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AVROBIO Announces New Positive Clinical Data and Preclinical Data, as Well as Expanded Leading Lysosomal Disorder Gene Therapy Pipeline

Evoqua Water Technologies Reports Fourth Quarter and Full Year 2020 Results

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November 17, 2020 7:03 am

AVROBIO Announces New Positive Clinical Data and Preclinical Data, as Well as Expanded Leading Lysosomal Disorder Gene Therapy Pipeline

Three months post-gene therapy, first patient in Gaucher trial shows reductions in the toxic metabolite plasma lyso-Gb1 and plasma chitotriosidase as compared to baseline when the patient was on ERT

Ongoing Fabry disease trials continue to demonstrate sustained durability, with first patient out 3.5 years

One year post-gene therapy, first patient in cystinosis trial remains off cysteamine, with positive data across multiple measures, including substantial reduction in cystine crystals in cornea

Clinical trial recruitment gaining momentum with five new patients expected to be dosed, enrolled or consented in 4Q 2020

Gaucher disease type 3 program added to pipeline; recently added Hunter syndrome program planned to enter clinic next year

Virtual R&D Day to be webcast today starting at 9 a.m. ET

CAMBRIDGE, Mass.–(BUSINESS WIRE)–
AVROBIO, Inc. (Nasdaq: AVRO), a leading clinical-stage gene therapy company with a mission to free people from a lifetime of genetic disease, today announced positive new data across its clinical programs in Gaucher disease type 1, Fabry disease and cystinosis, further reinforcing the potential of ex vivo lentiviral gene therapy for lysosomal disorders. Additionally, AVROBIO is further expanding its lysosomal disorder pipeline with a new program in Gaucher disease type 3, which joins the recently announced program in Hunter syndrome in a synergistic portfolio of six programs designed to prevent, halt or reverse genetic disease.

“We’re delighted to report substantial new data across our three clinical programs. Three months post-gene therapy infusion, the first Gaucher disease patient’s levels of the toxic metabolite plasma lyso-Gb1, as well as plasma chitotriosidase, were lower than the baseline levels when the patient was still on enzyme replacement therapy (ERT). With our Fabry disease data continuing to reflect sustained and durable results, with our first patient now out 3.5 years from dosing, we are planning our strategy to seek accelerated approvals in one or more major markets,” said Geoff MacKay, president and CEO of AVROBIO. “Additionally, the first patient in the investigator-sponsored trial for cystinosis, now out one year, remains off both oral and eye drop cysteamine and we are thrilled to announce that a third patient has been dosed.

“As we move into the next stage of company growth, we’re expanding our lysosomal disorder pipeline with a new program for Gaucher disease type 3 and we plan to dose the first Hunter syndrome patient next year. We expect to be the first lentiviral gene therapy to the clinic across all six of these indications – and in some cases, the first to be in the clinic with an investigational gene therapy of any type. We believe the new data we’ve announced today help de-risk our portfolio which leverages the same lentiviral gene therapy approach across indications,” MacKay added. “With strong clinical trial enrollment momentum coming out of the COVID-19-related slowdown, we anticipate dosing, enrolling or consenting five patients across our clinical trials this quarter, and dosing a total of 30 patients cumulatively across our clinical programs by the end of 2021.”

Positive clinical data out as far as 3.5 years across a broad lysosomal disorder gene therapy pipeline

New clinical updates announced today include:

AVR-RD-02 for Gaucher disease type 1: Positive early reductions in plasma lyso-Gb1 and chitotriosidase activity at three months as compared to baseline, when Patient 1 was on ERT; additional positive trends observed across multiple other measures

Three months post-gene therapy, the first patient dosed had a 22-percent reduction in the toxic metabolite plasma lyso-Gb1, a sensitive and clinically validated biomarker for Gaucher disease, compared to a baseline taken when she was stable on ERT, the current standard of care. Additionally, she had a 17-percent drop from her ERT baseline in plasma chitotriosidase, a biomarker of activated macrophages or “Gaucher cells” which lead to inflammation and severe organ damage. The vector copy number (VCN) at three months was 0.6 vcn/dg. Additionally, hemoglobin concentration and platelet counts, which are typically low in Gaucher disease patients, remained in the normal range three months after gene therapy. Patient 1 discontinued ERT one month before the gene therapy infusion and remains off ERT.

At three months post-gene therapy, no unexpected safety events or trends have been identified in the trial, with no serious adverse events related to AVR-RD-02 reported in the first patient dosed as of the safety data cut-off date, Nov. 3, 2020.
AVR-RD-01 for Fabry disease: Potential accelerated approval strategy planning underway as clinical data across Phase 1 and Phase 2 trials continue to show positive and durable clinical activity and safety data

With data from both trials showing consistently favorable results up to 3.5 years post-gene therapy, AVROBIO is in advanced planning of its strategy toward potential accelerated approval pathways. The company intends to submit its briefing book in 4Q 2020 to the U.S. Food and Drug Administration (FDA) with the goal to align on a potential accelerated approval strategy.

The company reported durable and sustained response in enzyme activity, substrate levels and VCN across patients in both the Phase 1 and Phase 2 trials as of the data cut-off date, indicating successful engraftment of genetically modified cells and endogenous production of the functional enzyme needed to break down toxic substrate and metabolites in patients. Updated biomarker data on kidney function show generally stable estimated glomerular filtration rate (eGFR) in both Phase 1 and Phase 2 patients. Historically, people living with Fabry disease experience a progressive, faster-than-normal rate of decline in kidney function, as measured by eGFR, whether or not they are on ERT, the current standard of care. AVROBIO believes the stability in eGFR for patients in its clinical trials to be clinically significant and relevant.

No unexpected safety events or trends have been identified in the trials as of the safety data cut-off date, Oct. 8, 2020. The eight serious adverse events reported in the two Fabry disease trials have been consistent with the conditioning regimen, stem cell mobilization, underlying disease or pre-existing conditions. Pre-existing low anti-AGA antibody titers have been detected in four patients in the Fabry Phase 1 trial and a transient low titer was observed but not detectable in subsequent measures in one patient in the Fabry Phase 2 trial.
AVR-RD-04 for cystinosis: Functional and clinical improvements for the first patient at 1 year; third patient in the trial dosed

The first patient dosed in the Phase 1/2 trial, now 12 months post-dosing, remains off both oral and eye drop cysteamine. Biopsy data showed a 56-percent decrease in the number of crystals in his skin, suggesting that the patient may now be producing his own functional cystinosin protein – which he was unable to do before receiving AVR-RD-04 – and that the protein is potentially preventing the toxic accumulation of cystine crystals. Images of the patient’s cornea also showed a substantial decline in corneal crystals. His eGFR has been stabilizing post-infusion, though it is important to note that he had pre-existing, irreversible chronic kidney disease prior to trial enrollment. VCN has reached its therapeutic plateau, as expected, measuring 0.9 vcn/dg at 12-months post-dosing, mirroring trends seen in AVROBIO’s other clinical programs. Patient 2 had a VCN of 2.2 vcn/dg at three months post-gene therapy, as of Oct. 13, 2020. A new patient has been dosed this month in the investigator-sponsored¹ study of AVR-RD-04 for cystinosis, marking the halfway point for enrollment with three patients dosed in total.

No unexpected safety events or trends have been identified in the trial, with no serious adverse events reported as of the Nov. 2, 2020, safety data cut-off date.

Pioneering approach to personalized conditioning to leverage advantages of busulfan

The company also shared new data on the safety and tolerability profile of precision conditioning with busulfan prior to gene therapy administration. AVROBIO is pioneering a new approach called targeted concentration intervention (TCI) that enables precise dosing designed to optimize engraftment durability and head-to-toe reach of ex vivo lentiviral gene therapies. TCI aims to maximize the likelihood of engraftment while minimizing the risk of out-of-range side effects by targeting busulfan exposure to an area under the curve of 90 mg x hr/L over four days, called Bu90-TCI.

In AVROBIO’s clinical trials to date, data suggest that side effects from its single-agent, single-cycle approach to Bu90-TCI conditioning may be predictable, manageable and transient. The side effects have tended to be mild to moderate in nature and typically presented one week after dosing and peak over three to four days before quickly subsiding. Unlike other conditioning agents, Bu90-TCI is lymphocyte sparing, meaning that important components of the adaptive immune system, B and T cells, are expected to be minimally affected.

Strategic pipeline expansion into relentlessly progressivelysosomal disorders

AVROBIO announced the addition of Gaucher disease type 3 to its pipeline, following the recent addition of Hunter syndrome, which is planned to enter the clinic next year. Together with the existing program in Pompe disease, these make up AVROBIO’s second wave of clinical programs focused on life-threatening lysosomal disorders, with the goals of preventing the central nervous system and systemic deterioration that make lysosomal disorders so devastating, normalizing lifespan and lifting the burden of chronic treatment with ERT. New preclinical data suggest that AVROBIO’s proprietary tagging technology, part of its industry-leading plato® gene therapy platform toolbox, further enhances the potential of its investigational gene therapies in these disorders.

“We believe that all six of our pipeline programs share tremendous synergies in clinical development, manufacturing, regulatory processes and commercialization. This second wave of programs will evaluate our promising investigational therapies in diseases with high unmet medical need for patients and families,” said Chris Mason, M.D., Ph.D., chief scientific officer at AVROBIO. “We believe the opportunity we have to potentially prevent patients, especially children, from developing the disabilities that would otherwise result from their inherited genetic code – to perhaps give them the possibility of a full and healthy life – is humbling. That is our purpose; it drives all of us at AVROBIO every day.”

Preclinical updates include:

AVR-RD-05 for Hunter syndrome: Normalization of multiple biomarkers in mouse model of the disease

The presented data showed that a lentiviral gene therapy incorporating an ApoE2 tag used in AVR-RD-05 and in-licensed from the University of Manchester, U.K., substantially reduced substrate accumulation and neuroinflammation in mouse models of Hunter syndrome to levels seen in normal mice. The presence of the tag significantly improved performance across multiple metrics in preclinical models, including normalization of skeletal features such as the cheekbone dimensions and the width of the humerus and femur bones. Patient dosing is planned to begin in 2H 2021 in an investigator-sponsored trial with the University of Manchester. The company is exploring regulatory options, including expedited development programs, to advance the product for use in neuronopathic patients, the most severe form of the disease.
AVR-RD-06 for Gaucher disease type 3: New program leveraging the same vector as AVR-RD-02 for Gaucher disease type 1

The disease burden for patients with Gaucher disease type 3 includes significant neurological deterioration, which AVROBIO believes AVR-RD-06 has the potential to address by replacing diseased microglia and macrophages, or “Gaucher cells,” with genetically modified cells throughout the body and brain.
AVR-RD-03 for Pompe disease: Preclinical data show normalization of substrate levels in multiple hard-to-reach organs

The presented data showed that a lentiviral gene therapy incorporating a proprietary Glycosylation-Independent Lysosomal Targeting (GILT) tag used in AVR-RD-03 and in-licensed from BioMarin, reduced toxic glycogen accumulation by 97 to 100 percent in tissues including the brain, spinal cord, heart and diaphragm, and by more than 85 percent in skeletal muscle in a mouse model of the most severe form of the disease, classic infantile-onset Pompe disease. Four to eight months after dosing, substrate levels in multiple tissues of the mice treated with the tagged lentiviral gene therapy were nearly indistinguishable from normal mice. AVROBIO believes that these exciting results could only be achieved with the GILT tag to drive uptake into hard-to-reach tissues. The company is exploring options to rapidly advance AVR-RD-03 into the clinic for treatment of classic infantile-onset Pompe disease.

End-to-end plato® platform ready to enable global commercialization

AVROBIO also presented data on its industry-leading plato® platform highlighting advances in chemistry, manufacturing and controls (CMC) to prepare for planned upcoming trials and potential global commercialization.

The optimized processes embedded in plato are designed to enable robust product characterization and efficient production of potent, consistent drug product on two continents, with a third site slated to become operational in Europe in 2021. New advances include:

Development of a universal VCN assay that may be leveraged across the portfolio: AVROBIO believes that this universal assay, intended to be transferred to multiple regulatory jurisdictions, represents a significant advance in the industry. It is designed to build a strong foundation to support future biologics license applications.

Advances in next-generation analytics to potentially enable deep product characterization: AVROBIO leads in single-cell analytics and whole transcriptome profiling, such as characterization of tens of thousands of single cells in the apheresis starting material used to make the drug product.

Implementation of global infrastructure built to scale production to meet commercial demands: plato is built with efficiency, scalability and speed in mind, from large-scale plasmid and vector manufacturing to automated drug product production to cryopreservation.

R&D Day webcast information

A live webcast of Virtual R&D Day and accompanying slides will be available under “Events and Presentations” in the Investors section of the company’s website at www.avrobio.com. An archived webcast recording of the event will be available on the website for approximately 30 days.

About AVROBIO

Our vision is to bring personalized gene therapy to the world. We aim to prevent, halt or reverse disease throughout the body with a single dose of gene therapy designed to drive durable expression of functional protein, even in hard-to-reach tissues and organs including the brain, muscle and bone. Our ex vivo lentiviral gene therapy pipeline includes clinical programs in Fabry disease, Gaucher disease type 1 and cystinosis, as well as preclinical programs in Hunter syndrome, Gaucher disease type 3 and Pompe disease. AVROBIO is powered by its industry leading plato® gene therapy platform, our foundation designed to deliver gene therapy worldwide. We are headquartered in Cambridge, Mass., with an office in Toronto, Ontario. For additional information, visit avrobio.com, and follow us on Twitter and LinkedIn.

Forward-Looking Statement

This press release contains forward-looking statements, including statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words and phrases such as “aims,” “anticipates,” “believes,” “could,” “designed to,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “plans,” “possible,” “potential,” “seeks,” “will,” and variations of these words and phrases or similar expressions that are intended to identify forward-looking statements. These forward-looking statements include, without limitation, statements regarding our business strategy for and the potential therapeutic benefits of our prospective product candidates, results of preclinical studies, the design, commencement, enrollment and timing of ongoing or planned clinical trials, clinical trial results, product approvals and regulatory pathways, anticipated benefits of our gene therapy platform including potential impact on our commercialization activities, timing and likelihood of success, and the expected benefits and results of our implementation of the plato platform in our clinical trials and gene therapy programs, including the use of a personalized and ultra-precision busulfan conditioning regimen. Any such statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Results in preclinical or early-stage clinical trials may not be indicative of results from later stage or larger scale clinical trials and do not ensure regulatory approval. You should not place undue reliance on these statements, or the scientific data presented.

