Newsdesk, Author at Market Newsdesk

February 4, 2021 4:08 pm

Skechers Announces Fourth Quarter and Full Year 2020 Financial Results

Skechers Announces Fourth Quarter and Full Year 2020 Financial Results

MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
SKECHERS U.S.A., Inc. (“Skechers” or the “Company”) (NYSE:SKX), a global footwear leader, today announced financial results for the fourth quarter and full year ended December 31, 2020.

Fourth Quarter Highlights

Sales of $1.32 billion, a decrease of 0.5% year-over-year
Domestic Wholesale sales grew 1.2% year-over-year
China sales grew 29.7% year-over-year
Diluted earnings per share were $0.34, including a one-time tax benefit of $0.10 per share
Cash and cash equivalents were $1.37 billion at quarter-end

“For Skechers, 2020 began with positive momentum following a year of record sales, but the global pandemic put us to the test. This past year, we were forced to act and react faster and continue to do so given the on-going health crisis. In the fourth quarter, we nearly drove our sales to a new fourth quarter record,” began Robert Greenberg, Chief Executive Officer of Skechers. “Our consumers want comfort and familiarity, especially those working from home and essential workers. We are a natural and trusted choice as comfort is the cornerstone of our product. The enhanced comfort and technology features offered within our athletic and casual footwear, including the boot and work collections delivered what consumers needed. We have a history of delivering quality and value, and athletic lifestyle footwear is one of our leading product categories. In the fourth quarter, we also expanded efforts to communicate our comfort messaging across numerous digital channels as well as through more traditional advertising methods. Remaining authentic was paramount in 2020, but the challenges we faced last year and are still facing in 2021, have created an even more agile and focused company—one with products that will remain in-demand during the ongoing crisis and beyond.”

“In the face of the continuing global pandemic, Skechers experienced sales down only half a percent from the record fourth quarter sales of 2019, a significant accomplishment during this challenging time and a testament to the strength and relevance of our brand,” stated David Weinberg, Chief Operating Officer of Skechers. “Skechers has always been quick to market and able to pivot. We effectively managed the flow of our inventory to open markets, fulfilling demand as we delivered must-have products to consumers. We saw our athletic lifestyle, walking and work footwear products for men and women drive Domestic Wholesale growth. Our International Wholesale business achieved 2.5% sales growth led by a 29.7% increase in China, as well as double-digit increases in Chile, United Kingdom, Germany and Spain, among others. Though our Direct-to-Consumer sales decreased 6.4%, primarily due to the temporary closures and reduced operating hours of stores, we experienced triple-digit growth in our domestic e-commerce sales. New Skechers stores opened in select domestic and international markets, including our first dedicated golf store, located at the premier Mission Hills resort in China. While we understand the economic recovery from the COVID-19 pandemic will not be quick and many regions are still being impacted, Skechers remains a desired brand. As we plan for future success, we continue to invest in our long-term growth potential, including improving our supply chain in the United States, Asia and Europe and other select markets, scaling innovation within our operations, and further enhancing our digital capabilities with the planned roll out of e-commerce platforms around the world.”

Fourth Quarter 2020 Financial Results

	Three Months Ended
	December 31,						Change
(in millions, except per share data)	2020			2019			$			%
Sales	$	1,324.7		$	1,330.7		$	(6.0	)		(0.5	%)
Gross profit		648.4			637.7			10.7			1.7	%
Gross margin		48.9	%		47.9	%
SG&A expenses		595.7			548.3			47.4			8.6	%
As a % of sales		45.0	%		41.2	%
Earnings from operations		57.7			94.1			(36.4	)		(38.7	%)
Operating margin		4.4	%		7.1	%
Net earnings		53.3			59.5			(6.2	)		(10.4	%)
Diluted earnings per share	$	0.34		$	0.39		$	(0.05	)		(12.8	%)
Adjusted diluted earnings per share	$	0.24		$	0.39		$	(0.15	)		(38.5	%)

Fourth quarter sales decreased 0.5% as a result of a 2.8% decrease in the Company’s domestic sales partially offset by a 1.1% increase internationally. Domestic declines were driven by lower retail sales partially offset by growth of 142.7% in e-commerce and growth in the wholesale channel. Increases in international sales were driven by wholesale partially offset by declines in retail.

The Company’s Domestic Wholesale sales increased 1.2%, International Wholesale sales increased 2.5% and its Direct-to-Consumer sales decreased 6.4%. Increases in the Company’s International Wholesale segment were driven by growth in its international wholesale subsidiaries and joint ventures, led by increases of 29.7% in China and 22.9% in Europe partially offset by a decline of 57.9% in its distributor sales. Direct-to-Consumer comparable same store sales decreased 13.4%, including decreases of 9.8% domestically and 21.7% internationally.

Gross margin increased 102 basis points to 48.9%, rising in all segments, driven by a favorable mix of international and e-commerce sales and average selling price increases in Domestic Wholesale.

SG&A expenses increased $47.4 million, or 8.6% in the quarter. Selling expenses increased by $9.2 million, or 10.4%, primarily due to higher domestic marketing expenses. General and administrative expenses increased by $38.1 million, or 8.3%. The increase was primarily the result of increases in warehouse and distribution expenses globally.

Earnings from operations decreased $36.4 million, or 38.7%, to $57.7 million.

Net earnings were $53.3 million and diluted earnings per share were $0.34. Net earnings include a one-time tax benefit of $15.9 million resulting from changes in the tax structure of our operations and related benefits provided by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Excluding the effects of this one-time tax benefit, adjusted diluted earnings per share were $0.24.

In the fourth quarter, the Company’s effective income tax rate was a negative 14.0% primarily driven by the aforementioned global restructuring.

“2020 was an extremely challenging year and the fourth quarter was no exception. Multiple markets experienced temporary store closures and significantly restricted operating environments; a situation we expect to continue through the first half of 2021. Despite this, the Skechers brand continued to perform exceptionally well with strong sell through and gross margins, and the Skechers organization continued to manage effectively for today while also investing for the future,” stated, John Vandemore, Chief Financial Officer. “We believe that the strength of our financial position, the prudent investments in our infrastructure around the globe, and the focus on enhancing our digital capabilities, will position Skechers for meaningful long-term growth and shareholder value creation.”

Full Year 2020 Financial Results

Year Ended

December 31,

Change

(in millions, except per share data)

2020

2019

$

%

Sales

$

4,597.4

$

5,220.1

$

(622.7

)

(11.9

%)

Gross profit

2,189.8

2,491.2

(301.4

)

(12.1

%)

Gross margin

47.6

%

47.7

%

SG&A expenses

2,072.1

1,995.2

76.9

3.9

%

As a % of sales

45.1
%

38.2

%

Earnings from operations

133.7

518.4

(384.7

)

(74.2

%)

Operating margin

2.9
%

9.9

%

Net earnings

98.6

346.6

(248.0

)

(71.6

%)

Diluted earnings per share

$

0.64

$

2.25

$

(1.61

)

(71.6

%)

Adjusted diluted earnings per share

$

0.65

$

2.25

$

(1.60

)

(71.1

%)

Full year sales decreased 11.9%, reflecting the impact of the global pandemic on the Company’s businesses worldwide.

Gross margin of 47.6% was relatively flat to the prior year with increases of 160 basis points in Domestic Wholesale and 101 basis points in Direct-to-Consumer offset by a decrease of 71 basis points in International Wholesale.

SG&A expenses increased by $76.9 million or 3.9%.Selling expenses decreased by $51.8 million or 14.0%, primarily due to lower advertising and marketing expenses. General and administrative expenses increased by $128.7 million or 7.9%, primarily driven by increased domestic and international warehouse and distribution expenses, increased depreciation and amortization, including the Skechers Mexico acquisition, and a one-time, non-cash compensation charge related to the cancellation of restricted share grants in the third quarter.

Earnings from operations decreased $384.7 million, or 74.2%, to $133.7 million.

Net earnings were $98.6 million and diluted earnings per share were $0.64. Adjusted to exclude the one-time effects of the third quarter non-cash compensation charge and fourth quarter tax benefit, adjusted diluted earnings per share were $0.65.

Balance Sheet

Cash and cash equivalents totaled $1.37 billion, an increase of $545.9 million, or 66.2% from December 31, 2019. The increase primarily reflects the Company’s outstanding borrowings of $452.5 million against its senior unsecured credit facility.

Total inventory was $1.02 billion, a decrease of $53.1 million or 5.0% from December 31, 2019. Strong inventory management resulted in decreased inventory levels in the Company’s Domestic Wholesale and Direct-to-Consumer segments offset by increased inventory in International Wholesale, primarily to support sales growth in China.

Outlook

The Company is not providing further financial guidance at this time given the ongoing business disruption and substantial uncertainty surrounding the impact of the COVID-19 pandemic on its business globally.

Store Count

Number of Store

Locations as of

Number of Store

Locations as of

December 31, 2019

Opened

Closed⁽¹⁾

December 31, 2020

Domestic stores

497

36

(10

)

523

International stores

303

31

(3

)

331

Joint venture stores

354

142

(29

)

467

Distributor, licensee and franchise stores

2,393

430

(253

)

2,570

Total Skechers stores

3,547

639

(295

)

3,891

(1) Does not reflect temporary closures due to the COVID-19 pandemic.

Certain Non-GAAP Measures

To supplement our unaudited condensed consolidated financial statements presented under generally accepted accounting principles in the United States (“GAAP”), we use the non-GAAP financial measures presented above to evaluate our results of operations, financial condition, liquidity and indebtedness. We believe that these non-GAAP measures provide useful information to investors regarding financial and business trends related to our results of operations, cash flows and indebtedness and that when this non-GAAP financial information is viewed with our GAAP financial information, investors are provided with valuable supplemental information regarding our results of operations, thereby facilitating period-to-period comparisons of our business performance consistent with how management evaluates the Company’s operating performance and liquidity. In addition, these non-GAAP measures address questions the Company routinely receives from analysts and investors and, in order to assure that all investors have access to similar data the Company has determined that it is appropriate to make this data available to all investors. None of the non-GAAP measures presented should be considered as an alternative to net income or loss, operating income, cash flows from operating activities, total indebtedness or any other measures of operating performance and financial condition, liquidity or indebtedness derived in accordance with GAAP. These non-GAAP measures have important limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under GAAP. Our use of these terms may vary from the use of similarly-titled measures by others in our industry due to the potential inconsistencies in the method of calculation and differences due to items subject to interpretation. Reconciliations of these non-GAAP financial measures to the most nearly comparable GAAP financial measures are presented below.

Fourth Quarter 2020 Conference Call

The Company will host a conference call today at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time to discuss its fourth quarter 2020 financial results. The call can be accessed on the Investor Relations section of the Company’s website at investors.skechers.com. For those unable to participate during the live broadcast, a replay will be available beginning February 4, 2021 at 7:30 p.m. ET, through February 18, 2021, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13715391.

About SKECHERS U.S.A., Inc.

Based in Manhattan Beach, California, Skechers designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company’s collections are available in the United States and over 170 countries and territories via department and specialty stores, and direct to consumers through 3,891 Company and third-party-owned retail stores and e-commerce websites. The Company manages its international business through a network of global distributors, joint venture partners in Asia, Israel and Mexico, and wholly-owned subsidiaries in Canada, Japan, India, Europe and Latin America. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, Twitter, and TikTok.

