasonally driven “collections” with a mission of making tea accessible to a wide audience. The Company is headquartered in Montréal, Canada.

Investor Contact	Media Contact
Maison Brison Communications	PELICAN PR
Pierre Boucher	Lyla Radmanovich
514-731-0000	514-845-8763
[email protected]	[email protected]

MONROE, Mich., May 04, 2021 (GLOBE NEWSWIRE) — Directors of La-Z-Boy Incorporated (NYSE: LZB) declared a quarterly cash dividend on the company’s common stock of $0.15 per share. The dividend is payable June 15, 2021, to shareholders of record as of June 1, 2021.

Additional Information

This news release is just one part of La-Z-Boy’s financial disclosures and should be read in conjunction with other information filed with the Securities and Exchange Commission, which is available at: https://lazboy.gcs-web.com/financial-information/sec-filings. Investors and others wishing to be notified of future La-Z-Boy news releases, SEC filings and quarterly investor conference calls may sign up at: https://lazboy.gcs-web.com/. 

Background Information

La-Z-Boy Incorporated is one of the world’s leading residential furniture producers, marketing furniture for every room of the home. The Wholesale segment includes England, La-Z-Boy, American Drew^®, Hammary^®, and Kincaid^®. The company-owned Retail segment includes 158 of the 351 La-Z-Boy Furniture Galleries^® stores. Joybird is an e-commerce retailer and manufacturer of upholstered furniture.

The corporation’s branded distribution network is dedicated to selling La-Z-Boy Incorporated products and brands, and includes 351 stand-alone La-Z-Boy Furniture Galleries^® stores and 563 independent Comfort Studio^® locations, in addition to in-store gallery programs for the company’s Kincaid and England operating units. Additional information is available at http://www.la-z-boy.com/.

Contact: Kathy Liebmann

(734) 241-2438

[email protected]