Any forward-looking statements in this press release are based on AVROBIO’s current expectations, estimates and projections about our industry as well as management’s current beliefs and expectations of future events only as of today and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risk that any one or more of AVROBIO’s product candidates will not be successfully developed or commercialized, the risk of cessation or delay of any ongoing or planned clinical trials of AVROBIO or our collaborators, the risk that AVROBIO may not successfully recruit or enroll a sufficient number of patients for our clinical trials, the risk that AVROBIO may not realize the intended benefits of our gene therapy platform, including the features of our plato® platform, the risk that our product candidates or procedures in connection with the administration thereof will not have the safety or efficacy profile that we anticipate, the risk that prior results, such as signals of safety, activity or durability of effect, observed from preclinical or clinical trials, will not be replicated or will not continue in ongoing or future studies or trials involving AVROBIO’s product candidates, the risk that we will be unable to obtain and maintain regulatory approval for our product candidates, the risk that the size and growth potential of the market for our product candidates will not materialize as expected, risks associated with our dependence on third-party suppliers and manufacturers, risks regarding the accuracy of our estimates of expenses and future revenue, risks relating to our capital requirements and needs for additional financing, risks relating to clinical trial and business interruptions resulting from the COVID-19 outbreak or similar public health crises, including that such interruptions may materially delay our enrollment and development timelines and/or increase our development costs or that data collection efforts may be impaired or otherwise impacted by such crises, and risks relating to our ability to obtain and maintain intellectual property protection for our product candidates. For a discussion of these and other risks and uncertainties, and other important factors, any of which could cause AVROBIO’s actual results to differ materially and adversely from those contained in the forward-looking statements, see the section entitled “Risk Factors” in AVROBIO’s most recent Quarterly Report on Form 10-Q, as well as discussions of potential risks, uncertainties and other important factors in AVROBIO’s subsequent filings with the Securities and Exchange Commission. AVROBIO explicitly disclaims any obligation to update any forward-looking statements except to the extent required by law.

¹Collaborator-sponsored Phase 1/2 clinical trial of AVR-RD-04 is funded in part by grants to UCSD from the California Institute for Regenerative Medicine (CIRM), Cystinosis Research Foundation (CRF) and National Institutes of Health (NIH).

View source version on businesswire.com: https://www.businesswire.com/news/home/20201117005468/en/

Investors:

Christopher F. Brinzey

Westwicke, an ICR Company

339-970-2843

[email protected]

Media:

Stephanie Simon

Ten Bridge Communications

617-581-9333

[email protected]

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS: Biotechnology Health Genetics Pharmaceutical Clinical Trials

MEDIA:

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November 17, 2020 7:03 am

Fourth Quarter 2020 Financial Highlights:

Consolidated revenue of $383.9 million, down 6.9% compared to the prior year period; organic revenue down 1.7%
Net income of $31.1 million compared to net income of $1.9 million in the prior year period
Adjusted EBITDA of $75.6 million, a decline of 4.7% compared to the prior year period

Full Year 2020 Financial Highlights:

Consolidated revenues of $1.43 billion, down 1.0% compared to the prior year; organic revenue increased 1.5%
Net income of $114.4 million compared to a net loss of $8.5 million in the prior year
Adjusted EBITDA of $239.6 million, up 2.0% from the prior year
Net debt leverage ratio improved to 3.0x Adjusted EBITDA

PITTSBURGH–(BUSINESS WIRE)–
Evoqua Water Technologies (NYSE:AQUA), an industry leader in mission-critical water treatment solutions, today reported results for its fourth quarter and fiscal year ended September 30, 2020.

Revenue for the fourth quarter of fiscal 2020 was $383.9 million compared to $412.5 million in the prior year period, a decrease of 6.9% or $28.6 million. The change in revenue was driven primarily by the net impact of acquisitions and the divestiture of the Memcor product line, which resulted in a net decrease in revenue of 5.8% or $24.0 million, in addition to a decline in organic revenue of 1.7% or $6.9 million. The revenue decline was partially offset by a favorable change in foreign currency translation of $2.3 million, an increase of 0.6% as compared to the prior year period. Net income for the quarter was $31.1 million, resulting in diluted earnings per share (“EPS”) of $0.26 as compared to net income of $1.9 million and diluted EPS of $0.01 in the prior year period. The change in net income for the quarter as compared to the prior year period was predominately impacted by a favorable change in non-cash foreign currency translation of $13.5 million, lower tax expense of $6.7 million, and $5.4 million of lower interest expense. Adjusted EBITDA for the quarter was $75.6 million as compared to $79.3 million in the prior year period. The decline in Adjusted EBITDA was primarily driven by the net impact in the period of the Memcor product line divestiture, partly offset by better margins and cost containment measures. Adjusted EPS was $0.29 for the quarter as compared to $0.17 in the prior year period, driven by lower tax and interest expense. See the “Use of Non-GAAP Measures” section below for additional information regarding Adjusted EBITDA and Adjusted EPS.

For fiscal 2020, revenue was $1.43 billion compared to $1.44 billion in the prior year, a decline of 1.0% or $14.9 million. The change in revenue was driven by the net impact of acquisitions and the divestiture of the Memcor product line, which resulted in a net decrease in revenue of 2.5% or $35.4 million, offset by an increase in organic revenue of 1.5% or $22.2 million. The revenue decline was also partially related to an overall unfavorable change in foreign currency translation of $1.7 million, a decrease of 0.1% as compared to the prior year. Net income for the year was $114.4 million, resulting in diluted EPS of $0.94 as compared to a net loss of $8.5 million and diluted EPS of $(0.08) in the prior year. The change in net income for the full year includes a net pre-tax benefit from the divestiture of the Memcor product line in the current year of $57.7 million, favorable change in non-cash foreign currency translation of $20.8 million, and a net decline in transaction costs, stock based compensation, restructuring and other charges of $27.2 million. For fiscal 2020, Adjusted EBITDA was $239.6 million as compared to Adjusted EBITDA of $235.0 million in the prior year, an increase of $4.6 million or 2.0%. The increase in Adjusted EBITDA for fiscal 2020 as compared to the prior year was driven primarily by improved gross margins and operational efficiencies, including temporary cost controls, as the Company has navigated the economic uncertainties presented by COVID-19. These favorable impacts more than offset the decline in Adjusted EBITDA generated by the divestiture of the Memcor product line. Adjusted EPS for the year was $0.67 as compared to $0.41 in the prior year, driven by the factors discussed as well as lower tax and interest expense. Net debt leverage ratio improved year over year to 3.0x Adjusted EBITDA from 3.8x Adjusted EBITDA. This improvement was generated by strong cash generation from the Company’s core operations as well as cash generated from the divestiture of the Memcor product line.

“I am very pleased with the performance delivered in the fourth quarter and throughout an unprecedented year of 2020, as we maintained uninterrupted service to our customers and executed on our strategy while addressing the challenges presented by COVID-19. We prioritized our efforts on protecting the health and safety of our employees and maximizing customer facing operations while delivering year-over-year improvements across most key financial metrics. I am confident that the actions taken result in an Evoqua that is stronger, more nimble and more effective as we enter 2021,” said Mr. Ron Keating, Evoqua’s CEO.

Mr. Keating continued, “Our solid performance throughout the year reflects the resiliency of our business and the balanced strength from the diverse end markets that we serve. We were pleased to see organic orders grow double digits in the fourth quarter as a result of increasing demand for our outsourced water solutions that provide long term, steady and recurring revenues. Organic revenues were up 1.5% for the full year. Adjusting for the sale of Memcor, we reported increases in Adjusted EBITDA for the fourth quarter and full year versus the prior periods. Additionally, liquidity increased sequentially by $49.0 million to over $300 million and net leverage improved to 3.0 times Adjusted EBITDA. Continuing our strategy of accretive tuck-in acquisitions, I would like to welcome the employees of Aquapure Technologies to Evoqua, as we concluded this acquisition in September.”

Mr. Keating concluded, “Entering 2021, we remain highly vigilant and focused on employee health and safety, maintaining customer operational uptime and continued balance sheet flexibility. We are prepared to successfully navigate potential COVID-19 challenges as we deliver on our value proposition of providing mission critical water treatment and technologies across our diverse set of end markets. Given market uncertainties due to COVID-19, our base case for the upcoming year is flat to slight growth in sales and adjusted EBITDA as we factor in order conversion timing and the investment in outsourced water projects that will extend well beyond 2021. We expect to see our liquidity position continue to remain strong and net leverage to improve.”

Fourth Quarter Segment Results

Evoqua has two reportable operating segments – Integrated Solutions and Services and Applied Product Technologies. The results of our segments for the fourth quarter are as follows:

Integrated Solutions and Services

Segment revenues increased $1.5 million, or 0.6%, to $249.5 million in the fourth quarter of fiscal 2020 as compared to the prior year period.

Capital revenue increased by $4.7 million, exclusive of acquisitions, as compared to the prior year period. The increase was primarily driven by continued strong demand for water solutions and systems in the microelectronics end market.
Service revenue decreased by $3.5 million as compared to the prior year period. The impact was primarily related to shut-downs and delays in the refining and oil and gas markets, as well as other COVID-19 related deferrals or delays across a variety of end markets. Timing of completion of certain large projects in the prior year period also contributed to the lower revenues, partly offset by price realization related to established service contracts.
Aftermarket revenue declined by $1.0 million, while the recent investment in Frontier Water Systems, LLC contributed $1.3 million of revenue in the period.

Operating profit decreased by $3.1 million, or 6.7%, to $43.2 million in the fourth quarter of fiscal 2020 as compared to the prior year period.

Increased volume and price realization drove a $2.3 million increase in segment profitability as compared to the prior year period. Additionally, cost containment measures implemented in response to the uncertainties of COVID-19 accounted for an additional $2.1 million increase in segment profitability.
Profitability was negatively impacted by $1.3 million of operational variances related to lower service volumes and service related productivity due to customer shutdowns and enhanced safety protocols in response to COVID-19, as well as $4.3 million related to increased employee related expenses.
Depreciation and amortization expense increased by $1.9 million compared to the prior year period as the segment continues to invest in revenue generating assets.

Segment Adjusted EBITDA decreased $1.0 million, or 1.6%, to $60.3 million in the fourth quarter of fiscal 2020 as compared to the prior year period. The decline in segment Adjusted EBITDA generally resulted from the same factors that impacted operating profit, other than the change in depreciation and amortization, and also excludes restructuring charges recognized in the period.

Applied Product Technologies

Segment revenues decreased by $30.1 million, or 18.3%, to $134.4 million in the fourth quarter of fiscal 2020 as compared to the same period in the prior year.

The divestiture of the Memcor product line resulted in a reduction in revenue of $25.3 million.
Revenue declined across multiple product lines in the Americas and EMEA regions, mainly due to COVID-19 related customer site closures and delays. These decreases were partially offset by revenue growth in the Asia Pacific region, driven by volume in the Electro-deionization and Disinfection product lines as demand continued to improve in the region as it recovers from COVID-19. The net impact was an overall decline in revenue of $7.2 million as compared to the prior year period.
Foreign currency translation resulted in a favorable revenue impact of $2.4 million as compared to the prior year period.

Operating profit decreased $7.2 million to $23.8 million for the fourth quarter of fiscal 2020 as compared to the prior year period.

The divestiture of the Memcor product line contributed $5.9 million to the decrease in operating profit.
Improvement in operational efficiencies and cost containment measures offset the impact of lower volume from organic revenue and variances in product mix, contributing a net $1.8 million in profitability as compared to the prior year period. Profitability was unfavorably impacted by $1.0 million in increased inflation and employee costs.
Segment operating profit also includes the positive impact of $1.0 million of lower depreciation expense and $0.4 million of favorable foreign currency translation.
Further net operating profit decrease of $3.5 million was attributable to higher restructuring and other non-recurring charges as compared to the prior year period.

Segment Adjusted EBITDA decreased $4.6 million, or 12.3%, to $32.7 million in the fourth quarter of fiscal 2020 as compared to $37.3 million in the same period of the prior year. The decrease in segment Adjusted EBITDA was driven by the same factors which impacted segment operating profit, other than the change from depreciation and amortization, and also excludes restructuring and other non-recurring activity recognized in the period.

Fourth Quarter and Fiscal 2020 Earnings Call and Webcast

The Company will hold its fourth quarter and full year fiscal 2020 earnings conference call Tuesday, November 17, 2020, at 10:00 a.m. E.T. The live audio webcast and presentation slides for the call will be accessible via Evoqua’s Investor Relations website, http://aqua.evoqua.com/. The link to the webcast replay as well as the presentation slides will also be posted on Evoqua’s Investor Relations website.

About Evoqua Water Technologies

Evoqua Water Technologies is a leading provider of mission critical water and wastewater treatment solutions, offering a broad portfolio of products, services and expertise to support industrial, municipal and recreational customers who value water. Evoqua has worked to protect water, the environment and its employees for more than 100 years, earning a reputation for quality, safety and reliability around the world. Headquartered in Pittsburgh, Pennsylvania, the company operates in more than 160 locations across ten countries. Serving more than 38,000 customers and 200,000 installations worldwide, our employees are united by a common purpose: Transforming Water. Enriching Life.