Reference in this press release to “Sales” refers to Skechers’ net sales reported under generally accepted accounting principles in the United States. This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements can be identified by the use of forward-looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will be,” “will continue,” “will result,” “could,” “may,” “might,” or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to the COVID-19 pandemic; international economic, political and market conditions including the challenging consumer retail markets in the United States; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers; decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers’ annual report on Form 10-K for the year ended December 31, 2019 and its quarterly report on Form 10-Q for the three months ended September 30, 2020. More specifically, the COVID-19 pandemic has had and is currently having a significant impact on Skechers’ business, financial conditions, cash flow and results of operations. Forward-looking statements with respect to the COVID-19 pandemic include, without limitation, Skechers’ plans in response to this pandemic. At this time, there is significant uncertainty about the COVID-19 pandemic, including without limitation, (i) the duration and extent of the impact of the pandemic, (ii) governmental responses to the pandemic, including how such responses could impact Skechers’ business and operations, as well as the operations of its factories and other business partners, (iii) the effectiveness of Skechers’ actions taken in response to these risks, and (iv) Skechers’ ability to effectively and timely adjust its plans in response to the rapidly changing retail and economic environment. Taking these and other risk factors associated with the COVID-19 pandemic into consideration, the dynamic nature of these circumstances means that what is stated in this press release could change at any time, and as a result, actual results could differ materially from those contemplated by such forward-looking statements. The risks included here are not exhaustive. Skechers operates in a very competitive and rapidly changing environment. New risks emerge from time to time and we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of future performance.

SKECHERS U.S.A., INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

As of December 31,

(in thousands, except par values)

2020

2019

ASSETS

Current assets:

Cash and cash equivalents

$

1,370,826

$

824,876

Short-term investments

100,767

112,037

Trade accounts receivable, net

619,800

645,303

Other receivables

69,222

53,932

Total receivables

689,022

699,235

Inventory

1,016,774

1,069,863

Prepaid expenses and other current assets

166,962

113,580

Total current assets

3,344,351

2,819,591

Property, plant and equipment, net

935,441

738,925

Operating lease right-of-use assets

1,171,521

1,073,660

Deferred tax assets

63,884

49,088

Long-term investments

108,412

94,589

Goodwill

93,497

71,412

Other assets, net

95,263

45,678

Total non-current assets

2,468,018

2,073,352

TOTAL ASSETS

$

5,812,369

$

4,892,943

LIABILITIES AND EQUITY

Current liabilities:

Current installments of long-term borrowings

$

52,250

$

66,234

Short-term borrowings

3,297

5,789

Accounts payable

744,077

764,844

Operating lease liabilities

204,370

191,129

Accrued expenses

208,712

210,235

Total current liabilities

1,212,706

1,238,231

Long-term borrowings, excluding current installments

679,415

49,183

Long-term operating lease liabilities

1,065,069

966,011

Deferred tax liabilities

11,439

322

Other long-term liabilities

118,077

103,089

Total non-current liabilities

1,874,000

1,118,605

Total liabilities

3,086,706

2,356,836

Stockholders’ equity:

Preferred Stock

—

—

Class A Common Stock

134

131

Class B Common Stock

21

22

Additional paid-in capital

372,165

306,669

Accumulated other comprehensive loss

(27,285

)

(29,993

)

Retained earnings

2,136,400

2,037,836

Skechers U.S.A., Inc. equity

2,481,435

2,314,665

Noncontrolling interests

244,228

221,442

Total stockholders’ equity

2,725,663

2,536,107

TOTAL LIABILITIES AND EQUITY

$

5,812,369

$

4,892,943

SKECHERS U.S.A., INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

Three Months Ended

Year Ended

December 31,

December 31,

(in thousands, except per share data)

2020

2019

2020

2019

Sales

$

1,324,711

$

1,330,732

$

4,597,414

$

5,220,051

Cost of sales

676,284

692,983

2,407,633

2,728,894

Gross profit

648,427

637,749

2,189,781

2,491,157

Royalty income

4,955

4,666

16,017

22,493

653,382

642,415

2,205,798

2,513,650

Operating expenses:

Selling

97,875

88,664

318,097

369,901

General and administrative

497,788

459,669

1,754,017

1,625,306

Selling, general and administrative

595,663

548,333

2,072,114

1,995,207

Earnings from operations

57,719

94,082

133,684

518,443

Other income (expense):

Interest income

173

2,282

5,912

11,782

Interest expense

(4,899

)

(2,315

)

(16,327

)

(7,509

)

Other, net

15,577

1,917

31,460

(6,711

)

Total other income (expense)

10,851

1,884

21,045

(2,438

)

Earnings before income tax expense

68,570

95,966

154,729

516,005

Income tax (benefit) expense

(9,602

)

13,465

8,502

88,753

Net earnings

78,172

82,501

146,227

427,252

Less: Net earnings attributable to noncontrolling interests

24,891

22,969

47,663

80,692

Net earnings attributable to Skechers U.S.A., Inc.

$

53,281

$

59,532

$

98,564

$

346,560

Net earnings per share attributable to Skechers U.S.A., Inc.:

Basic

$

0.34

$

0.39

$

0.64

$

2.26

Diluted

$

0.34

$

0.39

$

0.64

$

2.25

Weighted average shares used in calculating net earnings per share attributable to Skechers U.S.A, Inc.:

Basic

154,548

153,379

154,184

153,392

Diluted

155,397

154,630

154,894

154,151

SKECHERS U.S.A., INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited)

Three Months Ended

Year Ended

December 31,

Change

December 31,

Change

(in millions)

2020

2019

$

%

2020

2019

$

%

Domestic Wholesale

Sales

$

299.4

$

295.9

3.5

1.2

$

1,126.6

$

1,247.6

(121.0

)

(9.7

)

Gross margin

37.7

%

35.0

%

264

bps

38.3

%

36.7

%

160

bps

International Wholesale

Sales

$

654.1

$

638.4

15.7

2.5

$

2,257.8

$

2,462.6

(204.8

)

(8.3

)

Gross margin

46.9

%

46.4

%

51

bps

45.3

%

46.0

%

(71

)bps

Direct-to-Consumer

Sales

$

371.2

$

396.4

(25.2

)

(6.4

)

$

1,213.0

$

1,509.9

(296.9

)

(19.7

)

Gross margin

61.7

%

60.0

%

164

bps

60.6

%

59.6

%

101

bps

Total

Sales

$

1,324.7

$

1,330.7

(6.0

)

(0.5

)

$

4,597.4

$

5,220.1

(622.7

)

(11.9

)

Gross margin

48.9

%

47.9

%

102

bps

47.6

%

47.7

%

(9

)bps

SKECHERS U.S.A., INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING

NON-GAAP FINANCIAL MEASURES (Unaudited)

Adjusted Earnings and Adjusted Diluted Earnings Per Share

We believe that Adjusted Earnings and Adjusted Diluted Earnings Per Share provide meaningful supplemental information to investors in evaluating our business performance for the quarter and year ended December 31, 2020. Adjusted Earnings and Adjusted Diluted Earnings Per Share are not measures of financial performance under GAAP and should be considered in addition to, and not a substitute for, Net Earnings and Diluted Net Earnings Per Share which are the most comparable GAAP measures. Our method of determining non-GAAP financial measures may differ from other companies’ methods and therefore may not be comparable to those used by other companies. The tables below include adjustments for a one-time tax benefit, in the fourth quarter, due to the combination of an international restructuring and the CARES Act as well as the non-cash compensation charge related to the cancellation of restricted share grants in the year-to-date results.

Constant Currency Adjustment

We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of period-over-period fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our results of operations, thereby facilitating period-to-period comparisons of our business performance and is consistent with how management evaluates the Company’s performance. We calculate constant currency percentages by converting our current period local currency financial results using the prior-period exchange rates and comparing these adjusted amounts to our prior period reported results.

Three Months Ended December 31,

2020

2019

Change

(in millions,

except per share data)

Reported

GAAP

Measure

Tax

Adjustment

Adjusted

for Tax

Adjustment

Constant

Currency

Adjustment

Adjusted

for Non-

GAAP

Measures

Reported

GAAP

Measure

$

%

Sales

$

1,324.7

$

–

$

1,324.7

$

(27.5

)

$

1,297.2

$

1,330.7

(33.5

)

(2.5

)

Cost of sales

676.3

–

676.3

(13.0

)

663.3

693.0

(29.7

)

(4.3

)

Gross profit

$

648.4

$

–

$

648.4

$

(14.5

)

$

633.9

$

637.7

(3.8

)

(0.6

)

Royalty income

5.0

–

5.0

(0.3

)

4.7

4.7

–

–

SG&A expenses

595.7

–

595.7

(12.1

)

583.6

548.3

35.3

6.4

Earnings from operations

$

57.7

$

–

$

57.7

$

(2.7

)

$

55.0

$

94.1

(39.1

)

(41.6

)

Other income (expense)

10.9

–

10.9

(16.9

)

(6.0

)

1.9

(7.9

)

(415.8

)

Income tax (benefit) expense

(9.6

)

15.9

6.3

(0.6

)

5.7

13.5

(7.8

)

(57.8

)

Less: Noncontrolling interests

24.9

–

24.9

(1.3

)

23.6

23.0

0.6

2.6

Net earnings

$

53.3

$

(15.9

)

$

37.4

$

(17.7

)

$

19.7

$

59.5

(39.8

)

(66.9

)

Diluted earnings per share

$

0.34

$

(0.10

)

$

0.24

$

(0.11

)

$

0.13

$

0.39

(0.26

)

(66.7

)

Year Ended December 31,

2020

2019

Change

(in millions,

except per share data)

Reported

GAAP

Measure

Tax and

Restricted

Share

Cancellation

Adjustments⁽¹⁾

Adjusted

for Non-

GAAP

Items

Constant

Currency

Adjustment

Adjusted

for Non-

GAAP

Measures

Reported

GAAP

Measure

$

%

Sales

$

4,597.4

$

–

$

4,597.4

$

(7.5

)

$

4,589.9

$

5,220.1

(630.2

)

(12.1

)

Cost of sales

2,407.6

–

2,407.6

(1.3

)

2,406.3

2,728.9

(322.6

)

(11.8

)

Gross profit

$

2,189.8

$

–

$

2,189.8

$

(6.2

)

$

2,183.6

$

2,491.2

(307.6

)

(12.3

)

Royalty income

16.0

–

16.0

(0.5

)

15.5

22.5

(7.0

)

(31.1

)

SG&A expenses

2,072.1

(18.2

)

2,053.9

(0.3

)

2,053.6

1,995.2

58.4

2.9

Earnings from operations

$

133.7

$

18.2

$

151.9

$

(6.4

)

$

145.5

$

518.4

(372.9

)

(71.9

)

Other income (expense)

21.1

–

21.1

(20.6

)

0.5

(2.4

)

2.9

(120.8

)

Income tax expense

8.5

15.7

24.2

(0.5

)

23.7

88.8

(65.1

)

(73.3

)

Less: Noncontrolling interests

47.7

–

47.7

(2.2

)

45.5

80.7

(35.2

)

(43.6

)

Net earnings

$

98.6

$

2.5

$

101.1

$

(24.3

)

$

76.8

$

346.6

(269.8

)

(77.8

)

Diluted earnings per share

$

0.64

$

0.01

$

0.65

$

(0.15

)

$

0.50

$

2.25

(1.75

)

(77.8

)

(1) The effect of taxes on the restricted share cancellation adjustments used to arrive net earnings adjusted for non-GAAP measures was zero and it was not deductible. The additional tax expense related to the write-off of deferred tax assets associated with the cancelled shares.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210204006023/en/

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Andrew Greenebaum

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[email protected]

Press:

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Vice President,

Corporate Communications

SKECHERS U.S.A., Inc.

