Newsdesk, Author at Market Newsdesk

November 16, 2020 5:03 pm

ROHM Introduces New High Side Switch ICs with User-Definable Protection Achieve Optimized Performance in Automotive Applications

Robust AEC-Q100-qualified design includes variable OCD and OCD mask functions, along with double error flagging

Kyoto, Japan and Santa Clara, CA, Nov. 16, 2020 (GLOBE NEWSWIRE) — ROHM has announced the development of a new family of four AEC-Q100 qualified high side switch ICs targeting the automotive market. Available in both 1- and 2-channel variants with R_DS(on)ratings of 45mΩ, 70mΩ and 90mΩ, these IPDs (Intelligent Power Devices) incorporate multiple protection functions, ranging from overcurrent protection (OCP) and thermal shutdown (TSD) to open load detection (OLD) and under voltage lockout (UVLO), as well as a diagnostic output function (ST) for error detection.

In addition, the 70mΩ BV2HD070EFU-C and 45mΩ BV2HD045EFU-C/BV2HC045EFU-C 2ch high side switches feature variable OCD and OCD mask functions that allow users to set limits for the overcurrent threshold and time to achieve the optimum overcurrent protection for a given load. Built-in double error flags make it possible to distinguish between two different fault types for each channel output.

“These smart IPDs allow users to develop optimized solutions for resistive, inductive and capacitive loads in automotive applications, such as automotive ECUs and vehicle cabin climate control,” stated Nobuyuki Ikuta, Senior Solutions Marketing Manager at ROHM USA.

Attachment

16Nov20 PR Image – High-Side Switch Packages

Travis Moench
ROHM Semiconductor
858.625.3600
[email protected]

Heather Savage
BWW Communications
720.295.0260
[email protected]

November 16, 2020 5:03 pm

AutoZone Announces Change to Executive Committee

MEMPHIS, Tenn., Nov. 16, 2020 (GLOBE NEWSWIRE) — AutoZone, Inc. (NYSE: AZO), today announced that Ron Griffin, Senior Vice President and Chief Information Officer, Customer Satisfaction, will retire in early 2021.

“I give special thanks to Ron for his significant contributions and years of exceptional service to our organization, fellow AutoZoners and customers,” said Bill Giles, Executive Vice President and Chief Financial Officer. “In his 8-year AutoZone career, Ron has led the efforts to dramatically enhance our technological capabilities, driven innovation, and worked tirelessly to ensure a best-in-class shopping experience for our customers. While Ron will certainly be missed, through his leadership, he has developed teams and helped to create an organization that is well-prepared for accelerated growth into the future. I wish Ron and his family the very best in retirement,” said Giles.

About AutoZone:

As of August 29, 2020, the Company had 5,885 stores in the U.S., 621 stores in Mexico and 43 stores in Brazil for a total store count of 6,549. AutoZone is the leading retailer and a leading distributor of automotive replacement parts and accessories in the United States. Each AutoZone store carries an extensive product line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. Many stores also have a commercial sales program that provides commercial credit and prompt delivery of parts and other products to local, regional and national repair garages, dealers, service stations, and public sector accounts. AutoZone also sells the ALLDATA brand diagnostic and repair software through www.alldata.com. Additionally, AutoZone sells automotive hard parts, maintenance items, accessories, and non-automotive products through www.autozone.com and our commercial customers can make purchases through www.autozonepro.com. AutoZone does not derive revenue from automotive repair or installation.

Media: David McKinney at (901) 495-7951, [email protected]
Financial: Brian Campbell at (901) 495-7005, [email protected]

November 16, 2020 5:03 pm

TOFUTTI ANNOUNCES THIRD QUARTER AND NINE MONTH RESULTS

Cranford, New Jersey, Nov. 16, 2020 (GLOBE NEWSWIRE) — TOFUTTI BRANDS INC. (OTCQB Symbol: TOFB) today announced its results for the thirteen and thirty-nine week periods ended September 26, 2020.

Tofutti Brands reported net sales for the thirteen weeks ended September 26, 2020 of $3,152,000 compared to net sales of $3,122,000 for the thirteen weeks ended September 28, 2019. The Company’s gross profit increased to $1,033,000 for the thirteen weeks ended September 26, 2020 from $892,000 for the thirteen weeks ended September 28, 2019, and its gross profit percentage increased to 33% for the thirteen weeks ending September 26, 2020 compared to 29% for the thirteen weeks ending September 28, 2019.

The Company had net income of $220,000, or $0.04 per share (basic and diluted), for the thirteen weeks ended September 26, 2020, compared to a net loss of $40,000, or $(0.01) per share (basic and diluted), for the thirteen weeks ended September 28, 2019.