EVOQUA WATER TECHNOLOGIES CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In thousands, except per share amounts)

	Three Months Ended September 30,				Year Ended September 30,
	2020		2019		2020		2019
Revenue from product sales and services	$	383,861	$	412,468	$	1,429,456	$	1,444,441
Cost of product sales and services	(261,213)		(282,141)		(979,653)		(1,018,479)
Gross profit	122,648		130,327		449,803		425,962
General and administrative expense	(39,830)		(64,442)		(192,597)		(217,013)
Sales and marketing expense	(34,322)		(35,390)		(136,167)		(138,936)
Research and development expense	(3,543)		(3,916)		(13,198)		(15,300)
Total operating expenses	(77,695)		(103,748)		(341,962)		(371,249)
Other operating (expense) income, net	(418)		893		60,607		4,959
Income before interest expense and income taxes	44,535		27,472		168,448		59,672
Interest expense	(9,362)		(14,797)		(46,682)		(58,556)
Income before income taxes	35,173		12,675		121,766		1,116
Income tax expense	(4,035)		(10,721)		(7,371)		(9,587)
Net income (loss)	31,138		1,954		114,395		(8,471)
Net (loss) income attributable to non‑controlling interest	(170)		266		746		1,052
Net income (loss) attributable to Evoqua Water Technologies Corp	$	31,308	$	1,688	$	113,649	$	(9,523)
Basic income (loss) per common share	$	0.26	$	0.01	$	0.97	$	(0.08)
Diluted income (loss) per common share	$	0.26	$	0.01	$	0.94	$	(0.08)

EVOQUA WATER TECHNOLOGIES CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands, except per share amounts)

	September 30, 2020		September 30, 2019
ASSETS
Current assets	$	695,712	$	637,293
Cash and cash equivalents	193,001		109,881
Receivables, net	260,479		257,585
Inventories, net	142,379		137,164
Contract assets	80,759		73,467
Other current assets	19,094		21,940
Assets held for sale	—		37,256
Property, plant, and equipment, net	364,461		333,584
Goodwill	397,205		392,890
Intangible assets, net	309,967		314,767
Operating lease right-of-use assets, net	45,965		—
Other non-current assets	31,148		28,505
Non-current assets held for sale	—		30,809
Total assets	$	1,844,458	$	1,737,848
LIABILITIES AND EQUITY
Current liabilities	$	349,555	$	322,221
Accounts payable	153,890		144,247
Current portion of debt	14,339		13,418
Contract liabilities	26,259		39,051
Accrued expenses and other liabilities	143,389		101,839
Other current liabilities	11,678		9,458
Liabilities held for sale	—		14,208
Non-current liabilities	1,012,840		1,049,805
Long-term debt	861,695		951,599
Obligation under operating leases	37,796		—
Other non-current liabilities	113,349		94,541
Non-current liabilities held for sale	—		3,665
Total liabilities	1,362,395		1,372,026
Shareholders’ equity
Common stock, par value $0.01: authorized 1,000,000 shares; issued 119,486 shares, outstanding 117,291 at September 30, 2020; issued 116,008, outstanding 114,344 shares at September 30, 2019	1,189		1,154
Treasury stock: 2,195 shares at September 30, 2020 and 1,664 shares at September 30, 2019	(2,837)		(2,837)
Additional paid-in capital	564,928		552,422
Retained deficit	(62,664)		(174,976)
Accumulated other comprehensive loss, net of tax	(20,472)		(13,004)
Total Evoqua Water Technologies Corp. equity	480,144		362,759
Non-controlling interest	1,919		3,063
Total shareholders’ equity	482,063		365,822
Total liabilities and shareholders’ equity	$	1,844,458	$	1,737,848

EVOQUA WATER TECHNOLOGIES CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CASH FLOWS (Unaudited)

(In thousands)

	Year Ended September 30,
	2020		2019
Operating activities
Net income (loss)	$	114,395	$	(8,471)
Reconciliation of net income (loss) to cash flows provided by operating activities:
Depreciation and amortization	107,268		98,236
Amortization of debt related costs (includes $1,795 and $0 write off of deferred financing fees)	4,026		2,612
Deferred income taxes	(1,234)		1,948
Share-based compensation	10,509		19,903
Loss (gain) on sale of property, plant and equipment	950		(932)
Gain on sale of business	(68,051)		—
Foreign currency exchange (gains) losses on intercompany loans and other non-cash items	(8,202)		10,713
Changes in assets and liabilities	(1,303)		1,187
Net cash provided by operating activities	158,358		125,196
Investing activities
Purchase of property, plant and equipment	(88,456)		(88,869)
Purchase of intangibles	(6,529)		(6,426)
Proceeds from sale of property, plant and equipment	1,191		3,636
Proceeds from sale of business, net of cash of $12,117 and $0	118,894		—
Acquisitions, net of cash received of $0 and $2,073	(13,108)		(2,873)
Net cash provided by (used in) investing activities	11,992		(94,532)
Financing activities
Issuance of debt, net of deferred issuance costs	21,959		38,381
Borrowings under credit facility	2,597		292,825
Repayment of debt	(117,131)		(307,809)
Repayment of finance lease obligation	(13,441)		(12,900)
Payment of earn-out related to previous acquisitions	(470)		(461)
Proceeds from issuance of common stock	18,927		363
Taxes paid related to net share settlements of share-based compensation awards	—		(1,270)
Cash paid for interest rate cap	—		(2,235)
Distribution to non‑controlling interest	(1,890)		(1,150)
Net cash (used in) provided by financing activities	(89,449)		5,744
Effect of exchange rate changes on cash	2,219		(1,601)
Cash and cash equivalents classified as held for sale	—		(7,291)
Change in cash and cash equivalents	83,120		27,516
Cash and cash equivalents
Beginning of period	109,881		82,365
End of period	$	193,001	$	109,881

Use of Non-GAAP Measures

Adjusted EBITDA

We use the non-GAAP financial measure “Adjusted EBITDA” in evaluating our past performance and future prospects. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax benefit (expense) and depreciation and amortization, adjusted for the impact of certain other items, including restructuring and related business transformation costs, purchase accounting adjustment costs, non-cash share-based compensation, transaction costs and other gains, losses and expenses.

Adjusted EBITDA is one of the primary metrics used by management to evaluate the financial performance of our business. We present Adjusted EBITDA, which is a non-GAAP financial measure, because we believe it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Further, we believe it is helpful in highlighting trends in our operating results and provides greater clarity and comparability period over period to management and our investors regarding the operational impact of long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Management uses Adjusted EBITDA to supplement GAAP measures of performance as follows:

to assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance;
in our management incentive compensation which is based in part on components of Adjusted EBITDA;
in certain calculations under our senior secured credit facilities, which use components of Adjusted EBITDA;
to evaluate the effectiveness of our business strategies;
to make budgeting decisions; and
to compare our performance against that of other peer companies using similar measures.

In addition to the above, our chief operating decision maker uses EBITDA and Adjusted EBITDA of each reportable operating segment to evaluate the operating performance of such segments. EBITDA and Adjusted EBITDA of the reportable operating segments do not include certain charges that are presented within corporate activities. These charges include certain restructuring and other business transformation charges that have been incurred to align and reposition the Company to the current reporting structure, acquisition related costs (including transaction costs, integration costs and recognition of backlog intangible assets recorded in purchase accounting) and share-based compensation charges.

You are encouraged to evaluate each adjustment and the reasons we consider it appropriate for supplemental analysis. In addition, in evaluating Adjusted EBITDA, you should be aware that in the future, we may incur expenses similar to the adjustments in the presentation of Adjusted EBITDA. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. In addition, Adjusted EBITDA may not be comparable to similarly titled measures used by other companies in our industry or across different industries.

Adjusted Net Income and Adjusted Earnings Per Share (“EPS”)

Adjusted Net Income is a non-GAAP financial measure that is calculated as net income (loss) adjusted to exclude restructuring and related business transformation costs, share-based compensation, transaction costs, and other (gains) losses and expenses as discussed in the “Adjusted EBITDA” section above, as well as extraordinary interest charges plus or minus the related changes in provision for income taxes.

We present Adjusted Net Income and Adjusted EPS because we believe they are frequently used by analysts, investors and other interested parties in evaluating companies in our industry. Further, we believe they provide greater clarity and comparability period over period to management and our investors regarding ongoing operating performance and highlighting related operating trends.

The following is a reconciliation of our Net income (loss) to Adjusted EBITDA (unaudited):

	Three Months Ended September 30,				Year Ended September 30,
(In millions)	2020		2019		2020		2019
Net income (loss)	$	31.1	$	1.9	$	114.4	$	(8.5)
Income tax expense	4.1		10.8		7.4		9.6
Interest expense	9.4		14.8		46.6		58.6
Operating profit	44.6		27.5		168.4		59.7
Depreciation and amortization	27.2		26.8		107.3		98.2
EBITDA	71.8		54.3		275.7		157.9
Restructuring and related business transformation costs (a)	6.4		5.7		17.4		24.2
Share-based compensation (b)	1.9		5.7		10.5		20.0
Transaction costs (c)	0.9		6.1		1.9		11.6
Other (gains) losses and expenses (d)	(5.4)		7.5		(65.9)		21.3
Adjusted EBITDA	$	75.6	$	79.3	$	239.6	$	235.0

(a)	*Restructuring and related business transformation costs*

	Adjusted EBITDA is calculated prior to considering certain restructuring or business transformation events. These events may occur over extended periods of time, and in some cases it is reasonably possible that they could reoccur in future periods based on reorganizations of the business, cost reduction or productivity improvement needs, or in response to economic conditions. For the periods presented such events include the following:

	(i)		Certain costs and expenses in connection with various restructuring initiatives, including severance costs, relocation costs, recruiting expenses, and third-party consultant costs to assist with these initiatives. This includes:

		(A)	amounts related to the Company’s restructuring initiatives to reduce the cost structure and rationalize location footprint following the sale of the Memcor product line;

		(B)	amounts related to the Company’s transition from a three-segment structure to a two-segment operating model designed to better serve the needs of customers worldwide; and

		(C)	amounts related to various other initiatives implemented to restructure and reorganize our business with the appropriate management team and cost structure.

	Three Months Ended September 30,				Year Ended September 30,
(In millions)	2020		2019		2020		2019
Post Memcor divestiture restructuring⁽¹⁾	$	4.2	$	—	$	9.1	$	—
Cost of product sales and services (“Cost of sales”)	2.9		—		6.6		—
S&M expense	0.2		—		0.2		—
G&A expense	0.7		—		1.9		—
Other income/expense	0.4		—		0.4		—
Two-segment restructuring⁽²⁾	$	0.2	$	2.1	$	2.1	$	11.9
Cost of sales	—		1.2		1.0		5.2
R&D expense	—		—		—		0.1
S&M expense	—		0.2		—		1.1
G&A expense	0.2		0.7		1.1		5.5
Various other initiatives⁽³⁾	$	—	$	0.1	$	1.0	$	1.4
Cost of sales	—		0.1		0.7		0.8
S&M expense	—		—		0.1		—
G&A expense	—		—		0.2		0.6
Total	$	4.4	$	2.2	$	12.2	$	13.3

	⁽¹⁾	of which $8.3 million is reflected in restructuring charges in Note 14, “Restructuring and Related Charges,” to our Consolidated Financial Statements to be included in our Annual Report on Form 10-K for the year ended September 30, 2020 (the “Restructuring Footnote”).

	⁽²⁾	of which $2.1 million and $11.1 million is reflected in the Restructuring Footnote in the twelve months ended September 30, 2020 and 2019, respectively.

	⁽³⁾	all of which is reflected in the Restructuring Footnote for the twelve months ended September 30, 2020 and 2019, respectively.

(ii)		legal settlement costs and intellectual property related fees associated with legacy matters prior to the AEA Acquisition, including fees and settlement costs related to product warranty litigation on Memcor products and certain discontinued products. This includes:

	Three Months Ended September 30,				Year Ended September 30,
(In millions)	2020		2019		2020		2019
Cost of sales	$	1.0	$	0.6	$	1.5	$	0.8
G&A expense	0.4		0.1		0.7		0.8
Total	$	1.4	$	0.7	$	2.2	$	1.6

(iii)

expenses associated with our information technology and functional infrastructure transformation subsequent to the AEA Acquisition, including activities to optimize information technology systems and functional infrastructure processes. This includes:

	Three Months Ended September 30,				Year Ended September 30,
(In millions)	2020		2019		2020		2019
Cost of sales	$	—	$	0.3	$	0.1	$	0.7
G&A expense	0.3		2.5		0.9		8.4
Total	$	0.3	$	2.8	$	1.0	$	9.1

(iv)

costs associated with the secondary public offering of common stock by certain shareholders of the Company, as well as costs incurred by us in connection with establishment of our public company compliance structure and processes, including consultant costs. This includes:

	Three Months Ended September 30,				Year Ended September 30,
(In millions)	2020		2019		2020		2019
G&A expense	$	0.3	$	—	$	2.0	$	0.2
Total	$	0.3	$	—	$	2.0	$	0.2

(b)		*Share-based compensation*

		Adjusted EBITDA is calculated prior to considering non-cash share-based compensation expenses related to equity awards. See Note 17, “Share-Based Compensation,” to our Consolidated Financial Statements to be included in our Annual Report on Form 10-K for the year ended September 30, 2020 for further detail.

(c)		*Transaction related costs*

		Adjusted EBITDA is calculated prior to considering transaction, integration and restructuring costs associated with business combinations because these costs are unique to each transaction and represent costs that were incurred as a result of the transaction decision. Such costs may include, without limitation, consulting and legal costs associated with due diligence and closing a transaction, restructuring and integration costs such as severance, facility consolidation costs, product rationalization or inventory obsolescence charges, system integration or conversion costs, fair value changes associated with contingent consideration, and costs associated with any litigation matters that arise subsequent to our acquisition of a business for which the matter in question preceded the transaction, but was not known, not probable or unresolved at the date of acquisition. We believe that viewing earnings prior to considering these charges provides investors with useful additional perspective because the significant costs incurred in connection with business combinations result primarily from the need to eliminate duplicate assets, activities or employees – a natural result of acquiring or disposing a fully integrated set of activities. Integration and restructuring costs associated with a business combination may occur over several years. This includes:

	Three Months Ended September 30,				Year Ended September 30,
(In millions)	2020		2019		2020		2019
Cost of sales	$	0.2	$	1.8	$	0.1	$	3.2
G&A expense	0.7		4.3		1.8		8.4
Total	$	0.9	$	6.1	$	1.9	$	11.6

(d)	*Other (gains), losses and expenses*

	Adjusted EBITDA is calculated prior to considering certain other significant (gains), losses and expenses. Such significant items represent substantive and/or unusual items that are evaluated on an individual basis. Such evaluation considers both the quantitative and qualitative aspects of their nature and they may be highly variable and difficult to predict. Unusual items may represent items that are not part of our ongoing business, items that, either as a result of their nature or size, we would not expect to occur as part of our normal business on a regular basis, items that would be non-recurring, or items related to products we no longer sell. While not all-inclusive, examples of items that could be included as other (gains), losses and expenses would be amounts related to non-cash foreign currency exchange gains and losses on intercompany loans, significant warranty events, and certain disposals of businesses, products or facilities that do not qualify as discontinued operations under GAAP. For the periods presented such events include the following:

		(i)	impact of foreign exchange gains and losses;

		(ii)	foreign exchange impact related to headquarter allocations;

		(iii)	expenses on disposal related to maintaining non-operational business locations, net of gain on sale;

		(iv)	expenses incurred by the Company related to the remediation of manufacturing defects caused by a third-party vendor for which partial restitution was received;

		(v)	charges incurred by the Company related to product rationalization in its electro-chlorination business;

		(vi)	net pre-tax benefit on the sale of the Memcor product line, which is net of $8.3 million of discretionary compensation payments to employees in connection with the transaction and $2.1 million in transaction costs incurred in the twelve months ended September 30, 2020 and a gain on the sale of property at a location in our German operations in the twelve months ended September 30, 2019;

		(vii)	expenses incurred by the Company related to the write-off of inventory associated with product rationalization and facility consolidation; and

		(viii)	expenses incurred by the Company as a result of the COVID-19 pandemic, including additional charges for personal protective equipment, increased costs for facility sanitization and one-time payments to certain employees.