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Posted on February 4, 2021 4:08 pm
Hub Group, Inc. Reports Fourth Quarter 2020 Results

Highlights:

Continued growth with strategic customers and a strong freight environment led to 9% Intermodal volume growth and 6% consolidated revenue growth in the quarter

Revenue growth and strong cost controls resulted in fourth quarter net income of $22.4 million or $0.67 of diluted earnings per share; net income includes $4.7 million net of tax, or $0.14 per share, of insurance and claims, restructuring and acquisition expenses

Executed on our long term investment strategy, including acquiring residential last mile delivery company NonStopDelivery, LLC (“NSD”) and growing our container and tractor fleet

Generated EBITDA (non-GAAP)
⁽¹⁾
of $63 million in the quarter, with solid liquidity at quarter end including $125 million in cash and cash equivalents

OAK BROOK, Ill., Feb. 04, 2021 (GLOBE NEWSWIRE) — Hub Group, Inc. (NASDAQ:HUBG) announced fourth quarter 2020 net income of $22.4 million, or diluted earnings per share of $0.67. Net income includes $2.7 million ($0.08 per diluted share) of expenses related to a re-measurement of our insurance and claims reserve estimate (the “Insurance Charge”), $1.2 million ($0.04 per diluted share) of restructuring charges related to the closure of an office that supported our dedicated business (the “Restructuring Charge”), and $0.8 million ($0.02 per diluted share) of acquisition-related expenses. Net income for fourth quarter 2019 was $28.0 million, or $0.84 per diluted share.

“Continued strong freight market conditions, as well as our strategy to grow with strategic customers, resulted in 6% revenue growth in the quarter and 9% intermodal volume growth. We continue to provide a world-class customer experience while driving efficiency throughout our organization. Revenue growth in the fourth quarter of 2020, combined with our ongoing focus on cost control, led to EBITDA (non-GAAP)¹ of $63 million. We continue to invest in our business, including through additions to our container and tractor fleet and our planned capital expenditures for 2021. The acquisition of NSD expanded our service offering into the fast-growing last mile delivery space, and we anticipate significant cross-sell opportunities with our customer base,” said Dave Yeager, Hub Group’s Chairman and Chief Executive Officer.

Q4 2020 Results

Revenue for the fourth quarter of 2020 increased by 6% to $953 million compared with $901 million for the fourth quarter of 2019. Operating income for the quarter was $31 million versus $39 million for the fourth quarter of 2019.

Fourth quarter intermodal revenue increased 5% to $576 million primarily due to a 9% increase in volume, partially offset by lower customer pricing. Intermodal gross margin decreased compared to the prior year due to lower prices, $1.3 million of the Insurance Charge, increased purchased transportation costs and higher equipment repositioning costs, partially offset by volume growth and the benefits from operational improvements in our trucking operation.

Fourth quarter logistics revenue declined 1% to $182 million as growth of CaseStack retail supplier solutions and the acquisition of NSD in December was more than offset by the impact of lost customers. Gross margin declined due to lower revenue and higher purchased transportation costs, partially offset by growth with new customers and the acquisition of NSD.

Truck brokerage revenue grew 27% in the quarter to $126 million despite an 8% decline in volume. Contractual revenue represented 64% of total brokerage revenue in the fourth quarter of 2020 as compared to 78% in 2019. Truck brokerage gross margin increased relative to fourth quarter 2019 as higher margin spot freight offset the impact of higher purchased transportation costs on our contractual freight.

Dedicated revenue decreased 3% to $68 million compared to the prior year due to the impact of business we exited, partially offset by growth with new accounts. Dedicated gross margin decreased primarily due to the decline in revenue, $2.2 million of the Insurance Charge and higher driver and third party transportation costs.

Costs and expenses decreased to $74 million in the fourth quarter of 2020 compared to $87 million in the prior year due primarily to a decline in salaries and benefits expense related to variable compensation, lower professional fees and a reduction in travel expense, partially offset by the $1.5 million Restructuring Charge and $1.0 million of expenses related to the acquisition of NSD.

Capital expenditures for the fourth quarter of 2020 totaled $60 million, primarily for containers, tractors and technology investments. During the quarter we acquired NSD for $90 million in cash. At December 31, 2020, we had cash and cash equivalents of $125 million.

Full Year 2020 Results

Full year net income was $74 million, or diluted earnings per share of $2.19. For the full year, revenue declined 5% to $3.5 billion, and full year operating income was $106 million. Operating income as a percentage of revenue for fiscal year 2020 was 3.0%.

2021 Capital Expenditure Outlook

We expect capital expenditures for fiscal year 2021 to range from $150 million to $170 million, and primarily consist of investments to support growth in the business, including containers and tractors, as well as investments in technology. For 2021 we expect to add approximately 2,500 containers, which will result in net growth of approximately 2,000 after retirements of containers that have reached end of life. We are also planning to add approximately 750 tractors, 500 of which are for replacements of older units and 250 of which will support growth in our drayage and dedicated fleets.

Non-GAAP Financial Measure

In this press release, we present EBITDA, a non-GAAP financial measure defined as earnings before interest, taxes, depreciation and amortization. As required by the rules of the Securities and Exchange Commission (“SEC”), we have provided herein a reconciliation of the non-GAAP financial measure contained in this press release to the most directly comparable measure under GAAP. Management believes that EBITDA provides relevant and useful information, which is used by our management as well as by many analysts, investors and competitors in our industry. By providing this non-GAAP measure, management intends to provide investors with a meaningful, consistent comparison of the Company’s profitability for the periods presented. EBITDA should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and is not necessarily comparable to non-GAAP measures that may be presented by other companies.

CONFERENCE CALL

Hub Group, Inc. will hold a conference call at 5:00 p.m. Eastern Time on February 4, 2021 to discuss our fourth quarter 2020 results.

Hosting the conference call will be Dave Yeager, Chairman and Chief Executive Officer. Also participating on the call will be Phil Yeager, President and Chief Operating Officer, and Geoff DeMartino, Executive Vice President, Chief Financial Officer and Treasurer.

This call is being webcast and can be accessed through the Investors link on Hub Group’s web site at www.hubgroup.com. The webcast is listen-only. Those interested in participating in the question and answer session should follow the telephone dial-in instructions below.

To participate in the conference call by telephone, please register at https://www.yourconferencecenter.com/confcenter/PinCode/Pin_Code.aspx?100374&o=UkGGsxaBNnfTBu.

Registrants will be issued a passcode and PIN to use when dialing into the live call which will provide quickest access to the conference. You may register at any time, including up to and after the call start time. On the day of the call, dial (888) 206-4064 approximately ten minutes prior to the scheduled call time; enter the participant passcode and PIN received during registration. The call will be limited to 60 minutes, including questions and answers.

An audio replay will be available through the Investors link on the Company’s web site at www.hubgroup.com. This replay will be available for 30 days.

CERTAIN FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. Forward-looking statements are inherently uncertain and subject to risks, uncertainties and other factors that might cause the actual performance of Hub Group, Inc. to differ materially from those expressed or implied by this discussion and, therefore, should be viewed with caution. All forward-looking statements and information are provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. Forward-looking statements generally may be identified by the use of forward-looking terminology such as “trends”, “assumptions”, “target”, “guidance”, “outlook”, “opportunity”, “future”, “plans”, “goals”, “objectives”, “expects”, “anticipate”, “expected”, “may”, “will”, “would”, “could”, “intend”, “believe”, “potential”, “projected”, “estimate” (or the negative or derivative of each of these terms), or similar words, and include our statements regarding our profit improvement initiatives and capital expenditures. These forward-looking statements are based on management’s experience and perception of trends, current conditions, and anticipated future developments, as well as other factors believed to be appropriate. We believe these statements and the assumptions and estimates contained in this release are reasonable based on information that is currently available to us. Factors that could cause actual results to differ materially include general or regional economic conditions and health concerns; the effect of the COVID-19 pandemic, including on our business operations, as well as its impact on general economic and financial market conditions and on our customers, counterparties, employees and third-party service providers; our ability to sustain or the effects of plans intended to improve operational execution and performance; changes in or implementation of governmental or regulatory rules and interpretations affecting tax, wage and hour matters, health and safety, labor and employment, insurance or other undeterminable areas; intermodal costs and prices, the integration of NSD and any other acquisitions and expenses relating thereto; the future performance of Hub’s Intermodal, Truck Brokerage, Dedicated and Logistics business lines; driver shortages; the amount and timing of strategic investments or divestitures by Hub; the failure to implement and integrate critical information technology systems; cyber security incidents, retail and other customers encountering adverse economic conditions and other factors described from time to time in Hub Group’s SEC reports, press releases and other communications. Hub Group assumes no liability to update any such forward-looking statements.

SOURCE: Hub Group, Inc.

HUB GROUP, INC.

CONSOLIDATED STATEMENTS OF EARNINGS

(in thousands, except per share amounts)

(unaudited)

Three Months Ended December 31,

2020 2019

% of % of

Amount Revenue Amount Revenue

Revenue $ 952,730 100.0 % $ 900,681 100.0 %

Transportation costs 847,171 88.9 % 774,821 86.0 %

Gross margin 105,559 11.1 % 125,860 14.0 %

Costs and expenses:

Salaries and benefits 42,649 4.5 % 53,311 5.9 %

General and administrative 23,446 2.4 % 26,354 3.0 %

Depreciation and amortization 8,292 0.9 % 7,331 0.8 %

Total costs and expenses 74,387 7.8 % 86,996 9.7 %

Operating income 31,172 3.3 % 38,864 4.3 %

Other income (expense):

Interest expense (2,048 ) -0.2 % (2,468 ) -0.3 %

Other, net (86 ) 0.0 % 877 0.1 %

Total other expense (2,134 ) -0.2 % (1,591 ) -0.2 %

Income before provision for income taxes 29,038 3.1 % 37,273 4.1 %

Provision for income taxes 6,650 0.7 % 9,318 1.0 %

Net income $ 22,388 $ 27,955

Earnings per share

Basic $ 0.67 $ 0.85

Diluted $ 0.67 $ 0.84

Basic weighted average number of shares outstanding 33,212 32,982

Diluted weighted average number of shares outstanding 33,630 33,357

HUB GROUP, INC.

CONSOLIDATED STATEMENTS OF EARNINGS

(in thousands, except per share amounts)

(unaudited)

Twelve Months Ended December 31,

2020 2019

% of % of

Amount Revenue Amount Revenue

Revenue $ 3,495,644 100.0 % $ 3,668,117 100.0 %

Transportation costs 3,070,207 87.8 % 3,147,047 85.8 %

Gross margin 425,437 12.2 % 521,070 14.2 %

Costs and expenses:

Salaries and benefits 188,777 5.4 % 235,963 6.4 %

General and administrative 99,597 2.9 % 104,206 2.8 %

Depreciation and amortization 31,237 0.9 % 28,481 0.8 %

Total costs and expenses 319,611 9.2 % 368,650 10.0 %

Operating income 105,826 3.0 % 152,420 4.2 %

Other income (expense):

Interest expense (9,746 ) -0.3 % (10,994 ) -0.3 %

Other, net 20 0.0 % 2,444 0.0 %

Total other expense (9,726 ) -0.3 % (8,550 ) -0.3 %

Income before provision for income taxes 96,100 2.7 % 143,870 3.9 %

Provision for income taxes 22,541 0.6 % 36,699 1.0 %

Net income $ 73,559 $ 107,171

Earnings per share

Basic $ 2.22 $ 3.22

Diluted $ 2.19 $ 3.20

Basic weighted average number of shares outstanding 33,180 33,284

Diluted weighted average number of shares outstanding 33,543 33,480

HUB GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

December 31, December 31,

2020 2019

ASSETS

CURRENT ASSETS:

Cash and cash equivalents $ 124,506 $ 168,729

Accounts receivable trade, net 518,975 443,539

Accounts receivable other 1,265 3,237

Prepaid taxes 1,336 630

Prepaid expenses and other current assets 26,753 24,086

TOTAL CURRENT ASSETS 672,835 640,221

Restricted investments 23,353 22,601

Property and equipment, net 671,101 663,165

Right-of-use assets – operating leases 43,573 35,548

Right-of-use assets – financing leases 3,557 5,865

Other intangibles, net 163,953 120,967

Goodwill, net 508,555 484,459

Other assets 18,469 18,748

TOTAL ASSETS $ 2,105,396 $ 1,991,574

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable trade $ 285,320 $ 257,247