Net sales for the thirty-nine week period ended September 26, 2020 were $9,621,000 compared to net sales of $9,766,000 for the thirty-nine week period ended September 28, 2019, a decrease of $145,000. The Company’s gross profit for the thirty-nine week period ending September 26, 2020 was $3,044,000 compared to $2,735,000 for the thirty-nine week period ending September 28, 2019. The Company’s gross profit percentage was 32% for the thirty-nine weeks ended September 26, 2020 compared to 28% for the thirty-nine week period ended September 28, 2019.

The Company had net income of $410,000, or $0.08 per share (basic and diluted), for the thirty-nine weeks ended September 26, 2020 compared to a net loss of $79,000, or $(0.02) per share (basic and diluted), for the thirty-nine weeks ended September 28, 2019.

As of September 26, 2020, the Company had approximately $1,399,000 in cash and cash equivalents and its working capital was approximately $4,511,000, compared with approximately $514,000 in cash and cash equivalents and working capital of $4,482,000 at December 28, 2019.

Small Business Administration Loan (SBA Loan) On May 4, 2020, the Company was granted a loan of $165,000 pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). A portion of the loan may be forgiven under provisions under the CARES Act based on payments for payroll, rent and utilities during the period subsequent to obtaining the loan.

Mr. David Mintz, Chairman and Chief Executive Officer of the Company stated, “We have been fortunate to maintain our operations despite the continuing impact of COVID-19. During the most recent fiscal period we were able to increase our sales and to record net income of $220,000 compared to a net loss during the comparable period in 2019. We are indebted to our employees whose contributions have allowed us to achieve these improved results and meet customer demand,” concluded Mr. Mintz.

About Tofutti Brands Inc. Founded in 1981, Tofutti Brands Inc. develops and distributes a complete line of plant-based products. The Company sells more than 35 milk-free foods including cheese products, frozen desserts and prepared frozen dishes. Tofutti Brands Inc. is a proven innovator in the food industry and has developed a full line of delicious and healthy dairy-free foods. Available throughout the United States and in more than 15 countries, Tofutti Brands answers the call of millions of people who are allergic or intolerant to dairy or wish to maintain a kosher or vegan diet. Tofutti’s product line includes plant-based ice cream pints, cones, Tofutti Cutie^® sandwiches and novelty bars. Tofutti also sells a prepared food entrée, Mintz’s Blintzes^®, made with Tofutti’s milk-free cheeses such as Better Than Cream Cheese^® and Sour Supreme^®. For more information, visit www.tofutti.com.

Forward-Looking Statements. Some of the statements in this press release concerning the Company’s future prospects are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Actual results may vary significantly based upon a number of factors including, but not limited to the impact of COVID-19 on the economy and our operations, business conditions both domestic and international, competition, changes in product mix or distribution channels, resource constraints encountered in promoting and developing new products and other risk factors detailed in the Company’s filings with the Securities and Exchange Commission, including its annual report on Form 10-K.

Company Contact:	Steve Kass
	Chief Financial Officer
	(908) 272-2400
	(908) 272-9492 (Fax)

TOFUTTI BRANDS INC.

Condensed Statements of Operations

(in thousands, except per share figures)

	Thirteen weeks ended September 26, 2020		Thirteen weeks ended September 28, 2019			Thirty-nine weeks ended September 26, 2020		Thirty-nine weeks ended September 28, 2019

Net sales	$	3,152	$	3,122		$	9,621	$	9,766
Cost of sales		2,119		2,230			6,577		7,031
Gross profit		1,033		892			3,044		2,735

Operating expenses:		782		926			2,514		2,789

Income (loss) from operations		251		(34	)		530		(54	)
Interest expense		6		6			19		19
Income (loss) before income tax		245		(40	)		511		(73	)
Income tax expense		25		—			101		6

Net income (loss)
Basic	$	220	$	(40	)	$	410	$	(79	)
Diluted	$	225	$	(40	)	$	425	$	(79	)

Weighted average common shares outstanding:
Basic		5,154		5,154			5,154		5,154
Diluted		5,436		5,154			5,436		5,154

Earnings (loss) per common share:
Basic	$	0.04	$	(0.01	)	$	0.08	$	(0.02	)
Diluted	$	0.04	$	(0.01	)	$	0.08	$	(0.02	)

TOFUTTI BRANDS INC.

Condensed Balance Sheets

(in thousands, except share and per share figures)

	September 26, 2020 (unaudited)		December 28, 2019
Assets
Current assets:
Cash and cash equivalents	$	1,399	$	514
Accounts receivable, net of allowance for doubtful accounts and sales promotions of $442 and $407, respectively		1,634		1,819
Inventories		2,036		1,929
Prepaid expenses and other current assets		75		120
Total current assets		5,144		4,382

Deferred tax assets		144		217
Fixed assets (net of accumulated depreciation of $13 and $5, respectively)		137		145
Operating lease right-of-use assets		177		252
Other assets		35		30
Total assets	$	5,637	$	5,026

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	336	$	167
Accrued expenses		326		375
Total current liabilities		662		542

Convertible note payable-long term-related party		500		500
SBA note payable-long term		165		—
Operating lease liabilities		72		156
Total liabilities		1,399		1,198