Other adjustments include the following (gains), losses and expenses for the periods presented below:

Three Months Ended September 30, 2020
	Other Adjustments
(In millions)	(i)		(ii)		(iii)		(iv)		(v)		(vi)		(vii)		(viii)		Total
Cost of sales	$	(0.1)	$	—	$	—	$	(0.1)	$	0.3	$	(0.1)	$	—	$	0.1	$	0.1
G&A expense	(6.1)		—		—		—		—		0.2		—		0.1		(5.8)
Other operating (income) expense	—		—		—		0.1		—		0.2		—		—		0.3
Total	$	(6.2)	$	—	$	—	$	—	$	0.3	$	0.3	$	—	$	0.2	$	(5.4)

Three Months Ended September 30, 2019
	Other Adjustments
(In millions)	(i)		(ii)		(iii)		(iv)		(v)		(vi)		(vii)		(viii)		Total
Cost of sales	$	0.2	$	—	$	(0.1)	$	0.4	$	0.9	$	—	$	—	$	—	$	1.4
G&A expense	6.5		—		—		—		—		—		—		—		6.5
Other operating (income) expense	—		—		(0.4)		—		—		—		—		—		(0.4)
Total	$	6.7	$	—	$	(0.5)	$	0.4	$	0.9	$	—	$	—	$	—	$	7.5

Year Ended September 30, 2020
	Other Adjustments
(In millions)	(i)		(ii)		(iii)		(iv)		(v)		(vi)		(vii)		(viii)		Total
Cost of sales	$	(0.2)	$	—	$	—	$	—	$	0.7	$	0.1	$	—	$	0.8	$	1.4
G&A expense	(8.5)		—		—		—		—		0.3		—		0.5		(7.7)
Other operating (income) expense	—		—		—		(1.5)		—		(58.1)		—		—		(59.6)
Total	$	(8.7)	$	—	$	—	$	(1.5)	$	0.7	$	(57.7)	$	—	$	1.3	$	(65.9)

Year Ended September 30, 2019
	Other Adjustments
(In millions)	(i)		(ii)		(iii)		(iv)		(v)		(vi)		(vii)		(viii)		Total
Cost of sales	$	0.4	$	—	$	0.3	$	2.1	$	4.1	$	—	$	5.0	$	—	$	11.9
G&A expense	10.1		—		—		—		—		—		—		—		10.1
Other operating (income) expense	—		—		(0.3)		—		—		(0.4)		—		—		(0.7)
Total	$	10.5	$	—	$	—	$	2.1	$	4.1	$	(0.4)	$	5.0	$	—	$	21.3

Adjusted EBITDA on a segment basis is defined as earnings before interest expense, income tax benefit (expense) and depreciation and amortization, adjusted for the impact of certain other items that have been reflected at the segment level. The following is a reconciliation of our segment operating profit to Adjusted EBITDA:

	Three Months Ended September 30,								Year Ended September 30,
	2020				2019				2020				2019
(In millions)	Integrated Solutions and Services		Applied Product Technologies		Integrated Solutions and Services		Applied Product Technologies		Integrated Solutions and Services		Applied Product Technologies		Integrated Solutions and Services		Applied Product Technologies
Operating Profit	$	43.2	$	23.8	$	46.3	$	31.0	$	145.7	$	134.3	$	148.6	$	69.4
Depreciation and amortization	16.8		3.5		14.9		4.5		67.4		14.2		57.2		17.7
EBITDA	$	60.0	$	27.3	$	61.2	$	35.5	$	213.1	$	148.5	$	205.8	$	87.1
Restructuring and related business transformation costs (a)	0.3		4.1		0.1		0.4		0.6		9.7		0.5		1.1
Transaction costs (b)	—		0.7		—		—		—		(0.5)		0.5		0.7
Legal fees (c)	—		—		—		0.6		—		—		—		0.6
Other losses (gains) and expenses (d)	—		0.6		—		0.8		—		(58.5)		0.1		10.4
Adjusted EBITDA	$	60.3	$	32.7	$	61.3	$	37.3	$	213.7	$	99.2	$	206.9	$	99.9

(a)		Represents costs and expenses in connection with restructuring initiatives distinct to our Integrated Solutions and Services and Applied Product Technologies segments. Such expenses are primarily composed of severance and relocation costs.

(b)		Represents costs associated with a change in the current estimate of certain acquisitions achieving their earn-out targets, which resulted in a (decrease) increase to the fair valued amount of the earn-out recorded upon acquisition, distinct to our Integrated Solutions and Services and Applied Product Technologies segments.

(c)		Represents warranty costs associated with the settlement of a legacy claim, distinct to our Applied Product Technologies segment.

(d)		Other losses, (gains) and expenses distinct to our Integrated Solutions and Services and Applied Product Technologies segments include the following:

	Three Months Ended September 30,								Year Ended September 30,
	2020				2019				2020				2019
(In millions)	Integrated Solutions and Services		Applied Product Technologies		Integrated Solutions and Services		Applied Product Technologies		Integrated Solutions and Services		Applied Product Technologies		Integrated Solutions and Services		Applied Product Technologies
Net pre-tax benefit on sale of the Memcor product line	$	—	$	0.3	$	—	$	—	$	—	$	(57.7)	$	—	$	—
Gain on sale of property	—		—		—		—		—		—		—		(0.4)
Remediation of manufacturing defects	—		—		—		0.4		—		(1.5)		—		2.1
Product rationalization in electro-chlorination business	—		0.3		—		0.4		—		0.7		—		3.7
Expenses related to maintaining non-operational business locations	—		—		—		—		—		—		0.1		—
Write-off of inventory	—		—		—		—		—		—		—		5.0
Total	$	—	$	0.6	$	—	$	0.8	$	—	$	(58.5)	$	0.1	$	10.4

Immaterial rounding differences may be present in the tables above.

Revenue by Source

Information regarding revenues disaggregated by source of revenue and segment is as follows:

	Three Months Ended September 30,
(In thousands)	2020						2019
	Integrated Solutions and Services		Applied Product Technologies		Total		Integrated Solutions and Services		Applied Product Technologies		Total		% Growth Total
Revenue from capital projects	$	72,124	$	99,433	$	171,557	$	66,517	$	113,210	$	179,727	(4.5)	%
Revenue from aftermarket	28,334		29,862		58,196		29,481		44,634		74,115		(21.5)	%
Revenue from service	148,990		5,118		154,108		152,045		6,581		158,626		(2.8)	%
Total	$	249,448	$	134,413	$	383,861	$	248,043	$	164,425	$	412,468	(6.9)	%

Net Sales Growth by Driver

The following is a reconciliation of net sales growth by driver for the three months and fiscal year ended September 30, 2020. Organic revenue growth is defined as the year-over-year rate of change in revenues excluding the impact of foreign exchange, acquisitions and divestitures.

	Q4’20 Net Sales Growth % Change
	GAAP Reported		Currency		Acquisitions/ Divestitures		Organic
Evoqua Water Technologies	(6.9)	%	0.6	%	(5.8)	%	(1.7)	%
Integrated Solutions & Services	0.6	%	—	%	0.5	%	0.1	%
Applied Product Technologies	(18.3)	%	1.4	%	(15.4)	%	(4.3)	%

	FY20 Net Sales Growth % Change
	GAAP Reported		Currency		Acquisitions/ Divestitures		Organic
Evoqua Water Technologies	(1.0)	%	(0.1)	%	(2.5)	%	1.5	%
Integrated Solutions & Services	3.7	%	(0.1)	%	0.6	%	3.2	%
Applied Product Technologies	(9.1)	%	(0.2)	%	(7.6)	%	(1.3)	%

Adjusted Net Income

	Three Months Ended September 30, 2020
(In millions, except per share amounts)	GAAP Reported		Restructuring and Related Business Transformation Costs (b)		Share-based Compensation (b)		Transaction Costs (b)		Other (gains) losses (b)		Non-GAAP Adjusted
Revenue from product sales and services	$	383.9	$	—	$	—	$	—	$	—	$	383.9
Cost of product sales and services	(261.2)		3.9		—		0.2		0.1		(257.0)
Gross profit	122.7		3.9		—		0.2		0.1		126.9
General and administrative expense	(39.8)		1.9		1.9		0.7		(5.8)		(41.1)
Sales and marketing expense	(34.3)		0.2		—		—		—		(34.1)
Research and development expense	(3.6)		—		—		—		—		(3.6)
Other operating (expense) income, net	(0.4)		0.4		—		—		0.3		0.3
Interest expense	(9.4)		—		—		—		—		(9.4)
Income (loss) before income taxes	35.2		6.4		1.9		0.9		(5.4)		39.0
Income tax (expense) benefit (a)	(4.1)		(0.7)		(0.2)		(0.1)		0.6		(4.5)
Net income (loss)	31.1		5.7		1.7		0.8		(4.8)		34.5
Net income attributable to non-controlling interest	(0.2)		—		—		—		—		(0.2)
Net income (loss) attributable to Evoqua Water Technologies Corp	$	31.3	$	5.7	$	1.7	$	0.8	$	(4.8)	$	34.7

Basic income (loss) per common share	$	0.26	$	0.05	$	0.01	$	0.01	$	(0.04)	$	0.29
Diluted income (loss) per common share	$	0.26	$	0.05	$	0.01	$	0.01	$	(0.04)	$	0.29

Basic # of shares (in millions)	116.7
Diluted # of shares (in millions)	120.7

	Three Months Ended September 30, 2019
(In millions, except per share amounts)	GAAP Reported		Restructuring and Related Business Transformation Costs (b)		Share-based Compensation (b)		Transaction Costs (b)		Other (gains) losses (b)		Non-GAAP Adjusted
Revenue from product sales and services	$	412.5	$	—	$	—	$	—	$	—	$	412.5
Cost of product sales and services	(282.2)		2.2		—		1.8		1.4		(276.8)
Gross profit	130.3		2.2		—		1.8		1.4		135.7
General and administrative expense	(64.4)		3.3		5.7		4.3		6.5		(44.6)
Sales and marketing expense	(35.4)		0.2		—		—		—		(35.2)
Research and development expense	(3.9)		—		—		—		—		(3.9)
Other operating income (expense), net	0.9		—		—		—		(0.4)		0.5
Interest expense	(14.8)		—		—		—		—		(14.8)
Income before income taxes	12.7		5.7		5.7		6.1		7.5		37.7
Income tax expense (a)	(10.8)		(1.5)		(1.5)		(1.6)		(1.9)		(17.3)
Net income	1.9		4.2		4.2		4.5		5.6		20.4
Net income attributable to non-controlling interest	0.2		—		—		—		—		0.2
Net income attributable to Evoqua Water Technologies Corp	$	1.7	$	4.2	$	4.2	$	4.5	$	5.6	$	20.2

Basic income per common share	$	0.01	$	0.04	$	0.04	$	0.04	$	0.05	$	0.18
Diluted income per common share	$	0.01	$	0.03	$	0.04	$	0.04	$	0.05	$	0.17

Basic # of shares (in millions)	114.7
Diluted # of shares (in millions)	120.2

	Year Ended September 30, 2020
(In millions, except per share amounts)	GAAP Reported		Restructuring and Related Business Transformation Costs (b)		Share-based Compensation (b)		Transaction Costs (b)		Other (gains) losses (b)		Extraordinary interest expense (c)		Non-GAAP Adjusted
Revenue from product sales and services	1,429.5		—		—		—		—		—		1,429.5
Cost of product sales and services	(979.7)		9.9		—		0.1		1.4		—		(968.3)
Gross profit	449.8		9.9		—		0.1		1.4		—		461.2
General and administrative expense	(192.6)		6.8		10.5		1.8		(7.7)		—		(181.2)
Sales and marketing expense	(136.2)		0.3		—		—		—		—		(135.9)
Research and development expense	(13.2)		—		—		—		—		—		(13.2)
Other operating income (expense), net	60.6		0.4		—		—		(59.6)		—		1.4
Interest expense	(46.6)		—		—		—		—		1.8		(44.8)
Income (loss) before income taxes	121.8		17.4		10.5		1.9		(65.9)		1.8		87.5
Income tax (expense) benefit (a)	(7.4)		(0.7)		(0.4)		(0.1)		2.6		(0.1)		(6.1)
Net income (loss)	114.4		16.7		10.1		1.8		(63.3)		1.7		81.4
Net income attributable to non‑controlling interest	0.8		—		—		—		—		—		0.8
Net income (loss) attributable to Evoqua Water Technologies Corp	$113.6		$	16.7	$	10.1	$	1.8	$	(63.3)	$	1.7	$	80.6

Basic income (loss) per common share	$	0.97	$	0.14	$	0.09	$	0.02	$	(0.54)	$	0.01	$	0.69
Diluted income (loss) per common share	$	0.94	$	0.14	$	0.08	$	0.01	$	(0.51)	$	0.01	$	0.67