Accounts payable other 12,680 11,585

Accrued payroll 23,044 45,540

Accrued other 102,613 86,686

Lease liability – operating leases 10,093 8,567

Lease liability – financing leases 1,793 3,048

Current portion of long term debt 93,562 94,691

TOTAL CURRENT LIABILITIES 529,105 507,364

Long term debt 176,797 186,934

Non-current liabilities 42,910 36,355

Lease liability – operating leases 36,328 28,518

Lease liability – financing leases 8 1,820

Deferred taxes 162,325 155,304

STOCKHOLDERS’ EQUITY:

Preferred stock, $.01 par value; 2,000,000 shares authorized;

no shares issued or outstanding in 2020 and 2019 – –

Common stock

Class A: $.01 par value; 97,337,700 shares authorized and

41,224,792 shares issued in 2020 and 2019; 33,549,708 shares

outstanding in 2020 and 33,353,904 shares outstanding in 2019 412 412

Class B: $.01 par value; 662,300 shares authorized;

662,296 shares issued and outstanding in 2020 and 2019 7 7

Additional paid-in capital 186,058 179,637

Purchase price in excess of predecessor basis, net of tax

benefit of $10,306 (15,458 ) (15,458 )

Retained earnings 1,253,160 1,179,601

Accumulated other comprehensive loss (191 ) (186 )

Treasury stock; at cost, 7,675,084 shares in 2020

and 7,870,888 shares in 2019 (266,065 ) (268,734 )

TOTAL STOCKHOLDERS’ EQUITY 1,157,923 1,075,279

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 2,105,396 $ 1,991,574

HUB GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

Twelve Months Ended December 31,

2020 2019

Cash flows from operating activities:

Net income $ 73,559 $ 107,171

Adjustments to reconcile net income

to net cash provided by operating activities:

Depreciation and amortization 123,679 116,887

Deferred taxes 7,463 1,821

Compensation expense related to share-based compensation plans 17,053 16,286

Loss (gain) on sale of assets 907 (745 )

Other operating activities 6,385 –

Changes in operating assets and liabilities, net of acquisitions:

Restricted investments (752 ) (3,365 )

Accounts receivable, net (47,219 ) 32,732

Prepaid taxes (707 ) (14 )

Prepaid expenses and other current assets (2,508 ) 3,447

Other assets (2,177 ) (3,786 )

Accounts payable 5,594 (14,933 )

Accrued expenses (4,408 ) (122 )

Non-current liabilities (1,915 ) (870 )

Net cash provided by operating activities 174,954 254,509

Cash flows from investing activities:

Proceeds from sale of equipment 3,289 10,025

Purchases of property and equipment (115,306 ) (94,847 )

Acquisitions, net of cash acquired (84,845 ) (734 )

Proceeds from the disposition of discontinued operations – 19,439

Net cash used in investing activities (196,862 ) (66,117 )

Cash flows from financing activities:

Repayments of long term debt (198,741 ) (105,653 )

Purchase of treasury stock – (24,998 )

Stock withheld for payments of withholding taxes (7,963 ) (3,984 )

Finance lease payments (3,066 ) (2,954 )

Proceeds from issuance of debt 187,475 56,494

Net cash used in financing activities (22,295 ) (81,095 )

Effect of exchange rate changes on cash and cash equivalents (20 ) (3 )

Net (decrease) increase in cash and cash equivalents (44,223 ) 107,294

Cash and cash equivalents beginning of period 168,729 61,435

Cash and cash equivalents end of period $ 124,506 $ 168,729

HUB GROUP, INC.

FINANCIAL INFORMATION BY BUSINESS LINE

(in thousands)

(unaudited)

Three Months Twelve Months

Ended December 31, Ended December 31,

2020 2019 2020 2019

Intermodal $ 576,225 $ 547,975 $ 2,091,984 $ 2,166,382

Logistics 181,934 183,000 704,824 769,195

Truck brokerage 126,441 99,582 431,127 433,793

Dedicated 68,130 70,124 267,709 298,747

Total Revenue $ 952,730 $ 900,681 $ 3,495,644 $ 3,668,117

RECONCILIATION OF NET INCOME TO EBITDA

(in thousands)

(unaudited)

Three Months

Ended December 31,

Change Change

2020 2019 $ %

Net income $ 22,388 $ 27,955 $ (5,567 ) -19.9 %

Interest expense 2,048 2,468 (420 ) -17.0 %

Depreciation and amortization 31,881 30,168 1,713 5.7 %

Provision for income taxes 6,650 9,318 (2,668 ) -28.6 %

EBITDA $ 62,967 $ 69,909 $ (6,942 ) -9.9 %

RECONCILIATION OF NET INCOME TO EBITDA

(in thousands)

(unaudited)

Twelve Months

Ended December 31,

Change Change

2020 2019 $ %

Net income $ 73,559 $ 107,171 $ (33,612 ) -31.4 %

Interest expense 9,746 10,994 (1,248 ) -11.4 %

Depreciation and amortization 123,679 116,888 6,791 5.8 %

Provision for income taxes 22,541 36,699 (14,158 ) -38.6 %

EBITDA $ 229,525 $ 271,752 $ (42,227 ) -15.5 %

See the “Non-GAAP Financial Measure” section of this release for the definition of EBITDA and a discussion of this non-GAAP financial measure.

¹ For all non-GAAP measures presented, please see “Non-GAAP Financial Measure” and the reconciliations included in this press release.

CONTACT: Maralee Volchko of Hub Group, Inc., +1-630-271-3745

Posted on February 4, 2021 4:08 pm
Twist Bioscience Reports First Quarter Fiscal 2021 Financial Results

Twist Bioscience Reports First Quarter Fiscal 2021 Financial Results

SOUTH SAN FRANCISCO, Calif.–(BUSINESS WIRE)–
Twist Bioscience Corporation (NASDAQ: TWST), a company enabling customers to succeed through its offering of high-quality synthetic DNA using its silicon platform, today reported financial results and business highlights for the first quarter of fiscal 2021 ended December 31, 2020.

“We reported a strong quarter both for orders and revenue, building a solid foundation for fiscal 2021,” said Emily M. Leproust, Ph.D., CEO and co-founder of Twist Bioscience. “We see early evidence that our investment in synbio products for our pharmaceutical and biotech customers is beginning to gain traction, and for our NGS tools business, our liquid biopsy customers continue to drive revenue growth. Both our biopharma and DNA data storage teams made progress in advancing technologies, and we strengthened our balance sheet with $324 million through a recent equity offering.

“Looking ahead, we expect continued growth and diversification of our revenue stream as we build out our Factory of the Future as a second site in Oregon, continued focus on offering a business-to-business solution for multi-site institutions and a full launch of our NGS methylation solution. In addition, we anticipate out-licensing our first internally-generated antibodies and continued progress for our DNA data storage business.”

FISCAL 2021 FIRST QUARTER FINANCIAL RESULTS

Orders: Total orders received for the first quarter of fiscal 2021 were $33.6 million, compared to $24.8 million for the same period of fiscal 2020.

Revenue: Total revenues were $28.2 million for the first quarter of fiscal 2021 compared to $17.2 million for the same period of fiscal 2020.

Cost of Revenues: Cost of revenues for the first quarter of fiscal 2021 was $18.2 million compared to $13.8 million for the same period of fiscal 2020.

Research and Development Expenses: Research and development expenses for the first quarter of fiscal 2021 were $14.0 million compared to $10.3 million for the same period of fiscal 2020.

Selling, General and Administrative Expenses: Selling, general and administrative expenses for the first quarter of fiscal 2021 were $28.8 million compared to $26.4 million for the same period of fiscal 2020.

Net Loss: Net loss for the first quarter of fiscal 2021 was $32.9 million, or $0.72 per share, compared to $55.6 million, or $1.69 per share, for the first quarter of fiscal 2020.

Cash Position: As of December 31, 2020, the company had $587.3 million in cash, cash equivalents and short-term investments.

“We delivered another very strong quarter in what continues to be an uncertain environment due to the global pandemic,” commented Jim Thorburn, CFO of Twist. “We remain well positioned to leverage our DNA synthesis platform into growing market opportunities today as we plan for future success in the years ahead.”

Fiscal First Quarter 2021 and Recent Highlights

Shipped products to approximately 1,500 customers in the first quarter of fiscal 2021 versus approximately 1,000 in the same period of fiscal 2020.

Launched Clonal-Ready Gene Fragments, providing customers with a complete offering for genes. Twist’s best-in-class Gene Fragments, with and without adapters, can be used to build constructs and minimize the time and cost of screening for perfect clones. The resulting product is a ready-to-use Gene Fragment that is compatible with many applications including cloning, gene and protein expression, pathway and enzyme engineering and enzyme optimization.

Announced plans to expand its manufacturing and commercial capabilities with the addition of the “Factory of the Future” just outside of Portland, Oregon in Wilsonville. The 110,000-square-foot facility is expected to become operational in 2022.

Introduced new synthetic RNA controls to develop, validate and verify tests for SARS-CoV-2. The new controls include the B.1.1.7 variant of SARS-CoV-2.

Supplied the U.S. Centers for Disease Control and Prevention (CDC) with a customized version of Twist SARS-CoV-2 Synthetic RNA Controls for use in the CDC Influenza SARS-CoV-2 (Flu SC2) Multiplex Assay, an assay that tests for influenza A, B and SARS-CoV-2 simultaneously. In addition to using the assay at its primary site, CDC intends to distribute this multiplex assay to additional public health laboratories for testing across the United States.

Signed two licensing agreements with Serotiny and Applied StemCell. In collaboration with Serotiny, Twist Biopharma aims to discover novel Chimeric Antigen Receptors (CAR) for CAR T-Cell therapies. The agreement with Applied StemCell, covers the use of its TARGATT™ CHO Cell Technology. Both agreements support and expand Twist Biopharma’s capabilities for the discovery of novel antibody therapeutics.

Completed an equity offering of approximately 3.1 million shares of common stock at a price of $110.00 per share raising approximately $324 million in proceeds, net of estimated offering expenses.

Announced Siyuan Chen, Ph.D. was promoted to chief technology officer, Aaron Sato, Ph.D., was promoted to chief scientific officer, Paula Green was promoted to senior vice president of human resources and Angela Bitting was appointed as senior vice president of corporate affairs.

Fiscal 2021 Financial Guidance

The following statements are based on Twist’s current expectations for fiscal 2021. The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under “Forward-Looking Statements” below. Twist does not plan to update, nor does it undertake any obligation to update, this outlook in the future.

For the full fiscal year 2021, Twist provided the following updated financial guidance:

Maintaining revenue guidance in the range of $110 million to $118 million

Revenue from Ginkgo Bioworks expected to be in the range of $11 to $12 million

Synbio revenue excluding Ginkgo Bioworks is expected to be in the range of $41 to $44 million

NGS revenue is estimated to be in the range of $54 to $58 million

Biopharma revenue is estimated to be approximately $4 million

Gross margin is expected to be 32% to 34% for fiscal 2021

Operating expenses including R&D and SG&A are expected to be $182 million for the year

Net loss expected in the range of $142 million to $147 million to reflect our increased investments in our commercial organization and research and development activities

R&D is expected to be approximately $60 million

Stock-based compensation is expected to be approximately $32 million

Depreciation is expected to be $9 million

Capital expenditures are expected to be $30 million, including expansion into “Factory of the Future”

Conference Call Information

The company plans to hold a conference call and live audio webcast for analysts and investors today at 4:30 p.m. Eastern Time to discuss its financial results and provide an update on the company’s business. The call can be accessed by dialing (866) 688-0947 (domestic) or (409) 217-8781 (international) and refer to the conference ID 7958297. A telephonic replay of the conference call will be available beginning approximately four hours after the call through February 11, 2021 and may be accessed by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international). The replay conference ID is 7958297. The webcast replay will be available for two weeks.