Stockholders’ equity:
Preferred stock – par value $.01 per share; authorized 100,000 shares, none issued		—		—
Common stock – par value $.01 per share; authorized 15,000,000 shares, issued and outstanding 5,153,706 shares at September 26, 2020 and December 28, 2019		52		52
Additional paid-in capital		207		207
Retained earnings		3,979		3,569
Total stockholders’ equity		4,238		3,828
Total liabilities and stockholders’ equity	$	5,637	$	5,026

November 16, 2020 4:59 pm

Condor Hospitality Trust Reports Third Quarter 2020 Results

Condor Hospitality Trust Reports Third Quarter 2020 Results

NORFOLK, Neb.–(BUSINESS WIRE)–
Condor Hospitality Trust, Inc. (NYSE American: CDOR) (the “Company”) today announced results for the third quarter ended September 30, 2020.

THIRD QUARTER RELEASE FINANCIAL HIGHLIGHTS

Revenue in the third quarter 2020 of $8.8 million, comprised of $8.8 million generated entirely from New Investment Platform Hotels, a 39.7% decrease from $14.7 million generated by New Investment Platform Hotels in the third quarter 2019.
Same-Store Revenue of $8.8 million for the third quarter 2020 decreased $8.9 million over the third quarter Same-Store Revenue of $17.7 million in 2019, while Same-Store ADR for the New Investment Platform Hotels decreased 25.9% in the third quarter of 2020 compared to the third quarter of 2019, and Same-Store RevPAR for the New Investment Platform Hotels in the 2020 third quarter decreased 49.5% compared to the same quarter in 2019, all adversely affected by the COVID-19 pandemic and industry wide falloff of travel.
Net Earnings (Loss) Attributable to Common Shareholders of ($5.0 million), or ($0.42) per Diluted Share in the third quarter, compared to ($2.1 million), or ($0.18) per share, in the 2019 third quarter. Decline in Net Earnings Attributable to Common Shareholders primarily caused by decreased revenues and the resulting $4.3 million decrease in hotel EBITDA in the third quarter compared to the same period in 2019 attributable to the COVID-19 pandemic.
Adjusted Funds from Operations was ($1.3 million), or ($0.11) per Diluted Share, a $3.9 million decrease from $2.6 million, or $0.22, in the 2019 third quarter.
Same-Store Hotel EBITDA decreased to $1.6 million from $6.1 million in Last Year’s Third Quarter.

MANAGEMENT COMMENTARY

Bill Blackham, Condor’s Chief Executive Officer, commented:

“The Condor portfolio in the third quarter continued to achieve very impressive and outperforming results through continuing difficult market conditions. While RevPAR declined 49.5% compared to the third quarter in 2019, it continued to improve from $29.50 in the second quarter achieving approximately $45 in July, approximately $49 in August and over $49 in September. Occupancy continued improving from 33.9% in the second quarter to 56.46% for the month of September. Our hotels EBITDA margin was an impressive 17.7% given the low $47.60 RevPAR for the quarter as we achieved significant reductions in labor costs and expenses on a per occupied room basis such as housekeeping and complimentary food costs. The chart that follows illustrates the continuing portfolio improvement which is driven by our team’s efforts in capturing more than our fair share of growing leisure demand at the primarily drive to secondary non-urban hotel locations comprised of over 50% extended stay hotels. During September we announced the termination of the merger agreement and subsequent to the end of the quarter we announced a $7 million dollar settlement.”


	July		August		September		October
Same-Store ADR	$	91.62	$	89.87	$	87.42	$	90.14
Same-Store Occupancy		48.8%		54.3%		56.5%		56.8%
Same-Store RevPAR	$	44.72	$	48.78	$	49.36	$	51.21

FINANCIAL SUMMARY

At September 30, 2020, the Company’s total portfolio included 15 hotels, representing 1,908 rooms.

Total Company Financial Results
($ in millions except per share amounts)

	Three months ended September 30,							Nine months ended September 30,
	2020			2019			Change	2020			2019			Change
Revenue	$	8.8		$	14.7		-39.7%	$	26.9		$	46.7		-42.5%
Net Loss Attributable to Common Shareholders	$	(5.0	)	$	(2.1	)	NA	$	(14.5	)	$	(3.7	)	NA
Diluted Earnings (Loss) per Share	$	(0.42	)	$	(0.18	)	NA	$	(1.21	)	$	(0.31	)	NA

Funds from Operations (FFO)*	$	(2.0	)	$	0.7		NA	$	(5.6	)	$	4.8		NA
FFO per Diluted Share*	$	(0.18	)	$	0.05		NA	$	(0.51	)	$	0.37		NA
Adjusted FFO*	$	(1.3	)	$	2.6		NA	$	(3.4	)	$	9.4		NA
Adjusted FFO per Diluted Share*	$	(0.11	)	$	0.22		NA	$	(0.29	)	$	0.78		NA

Hotel EBITDA*	$	1.6		$	5.9		-73.6%	$	5.4		$	20.9		-74.3%
Adjusted EBITDAre*	$	0.7		$	4.7		-85.7%	$	2.1		$	17.1		-87.5%

*Please see the Reg. G reconciliation tables at the end of this release.