Basic # of shares (in millions)	116.7
Diluted # of shares (in millions)	121.1

	Year Ended September 30, 2019
(In millions, except per share amounts)	GAAP Reported		Restructuring and Related Business Transformation Costs (b)		Share-based Compensation (b)		Transaction Costs (b)		Other (gains) losses (b)		Non-GAAP Adjusted
Revenue from product sales and services	$	1,444.4	$	—	$	—	$	—	$	—	$	1,444.4
Cost of product sales and services	(1,018.4)		7.5		—		3.2		11.9		(995.8)
Gross profit	426.0		7.5		—		3.2		11.9		448.6
General and administrative expense	(217.1)		15.5		20.0		8.4		10.1		(163.1)
Sales and marketing expense	(138.9)		1.1		—		—		—		(137.8)
Research and development expense	(15.3)		0.1		—		—		—		(15.2)
Other operating income (expense), net	5.0		—		—		—		(0.7)		4.3
Interest expense	(58.6)		—		—		—		—		(58.6)
Income before income taxes	1.1		24.2		20.0		11.6		21.3		78.2
Income tax expense (a)	(9.6)		(6.3)		(5.2)		(3.0)		(5.5)		(29.6)
Net (loss) income	(8.5)		17.9		14.8		8.6		15.8		48.6
Net income attributable to non‑controlling interest	1.0		—		—		—		—		1.0
Net (loss) income attributable to Evoqua Water Technologies Corp	$	(9.5)	$	17.9	$	14.8	$	8.6	$	15.8	$	47.6

Basic (loss) income per common share	$	(0.08)	$	0.16	$	0.13	$	0.06	$	0.14	$	0.41
Diluted (loss) income per common share	$	(0.08)	$	0.16	$	0.13	$	0.06	$	0.14	$	0.41

Basic # of shares (in millions)	114.7
Diluted # of shares (in millions)	114.7

Net debt leverage ratio

(in millions)	9/30/2020		9/30/2019
Cash and cash equivalents	$	193.0	$	109.9

Revolving Credit Facility	—		—
First Lien Term Facility	819.3		928.8
Mortgage	1.7		1.6
Equipment financing facilities	64.5		46.8
Finance leases	37.6		36.1
Total debt including finance leases	923.1		1,013.3
Less unamortized discount and lenders fees	(9.4)		(12.1)
Total net debt including finance leases⁽¹⁾	$	720.7	$	891.3

*Leverage Table calculation:*
Total net debt / Adjusted EBITDA⁽²⁾	3.0x		3.8x

		(1)		Total net debt is total debt less unamortized discount and lenders fees minus cash and cash equivalents.

		(2)		Adjusted EBITDA (with contributions from acquisitions) inclusive of completed acquisitions. For the definition of Adjusted EBITDA and a reconciliation to net income (loss), its most directly comparable financial measure presented in accordance with GAAP, see “Use of Non-GAAP Measures” section above.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All of these forward-looking statements are based on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements, or could affect our share price. Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include among other things, general global economic and business conditions, including the impacts of the COVID-19 pandemic and disruptions in global oil markets; our ability to compete successfully in our markets; our ability to execute projects on budget and on schedule; the potential for us to incur liabilities to customers as a result of warranty claims or failure to meet performance guarantees; our ability to meet our customers’ safety standards or the potential for adverse publicity affecting our reputation as a result of incidents such as workplace accidents, mechanical failures, spills, uncontrolled discharges, damage to customer or third-party property or the transmission of contaminants or diseases; our ability to continue to develop or acquire new products, services and solutions and adapt our business to meet the demands of our customers, comply with changes to government regulations and achieve market acceptance with acceptable margins; our ability to implement our growth strategy, including acquisitions and our ability to identify suitable acquisition targets; our ability to operate or integrate any acquired businesses, assets or product lines profitably or otherwise successfully implement our growth strategy; our ability to achieve the expected benefits of our restructuring actions, including restructuring our business into two segments; material and other cost inflation and our ability to mitigate the impact of inflation by increasing selling prices and improving our productivity efficiencies; our ability to accurately predict the timing of contract awards; delays in enactment or repeals of environmental laws and regulations; the potential for us to become subject to claims relating to handling, storage, release or disposal of hazardous materials; our ability to retain our senior management and other key personnel; our increasing dependence on the continuous and reliable operation of our information technology systems; risks associated with product defects and unanticipated or improper use of our products; litigation, regulatory or enforcement actions and reputational risk as a result of the nature of our business or our participation in large-scale projects; seasonality of sales and weather conditions; risks related to government customers, including potential challenges to our government contracts or our eligibility to serve government customers; the potential for our contracts with federal, state and local governments to be terminated or adversely modified prior to completion; risks related to foreign, federal, state and local environmental, health and safety laws and regulations and the costs associated therewith; risks associated with international sales and operations, including our operations in China; our ability to adequately protect our intellectual property from third-party infringement; risks related to our substantial indebtedness; our need for a significant amount of cash, which depends on many factors beyond our control; AEA’s influence over us; and other factors described in the “Risk Factors” section to be included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020, and in other periodic reports we file with the SEC. All statements other than statements of historical fact included in this press release are forward-looking statements, including, but not limited to, expectations for fiscal 2021 and statements related to COVID-19, the impact of which remains inherently uncertain. Additionally, any forward-looking statements made in this press release speak only as of the date of this release. We undertake no obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements made herein, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201117005433/en/

Investors

Dan Brailer

Vice President, Investor Relations

Evoqua Water Technologies

Telephone: 724-720-1605

Email: [email protected]

Media

Sarah Brown

Director of Corporate Communications

Evoqua Water Technologies

Telephone: 506-454-5495

Email: [email protected]

KEYWORDS: Pennsylvania United States North America

INDUSTRY KEYWORDS: Energy Other Energy Utilities Environment

MEDIA:

November 17, 2020 7:03 am

Introducing Curator Hotel & Resort Collection from Pebblebrook Hotel Trust and Six Industry-Leading Hotel Operators

BETHESDA, Md.–(BUSINESS WIRE)–
Pebblebrook Hotel Trust (NYSE: PEB) and six industry-leading hotel operators today jointly announced the launch of Curator Hotel & Resort Collection, a hand-selected collection of small brands and independent lifestyle hotels and resorts worldwide. Curator’s distinct owner-centric platform offers an alternative for independent lifestyle hotels looking to strengthen their performance, providing them with best-in-class agreements, services, and technology, while allowing them to retain their unique identity. Created by owners and operators, Curator gives its members the power to compete together on their own terms, unbound by strict rules or constraints. As of today, Curator’s seven founding members represent an exceptional collection of more than 120 independent lifestyle hotels and resorts throughout the United States, with many more poised to participate over the next six to 12 months. In addition to Pebblebrook, the founding members of Curator include Benchmark Global Hospitality, Davidson Hotels & Resorts, Noble House Hotels & Resorts, Provenance Hotels, Springboard Hospitality, and Viceroy Hotels & Resorts.

“Curator is a champion for the independent lifestyle hotel, uniting and empowering individual small brands and properties. Every property in the Curator Collection offers its own distinct, singular guest experience. We’re excited to bring these hotels and resorts together in one collection that is incredibly diverse, yet unmistakably cohesive,” said Jon Bortz, Founder and Chairman of Curator Hotel & Resort Collection and Founder, Chairman and Chief Executive Officer of Pebblebrook Hotel Trust. “We are seeing a rapidly-growing segment of sophisticated travelers who value independence and creativity in their hotels. These travelers are searching for more individualized and unique experiences. Curator bridges the gap and connects these guests with independent hotels and resorts across the United States that provide just that.”

There is no one-size-fits-all uniformity for the Curator Hotel & Resort Collection. Instead, each property provides its own authentic and memorable experience with the freedom to operate on its own terms. Quality assurance comes from customer ratings rather than mandated standards, allowing Curator’s members to focus on being themselves and providing standout guest experiences rather than conforming to restrictive checklists, standards, and rules.

Curator also amplifies the performance of independent lifestyle hotels, giving them an alternative to consolidation and saturation while providing them with the benefits and support that come with belonging to a larger collection of like-minded unique properties. Leveraging the power of scale, Curator drives significant operating cost savings for its members through an array of curated benefits and initiatives. With its competitive market knowledge, Curator can utilize its economies of scale advantage to provide its members better and less expensive products and services.

Curator takes care of vendor negotiations so that its members don’t have to, executing and managing advantageous portfolio-level agreements to help owners reduce operating costs and increase profit. Members also benefit from shared business intelligence reporting, insights and proprietary tools and technology solutions, all of which help guide and focus key operational activities and cost-saving efforts. These initiatives allow owners to focus more time and resources on attracting customers and growing revenues.

“Benchmark Global Hospitality is honored to be a visionary owner with Pebblebrook and a part of this prestigious group of respected operators launching this innovative, owner-centric collection. Without question, as the independent and lifestyle segments of our industry grow in response to consumer demand, Curator fills a need for those owners seeking a competitive advantage without sacrificing their independent edge,” said Alex Cabañas, Chief Executive Officer of Benchmark Global Hospitality.

Strengthening independent hotels, Curator Hotel & Resort Collection will lift the industry as a whole by providing increased consumer choice. For consumers, Curator believes the fun is in the find – providing guests the freedom to decide what they want and the excitement of discovering it. The Curator Collection website will serve as an online matchmaker between collection members and guests. The portal will magnify the visibility and reach of small brands and independent hotels by connecting them directly with consumers, who will handpick their hotels based on their preferences. A Curator badge will also appear on participating hotel websites to celebrate genuinely independent lifestyle hotels and make selecting one that much easier and more fun. Guests can feel confident knowing that booking a Curator property will provide the sense of place they seek when traveling, paired with a world-class guest experience, to help them create a travel lifestyle that is uniquely their own.

Curator was founded for independent lifestyle owners, operators and small brands. Its creation was led by Pebblebrook Hotel Trust, the largest independent lifestyle hotel and resort owner in the United States. For more information about Curator Hotel & Resort Collection, please visit www.curatorhotelsandresorts.com.

About Curator Hotel & Resort Collection

Curator Hotel & Resort Collection is a distinct collection of hand-selected small brands and independent lifestyle hotels and resorts worldwide, founded by Pebblebrook Hotel Trust and six industry-leading hotel operators. Curator provides lifestyle hotels the power to compete together while allowing its members the freedom to retain what makes their hotels unique. It offers independent lifestyle hotels the benefits of associating with other unique lifestyle hotels and brands while participating in best-in-class operating agreements, services, and technology. In addition to Pebblebrook, the founding members of Curator include Benchmark Global Hospitality, Davidson Hotels & Resorts, Noble House Hotels & Resorts, Provenance Hotels, Springboard Hospitality and Viceroy Hotels & Resorts. For more information, visit www.curatorhotelsandresorts.com.

About Pebblebrook Hotel Trust

Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust (“REIT”) and the largest owner of urban and resort lifestyle hotels in the United States. The Company owns 53 hotels, totaling approximately 13,200 guest rooms across 14 urban and resort markets with a focus on the west coast gateway cities. For more information, visit www.pebblebrookhotels.com and follow us at @PebblebrookPEB.

About Benchmark Global Hospitality

BENCHMARK®, a global hospitality company, is a leader in the development, management, and marketing of independent, soft branded, and experiential hard branded resorts, hotels, and conference centers. In addition to the company’s award-winning full-service Benchmark Resorts & Hotels, its lifestyle and luxury Gemstone Collection, and its industry-leading Benchmark Conference Centers. BENCHMARK is also an investor in etc.venues, a leading provider of contemporary city centre venues for meetings, signature events, and conferences. Benchmark’s combined portfolio features more than 80 unique projects across three continents. The company is passionately committed to delivering personal, inspiring, and memory-making experiences, driving total revenue and profitability, and cultivating an award winning, “Be The Difference” culture for all its employees. Benchmark is based in The Woodlands (Houston), Texas, with offices in London, England; Miami, Florida; Park City, Utah; Scottsdale, Arizona; New Brunswick, New Jersey; Seattle, Washington; and Tokyo, Japan. For more information, visit www.benchmarkglobalhospitality.com.

About Davidson Hotels & Resorts

Davidson Hotels & Resorts is an award-winning, full-service hospitality management company comprised of 55 existing hotels and resorts; more than 120 restaurants, bars and lounges; and nearly 1.5 million square feet of meeting space across the United States. Amassing one of the purest full-service hotel portfolios in the industry, Davidson, along with its lifestyle and luxury operating vertical, Pivot Hotels & Resorts, specializes in independent and branded assets in the upper-upscale to luxury segments. A trusted partner and preferred operator for Hilton, Hyatt, Kimpton, Marriott, and Margaritaville, Davidson offers a unique entrepreneurial management style and owners’ mentality that provides the individualized personal service of a small company, enhanced by the breadth and depth of skill and experience of a larger company. For more information, visit www.davidsonhotels.com.

About Noble House Hotels & Resorts

Built upon a philosophy that emphasizes location, distinction, and soul, Noble House Hotels & Resorts dedicates itself to creating and managing exceptional properties that celebrate their local communities. Headquartered in Seattle, Washington and continuously growing, the Noble House portfolio features a luxury and upper upscale portfolio of 18 distinct and visually captivating hotel properties, over 50 restaurants, bars, and lounges, the Napa Valley Wine Train, and a collection of spas, marinas, and private residences throughout the U.S. and Canada. A range of beachfront resorts spanning California and Florida, luxury retreats in Jackson Hole, WY, British Columbia, and Colorado, and award-winning urban hotels in Seattle and San Francisco punctuate the diverse collection. Centered within destinations worthy of every bucket list and layered with unique amenities that inspire adventure, the curated collection of one-of-a-kind hotels, resorts and adventures, are known for creating unforgettable travel experiences. For more information, visit www.noblehousehotels.com or call Noble House Hotels & Resorts at 877.NOBLE.TRIP.

About Provenance Hotels

Headquartered in Portland, Ore., Provenance Hotels owns, develops and manages market-leading independent hotels. Inspired by the soul of the cities in which they thrive, these award-winning hotels showcase trend-setting amenities, locally curated art, creative collaborations with local tastemakers and innovative food and beverage operations, while focusing on operational efficiency and profitability. The portfolio includes 12 properties in Portland, Seattle, Tacoma, Palm Springs, New Orleans, Nashville and Boston. Projects in development include Fort Wayne, Ind. For more information, visit www.provenancehotels.com.