Given the circumstances globally, it is recommended to dial-in at most 15 to 20 minutes prior to the call start to reduce waiting times. If a participant will be listen-only, they are encouraged to listen via the webcast on Twist’s investor page.

About Twist Bioscience Corporation

Twist Bioscience is a leading and rapidly growing synthetic biology and genomics company that has developed a disruptive DNA synthesis platform to industrialize the engineering of biology. The core of the platform is a proprietary technology that pioneers a new method of manufacturing synthetic DNA by “writing” DNA on a silicon chip. Twist is leveraging its unique technology to manufacture a broad range of synthetic DNA-based products, including synthetic genes, tools for next-generation sequencing (NGS) preparation, and antibody libraries for drug discovery and development. Twist is also pursuing longer-term opportunities in digital data storage in DNA and biologics drug discovery. Twist makes products for use across many industries including healthcare, industrial chemicals, agriculture and academic research.

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Investor Relations Information

Twist uses the investor relations section on its website as a means of complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor Twist’s investor relations website in addition to following Twist’s press releases, SEC filings, and public conference calls and webcasts.

Legal Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements. All statements other than statements of historical facts contained herein are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements under the heading “Fiscal 2021 Financial Guidance” and contained in the quotations of our Chief Executive Officer and Chief Financial Officer, as well as statements regarding future growth and expansion plans and Twist’s other expectations regarding its future financial performance. Such forward-looking statements involve known and unknown risks, uncertainties, and other important factors that may cause Twist’s actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the risks and uncertainties of the duration, extent and impact of the COVID-19 pandemic, including any reductions in demand for our products (or deferred or canceled orders) globally or in certain regions; the ability to attract new customers and retain and grow sales from existing customers; risks and uncertainties of rapidly changing technologies and extensive competition in synthetic biology could make the products Twist is developing obsolete or non-competitive; uncertainties of the retention of significant customers; supply chain and other disruptions caused by the COVID-19 pandemic or otherwise; risks of third party claims alleging infringement of patents and proprietary rights or seeking to invalidate Twist’s patents or proprietary rights; and the risk that Twist’s proprietary rights may be insufficient to protect its technologies. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Twist’s business in general, see Twist’s risk factors set forth in Twist’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on November 27, 2020 and subsequent filings with the SEC. In addition, many of the foregoing risks and uncertainties are, and could be, exacerbated by the COVID-19 pandemic and any worsening of global or regional business and economic environment as a result. We cannot at this time predict the extent of the impact of the COVID-19 pandemic and any resulting business or economic impact, but it could have a material adverse effect on our business, financial condition, results of operations and cash flows. Any forward-looking statements contained in this press release speak only as of the date hereof, and Twist Bioscience specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Twist Bioscience Corporation

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except per share data)

Three months ended December 31,

2020

2019

Revenues
$

28,161

$

17,164

Operating expenses:

Cost of revenues

18,162

13,792

Research and development

14,000

10,297

Selling, general and administrative

28,792

26,405

Litigation settlement

–

22,500

Total operating expenses

60,954

72,994

Loss from operations

(32,793

)

(55,830

)

Interest income

134

564

Interest expense

(118

)

(248

)

Other income (expense), net

(77

)

(87

)

Provision for income taxes

(46

)

(37

)

Net loss attributable to common stockholders
$

(32,900

)

$

(55,638

)

Net loss per common share, basic and diluted
$

(0.72

)

$

(1.69

)

Weighted average shares used in computing net loss per share attributable to common stockholders—basic and diluted

46,000

32,976

Twist Bioscience Corporation

Condensed Consolidated Balance Sheets

(unaudited)

(in thousands)

December 31, 2020 September 30, 2020

Assets

Cash and cash equivalents
$

348,789

$

93,667

Short-term investments

238,496

196,335

Accounts receivable, net

25,492

26,376

Inventories

13,409

12,289

Prepaid expenses and other current assets

8,242

6,203

Total current assets

634,428

334,870

Property and equipment, net

27,153

25,466

Operating lease right-of-use assets

32,330

33,699

Other non-current assets

5,659

4,847

Total assets
$

699,570

$

398,882

Current liabilities

Accounts payable
$

8,932

$

4,830

Accrued liabilities

15,087

18,846

Current portion of long-term debt

3,333

3,333

Current portion of operating lease liabilities

6,444

6,409

Other current liabilities

3,306

2,611

Total current liabilities

37,102

36,029

Operating lease liabilities, net of current portion

23,681

24,837

Long-term debt, net of current portion

625

1,403

Other non-current liabilities

210

351

Total liabilities

61,618

62,620

Total stockholders’ equity (deficit)
$

637,952

$

336,262

Total liabilities and stockholders’ equity
$

699,570

$

398,882

View source version on businesswire.com: https://www.businesswire.com/news/home/20210204005935/en/

Angela Bitting

SVP, Corporate Affairs

925- 202-6211

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Health Genetics Research Pharmaceutical Science Biotechnology

MEDIA:

Logo

Posted on February 4, 2021 4:08 pm
Genocea to Host Fourth Quarter 2020 Corporate Update Conference Call & Webcast

CAMBRIDGE, Mass., Feb. 04, 2021 (GLOBE NEWSWIRE) — Genocea Biosciences, Inc. (NASDAQ: GNCA), a biopharmaceutical company developing next-generation neoantigen immunotherapies, will host its fourth quarter 2020 financial results and corporate update conference call and live audio webcast on Thursday, February 11th at 8:30 a.m. ET.

Interested participants may access the conference call by dialing (844) 826-0619 (domestic) or (315) 625-6883 (international) and referring to conference ID number 5767897. To join the live webcast, please visit the presentation page of the investor relations section of the Genocea website at https://ir.genocea.com/events-presentations.

A webcast replay will be available on the Genocea website beginning approximately two hours after the event and will be archived for 90 days.

About Genocea Biosciences, Inc.

Genocea’s mission is to conquer cancer by developing personalized cancer immunotherapies in multiple tumor types. Our unique ATLAS™ platform comprehensively profiles each patient’s T cell responses to potential targets, or antigens, on the tumor. ATLAS enables us to optimize the neoantigens for inclusion in our immunotherapies and exclude inhibitory antigens that can exert an immunosuppressive effect. We are advancing two ATLAS-enabled programs: GEN-009, our neoantigen vaccine and GEN-011, our neoantigen-specific cell therapy using T cells derived from peripheral blood. To learn more, please visit https://www.genocea.com.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. Genocea cautions that these forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time. Applicable risks and uncertainties include those identified under the heading “Risk Factors” included in Genocea’s Annual Report on Form 10-K for the year ended December 31, 2019 and any subsequent SEC filings. These forward-looking statements speak only as of the date of this press release and Genocea assumes no duty to update forward-looking statements, except as may be required by law.

Investor Contact:
Dan Ferry
617-430-7576
[email protected]

Posted on February 4, 2021 4:08 pm
NETSOL Technologies Sets Fiscal Second Quarter 2021 Conference Call for Tuesday, February 16, 2021 at 9:00 a.m. ET

CALABASAS, Calif., Feb. 04, 2021 (GLOBE NEWSWIRE) — NETSOL Technologies, Inc. (Nasdaq: NTWK), a global business services and enterprise application solutions provider, will hold a conference call on Tuesday, February 16 at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss results for the fiscal second quarter ended December 31, 2020. Financial results will be issued in a press release prior to the call.

NETSOL management will host the presentation, followed by a question and answer period.

Date: Tuesday, February 16, 2021
Time: 9:00 a.m. Eastern time (6:00 a.m. Pacific time)
U.S. dial-in: 1-877-407-0789
International dial-in: 1-201-689-8562

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860.

The conference call will be broadcasted live and available for replay here and via the Investor Relations section of NETSOL’s website.

A replay of the conference call will be available after 12:00 p.m. Eastern time on the same day through March 2, 2021.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13715527

About NETSOL Technologies

NETSOL Technologies, Inc. (Nasdaq: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of more than 1300 professionals placed in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft or NFS Ascent® – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete finance and leasing lifecycle.

Investor Relations Contact:

Matt Glover and Tom Colton

Gateway Investor Relations
1-949-574-3860
[email protected]

Posted on February 4, 2021 4:08 pm
Carlisle Companies Reports Fourth Quarter Diluted Earnings per Share of $1.57

Carlisle Companies Reports Fourth Quarter Diluted Earnings per Share of $1.57

SCOTTSDALE, Ariz.–(BUSINESS WIRE)–
Carlisle Companies Incorporated (NYSE:CSL) today announced its fourth quarter 2020 financial results.

Reported consolidated fourth quarter revenue of $1.1 billion, with CCM quarterly sales turning positive on a year-over-year basis

CCM reported record fourth quarter operating margin of 20.4% led by higher year-over-year sales volumes, continued benefits from pricing resolve and raw material cost containment

Delivered $697 million of operating cash flow and $601 million of free cash flow in 2020, similar levels to 2019, despite lower sales year-over-year

Share repurchases continued in the fourth quarter, totaling 3 million shares for $382 million for the full year

Comments from Chris Koch, Chairman, President and Chief Executive Officer

“As we close 2020, we are reminded of the lives lost due to COVID-19 around the world and of the pandemic’s significant impact on Carlisle’s employees, suppliers and our customers. I am heartened that Carlisle employees persevered and rallied around each other and their communities, all the while continuing to demonstrate the value of the Carlisle Experience to our customers. While the pandemic made 2020 a unique and challenging year for businesses across the globe, I am extremely proud of how Carlisle’s employees prioritized safety and civility in their personal interactions. We must continue to navigate this pandemic responsibly and with balance, ensuring that the health and safety of our employees is a top priority. However, we must also meet customers’ expectations and continue to give our employees the opportunity to provide for their families and support the communities in which they live.

2020 demonstrated yet again the exceptional and sustainable earnings power of the Carlisle business model, our proven ability to weather significant downturns and our laser focus on our long-term strategic objectives. CCM once again drove the majority of positives in Carlisle’s fourth quarter results, supported by strong re-roofing trends, continued price discipline and superb management of raw material costs. CCM also made significant strides in integrating and improving our newer platforms of Architectural Metals and Polyurethanes. CCM’s sustainable cash generating abilities, combined with the Carlisle Experience that has been developed over many years and recently elevated by our best-in-class, dedicated and accomplished global team, provide Carlisle with the financial and strategic flexibility that supports our conviction in achieving Vision 2025.

While CCM generated most of our earnings in 2020, our other business platforms made important improvements despite being impacted significantly in a challenging year. CIT delivered results in line with our expectations in a year of record declines in the aerospace industry by focusing on delivering new products to increase our content per plane, rightsizing its manufacturing footprint, further integrating its Medical platform and continuing to invest in our Test & Measurement and Sensors businesses. CFT exceeded expectations in the fourth quarter, leveraging a focus on execution while introducing exciting, innovative new products. Finally, CBF enters 2021 looking to benefit from our recent restructuring activities and with solid end-market tailwinds in core markets of Construction, Mining and Agriculture, further reinforced by an improved outlook for dealer inventory replenishment after reductions in the last several years.

As we build on the momentum in our core markets entering 2021, we also see significant opportunities to drive revenue and earnings growth as we accelerate through the recovery. We continue to invest in CCM Europe evidenced by new regional leadership, expansion of our world-class facility in Waltershausen, Germany and several new product introductions for 2021. Within our Architectural Metals platform, we have set plans in motion for three new locations in underserved regions around the U.S. while making progress consolidating our teams to drive commercial synergies and operational efficiencies. Our Polyurethane business is delivering sustainable growth by providing products and solutions with unmatched energy efficiency in both residential and commercial applications. Additionally, the Polyurethane team, collaborating with CFT engineering, has introduced an industry-first integrated spray foam insulation equipment solution (IntelliSpray) which optimizes productivity and material savings when used with CCM’s complete portfolio of open and closed cell products.