Same Store Operational Results**
($ in millions except per share amounts and operating metrics)

	Three months ended September 30,					Nine months ended September 30,
	2020		2019		Change	2020		2019		Change
Same-Store RevPAR	$	47.60	$	94.31	-49.5%	$	53.17	$	101.71	-47.7%
Same-Store Occupancy		53.15%		78.06%	-31.9%		51.07%		80.17%	-36.3%
Same-Store ADR	$	89.56	$	120.81	-25.9%	$	104.13	$	126.87	-17.9%

Same-Store Hotel EBITDA*	$	1.6	$	6.1	-74.6%	$	5.5	$	21.7	-74.7%
Same-Store Hotel EBITDA Margin*		17.7%		34.7%	-17.0%		19.3%		38.3%	-19.0%

*Please see the Reg. G reconciliation tables at the end of this release.

**Financial results presented above include results from prior to our ownership.

BALANCE SHEET

As of September 30, 2020, the Company had cash and cash equivalents (including restricted cash) of $9.4 million. As of September 30, 2020, the Company had total outstanding long-term debt of $180.3 million with a weighted average maturity of 1.0 years and a weighted average interest rate of 3.63%.

PORTFOLIO ACTIVITY

On February 14, 2020, the Company completed the acquisition of the remaining 20% interest in the joint venture that owned the Atlanta Aloft property (the “Atlanta Aloft”) for $7.3 million. The acquisition was funded with debt drawn under the Company’s Key Bank revolving credit facility.

CAPITAL INVESTMENTS

The Company invested $0.4 million in capital improvements throughout the portfolio in the nine months ended September 30, 2020 to upgrade its properties and maintain brand standards.

OUTLOOK AND GUIDANCE

The Company has suspended guidance until further notice.

DIVIDENDS

On March 30, 2020, the Sixth Amendment to the Key Bank credit facility was signed which provides that no cash dividends or distributions may be made to common or preferred shareholders for the remaining term of the debt.

EARNINGS CALL

The Company will not be conducting a third quarter earnings conference call.

About Condor Hospitality Trust, Inc.

Condor Hospitality Trust, Inc. (NYSE American: CDOR) is a self-administered real estate investment trust that specializes in the investment and ownership of upper midscale and upscale, premium-branded, select-service, extended-stay, and limited-service hotels in the top 100 Metropolitan Statistical Areas (“MSAs”) with a particular focus on the top 20 to 60 MSAs. The Company currently owns 15 hotels in 8 states. Condor’s hotels are franchised by a number of the industry’s most well-regarded brand families including Hilton, Marriott, and InterContinental Hotels.

Forward-Looking Statement

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts, and in some cases, can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “anticipate”, “estimate”, “believe”, “continue”, “project”, “plan”, the negative version of these words or other similar expressions. Readers are cautioned not to place undue reliance on any such forward-looking statements.

All forward-looking statements speak only as of the date hereof and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Factors which could have a material adverse effect on our operations and future prospects include, but are not limited to, changes in economic conditions generally and the real estate market specifically, legislative/regulatory changes (including changes to laws governing the taxation of real estate investment trusts), availability of capital, risks associated with debt financing, interest rates, competition, supply and demand for hotel rooms in our current and proposed market areas, policies and guidelines applicable to real estate investment trusts, risks related to uncertainty and disruption in global economic markets as a result of COVID-19 (commonly referred to as the coronavirus), and other risks and uncertainties described herein, and in our filings with the Securities and Exchange Commission (“SEC”) from time to time. These risks and uncertainties should be considered in evaluating any forward-looking statements.

The forward-looking statements represent Condor’s views as of the date on which such statements were made. Condor anticipates that subsequent events and developments may cause those views to change. These forward-looking statements should not be relied upon as representing Condor’s views as of any date subsequent to the date hereof. Condor expressly disclaims a duty to provide updates to forward-looking statements, whether as a result of new information, future events or other occurrences.

Additional factors that may affect the Company’s business or financial results are described in the risk factors included in the Company’s filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

SELECTED FINANCIAL DATA:

Condor Hospitality Trust, Inc. and Subsidiaries Consolidated Balance Sheets (Unaudited – In thousands, except share and per share data)

	As of
	September 30, 2020			December 31, 2019

Assets
Investment in hotel properties, net	$	268,328		$	222,063
Investment in unconsolidated joint venture		–			4,244
Cash and cash equivalents		3,297			2,584
Restricted cash, property escrows		6,081			5,811
Accounts receivable, net		966			1,099
Prepaid expenses and other assets		1,604			1,118
Derivative assets, at fair value		–			22
Total Assets	$	280,276		$	236,941