About Springboard Hospitality

For more than 30 years, Springboard Hospitality has transformed people, properties and communities as a leader in the hospitality industry managing and developing innovative boutique and branded properties throughout the U.S. With dual offices in Honolulu and Los Angeles, Springboard operates more than 30 properties across 10 states. Led by technology entrepreneur Ben Rafter, Springboard specializes in using analytics and technology with its Hospitality Intelligence (H.I.) to ensure properties are optimizing return on investment. The company offers a full spectrum of hotel services with expertise in accounting, creative management, food and beverage, human resources development, marketing, sales and more. The Springboard Hospitality team is committed to going above and beyond with high-touch, personalized service in every aspect of its operations, from its interactions with guests to its relationships with owners. For more information, visit www.springboardhospitality.com.

About Viceroy Hotels & Resorts

Viceroy Hotels & Resorts inspires travelers with one-of-a-kind authentic lifestyle experiences that bring together provocative design and intuitive service in sought-after locations. A leader in modern luxury, Viceroy’s vibe-led hospitality is guided by the brand promise “Remember to Live,” an affirmation to create lifelong memories for each and every guest. Viceroy destinations are segmented into three distinct portfolio tiers to help travelers find exactly the kind of experience they’re looking for. The Viceroy Icon Collection properties include epic hotels and resorts in Los Cabos, Chicago, Beverly Hills, Riviera Maya, Snowmass, and St. Lucia, with forthcoming openings in Serbia, Algarve and Panama. The Viceroy Lifestyle Series hotels and resorts are found in attitude-led destinations such as Santa Monica and Washington DC. The Viceroy Urban Retreats in San Francisco and Washington D.C. have an independent spirit and bold, eccentric personalities. Viceroy Hotels & Resorts is a member of the Global Hotel Alliance (GHA) DISCOVERY, a unique loyalty program offering exclusive benefits and experiences to its members at over 570 hotels around the world. For more information, visit www.viceroyhotelsandresorts.com.

For additional information please visit our website at www.CuratorHotelsandResorts.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20201117005345/en/

For Media Inquiries: Julia Fasano 203-383-9357 ([email protected])

For independent lifestyle owners and operators interested in more information about Curator:

Jennifer Barnwell 240-507-1338 ([email protected])

Austin Segal 240-660-9428 ([email protected])

KEYWORDS: District of Columbia Maryland United States North America

INDUSTRY KEYWORDS: Commercial Building & Real Estate Construction & Property Finance REIT Professional Services Lodging Destinations Vacation Travel

MEDIA:

Logo

November 17, 2020 7:03 am

The blended statutory tax rate was 26% for all periods presented. The quarterly tax rate on Non-GAAP adjustments to net income was 11.6% and 26.0% for the three months ended September 30, 2020 and 2019, respectively. The annual tax rate on Non-GAAP adjustments to net income was 3.8% and 26.0% for the twelve months ended September 30, 2020 and 2019, respectively.

Refer to adjustments on the Adjusted EBITDA reconciliation included in the “Use of Non-GAAP Measures” section above.

In January 2020, the Company utilized $100 million of the proceeds from the sale of the Memcor product line to repay a portion of the Company’s First Lien Term Loans. As a result of the prepayment, the Company wrote off $1.8 million of deferred financing fees during the twelve months ended September 30, 2020.

Castle Biosciences Announces Publication of Clinical Validation and Utility Data for DecisionDx® DiffDx™-Melanoma for Suspicious Pigmented Lesions

Two Companion Articles Recently Published in SKIN: The Journal of Cutaneous Medicine

FRIENDSWOOD, Texas–(BUSINESS WIRE)–
Castle Biosciences, Inc. (Nasdaq: CSTL), a skin cancer diagnostics company providing personalized genomic information to improve cancer treatment decisions, today announced the publication of two studies in SKIN: The Journal of Cutaneous Medicine, which demonstrated that DecisionDx® DiffDx™-Melanoma adds significant diagnostic clarity for physicians when characterizing difficult-to-diagnose melanocytic lesions and establishes clinical utility with the potential to improve patient care.

The development and validation study, authored by Dr. Sarah I. Estrada, et al., is titled, “Development and Validation of a Diagnostic 35-Gene Expression Profile Test for Ambiguous or Difficult-To-Diagnose Suspicious Pigmented Skin Lesions.” This study describes the development and clinical validation of the DecisionDx DiffDx-Melanoma test, which is designed to refine the diagnoses of suspicious pigmented lesions.

The clinical utility study, authored by Dr. Aaron S. Farberg, et al., is titled, “A 35-Gene Expression Profile Test for Use in Suspicious Pigmented Lesions Impacts Clinical Management Decisions of Dermatopathologists and Dermatologists.” This study documents the influence of DecisionDx DiffDx-Melanoma test results on subsequent clinical management decisions, potentially leading to decreased unnecessary procedures while correctly identifying at-risk patients.

Estrada et al. Study Background and Results:

The purpose of this study was to develop and validate DecisionDx DiffDx-Melanoma, including the test’s ability to accurately differentiate between benign and malignant pigmented lesions.
Discovery started with the assessment of 76 genes with quantitative reverse transcription polymerase chain reaction (RT-PCR); artificial intelligence methods were then employed for diagnostic gene selection and algorithm development using 200 benign nevi and 216 melanomas for training. The final algorithm included 32 discriminant and 3 control genes. To reflect the complex biology of melanocytic neoplasia, the DecisionDx DiffDx-Melanoma test was developed to include an intermediate-risk zone.
The results of the study showed that the DecisionDx DiffDx-Melanoma test:
- Had a technical success rate of 97%, meaning that a test result was successfully generated;
- Achievedaccuracy statistics of: Sensitivity = 99.1%, Specificity = 94.3%, Positive Predictive Value = 93.6%, Negative Predictive Value = 99.2%; with an intermediate-risk result in 3.6% of the cases.

Conclusions: DecisionDx DiffDx-Melanoma was developed to refine diagnoses of melanocytic neoplasms by providing clinicians with an objective tool. A test with these accuracy metrics could alleviate uncertainty in difficult-to-diagnose lesions leading to decreased unnecessary procedures while appropriately identifying at-risk patients.

Farberg et al. Study Background and Results:

The purpose of this study was to evaluate DecisionDx DiffDx-Melanoma’s clinical utility.

Dermatopathologists and dermatologists were surveyed regarding diagnostic challenges and patient management strategies in 60 difficult-to-diagnose melanocytic neoplasms. Participants reviewed each lesion twice, once without a DecisionDx DiffDx-Melanoma result and once with. Responses were evaluated for consistent trends in the utilization of the DecisionDx DiffDx-Melanoma test result.

Dermatopathologists utilized the DecisionDx DiffDx-Melanoma result to refine their diagnoses in lesions receiving a benign vs. malignant result (82.3% diagnostic downgrade vs. 94.9% diagnostic upgrade, respectively).

Diagnostic confidence was increased (51%), while additional diagnostic work-up requests were decreased in cases with a benign DecisionDx DiffDx-Melanoma result (72.1%) and increased with a malignant DecisionDx DiffDx-Melanoma result (45.6%).

Conclusions: The diagnosis of challenging melanocytic neoplasms and subsequent clinical management decisions were influenced by DecisionDx DiffDx-Melanoma results in alignment with the test result. The utility of the test may provide the opportunity for clinicians to deliver more informed patient management plans.

About DecisionDx DiffDx-Melanoma

DecisionDx® DiffDx™-Melanoma is designed to aid dermatopathologists in characterizing difficult-to-diagnose melanocytic lesions. Of the approximately 2 million suspicious pigmented lesions biopsied annually in the U.S., Castle estimates that approximately 300,000 of those cannot be confidently classified as either benign or malignant through traditional histopathology methods. DecisionDx DiffDx-Melanoma classifies these lesions as: benign (gene expression profile suggestive of benign neoplasm); intermediate-risk (gene expression profile cannot exclude malignancy); or malignant (gene expression profile suggestive of melanoma). Interpreted in the context of other clinical, laboratory and histopathologic information, DecisionDx DiffDx-Melanoma is designed to add diagnostic clarity and confidence for dermatopathologists while helping dermatologists deliver more informed patient management plans.

More information about the test and disease can be found at www.CastleTestInfo.com.

About Castle Biosciences

Castle Biosciences (Nasdaq: CSTL) is a commercial-stage dermatologic cancer company focused on providing physicians and their patients with personalized, clinically actionable genomic information to make more accurate treatment decisions. The Company currently offers tests for patients with cutaneous melanoma (DecisionDx^®-Melanoma, DecisionDx^®-CMSeq), cutaneous squamous cell carcinoma (DecisionDx^®-SCC), suspicious pigmented lesions (DecisionDx^®DiffDx™-Melanoma) and uveal melanoma (DecisionDx^®-UM, DecisionDx^®-PRAME and DecisionDx^®-UMSeq). For more information about Castle’s gene expression profile tests, visit www.CastleTestInfo.com. Castle also has active research and development programs for tests in other dermatologic diseases with high clinical need. Castle Biosciences is based in Friendswood, Texas (Houston), and has laboratory operations in Phoenix, Arizona. For more information, visit www.CastleBiosciences.com.

DecisionDx-Melanoma, DecisionDx-CMSeq, DecisionDx-SCC, DecisionDx DiffDx-Melanoma, DecisionDx-UM, DecisionDx-PRAME and DecisionDx-UMSeq and are trademarks of Castle Biosciences, Inc.

Forward-Looking Statements

The information in this press release contains forward-looking statements and information 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, which are subject to the “safe harbor” created by those sections. These forward-looking statements include, but are not limited to, statements concerning the ability of DecisionDx DiffDx-Melanoma to accurately differentiate between benign and malignant pigmented lesions in order to add diagnostic clarity and confidence for dermatopathologists and help dermatologists better understand the clinical implications for more informed patient care. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. These forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those in the forward-looking statements, including, without limitation, the effects of the COVID-19 pandemic on our business and our efforts to address its impact on our business and our ability to maintain compliance with the covenants in our debt facility, the timing and amount of revenue we are able to recognize in a given fiscal period, unexpected delays in planned launch of our pipeline products, the level and availability of reimbursement for our products, our ability to manage our anticipated growth and the risks set forth in our Annual Report on Form 10-K for the year ended December 31, 2019, and in our other filings with the SEC. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201117005315/en/

Investor and Media Contact:

Camilla Zuckero

832-835-5158

[email protected]

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Biotechnology Other Health Health General Health Oncology Other Science Medical Devices Research Genetics Science Clinical Trials

MEDIA:

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Posted on November 17, 2020 7:03 am
Position Imaging Brings Secure 24/7, Contactless Package Pick Up To Residents At The Dime

Luxury Residence Leverages Smart Package Room® to Automatically Assign and Notify of Package Arrival While Computer Vision Ensures Fast, Accurate and Safe Retrieval

STRATHAM, N.H., Nov. 17, 2020 (GLOBE NEWSWIRE) — Position Imaging, Inc, a pioneer in logistics fulfillment and asset tracking, today announced that The Dime, a 23-story mixed-use building at 209 Havemeyer Street in South Williamsburg, Brooklyn, New York has selected its Smart Package Room. The intuitive package management system leverages unique computer vision technology to track packages and ensure secure resident delivery and retrieval—without unnecessary person-to-person contact. Contactless Package Pickup in under 20 seconds, view how safe and easy it is: https://bit.ly/2U7cY1h.

As part of The Dime’s residential amenities program, the Smart Package Room eliminates inefficient basic package rooms that require human interaction to retrieve items. Couriers simply scan package labels at the Smart Package Room to automatically assign items and notify residents of arrival. Computer vision technology watches each package until residents scan their QR Codes at the smart kiosk showing package location within the package room. The Smart Package Room with laser guidance provides visual and audio prompts to ensure the correct item is picked up.

“The convenience and speed of the Smart Package Room, combined with the freedom of secure access to our building will allow residents of The Dime to live safely and comfortably, with the best amenities the industry has to offer,” said Nicholas Silvers, Founding Partner of Tavros Holdings. “Adding a scalable convenient package room has become critical to our residents as they depend more and more on goods delivered directly to their home.”

In addition, The Dime has selected a video intercom system from ButterflyMX, a Position Imaging partner. The mobile access security system uses QR codes for guest access, resident directories, and video calling. Both systems offer contactless operation using the residents’ mobile devices.

“Position Imaging is proud to be part of The Dime’s efforts to create an efficient and intuitive package delivery experience for their residents,” said Ned Hill, CEO of Position Imaging. “The Smart Package Room handles the package fulfillment allowing staff to take care of the residents. The Dime is a pioneer in NYC providing the Smart Package Room for its residents, reducing staff obligations to manage packages, enabling them more time for their core mission; providing best-in-industry service. The efficiency, accessibility, and contactless pickup give residents the convenience and independence they expect in their package delivery process.”

About Position Imaging

Position Imaging is a technology company focused on innovations to improve the logistics industry. The company opened its research lab in Portsmouth, NH in 2006 and has been quietly creating the most advanced, accurate and novel tracking technologies in the world. Its first product, Smart Package Room®, has been a huge success in the multi-unit residential market and is now being adapted to retail through iPickup® to improve BOPIS and related eCommerce fulfillment operations. www.Position-Imaging.com

About The Dime

The Dime is a contemporary, 23-story terra-cotta and glass tower architecturally intertwined with the landmarked 1908 Dime Savings Bank. Jointly developed by Charney Companies and Tavros Holdings, and designed by Fogarty Finger, The Dime offers 177 extraordinary apartments with an abundance of lifestyle amenities, rooted into the creative and cultural fabric of one of New York City’s most vibrant neighborhoods. At the base of the structure, adjoining the historic bank building, is a five-story podium that accommodates office and retail space. For more information visit www.thedime.com.

For more information, contact:

Betsey Rogers
Public Relations
BridgeView Marketing
603-821-0809
[email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/28e454f7-90db-4d6a-8edf-c7ce98fdfa5e

Posted on November 17, 2020 7:03 am
Kohl’s Reports Third Quarter Fiscal 2020 Financial Results

Kohl’s Reports Third Quarter Fiscal 2020 Financial Results

Third quarter sales and earnings exceed company expectations, with significant improvement from the second quarter

Strengthened financial position during the quarter by fully repaying revolver and ending with $1.9 billion in cash

Strong operating cash flow year-to-date of $910 million

Third quarter comparable sales decrease 13.3%

Third quarter loss per share of ($0.08); adjusted diluted earnings per share⁽²⁾ of $0.01

MENOMONEE FALLS, Wis.–(BUSINESS WIRE)–
Kohl’s Corporation (NYSE:KSS) today reported results for the quarter ended October 31, 2020.