Our ESG efforts are gaining momentum. We continue to increase the diversity of both senior leadership and our Board of Directors. In 2020, we recycled and repurposed over 75 million pounds of used automotive tires, diverting them from landfills. We also repurposed over 6,000 tons of scrap EPDM back into the production process. We continue to optimize our facilities, finishing 2020 with over 20% of our global manufacturing footprint re-lamped for LED lighting and motion controls, and 18 of our 89 plants ISO14001 certified. Finally, innovative CCM products help to enable the sustainable building envelope, reducing energy costs and minimizing GHG emissions.

We remain balanced in our capital deployment approach. We are increasing capital expenditures considerably in 2021 to drive future growth. Continuing to manage an active M&A pipeline, we are focused on synergistic businesses that complement our highest returning businesses. Finally, we will remain active in returning capital to shareholders – notably, we raised our dividend in 2020 for the 44th consecutive year, and returned $495 million to shareholders in the form of share repurchases and dividends.

Vision 2025 gave us clear direction and consistency of mission during the tumultuous year of 2020, and will continue to guide our efforts as we accelerate into the recovery in 2021.”

Fourth Quarter 2020

Revenue of $1.06 billion decreased 7.0% from $1.14 billion in the fourth quarter of 2019. Organic revenue declined 9.0% (organic revenue defined as revenue excluding acquired revenues within the last 12 months and the impact of changes in foreign exchange rates versus the U.S. Dollar). Acquired revenues contributed a total of 1.4% in the quarter. Changes in foreign exchange rates had a positive 0.6% impact on revenues.

Operating income of $111.8 million decreased 20.9% from the fourth quarter of 2019. Operating income performance was impacted primarily by volume declines, acquisitions and wage inflation, partially offset by lower raw material costs, lower operating expenses and contributions from COS.

Fourth Quarter 2020 Segment Highlights

Carlisle Construction Materials (CCM)

Revenues of $760.8 million, up 0.9% (+0.6% organic) year-over-year, were driven by improving U.S. commercial roofing demand and polyurethanes.

Operating income was $155.0 million, up 21.5% year-over-year. Operating margin of 20.4%, a 350 basis point improvement, was driven by favorable raw material pricing, savings from COS, lower SG&A and increased volume, partially offset by price and wage inflation.

Items affecting comparability were costs of $0.1 million versus benefits of $0.4 million in the fourth quarter of 2019.

Carlisle Interconnect Technologies (CIT)

Revenues of $154.6 million, down 35.4% (-40.3% organic) year-over-year, were negatively impacted by a significant decline in orders from Aerospace customers, partially offset by acquisitions.

Operating loss was $13.3 million. Operating margin of -8.6%, was affected by lower volumes, wage and raw material inflation, partially offset by savings from COS and lower operating expenses.

Items affecting comparability were costs of $9.5 million versus costs of $6.9 million in the fourth quarter of 2019.

Carlisle Fluid Technologies (CFT)

Revenues of $72.9 million, down 8.3% (-16.1% organic) year-over-year, reflected volume declines, particularly in the General Industrial markets, partially offset by acquisitions and price.

Operating income was $3.3 million. Operating margin of 4.5% reflected lower volumes, higher restructuring costs and wage and raw material inflation, partially offset by price, savings from COS and lower SG&A.

Items affecting comparability were costs of $1.7 million versus benefits of $0.6 million in the fourth quarter of 2019.

Carlisle Brake & Friction (CBF)

Revenues of $75.8 million, up 5.4% (+2.8% organic) year-over-year, reflected improved demand in Construction and Agricultural off-highway vehicle end markets.

Operating income was $0.8 million. Operating margin of 1.1% was impacted by unfavorable mix, higher restructuring costs and wage inflation, partially offset by savings from COS.

Items affecting comparability were costs of $0.9 million versus costs of $0.5 million in the fourth quarter of 2019.

Cash Flow

Free cash flow (defined as cash provided by operating activities less capital expenditures, and comprised of continuing and discontinued operations) was $601.2 million for the twelve months ended December, 31 2020, a decrease of $14.0 million versus the prior year. Our priorities for the use of cash are to invest in growth and performance improvement opportunities for our existing businesses through capital expenditures, complete strategic acquisitions that meet return criteria and return value to shareholders through dividend payments and share repurchases.

During the three months ended December 31, 2020, we redeployed our free cash flow towards $40.7 million in share repurchases and $27.9 million in dividends paid. As of December 31, 2020, we had $902.2 million of cash and $1.0 billion of availability under our revolving credit facility.

2020 Full Year

Koch continued, “2020 was a year of significant accomplishments, despite the challenges of operating during a pandemic. Entering 2021, we are optimistic that we can build on our positive momentum, accelerate into the global recovery and deliver on Vision 2025. We will continue to benefit from the strength of the Carlisle business model, and enhance our strong earnings power by investing in our exceptional management teams and high-ROIC businesses. We will continue to deploy capital into strategic acquisitions, share repurchases and dividends, all the while maintaining our commitment to delivering returns on invested capital in excess of 15% and, ultimately, driving to $15 of earnings per share.”

Table 1. Revenue Breakdown

Three Months Ended

December 31, 2020

CSL

CCM

CIT

CFT

CBF

Change in Organic Revenues

(9.0

)

%

0.6

%

(40.3

)

%

(16.1

)

%

2.8

%

Net Impact from Acquisitions

1.4

%

—

%

4.8

%

5.0

%

—

%

Impact from FX

0.6

%

0.3

%

0.1

%

2.8

%

2.6

%

Change in Revenues

(7.0

)

%

0.9

%

(35.4

)

%

(8.3

)

%

5.4

%

EPS referenced in this release is from continuing operations unless otherwise noted.

Conference Call and Webcast

The Company will discuss fourth quarter 2020 results on a conference call at 5:00 p.m. ET today. The call may be accessed live by going to the Investor Relations section of the Carlisle website, or the taped call may be listened to shortly following the live call at the same website location. A PowerPoint presentation will accompany the call and can be found on the Carlisle website as well.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the potential or expected impacts of the global coronavirus (COVID-19) pandemic. Forward-looking statements generally use words such as “expect,” “foresee,” “anticipate,” “believe,” “project,” “should,” “estimate,” “will,” “plans,” “forecast,” and similar expressions, and reflect our expectations concerning the future. It is possible that our future performance may differ materially from current expectations expressed in these forward-looking statements, due to a variety of factors such as: risks from the global coronavirus (COVID-19) pandemic including, for example, expectations regarding the impact of the coronavirus (COVID-19) on our businesses, including on customer demand, supply chains and distribution systems, production, our ability to maintain appropriate labor levels, our ability to ship products to our customers, our future results or our full-year financial outlook, increasing price and product/service competition by foreign and domestic competitors, including new entrants; technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; our mix of products/services; increases in raw material costs which cannot be recovered in product pricing; domestic and foreign governmental and public policy changes including environmental and industry regulations; threats associated with and efforts to combat terrorism; protection and validity of patent and other intellectual property rights; the successful integration and identification of our strategic acquisitions; the cyclical nature of our businesses; and the outcome of pending and future litigation and governmental proceedings. In addition, such statements could be affected by general industry and market conditions and growth rates, the condition of the financial and credit markets, and general domestic and international economic conditions including interest rate and currency exchange rate fluctuations. Further, any conflict in the international arena may adversely affect general market conditions and our future performance. We refer you to the documents we file from time to time with the Securities and Exchange Commission, such as our reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of these and other risks and uncertainties that could cause our actual results to differ materially from our current expectations and from the forward-looking statements contained in this press release. We undertake no obligation to update any forward-looking statement.

About Carlisle Companies Incorporated

Carlisle Companies Incorporated is a diversified industrial company with a global portfolio of niche brands that delivers energy efficient and highly engineered products and solutions for its customers. Driven by our strategic plan, Vision 2025, Carlisle is committed to generating superior shareholder returns by investing in high-ROIC businesses and maintaining a balanced capital deployment approach including investments in our businesses, strategic acquisitions, share repurchases and continued dividend increases. Carlisle is headquartered in Phoenix, Arizona. Its worldwide team of employees generated $4.2 billion in revenues in 2020. Learn more about Carlisle at www.carlisle.com.

Carlisle Companies Incorporated

Unaudited Consolidated Statements of Income

Three Months Ended

December 31,

Twelve Months Ended

December 31,

(in millions, except per share amounts)

2020

2019

2020

2019

Revenues

$

1,064.1

$

1,144.3

$

4,245.2

$

4,811.6

Cost of goods sold

771.6

835.6

3,062.8

3,439.9

Selling and administrative expenses

164.2

155.6

641.5

667.1

Research and development expenses

12.6

15.9

54.8

60.9

Other operating expense (income), net

3.9

(4.1

)

2.5

(10.5

)

Operating income

111.8

141.3

483.6

654.2

Interest expense, net

18.9

16.5

76.6

66.1

Loss on extinguishment of debt

—

—

8.8

—

Interest income

(0.8

)

(1.7

)

(4.8

)

(7.9

)

Other non-operating expense, net

2.0

2.9

1.7

0.7

Income from continuing operations before income taxes

91.7

123.6

401.3

595.3

Provision for income taxes

7.0

19.6

77.1

121.6

Income from continuing operations

84.7

104.0

324.2

473.7

Discontinued operations:

Loss before income taxes

(5.4

)

—

(5.4

)

(1.8

)

(Benefit from) provision for income taxes

(1.3

)

1.4

(1.3

)

(0.9

)

Loss from discontinued operations

(4.1

)

(1.4

)

(4.1

)

(0.9

)

Net income

$

80.6

$

102.6

$

320.1

$

472.8

Basic earnings per share attributable to common shares:

Income from continuing operations⁽¹⁾

$

1.59

$

1.84

$

5.93

$

8.30

Loss from discontinued operations

(0.08

)

(0.03

)

(0.08

)

(0.02

)

Basic earnings per share

$

1.51

$

1.81

$

5.85

$

8.28

Diluted earnings per share attributable to common shares:

Income from continuing operations⁽¹⁾

$

1.57

$

1.81

$

5.88

$

8.21

Loss from discontinued operations

(0.08

)

(0.03

)

(0.08

)

(0.02

)

Diluted earnings per share

$

1.49

$

1.78

$

5.80

$

8.19

Average shares outstanding:

Basic

53.2

56.4

54.5

56.9

Diluted

53.8

57.2

55.0

57.5

Dividends declared and paid per share

$

0.525

$

0.50

$

2.05

$

1.80

⁽¹⁾Basic and diluted EPS calculated based on “two-class” method of computing earnings per share using the following income attributable to common shareholders:

Income from continuing operations

$

84.5

$

103.8

$

323.1

$

472.4

Net income

80.4

102.4

319.0

471.5

Carlisle Companies Incorporated

Unaudited Segment Information

Three Months Ended

December 31,

Increase

(Decrease)

Twelve Months Ended

December 31,

Increase

(Decrease)

(in millions, except percentages)

2020

2019

Amount

Percent

2020

2019

Amount

Percent

Revenues

Carlisle Construction Materials

$

760.8

$

753.7

$

7.1

0.9

%

$

2,995.6

$

3,233.3

$

(237.7

)

(7.4

)%

Carlisle Interconnect Technologies

154.6

239.2

(84.6

)

(35.4

)%

731.6

972.9

(241.3

)

(24.8

)%

Carlisle Fluid Technologies

72.9

79.5

(6.6

)

(8.3

)%

242.7

278.4

(35.7

)