Liabilities and Equity

Liabilities
Accounts payable, accrued expenses, and other liabilities	$	8,280		$	5,523
Dividends and distributions payable		603			145
Land option liability		8,497			–
Derivative liabilities, at fair value		1,009			366
Convertible debt, at fair value		1,025			1,080
Long-term debt, net of deferred financing costs		179,315			134,001
Total Liabilities		198,729			141,115

Equity
Shareholders’ Equity
Preferred stock, 40,000,000 shares authorized:
6.25% Series E, 925,000 shares authorized, $.01 par value, 925,000 shares outstanding, liquidation preference of $9,853 and $9,395		10,050			10,050
Common stock, $.01 par value, 200,000,000 shares authorized; 12,007,712 and 11,993,608 shares outstanding		120			120
Additional paid-in capital		233,400			233,189
Accumulated deficit		(162,067	)		(147,582	)
Total Shareholders’ Equity		81,503			95,777
Noncontrolling interest in consolidated partnership (Condor Hospitality Limited Partnership), redemption value of $11 and $47		44			49
Total Equity		81,547			95,826

Total Liabilities and Equity	$	280,276		$	236,941

Condor Hospitality Trust, Inc. and Subsidiaries Consolidated Statements of Operations (Unaudited – In thousands, except per share data)

	Three months ended September 30,						Nine months ended September 30,
	2020			2019			2020			2019
Revenue
Room rentals and other hotel services	$	8,841		$	14,666		$	26,879		$	46,746
Operating Expenses
Hotel and property operations		7,334			9,718			22,238			29,266
Depreciation and amortization		2,780			2,405			8,267			7,161
General and administrative		894			1,210			3,101			4,445
Acquisition and terminated transactions		–			1			–			15
Strategic alternatives, net		636			1,052			860			1,886
Total operating expenses		11,644			14,386			34,466			42,773
Operating income (loss)		(2,803	)		280			(7,587	)		3,973
Net gain (loss) on disposition of assets		(3	)		(14	)		(13	)		9
Equity in earnings (loss) of joint venture		–			(84	)		80			595
Net gain (loss) on derivatives and convertible debt		131			(223	)		(609	)		(916	)
Other expense, net		(4	)		(27	)		(90	)		(80	)
Interest expense		(2,103	)		(1,912	)		(6,153	)		(6,169	)
Loss before income taxes		(4,782	)		(1,980	)		(14,372	)		(2,588	)
Income tax benefit (expense)		(27	)		(8	)		340			(655	)
Net loss		(4,809	)		(1,988	)		(14,032	)		(3,243	)
Loss attributable to noncontrolling interest		2			10			5			17
Net loss attributable to controlling interests		(4,807	)		(1,978	)		(14,027	)		(3,226	)
Dividends declared and undeclared on preferred stock		(169	)		(145	)		(458	)		(434	)
Net loss attributable to common shareholders	$	(4,976	)	$	(2,123	)	$	(14,485	)	$	(3,660	)

Earnings (Loss) per Share
Total – Basic Earnings (Loss) per Share	$	(0.42	)	$	(0.18	)	$	(1.21	)	$	(0.31	)
Total – Diluted Earnings (Loss) per Share	$	(0.42	)	$	(0.18	)	$	(1.21	)	$	(0.31	)

See accompanying notes to consolidated financial statements.

Reconciliation of Non-GAAP Financial Measures (Unaudited)

Non-GAAP financial measures are measures of our historical financial performance that are different from measures calculated and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We report Funds from Operations (“FFO”), Adjusted FFO (“AFFO”), Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”), EBITDA for real estate (“EBITDAre”), Adjusted EBITDAre, and Hotel EBITDA as non-GAAP measures that we believe are useful to investors as key measures of our operating results and which management uses to facilitate a periodic evaluation of our operating results relative to those of our peers. Our non-GAAP measures should not be considered as an alternative to U.S. GAAP net earnings as an indication of financial performance or to U.S. GAAP cash flows from operating activities as a measure of liquidity. Additionally, these measures are not indicative of funds available to fund cash needs or our ability to make cash distributions as they have not been adjusted to consider cash requirements for capital expenditures, property acquisitions, debt service obligations, or other commitments.

FFO and AFFO

The following table reconciles net loss to FFO and AFFO for the three and nine months ended September 30, 2020 and 2019 (in thousands). All amounts presented include our portion of the results of our unconsolidated Atlanta JV prior to our acquisition of the remaining 20% interest from our joint venture partner on February 14, 2020.