Three Months

Nine Months

($ in millions, except per share data)

2020

2019

Change

2020

2019

Change

Total revenue

$

3,979

$

4,625

(14.0

)%

$

9,814

$

13,142

(25.3

%)

Net sales⁽¹⁾

(13.3

)%

(0.3

)%

(25.9

)%

(2.2

)%

Gross margin

35.8

%

36.3

%

(48) bps

30.5

%

37.3

%

(680) bps

Selling, general, and administrative expenses

$

1,302

$

1,419

(8.2

)%

$

3,418

$

3,962

(13.7

%)

Reported

Net income (loss)

$

(12

)

$

123

(110

)%

$

(506

)

$

426

(219

)%

Diluted earnings (loss) per share

$

(0.08

)

$

0.78

(110

)%

$

(3.28

)

$

2.67

(223

)%

Non-GAAP⁽²⁾

Adjusted net income (loss)

$

2

$

116

(98

)%

$

(532

)

$

460

(216

)%

Adjusted diluted earnings (loss) per share

$

0.01

$

0.74

(99

)%

$

(3.45

)

$

2.89

(219

)%

(1)

Represents change in Net sales vs. prior year period.

(2)

Excludes Impairments, store closing, and other costs, (Gain) on sale of real estate, and (Gain) loss on extinguishment of debt.

“I continue to be very proud of how our organization is navigating through the COVID-19 pandemic. Our third quarter results exceeded our expectations with significant sequential sales and profitability improvement. Digital sales growth remained strong and our actions to improve our gross margin showed great progress. We also further strengthened our financial position and fully repaid our revolver during the period, which underscores the solid cash flow generation of our business,” said Michelle Gass, Kohl’s chief executive officer.

“We entered the holiday season well-positioned and prepared to serve our customers with more omnichannel conveniences in place to deliver the great experience they always expect from Kohl’s. As we look ahead, we are incredibly focused on executing against our new strategic framework, which represents our greatest opportunity to drive long-term sales and profit growth and create shareholder value in the coming years,” said Gass. “In addition, through disciplined capital management we plan to reinstate a dividend during the first half of 2021.”

Third Quarter 2020 Earnings Conference Call

Kohl’s will host its quarterly earnings conference call at 9:00 am ET on November 17, 2020. A webcast of the conference call and the related presentation materials will be available via the Company’s web site at investors.kohls.com, both live and after the call.

Cautionary Statement Regarding Forward-Looking Information and Non-GAAP Measures

This current report on Form 8-K contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “anticipates,” “plans,” or similar expressions to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause the Company’s actual results to differ materially from those anticipated by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks described more fully in Item 1A in the Company’s Annual Report on Form 10-K, and in Item 1A of Part II in the Company’s Quarterly Report on Form 10-Q for the quarter ended May 2, 2020, which are expressly incorporated herein by reference, and other factors as may periodically be described in the Company’s filings with the SEC. Forward-looking statements relate to the date initially made, and Kohl’s undertakes no obligation to update them.

In this press release, the Company provides information regarding adjusted net (loss) income and adjusted diluted (loss) earnings per share, which are not recognized terms under U.S. generally accepted accounting principles (“GAAP”) and do not purport to be alternatives to net income as a measure of operating performance. A reconciliation of adjusted net (loss) income and adjusted diluted (loss) earnings per share is provided in this release. The Company believes that the use of these non-GAAP financial measures provides investors with enhanced visibility into its results with respect to the impact of certain costs. Because not all companies use identical calculations, these presentations may not be comparable to other similarly titled measures of other companies.

About Kohl’s

Kohl’s (NYSE: KSS) is a leading omnichannel retailer with more than 1,100 stores in 49 states. With a commitment to inspiring and empowering families to lead fulfilled lives, Kohl’s offers amazing national and exclusive brands, incredible savings and an easy shopping experience in our stores, online at Kohls.com and on Kohl’s mobile app. Since its founding, Kohl’s has given more than $750 million to support communities nationwide, with a focus on family health and wellness. For a list of store locations or to shop online, visit Kohls.com. For more information about Kohl’s impact in the community or how to join our winning team, visit Corporate.Kohls.com or follow @KohlsNews on Twitter.

KSS-IR

KOHL’S CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended

Nine Months Ended

(Dollars in Millions, Except per Share Data)

October 31,

2020

November 2,

2019

October 31,

2020

November 2,

2019

Net sales

$

3,779

$

4,358

$

9,152

$

12,348

Other revenue

200

267

662

794

Total revenue

3,979

4,625

9,814

13,142

Cost of merchandise sold

2,424

2,775

6,360

7,740

Gross margin rate

35.8

%

36.3

%

30.5

%

37.3

%

Operating expenses:

Selling, general, and administrative

1,302

1,419

3,418

3,962

As a percent of total revenue

32.7

%

30.7

%

34.8

%

30.1

%

Depreciation and amortization

210

227

656

687

Impairments, store closing, and other

21

—

85

55

(Gain) on sale of real estate

—

—

(127

)

—

Operating income (loss)

22

204

(578

)

698

Interest expense, net

78

52

214

157

(Gain) loss on extinguishment of debt

—

(9

)

—

(9

)

(Loss) income before income taxes

(56

)

161

(792

)

550

(Benefit) provision for income taxes

(44

)

38

(286

)

124

Net (loss) income

$

(12

)

$

123

$

(506

)

$

426

Average number of shares:

Basic

154

156

154

158

Diluted

154

157

154

159

(Loss) earnings per share:

Basic

$

(0.08

)

$

0.79

$

(3.28

)

$

2.69

Diluted

$

(0.08

)

$

0.78

$

(3.28

)

$

2.67

ADJUSTED NET (LOSS) INCOME AND DILUTED (LOSS) EARNINGS PER SHARE, NON-GAAP FINANCIAL MEASURES

(Unaudited)

Three Months Ended

Nine Months Ended

(Dollars in Millions, Except per Share Data)

October 31,

2020

November 2,

2019

October 31,

2020

November 2,

2019

Net (loss) income

GAAP

$

(12

)

$

123

$

(506

)

$

426

Impairments, store closing, and other

21

—

85

55

(Gain) on sale of real estate

—

—

(127

)

—

(Gain) loss on extinguishment of debt

—

(9

)

—

(9

)

Income tax impact of items noted above

(7

)

2

16

(12

)

Adjusted (non-GAAP)

$

2

$

116

$

(532

)

$

460

Diluted (loss) earnings per share

GAAP⁽¹⁾

$

(0.08

)

$

0.78

$

(3.28

)

$

2.67

Impairments, store closing, and other

0.14

—

0.55

0.35

(Gain) on sale of real estate

—

—

(0.82

)

—

(Gain) loss on extinguishment of debt

—

(0.06

)

—

(0.06

)

Income tax impact of items noted above

(0.05

)

0.02

0.10

(0.07

)

Adjusted (non-GAAP)⁽²⁾

$

0.01

$

0.74

$

(3.45

)

$

2.89

(1)

Weighted average diluted shares outstanding for purposes of calculating diluted adjusted (loss) earnings per share for the three months ended October 31, 2020 was 154 million as the effect of including dilutive shares would be antidilutive.

(2)

Weighted average diluted shares outstanding for purpose of calculating diluted earnings per share for the three months ended October 31, 2020 was 155 million, which includes the dilutive effect of share-based awards as determined under the treasury stock method.

KOHL’S CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in Millions)

October 31,

2020

November 2,

2019

Assets

Current assets:

Cash and cash equivalents

$

1,939

$

490

Merchandise inventories

3,607

4,887

Income tax receivable

115

25

Other

335

379

Total current assets

5,996

5,781

Property and equipment, net

6,876

7,364

Operating leases

2,422

2,427

Other assets

150

167

Total assets

$

15,444

$

15,739

Liabilities and Shareholders’ Equity

Current liabilities:

Accounts payable

$

2,184

$

2,454

Accrued liabilities

1,272

1,347

Income taxes payable

—

2

Current portion of:

Finance leases and financing obligations

127

110

Operating leases

160

162

Total current liabilities

3,743

4,075

Long-term debt

2,450

1,856

Finance leases and financing obligations

1,402

1,332

Operating leases

2,644

2,643

Deferred income taxes

74

258

Other long-term liabilities

293

220

Shareholders’ equity

4,838

5,355

Total liabilities and shareholders’ equity

$

15,444

$

15,739

KOHL’S CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Nine Months Ended

(Dollars in Millions)

October 31,

2020

November 2,

2019

Operating activities

Net (loss) income

$

(506

)

$

426

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

Depreciation and amortization

656

687

Share-based compensation

26

47

Deferred income tax (benefit) expense

(181

)

45

Impairments, store closing, and other costs

49

45

(Gain) loss on extinguishment of debt

—

(9

)

(Gain) on sale of real estate

(127

)

—

Non-cash inventory costs

187

—

Non-cash lease expense

111

112

Other non-cash expense (income)

15

(3

)

Changes in operating assets and liabilities:

Merchandise inventories

(251

)

(1,405

)

Other current and long-term assets

54

34

Accounts payable

978

1,266

Accrued and other long-term liabilities

159

(26

)

Income taxes

(147

)

(49

)

Operating lease liabilities

(113

)

(125

)

Net cash provided by operating activities

910

1,045

Investing activities

Acquisition of property and equipment

(264

)

(678

)

Proceeds from sale of real estate

194

—

Other

—

8

Net cash used in investing activities

(70

)

(670

)

Financing activities

Proceeds from issuance of debt

2,097

—

Deferred financing costs

(19

)

—

Treasury stock purchases

(8

)

(387

)

Shares withheld for taxes on vested restricted shares

(21

)

(32

)

Dividends paid

(108

)

(319

)

Reduction of long-term borrowings

(1,497

)

(6

)

Finance lease and financing obligation payments

(72

)

(88

)

Proceeds from stock option exercises

—

2

Proceeds from financing obligations

4

11

Net cash provided by (used in) financing activities

376

(819

)

Net increase (decrease) in cash and cash equivalents

1,216

(444

)

Cash and cash equivalents at beginning of period

723

934

Cash and cash equivalents at end of period

$

1,939

$

490

View source version on businesswire.com: https://www.businesswire.com/news/home/20201117005271/en/

Investor Relations:

Mark Rupe, (262) 703-1266, [email protected]

Media:

Jen Johnson, (262) 703-5241, [email protected]

KEYWORDS: United States North America Wisconsin

INDUSTRY KEYWORDS: Online Retail Fashion Discount/Variety Retail Department Stores

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Posted on November 17, 2020 7:03 am
Celona Unveils Industry’s First Fully Integrated Solution For Private Mobile Networks And Its Unique Microslicing™ Technology As The Key Ingredient

New solution bridges the gap between cellular wireless and existing IT Infrastructure, enabling enterprises to build their own LTE/5G wireless networks

CUPERTINO, Calif., Nov. 17, 2020 (GLOBE NEWSWIRE) — Celona, provider of the first enterprise networking platform for cellular wireless, today unveiled its product portfolio that, for the first time, makes transformational 5G technology easily accessible to IT leaders and managed service providers. The company also announced the availability of its new channel program, including a strategic partnership with Aruba, a Hewlett Packard Enterprise company, to resell Celona’s entire line of products.

Celona’s solution is the first-of-its kind, featuring an all-in-one platform, to tightly integrate network and cellular wireless functions with AI orchestration. Taking advantage of the Citizens Broadband Radio Service (CBRS) spectrum in the United States, its wireless network delivers unprecedented range and predictability of operation to mobile devices and IoT infrastructure deployed within the enterprise.

“The enterprise market is where the promise of 5G is likely to deliver the greatest returns,” said Zeus Kerravala, principal analyst at ZK Research. “Organizations that depend on wireless connectivity for the success of their essential business operations and the new generation of digital business initiatives will surely benefit from Celona’s architecture that’s designed to accelerate private 5G adoption.”

New research by Polaris Market Research, predicts that the global 5G enterprise market will reach a total value of $31.4 billion by 2027, realizing a compound annual growth rate (CAGR) of over 57 percent.

WHAT’S THE
BIG
PROBLEM?

Until now, Wi-Fi has been the only enterprise-ready technology for addressing requirements in enterprise mobility. Organizations that required strict network segmentation and use of interference-free connectivity for critical devices had to rely on public LTE networks, compromising control. In addition, the latest generation of applications that demand strict service levels in terms of latency/jitter, throughput and packet error metrics has so far had to rely upon expensive wired infrastructure. While CBRS-based LTE/5G wireless offers a solution to all these challenges, existing methods for deploying the technology remain too complex, costly and cumbersome.

“CBRS is a game changer, but it is only one piece of the puzzle. Enterprises need a packaged solution to take full advantage of cellular wireless within the context of their existing IT framework,” said Mehmet Yavuz, CTO of Celona. “Our unique approach provides organizations a clear path to easily adopt LTE wireless today, and 5G in the future, while maintaining complete control over the network and the data running over it.”

BUILD YOUR OWN
MOBILE NETWORK

By taking advantage of the CBRS spectrum in the United States, enterprises can now build their own private LTE/5G networks to support essential business applications for which predictable wireless performance is non-negotiable.

“Our customers are demanding additional connectivity options and spectrum to support specific digital initiatives being deployed within their organizations,” said Jeff Lipton, VP of Strategy and Corporate Development at Aruba, a Hewlett Packard Enterprise company. “Our partnership with Celona is designed to directly address these demands and reflects a shared vision that enterprises need a viable 5G strategy that complements existing investments in enterprise wireless.”

Sitting next to existing enterprise Wi-Fi networks, CBRS-based LTE/5G wireless enables an additional lane of wireless connectivity that’s designed to operate in clean spectrum, away from interference. It allows the definition of specific service levels for network metrics such as latency, throughput, jitter and packet error rate. Within a network of wireless access points, mobility events of client devices and their traffic transmissions are always pre-scheduled by the infrastructure – further improving overall predictability.