(12.8

)%

Carlisle Brake & Friction

75.8

71.9

3.9

5.4

%

275.3

327.0

(51.7

)

(15.8

)%

Total

$

1,064.1

$

1,144.3

$

(80.2

)

(7.0

)%

$

4,245.2

$

4,811.6

$

(566.4

)

(11.8

)%

Operating Income (Loss)

Carlisle Construction Materials

$

155.0

$

127.6

$

27.4

21.5

%

$

581.6

$

576.0

$

5.6

1.0

%

Carlisle Interconnect Technologies

(13.3

)

29.1

(42.4

)

(145.7

)%

(2.1

)

131.6

(133.7

)

(101.6

)%

Carlisle Fluid Technologies

3.3

10.1

(6.8

)

(67.3

)%

5.3

24.0

(18.7

)

(77.9

)%

Carlisle Brake & Friction

0.8

0.8

—

—

%

(3.7

)

21.3

(25.0

)

(117.4

)%

Segment Totals

145.8

167.6

(21.8

)

(13.0

)%

581.1

752.9

(171.8

)

(22.8

)%

Corporate and unallocated ⁽¹⁾

(34.0

)

(26.3

)

(7.7

)

29.3

%

(97.5

)

(98.7

)

1.2

(1.2

)%

Total

$

111.8

$

141.3

$

(29.5

)

(20.9

)%

$

483.6

$

654.2

$

(170.6

)

(26.1

)%

Operating Margin Percentage

Carlisle Construction Materials

20.4

%

16.9

%

350 bps

19.4

%

17.8

%

160 bps

Carlisle Interconnect Technologies

(8.6

)

%

12.2

%

(2080) bps

(0.3

)

%

13.5

%

(1380) bps

Carlisle Fluid Technologies

4.5

%

12.7

%

(820) bps

2.2

%

8.6

%

(640) bps

Carlisle Brake & Friction

1.1

%

1.1

%

— bps

(1.3

)

%

6.5

%

(780) bps

Total

10.5

%

12.3

%

(180) bps

11.4

%

13.6

%

(220) bps

Depreciation and Amortization

Carlisle Construction Materials

$

23.8

$

24.7

$

(0.9

)

(3.6

)%

$

98.0

$

93.9

$

4.1

4.4

%

Carlisle Interconnect Technologies

19.1

17.1

2.0

11.7

%

77.5

63.0

14.5

23.0

%

Carlisle Fluid Technologies

6.0

6.2

(0.2

)

(3.2

)%

23.4

24.1

(0.7

)

(2.9

)%

Carlisle Brake & Friction

5.2

5.5

(0.3

)

(5.5

)%

21.5

21.7

(0.2

)

(0.9

)%

Corporate and unallocated ⁽¹⁾

1.1

0.5

0.6

120.0

%

3.8

2.7

1.1

40.7

%

Total

$

55.2

$

54.0

$

1.2

2.2

%

$

224.2

$

205.4

$

18.8

9.2

%

⁽¹⁾ Includes general corporate expenses and other unallocated costs.

Carlisle Companies Incorporated

Unaudited Items Affecting Comparability Information

Items affecting comparability include costs, and losses or gains related to, among other things, growth and profitability improvement initiatives and other events outside of core business operations (such as asset impairments, exit and disposal and facility rationalization charges, costs of and related to acquisitions, idle capacity and labor costs, net of subsidies, losses on debt extinguishment, litigation settlement costs, insurance settlements, gains and losses from and costs related to divestitures, and non-comparable tax items). Because these items affect our, or any particular operating segment’s, financial condition or results in a specific period in which they are recognized, we believe it is appropriate to present the total of these items to provide information regarding the comparability of results of operations period to period.

Three Months Ended

December 31,

Twelve Months Ended

December 31,

(in millions, except per share amounts)

2020

2019

2020

2019

Impact to Operating Income

Exit and disposal costs

$

5.9

$

3.6

$

24.5

$

13.7

Other facility rationalization costs

0.1

2.2

2.1

5.7

Acquisition related costs:

Inventory step-up amortization

0.3

0.9

0.7

3.1

Other acquisition costs

(2.0)

2.0

3.7

8.3

Idle capacity and labor costs, net of subsidies

0.8

—

8.8

—

Impairment charges

6.0

—

6.0

—

Gains from insurance recoveries

(0.7)

—

(0.7)

—

Gains from contingent consideration

—

(2.0)

—

(5.0)

Gains from divestitures

—

(2.1)

(0.8)

(2.1)

Total

$

10.4

$

4.6

$

44.3

$

23.7

Impact to Diluted EPS from Continuing Operations ⁽¹⁾

Exit and disposal costs

$

0.08

$

0.05

$

0.34

$

0.18

Other facility rationalization costs

—

0.03

0.03

0.08

Acquisition related costs:

Inventory step-up amortization

0.01

0.01

0.01

0.04

Other acquisition costs

(0.03)

0.04

0.05

0.12

Idle capacity and labor costs, net of subsidies

0.02

—

0.12

—

Impairment charges

0.08

—

0.08

—

Gains from insurance recoveries

(0.01)

—

(0.01)

—

Gains from contingent consideration

—

(0.03)

—

(0.09)

Gains from divestitures

(0.04)

(0.03)

(0.05)

(0.02)

Loss on early extinguishment of debt

—

—

0.12

—

Indemnification losses

—

—

0.06

—

Tax items

(0.20)

(0.10)

(0.31)

(0.23)

Total

$

(0.09)

$

(0.03)

$

0.44

$

0.08

Impact to Operating Income

Carlisle Construction Materials

$

0.1

$

(0.4)

$

3.3

$

2.2

Carlisle Interconnect Technologies

9.5

6.9

26.7

16.7

Carlisle Fluid Technologies

1.7

(0.6)

4.2

0.8

Carlisle Brake & Friction

0.9

0.5

6.7

2.8

Corporate

(1.8)

(1.8)

3.4

1.2

Total

$

10.4

$

4.6

$

44.3

$

23.7

Impact to Diluted EPS from Continuing Operations⁽¹⁾

Carlisle Construction Materials

$

—

$

—

$

0.10

$

0.04

Carlisle Interconnect Technologies

0.14

0.10

0.37

0.22

Carlisle Fluid Technologies

(0.02)

(0.02)

0.02

(0.01)

Carlisle Brake & Friction

0.01

0.01

0.09

0.04

Corporate

(0.22)

(0.12)

(0.14)

(0.21)

Total

$

(0.09)

$

(0.03)

$

0.44

$

0.08

⁽¹⁾ Tax effect is based on the rate of the jurisdiction where the expense is deductible or income is taxable.

Carlisle Companies Incorporated

Unaudited Condensed Consolidated Statements of Cash Flows

Twelve Months Ended

December 31,

(in millions)

2020

2019

Net cash provided by operating activities

$

696.7

$

703.1

Investing activities:

Capital expenditures

(95.5

)

(88.9

)

Acquisitions, net of cash acquired

(35.4

)

(616.4

)

Other investing activities, net

8.3

10.4

Net cash used in investing activities

(122.6

)

(694.9

)

Financing activities:

Borrowings from revolving credit facility

500.0

—

Repayments of revolving credit facility

(500.0

)

—

Proceeds from notes

740.7

—

Repayments of notes

(258.5

)

—

Repurchase of common stock

(382.4

)

(382.1

)

Dividends paid

(112.4

)

(102.9

)

Financing costs

(24.2

)

—

Proceeds from exercise of stock options

21.3

37.0

Withholding tax paid related to stock-based compensation

(8.3

)

(10.4

)

Other financing activities, net

(0.9

)

(2.8

)

Net cash used in financing activities

(24.7

)

(461.2

)

Effect of foreign currency exchange rate changes on cash and cash equivalents

1.6

0.6

Change in cash and cash equivalents

551.0

(452.4

)

Beginning of period

351.2

803.6

End of period

$

902.2

$

351.2

Carlisle Companies Incorporated

Unaudited Selected Consolidated Balance Sheet Data

(in millions)

December 31,

2020

December 31,

2019

Cash and cash equivalents

$

902.2

$

351.2

Long-term debt, including current portion

2,081.3

1,591.6

Total shareholders’ equity

2,537.7

2,642.8

View source version on businesswire.com: https://www.businesswire.com/news/home/20210204005976/en/

Jim Giannakouros, CFA

Vice President of Investor Relations

(480) 781-5135

[email protected]

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Posted on February 4, 2021 4:08 pm
DSS Provides Update on Impact BioMedical Share Dividend

ROCHESTER, N.Y., Feb. 04, 2021 (GLOBE NEWSWIRE) — Document Security Systems, Inc. (“DSS” or the “Company”) (NYSE American: DSS), a multinational company operating businesses focusing on brand protection technology, blockchain security, direct marketing, healthcare, real estate, and securitized digital assets, today announced the record date for its previously announced special share dividend of Impact BioMedical has been changed to a yet to be determined future date expected to coincide with the effective date of an S-1 related to the Company’s planned dividend shares of Impact BioMedical.

“We remain fully committed to completing the spinoff of Impact BioMedical in an IPO and sharing this success with our shareholders through a special share dividend,” stated Frank D. Heuszel, CEO of DSS. “After consultation with the NYSE, the previously announced record date for our special share dividend of Impact BioMedical has been revised, and a new date will be announced as the timeline for our related S-1 process becomes clearer. We anticipate this will happen later in the second quarter.”

DSS originally announced a two-part special share dividend of shares of common stock of Impact BioMedical: two shares of Impact BioMedical for every one share of DSS common stock held as of September 7, 2020; and a second tranche of an additional two shares of Impact BioMedical for each common share of DSS held at a yet to be determined record date. The previously announced record date for the first tranche of September 7, 2020 has been revised, and the Company now intends a single special dividend of four Impact BioMedical shares for every one share of DSS common stock held as of a new record date that will be announced at a later date. The share dividend is expected to be issued upon the S-1 becoming effective.

While there can be no assurance that Impact BioMedical will be taken public and/or that any dividend of Impact BioMedical shares will occur, particularly due to unforeseen circumstances including fulfilling the pre-requisite criteria during the IPO application process and market forces beyond the Company’s control, it is the intention of management and the Board to take Impact BioMedical public.

Shareholders interested in receiving the Bonus Shares will be required to hold their DSS shares from the record date through the payment date.

DSS announced the closing of its acquisition of Impact BioMedical on August 21, 2020. Impact BioMedical’s ownership of a suite of antiviral and medical technologies has been valued at $382 million by Destum Partners, known globally for its high level of expertise and capability in independently valuing and advising on pharmaceutical technology. On May 26, 2020, Impact BioMedical disclosed that it received a valuation of $933 million for this suite of technology from a different independent valuation firm. Unlike the previous valuation, the new valuation takes into consideration numerous additional disease applications of the suite of antiviral and medical technologies.

About Impact BioMedical, Inc.

Impact BioMedical, Inc. (“Impact BioMedical”) is a wholly owned subsidiary of DSS. Impact BioMedical strives to leverage its scientific know-how and intellectual property rights to provide solutions that have been plaguing the biomedical field for decades. By tapping into the scientific expertise of GRDG Sciences, LLC, Impact BioMedical pledges to undertake a concerted effort in the R&D, drug discovery and development for the prevention, inhibition, and treatment of neurological, oncological and immuno related diseases. For more information on Impact BioMedical visit http://impbio.com/.

About Document Security Systems, Inc.

DSS is a multinational company operating businesses focused on brand protection technology, blockchain security, direct marketing, healthcare, real estate, and securitized digital assets. Its business model is based on a distribution sharing system in which shareholders will receive shares in its subsidiaries as DSS strategically spins them out into IPOs. Its historic business revolves around counterfeit deterrent and authentication technologies, smart packaging, and consumer product engagement. DSS is led by its Chairman and largest shareholder, Mr. Fai Chan, a highly successful global business veteran of more than 40 years specializing in corporate transformation while managing risk. He has successfully restructured more than 35 corporations with a combined value of $25 billion.