	Three months ended September 30,						Nine months ended September 30,
Reconciliation of Net loss to FFO and AFFO	2020			2019			2020			2019
Net loss	$	(4,809	)	$	(1,988	)	$	(14,032	)	$	(3,243	)
Depreciation and amortization expense		2,780			2,405			8,267			7,161
Depreciation and amortization expense from JV		–			299			145			895
Net (gain) loss on disposition of assets		3			14			13			(9	)
Net loss on disposition of assets from JV		–			2			–			2
FFO		(2,026	)		732			(5,607	)		4,806
Dividends declared and undeclared on preferred stock		(169	)		(145	)		(458	)		(434	)
FFO attributable to common shares and common units		(2,195	)		587			(6,065	)		4,372
Net (gain) loss on derivatives and convertible debt		(131	)		223			609			916
Net loss on derivatives from JV		–			–			–			1
Acquisition and terminated transactions expense		–			1			–			15
Strategic alternatives expense, net		636			1,052			860			1,886
Stock-based compensation expense		70			141			236			901
Amortization of deferred financing fees		284			286			829			981
Amortization of deferred financing fees from JV		–			143			93			234
Loss on extinguishment of debt from JV		–			138			–			138
AFFO attributable to common shares and common units	$	(1,336	)	$	2,571		$	(3,438	)	$	9,444

FFO attributable to common shares and common units – Basic and Diluted	$	(2,195	)	$	587		$	(6,065	)	$	4,372

FFO per common share and common unit – Basic	$	(0.18	)	$	0.05		$	(0.51	)	$	0.37
FFO per common share and common unit – Diluted	$	(0.18	)	$	0.05		$	(0.51	)	$	0.37

Weighted average common shares and common units – Basic FFO		11,976,008			11,919,944			11,965,915			11,901,936
Weighted average common shares and common units – Diluted FFO		11,976,008			11,925,323			11,965,915			11,921,438

AFFO attributable to common shares and common units – Basic	$	(1,336	)	$	2,571		$	(3,438	)	$	9,444
Convertible note interest		–			16			–			48
Preferred dividends at stated rates		–			–			–			434
AFFO attributable to common shares and common units – Diluted	$	(1,336	)	$	2,587		$	(3,438	)	$	9,926

AFFO per common share and common unit – Basic	$	(0.11	)	$	0.22		$	(0.29	)	$	0.79
AFFO per common share and common unit – Diluted	$	(0.11	)	$	0.22		$	(0.29	)	$	0.78

Weighted average common shares and common units – Basic AFFO		11,976,008			11,919,944			11,965,915			11,901,936
Weighted average common shares and common units – Diluted AFFO		11,976,008			12,690,703			11,965,915			12,686,818

We calculate FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), which defines FFO as net earnings or loss computed in accordance with GAAP, excluding gains or losses from sales of real estate assets, impairment, and the depreciation and amortization of real estate assets. FFO is calculated both for the Company in total and as FFO attributable to common shares and common units, which is FFO reduced by preferred stock dividends. AFFO is FFO attributable to common shares and common units adjusted to exclude items we do not believe are representative of the results from our core operations, including non-cash gains or losses on derivatives and convertible debt, stock-based compensation expense, amortization of certain fees, losses on debt extinguishment, and in-kind dividends above stated rates, and cash charges for acquisition and terminated transaction and strategic alternatives costs, net of related receipts. All REITs do not calculate FFO and AFFO in the same manner; therefore, our calculation may not be the same as the calculation of FFO and AFFO for similar REITs.

We consider FFO to be a useful additional measure of performance for an equity REIT because it facilitates an understanding of the operating performance of our properties without giving effect to real estate depreciation and amortization, which assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, we believe that FFO provides a meaningful indication of our performance. We believe that AFFO provides useful supplemental information to investors regarding our ongoing operating performance that, when considered with net income and FFO, is beneficial to an investor’s understanding of our operating performance. We present FFO and AFFO per common share and common unit because our common units are redeemable for common shares. We believe it is meaningful for the investor to understand FFO and AFFO applicable to common shares and common units.

EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA

The following table reconciles net loss to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA for the three and nine months ended September 30, 2020 and 2019 (in thousands). All amounts presented our portion of the results of our unconsolidated Atlanta JV prior to our acquisition of the remaining 20% interest from our joint venture partner on February 14, 2020.


	Three months ended September 30,						Nine months ended September 30,
Reconciliation of Net loss to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA	2020			2019			2020			2019
Net loss	$	(4,809	)	$	(1,988	)	$	(14,032	)	$	(3,243	)
Interest expense		2,103			1,912			6,153			6,169
Interest expense from JV		–			536			225			1,645
Income tax expense (benefit)		27			8			(340	)		655
Loss on extinguishment of debt from JV		–			138			–			138
Depreciation and amortization expense		2,780			2,405			8,267			7,161
Depreciation and amortization expense from JV		–			299			145			895
EBITDA		101			3,310			418			13,420
Net loss (gain) on disposition of assets		3			14			13			(9	)
Net loss on disposition of assets from JV		–			2			–			2
EBITDAre		104			3,326			431			13,413
Net loss (gain) on derivatives and convertible debt		(131	)		223			609			916
Net loss on derivative from JV		–			–			–			1
Stock-based compensation expense		70			141			236			901
Acquisition and terminated transactions expense		–			1			–			15
Strategic alternatives expense, net		636			1,052			860			1,886
Adjusted EBITDAre		679			4,743			2,136			17,132
General and administrative expense, excluding stock compensation expense		824			1,069			2,865			3,544
Other expense, net		4			27			90			80
Unallocated hotel and property operations expense		55			86			278			153
Hotel EBITDA	$	1,562		$	5,925		$	5,369		$	20,909