“We are investigating the use of a CBRS-based LTE wireless technology to improve the quality of voice communication among our clinical staff members,” said Doug Lyon, IT Director at St. Luke’s Health System, located in Boise, Idaho. “Next to our existing Wi-Fi deployment, our aim is to understand the benefits of CBRS as an additional lane of clean spectrum for staff-operated smartphone connectivity. We are actively evaluating the performance of the technology in areas of our facility where it has traditionally been considered to be challenging to offer wireless coverage.”

CELONA PRIVATE 5G PLATFORM DETAILS

By offering all the ingredients required to enable enterprises to build their own LTE/5G wireless networks in a single package, the Celona solution architecture has been designed to accelerate the adoption of new digital business initiatives – without breaking the bank and without compromises in the capabilities of LTE/5G wireless.

Celona’s software-led approach utilizes a deployment framework that is familiar to IT organizations and removes the complexity of cellular wireless network design with AI-powered automation. To ensure Quality of Service (QoS) continuity for critical apps, patent-pending Celona Micro S licing ™technology automatically maps, enforces and tracks essential service levels with no human intervention. Tracked on a per application and device group basis, these service levels include maximum latency, jitter, packet error rates and minimum throughput metrics that are maintained across a unified cellular wireless and L2/L3 network infrastructure.

Product components of Celona’s integrated solution architecture include:

The
Celona RAN
: Enterprise-optimized indoor and outdoor CBRS LTE access points that provide up to 25K sqft and 1M sqft of coverage, respectively. Their radio functions are fully automated via Celona software with their power level and frequency channel assignments in the CBRS spectrum and do not require any manual intervention.

The
Celona Edge: Enterprise-ready private LTE/5G core that’s designed to integrate with any existing enterprise network configuration and access control policies. It can be simultaneously deployed on-premises for strict SLA enforcement for local applications and within the private / public / edge clouds for service scalability.

The Celona Orchestrator
: An AIOps platform that enables remote installation of Celona’s access points and Edge software across multiple enterprise sites and allows for provisioning of Celona SIM cards against required device level access control policies within the enterprise network. It goes beyond basic monitoring of infrastructure components and keeps track of application- and device-specific key performance indicators for Celona MicroSlicing™ – enabling IT teams to maintain laser focus on digital service delivery and business outcomes.

Designed from the ground up with enterprise IT infrastructure in mind, the Celona platform is flexible enough that channel partners, managed service providers, cloud providers, and wireless operators can also leverage Celona’s platform to scale their reach within the enterprise market.

AVAILABILITY

Available immediately through its channel partners, all components of Celona’s networking platform are priced as a single software-as-a-service license, with three- and five-year subscription options. This all-inclusive pricing model incorporates Celona indoor and outdoor access point hardware and relevant accessories, Spectrum Access System (SAS) license for CBRS spectrum access, Celona Edge and Orchestrator software, Celona SIM cards, technical support and hardware warranty. A trial of the complete solution can be requested by visiting celona.io/journey.

ABOUT CELONA

Celona, the enterprise 5G company, is focused on accelerating the adoption of business-critical apps on enterprise wireless and helping organizations implement new generation of digital business initiatives. Taking advantage of the Citizens Broadband Radio Service (CBRS) in the United States, Celona’s solution architecture is designed to automate deployment of cellular wireless technology by enterprise organizations and their technology partners. For more information, please visit celona.io and follow Celona on Twitter @celonaio.

Media Contact

Jay Nichols
Nichols Communications
[email protected]
+1 (408)-504-5487

Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/acec4b88-c3f2-44c5-b81e-6a478ec85c42
https://www.globenewswire.com/NewsRoom/AttachmentNg/ea4fd62a-67af-4d1a-88f6-da45052d1479

Posted on November 17, 2020 7:03 am
OMERS Private Equity Further Expands US Portfolio Thorough Acquisition of TurnPoint Services

NEW YORK, Nov. 17, 2020 (GLOBE NEWSWIRE) — OMERS Private Equity announced today that it has acquired TurnPoint Services (“TurnPoint” or the “Company”) from Trivest Partners. OMERS Private Equity invests on behalf of OMERS, the defined benefit pension plan for municipal employees in the Province of Ontario, Canada. Terms of the transaction were not disclosed.

Based in Louisville, Kentucky, TurnPoint is a leading provider of residential services, including heating, ventilation, and air conditioning (“HVAC”), along with plumbing and electrical. In addition to its focus on residential services, the Company has recently expanded its commercial offering. TurnPoint has grown rapidly in recent years, through a combination of organic growth initiatives and acquisitions of leading brands in attractive markets. The Company’s center of excellence, which leverages capabilities and best practices across all its brands, has been a key driver of this growth. TurnPoint currently has 17 brands, which in aggregate employ over 720 technicians performing over 290,000 service jobs annually.

Kurt Bratton, CEO of TurnPoint, said: “We are excited to partner with OMERS in this next stage of growth for TurnPoint. We believe there is a strong cultural alignment between our two organizations. OMERS brings a track record of success in supporting high-growth, acquisitive companies, and we are eager to collaborate closely with them in the years ahead.”

Graham Brown, Managing Director, OMERS Private Equity, said: “Kurt and the team have built TurnPoint into a leader in the residential services space, and we look forward to partnering with them. One of the most exciting elements of the strategy is TurnPoint’s use of technology to improve service delivery and customer experience. The residential services industry is changing rapidly, and TurnPoint is well-positioned within this changing market.”

Mark Dolfato, Senior Managing Director, OMERS Private Equity, said: “Over the last 15 years, OMERS Private Equity has successfully executed on a strategy of partnering with top management teams at industry-leading companies to support accelerated growth. TurnPoint is a great fit for this strategy, with its leading brands and the strength and experience of its leadership team. We are excited to welcome TurnPoint to our growing portfolio.”

This investment in TurnPoint follows previous investments by OMERS Private Equity in high-growth, acquisition-driven companies, including Community Veterinary Partners, Forefront Dermatology, National Veterinary Associates, and Caliber Collision Centers.

Weil Gotshal & Manges LLP acted as legal counsel for OMERS Private Equity. Harris Williams served as financial advisor for OMERS Private Equity.

For Further Information:

OMERS:
Neil Hrab, Manager, Communications – Investments
[email protected]
+1 416.369.2418

About OMERS and OMERS Private Equity

Founded in 1962, OMERS is one of Canada’s largest defined benefit pension plans, with C$109 billion in net assets as at December 31, 2019. OMERS invests and administers pensions for more than half a million members through originating and managing a diversified portfolio of investments in public markets, private equity, infrastructure and real estate.

OMERS had private equity net investment asset exposure of C$15.7 billion as at December 31, 2019. OMERS Private Equity, the private equity investment arm of OMERS with a team of investment professionals in London, New York, Singapore and Toronto, seeks to use its significant and differentiated capital base to partner with management teams of industry leading businesses. For more information, please visit www.omersprivateequity.com.

About Trivest

Trivest Partners LP, with offices in Miami, Los Angeles, Philadelphia, Chicago, and Toronto, is a private investment firm that focuses exclusively on the support and growth of founder-led and family-owned businesses in the United States and Canada in both control and non-control transactions. Since its founding in 1981, Trivest has completed more than 350 transactions, totaling approximately $7 billion in value. To learn more, visit Trivest.com

About TurnPoint Services

TurnPoint Services partners with best-in-market service businesses while combining local brand equity and world-class technology to create high-value customer experiences. Each business brings decades of experience serving both residential and commercial customers. Every TurnPoint brand is committed to turning bad days into good ones by removing the usual frustrations customers experience with service contractors.

Posted on November 17, 2020 7:03 am
Imara Announces the Appointment of Lynette Hopkinson as Senior Vice President of Regulatory

Brings 25 years of experience in the pharmaceutical and biotech industries and a deep understanding of global regulatory strategy and commercial regulatory affairs

BOSTON, Nov. 17, 2020 (GLOBE NEWSWIRE) — Imara Inc. (Nasdaq: IMRA), a clinical-stage biopharmaceutical company dedicated to developing and commercializing novel therapeutics to treat patients suffering from rare inherited genetic disorders of hemoglobin, today announced the appointment of Lynette Hopkinson as Senior Vice President of Regulatory. Ms. Hopkinson joins Imara with 25 years of experience in the pharmaceutical and biotech industries, where she led global regulatory teams in strategy for multiple clinical development candidates and marketed products.

“We are delighted to welcome Lyn to Imara; her expertise and understanding of global regulatory strategy and commercial affairs will be important as we continue to advance IMR-687 across multiple indications globally,” said Rahul Ballal, Ph.D., President and Chief Executive Officer of Imara. “Lyn also brings deep expertise in rare diseases, including most recently in cystic fibrosis, and importantly in CRISPR Cas-9 programs in sickle cell disease and beta thalassemia. Lyn is a key and timely addition to our leadership team.”

“I’m thrilled to join Imara at such an exciting time. The recent advancement of IMR-687 into Phase 2b clinical trials for patients with sickle cell disease and beta-thalassemia is a critical milestone and I look forward to collaborating with the leadership team on global regulatory and clinical strategy going forward,” said Ms. Hopkinson.

Prior to joining Imara, Ms. Hopkinson served as Vice President, Global Head of Cystic Fibrosis (CF) Regulatory Strategy and Commercial Regulatory Affairs at Vertex Pharmaceuticals. In this role, she oversaw early and late-stage development programs, as well as line-extension programs for marketed products, and managed a strategy team of global and regulatory leads responsible for the development and execution of regulatory strategy plans, as well as a team of commercial regulatory leads responsible for supporting multiple CF product launches. Ms. Hopkinson also served as Vertex’s Vice President, Head of North America Regulatory Strategy and Commercial Affairs for marketed products as well as clinical development candidates, including the CRISPR Cas-9 programs in sickle cell disease and beta thalassemia. Before Vertex, Ms. Hopkinson held Regulatory Affairs roles of increasing responsibility at Eisai, Inc. and Genentech, Inc., including supporting the approvals of multiple new drugs including Halaven®, Fycompa®, Belviq® and Lucentis®. Ms. Hopkinson received her B. Pharm and Management Advancement certificate from the University of Witwatersrand in Johannesburg, South Africa.

About IMR-687

IMR-687 is a highly selective and potent small molecule inhibitor of PDE9. PDE9 selectively degrades cyclic guanosine monophosphate (cGMP), an active signaling molecule that plays a role in vascular biology. Lower levels of cGMP are found in people with SCD and beta-thalassemia and are associated with reduced blood flow, increased inflammation, greater cell adhesion and reduced nitric oxide mediated vasodilation.

Blocking PDE9 acts to increase cGMP levels, which is associated with reactivation of fetal hemoglobin (HbF), a natural hemoglobin produced during fetal development. Increased levels of HbF in RBCs have been demonstrated to improve symptomology and substantially lower disease burden in both patients with SCD and patients with beta-thalassemia.

About Imara

Imara Inc. is a clinical-stage biotechnology company dedicated to developing and commercializing novel therapeutics to treat patients suffering from rare inherited genetic disorders of hemoglobin. Imara is currently advancing IMR-687, a highly selective, potent small molecule inhibitor of PDE9 that is an oral, once-a-day, potentially disease-modifying treatment for sickle cell disease and beta-thalassemia. IMR-687 is being designed to have a multimodal mechanism of action that acts on red blood cells, white blood cells, adhesion mediators and other cell types. For more information, please visit www.imaratx.com.

Cautionary Note Regarding Forward-Looking Statements

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the Company’s plans, strategies and prospects. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including factors discussed in the “Risk Factors” section of the Company’s most recent Quarterly Report on Form 10-Q, which is on file with the Securities and Exchange Commission and in other filings that the Company makes with the Securities and Exchange Commission in the future. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Media Contact:

Gina Nugent
Ten Bridge Communications
617-460-3579
[email protected]

Investor Contact:

Michael Gray
617-835-4061
[email protected]

Posted on November 17, 2020 7:03 am
Autolus Therapeutics to host Investor Conference Call to discuss AUTO1 and AUTO3 data presented at ASH and to participate in the Jefferies Virtual London Healthcare Conference

LONDON, Nov. 17, 2020 (GLOBE NEWSWIRE) — Autolus Therapeutics plc (Nasdaq: AUTL), a clinical-stage biopharmaceutical company developing next-generation programmed T cell therapies, today announced that management will host an investor conference call to discuss AUTO1 and AUTO3 data presented at the American Society of Hematology (ASH) Virtual Congress 2020 and will also participate in the Jefferies Banking Conference:

1
9
November 2020 – Dr. Christian Itin, chairman and chief executive officer, will participate in an analyst led fireside chat and host virtual one-on-one meetings at the Jefferies Virtual London Healthcare Conference at 11.25 pm ET, 4.25 pm GMT. A live audio webcast of the fireside chat will be available on the investor relations section of the Company’s website at Auto l us. An archived replay will be available for a period of 30 days after the conference.

7
December
2020 – Dr. Christian Itin, chairman and chief executive officer, along with the Autolus clinical team, will host an investor call and webcast at 4.00 pm ET, 9.00 pm GMT to discuss presentations related to its AUTO1 and AUTO3 programs, the company’s CAR T cell therapies being investigated in adult Acute Lymphoblastic Leukemia (ALL) and relapsed/ refractory diffuse large B cell lymphoma (DLBCL), respectively, during the ASH conference. To listen to the webcast and view the accompanying slide presentation, please go to Autolus. After the conference call, a replay will be available for a period of one week.

About Autolus Therapeutics plc

Autolus is a clinical-stage biopharmaceutical company developing next-generation, programmed T cell therapies for the treatment of cancer. Using a broad suite of proprietary and modular T cell programming technologies, the company is engineering precisely targeted, controlled and highly active T cell therapies that are designed to better recognize cancer cells, break down their defense mechanisms and eliminate these cells. Autolus has a pipeline of product candidates in development for the treatment of hematological malignancies and solid tumors. For more information please visit www.autolus.com.

Contact:

Lucinda Crabtree, PhD
Vice President, Investor Relations and Corporate Communications
+44 (0) 7587 372 619
[email protected]

Julia Wilson
+44 (0) 7818 430877
[email protected]

Susan A. Noonan
S.A. Noonan Communications
+1-212-966-3650
[email protected]

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