For more information on DSS visit http://www.dsssecure.com.

Investor Contact:

Dave Gentry, CEO
RedChip Companies Inc.
407-491-4498
[email protected]

Safe Harbor Disclosure

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, statements related to the Company’s intended use of proceeds and other statements that are not historical facts. Forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that may cause actual results or events to differ materially from those projected. These risks and uncertainties, many of which are beyond our control, include: risks relating to our growth strategy; our ability to obtain, perform under and maintain financing and strategic agreements and relationships; risks relating to the results of development activities; our ability to attract, integrate and retain key personnel; our need for substantial additional funds; patent and intellectual property matters; competition; as well as other risks described in the section entitled “Risk Factors” in the prospectus and in our other filings with the SEC, including, without limitation, our reports on Forms 8-K and 10-Q, all of which can be obtained on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date on which they are made and reflect management’s current estimates, projections, expectations and beliefs. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law.

Posted on February 4, 2021 4:08 pm
Century Communities Reports Record Fourth Quarter and Full Year 2020 Results

Century Communities Reports Record Fourth Quarter and Full Year 2020 Results

– Net Income for the Quarter Increased 72% to a Record $91.8 Million or $2.72 per Diluted Share –

– Net New Home Contracts for the Quarter Increased 45% to 2,566 Homes –

– Home Sales Revenues for the Quarter Increased 22% to a Company Record $946.8 Million –

– EBITDA for the Quarter Increased 87% to a Company Record $144.7 Million –

– Full Year 2020 Revenues Increased 25% to a Company Record $3.2 Billion –

– Full Year Home Deliveries Increased 18% to a Company Record 9,453 Homes –

GREENWOOD VILLAGE, Colo.–(BUSINESS WIRE)–
Century Communities, Inc. (NYSE: CCS), a leading national homebuilder, today announced financial results for its fourth quarter and full year ended December 31, 2020.

Fourth Quarter 2020 Highlights Compared to Fourth Quarter 2019

Net income increased 72% to a Company record $91.8 million or $2.72 per diluted share

Home sales revenues increased 22% to a Company record $946.8 million

Deliveries grew to a Company record 2,826 homes, a 14% increase

Net new home contracts increased 45% to a fourth quarter record of 2,566 homes

Homes in backlog improved 66% to a fourth quarter record 3,439 homes valued at $1.3 billion

Pre-tax income improved 125% to a Company record $121.2 million

EBITDA increased 87% to a Company record $144.7 million

Net homebuilding debt to net capital improved to 27.2% from 45.2%

Quarter end total liquidity of $1.1 billion

Dale Francescon, Co-Chief Executive Officer, stated, “Our exceptional performance in the fourth quarter concludes an impressive year, reflecting our ongoing momentum and scale benefits, as we capitalized on vigorous housing market demand trends and achieved fourth quarter and full year records in many categories including net new contracts, home deliveries and home sales revenues, along with the highest quarterly and full year net income in our history. As we continue to increase the penetration within our high-growth markets, we expect to generate further operational efficiencies from our national platform which, coupled with robust price appreciation and continued demand, will drive top-line growth, expanded margins and increased profitability.”

Rob Francescon, Co-Chief Executive Officer, said, “We are confident our positive trajectory will continue as not only did our fourth quarter net new contracts increase 45% over last year but we have seen our sales pace accelerate, with December up 54% and January increasing 77%. We are solidly positioned with a backlog of 3,439 sold homes, an increase of 66%, along with nearly 50,000 owned and controlled lots which will support further increases in deliveries, contracts and community count across our Century Communities and Century Complete brands. We’ve substantially strengthened our balance sheet, further improved our cash position, reduced our net debt-to-net-capital ratio to 27% and are well positioned to generate even higher returns to our shareholders.”

Fourth Quarter 2020 Results

Net income for the fourth quarter 2020 increased 72% to $91.8 million, or $2.72 per diluted share as compared to $53.4 million or $1.63 per diluted share for the prior year quarter.

Home sales revenues for the fourth quarter 2020 increased 22% to $946.8 million, compared to $775.7 million for the prior year quarter. The growth in home sales revenues was primarily due to a 14% increase in deliveries to 2,826 homes compared to 2,479 homes for the prior year quarter. Average sales price of home deliveries for the fourth quarter 2020 was $335,000, compared to $312,900 in the prior year quarter, primarily due to our successful efforts in increasing sales prices of our homes and a higher proportion of deliveries from our Century Communities brand. Across all our markets in the fourth quarter, we were successful in raising prices in order to offset the increased materials costs we experienced.

Adjusted homebuilding gross margin percentage, excluding interest, was 23.0% in the fourth quarter of 2020, an improvement of 200 basis points, compared to 21.0% in the prior year quarter and on a sequential basis, an improvement of 300 basis points from 20.0% in the third quarter. Homebuilding gross margin percentage in the fourth quarter 2020 was 20.8%, as compared to 18.2% in the prior year quarter and 17.5% in the third quarter 2020. SG&A as a percent of home sales revenues improved 80 basis points to 10.1%, compared to 10.9% in the prior year quarter. On a sequential basis, SG&A as a percent of homes revenues improved 120 basis points from 11.3% in the third quarter.

Net new home contracts in the fourth quarter 2020 increased 45% to 2,566 homes, compared to 1,775 homes in the prior year quarter. At the end of the fourth quarter 2020, the Company had 3,439 homes in backlog, representing $1.3 billion of backlog dollar value, increases of 66% and 103%, respectively.

Financial services revenues increased to $35.8 million compared to $14.5 million in the prior year quarter, and financial services pretax income increased to $17.8 million from $4.7 million.

Full Year 2020 Results

Net income for the full year 2020 was $206.2 million, or $6.13 per diluted share compared to $113.0 million, or $3.62 per diluted share in the prior year.

Home sales revenues for 2020 increased 22% to $3.0 billion, compared to $2.5 billion for 2019. The increase in home sales revenues was primarily due to home deliveries increasing 18% to 9,453 homes. Average selling price of homes delivered in 2020 was $320,200, compared to $310,200 in the prior year.

Adjusted homebuilding gross margin percentage, excluding interest, impairments and purchase price accounting, was 20.8% in 2020 compared to 20.3% in the prior year. Homebuilding gross margin percentage was 18.4%, compared to 17.7% in 2019. SG&A as a percent of home sales revenues decreased 90 basis points to 11.3% compared to 12.2% the prior year.

Net new home contracts in 2020 increased to 10,822 homes, an increase of 38%, compared to 7,861 homes in the prior year, primarily attributable to an increased absorption pace.

Financial services generated pre-tax income of $48.5 million in the full year 2020 as compared to $10.7 million in the prior year.

Strengthened Balance Sheet and Liquidity

The Company ended the quarter with a strong financial position including $1.3 billion of stockholders’ equity, $417 million of cash and $1.1 billion of total liquidity.

As of December 31, 2020, net homebuilding debt to net capital decreased to 27.2%, a reduction of 1,800 basis points from 45.2% in the prior year quarter and a sequential reduction of 570 basis points from 32.9% at the end of third quarter of 2020.

Full Year 2021 Outlook

David Messenger, Chief Financial Officer of the Company, commented, “Our recent performance demonstrates the resiliency of our business and proven ability to execute. We remain encouraged by the strength and health of the housing market and as such, are introducing full year guidance of deliveries in the range of 10,500 to 11,500 homes and homes sales revenues in the range of $3.3 billion to $3.8 billion.”

Conference Call

The Company will host a webcast and conference call on Thursday, February 4, 2021 at 5:00 p.m. Eastern time, 3:00 p.m. Mountain time, to review the Company’s fourth quarter and full year 2020 results, discuss recent events and conduct a question-and-answer period. To participate in the call, please dial 877-451-6152 (domestic) or 201-389-0879 (international). The live webcast will be available at www.centurycommunities.com in the Investors section. A replay of the conference call will be available through March 4, 2021, by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the pass code 13714670. A replay of the webcast will be available on the Company’s website.

About Century Communities:

Century Communities, Inc. (NYSE: CCS) is a top 10 national homebuilder. Offering new homes under the Century Communities and Century Complete brands, Century is engaged in all aspects of homebuilding — including the acquisition, entitlement and development of land, along with the construction, innovative marketing and sale of quality homes designed to appeal to a wide range of homebuyers. The Colorado-based company operates in 17 states across the U.S., and offers title, insurance and lending services in select markets through its Parkway Title, IHL Insurance Agency, and Inspire Home Loan subsidiaries. To learn more about Century Communities, please visit www.centurycommunities.com.

Non-GAAP Financial Measures

In addition to the Company’s operating results presented in accordance with generally accepted accounting principles (GAAP), this press release includes the following non-GAAP financial measures: Adjusted Net Income, Adjusted Diluted Earnings per Common Share (Adjusted Diluted EPS), Adjusted Homebuilding Gross Margin, Adjusted EBITDA, and Ratio of Homebuilding Net Debt to Net Capital. These non-GAAP financial measures should not be used as a substitute for the Company’s operating results presented in accordance with GAAP, and an analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. Please refer to the reconciliation of each of the above referenced non-GAAP financial measures following the historical financial information presented in this press release.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and, as such, may involve known and unknown risks, uncertainties and assumptions. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “expect,” “estimate,” “plan,” “continue,” “will,” “may,” “potential,” “looking ahead,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements in this release include the Company’s operating and financial guidance for 2021, its intent to take certain actions to successfully navigate through the current COVID-19 crisis and the success of these actions on its future operating results. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on historical information available at the time the statements are made and are based on management’s reasonable belief or expectations with respect to future events, and are subject to risks and uncertainties, many of which are beyond the Company’s control, that could cause actual performance or results to differ materially from the belief or expectations expressed in or suggested by the forward-looking statements. The following important factors could cause actual results to differ materially from those expressed in the forward-looking statement: adverse changes in general economic conditions, the potential impact of COVID-19 on the Company’s business, industry and broader economy, the ability to identify and acquire desirable land, availability of financing, the effect of interest rate and tax changes, reliance on contractors, and the other factors included in the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to update any forward-looking statement to reflect future events, developments or otherwise, except as may be required by applicable law.

Century Communities, Inc.

Consolidated Statements of Operations

(Unaudited)

(in thousands, except share and per share amounts)

Three months ended December 31,

Year ended December 31,

2020

2019

2020

2019

Revenues

Home sales revenues

$

946,803

$

775,667

$

3,027,167

$

2,481,465

Land sales and other revenues

5,200

2,347

30,717

11,184

952,003

778,014

3,057,884

2,492,649

Financial services revenue

35,775

14,528

103,308

43,262

Total revenues

987,778

792,542

3,161,192

2,535,911

Homebuilding Cost of Revenues

Cost of home sales revenues

(749,587

)

(632,722

)

(2,468,133

)

(2,040,241

)

Cost of land sales and other revenues

(3,332

)

(2,015

)

(21,929

)

(8,130

)

(752,919

)

(634,737

)

(2,490,062

)

(2,048,371

)

Financial services costs

(17,956

)

(9,825

)

(54,797

)

(32,575

)

Selling, general, and administrative

(95,580

)

(84,538

)

(341,710

)

(301,525

)

Loss on debt extinguishment

—

—

—

(10,832

)

Inventory impairment and other

(481

)

(4,783

)

(2,172

)

(4,783

)

Other income (expense)

322

(4,691

)

(2,211

)

(5,190

)

Income before income tax expense

121,164

53,968

270,240

132,635

Income tax expense

(29,347

)

(610

)

(64,083

)

(19,641

)

Net income

$

91,817

$

53,358

$

206,157

$

112,994

Earnings per share:

<