Revenue	$	8,841		$	14,666		$	26,879		$	46,746
JV revenue		–			2,446			1,218			8,092
Condor and JV revenue	$	8,841		$	17,112		$	28,097		$	54,838
Hotel EBITDA as a percentage of revenue		17.7	%		34.6	%		19.1	%		38.1	%

We calculate EBITDA, EBITDAre, and Adjusted EBITDAre by adding back to net earnings or loss certain non-operating expenses and certain non-cash charges which are based on historical cost accounting that we believe may be of limited significance in evaluating current performance. We believe these adjustments can help eliminate the accounting effects of depreciation and amortization and financing decisions and facilitate comparisons of core operating profitability between periods. In calculating EBITDA, we add back to net earnings or loss interest expense, loss on debt extinguishment, income tax expense, and depreciation and amortization expense. NAREIT adopted EBITDAre in order to promote an industry-wide measure of REIT operating performance. We adjust EBITDA by adding back net gain/loss on disposition of assets and impairment charges to calculate EBITDAre. To calculate Adjusted EBITDAre, we adjust EBITDAre to add back acquisition and terminated transactions expense and strategic alternatives expense, net of related receipts, which are cash charges. We also add back stock –based compensation expense and gain/loss on derivatives and convertible debt, which are non-cash charges. EBITDA, EBITDAre, and Adjusted EBITDAre, as presented, may not be comparable to similarly titled measures of other companies.

We believe EBITDA, EBITDAre, and Adjusted EBITDAre to be useful additional measures of our operating performance, excluding the impact of our capital structure (primarily interest expense), our asset base (primarily depreciation and amortization expense), and other items we do not believe are representative of the results from our core operations.

The Company further excludes general and administrative expenses, other non-operating income or expense, and certain hotel and property operations expenses that are not allocated to individual properties in assessing hotel performance (primarily certain general liability and other insurance costs, land lease costs, and office and banking fees) from Adjusted EBITDAre to calculate Hotel EBITDA. Hotel EBITDA, as presented, may not be comparable to similarly titled measures of other companies.

Hotel EBITDA is intended to isolate property level operational performance over which the Company’s hotel operators have direct control. We believe Hotel EBITDA is helpful to investors as it better communicates the comparability of our hotels’ operating results for all of the Company’s hotel properties and is used by management to measure the performance of the Company’s hotels and the effectiveness of the operators of the hotels.

Same-Store Revenue and Hotel EBITDA

The following tables present our same-store revenue, Hotel EBITDA, and Hotel EBITDA margin broken down by property type for the three and nine months ended September 30, 2020 and 2019 (in thousands) and reconcile these same-store measures to total revenue and Hotel EBITDA as presented above. Same-store results include all our hotels owned at September 30, 2020. Results for the hotels for periods prior to our ownership were provided to us by prior owners and have not been adjusted by us or audited or reviewed by our independent auditors. Results for periods prior to the Company’s ownership have not been included in the Company’s actual consolidated financial statements and are included here only for comparison purposes.


	Revenue – Reconciliation of Actual to Same-Store
	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Condor and JV Revenue – Actual	$	8,841	$	17,112	$	28,097	$	54,838
Revenue earned on properties disposed of prior to September 30, 2020 during the period of ownership		–		–		–		(272	)
Revenue earned related to joint venture interest in the Atlanta JV prior to acquisition of this interest on February 14, 2020		–		612		304		2,023
Total Revenue – Same-Store	$	8,841	$	17,724	$	28,401	$	56,589


	Hotel EBITDA – Reconciliation of Actual to Same-Store
	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Condor and JV Hotel EBITDA – Actual	$	1,562	$	5,925	$	5,369	$	20,909
Hotel EBITDA earned on properties disposed of prior to September 30, 2020 during the period of ownership		–		–		–		(63	)
Hotel EBITDA earned related to joint venture interest in the Atlanta JV prior to acquisition of this interest on February 14, 2020		–		223		111		819
Total Hotel EBITDA – Same-Store	$	1,562	$	6,148	$	5,480	$	21,665

Hotel EBITDA Margin

Three months ended September 30,

Nine months ended September 30,

2020

2019

2020

2019

Total Hotel EBITDA Margin

17.7%

34.7%

19.3%

38.3%

Condor Hospitality Trust, Inc. Operating Statistics

The following tables present our same-store occupancy, ADR, and RevPAR for all our hotels owned at September 30, 2020. The statistics for the Company’s two hotels that were temporarily closed due to the effects of COVID-19, the Solomons Hilton Garden Inn, which was closed on April 2, 2020 and reopened on July 1, 2020, and the Leawood Aloft, which was closed on April 9, 2020 and reopened on July 1, 2020, include only the periods that the properties were operational. With the exception of these COVID-19 related closures, same-store occupancy, ADR, and RevPAR reflect the performance of hotels during the entire period, regardless of our ownership during the period presented. Results for the hotels for periods prior to our ownership were provided to us by prior owners and have not been adjusted by us or audited or reviewed by our independent auditors.


	Three months ended September 30,
	2020					2019
	Occupancy	ADR		RevPAR		Occupancy	ADR		RevPAR
Solomons Hilton Garden Inn	43.29%	$	102.56	$	44.40	81.29%	$	120.27	$	97.77
Atlanta Hotel Indigo	52.48%	$	91.93	$	48.25	73.70%	$	101.40	$	74.73
Jacksonville Courtyard by Marriott	43.14%	$	87.08	$	37.57	71.65%	$	116.27	$	83.31
San Antonio SpringHill Suites	41.60%	$	73.21	$	30.46	74.13%	$	119.90	$	88.88
Leawood Aloft	39.14%	$	79.33	$	31.05	70.38%	$	130.56	$	91.89
Lexington Home2 Suites	75.92%	$	88.80	$	67.42	86.50%	$	117.56	$	101.69
Round Rock Home2 Suites	55.73%	$	72.36	$	40.33	83.29%	$	110.62	$	92.13
Tallahassee Home2 Suites	75.16%	$	101.82	$	76.52	80.09%	$	119.11	$	95.40
South Haven Home2 Suites	86.66%	$	90.73	$	78.62	89.40%	$	122.60	$	109.60
Lake Mary Hampton Inn & Suites	41.32%	$	100.57	$	41.56	68.70%	$	126.29	$	86.76
Austin Residence Inn	69.48%	$	85.23	$	59.22	80.43%	$	127.59	$	102.62
El Paso Fairfield Inn	47.36%	$	85.67	$	40.57	88.60%	$	107.52	$	95.26
Austin TownePlace Suites	42.81%	$	74.74	$	32.00	68.32%	$	106.07	$	72.47
Summerville Home2 Suites	68.92%	$	94.56	$	65.17	82.92%	$	129.09	$	107.04
Atlanta Aloft	40.92%	$	97.91	$	40.07	79.16%	$	138.00	$	109.24
Total Same-Store Portfolio	53.15%	$	89.56	$	47.60	78.06%	$	120.81	$	94.31


	Nine months ended September 30,
	2020					2019
	Occupancy	ADR		RevPAR		Occupancy	ADR		RevPAR
Solomons Hilton Garden Inn	50.90%	$	114.34	$	58.20	78.01%	$	122.93	$	95.90
Atlanta Hotel Indigo	53.28%	$	94.22	$	50.21	76.16%	$	107.72	$	82.04
Jacksonville Courtyard by Marriott	51.88%	$	101.92	$	52.88	76.56%	$	121.20	$	92.79
San Antonio SpringHill Suites	40.26%	$	103.57	$	41.70	80.28%	$	130.59	$	104.84
Leawood Aloft	43.54%	$	104.15	$	45.35	69.49%	$	132.42	$	92.01
Lexington Home2 Suites	55.90%	$	93.27	$	52.14	80.92%	$	116.18	$	94.01
Round Rock Home2 Suites	49.91%	$	86.23	$	43.03	84.15%	$	116.72	$	98.22
Tallahassee Home2 Suites	61.19%	$	112.80	$	69.02	89.15%	$	125.15	$	111.57
South Haven Home2 Suites	68.75%	$	97.94	$	67.34	90.70%	$	119.14	$	108.06
Lake Mary Hampton Inn & Suites	43.92%	$	125.26	$	55.01	79.09%	$	138.79	$	109.76
Austin Residence Inn	64.34%	$	104.40	$	67.17	82.91%	$	136.01	$	112.77
El Paso Fairfield Inn	49.08%	$	97.27	$	47.74	86.01%	$	105.69	$	90.90
Austin TownePlace Suites	46.70%	$	91.47	$	42.71	72.37%	$	112.11	$	81.13
Summerville Home2 Suites	62.73%	$	103.48	$	64.91	83.32%	$	130.73	$	108.92
Atlanta Aloft	39.70%	$	120.96	$	48.02	79.70%	$	154.97	$	123.52
Total Same-Store Portfolio	51.07%	$	104.13	$	53.17	80.17%	$	126.87	$	101.71


Condor Hospitality Trust, Inc.
Property List \| As of September 30, 2020

New Investment Platform \| Acquired from January 1, 2012 – September 30, 2020
	Hotel Name	City	State	Rooms	Acquisition Date	Purchase Price (in millions)
1	Hilton Garden Inn	Dowell/Solomons	MD	100	05/25/2012	$11.5
2	SpringHill Suites	San Antonio	TX	116	10/01/2015	$17.5
3	Courtyard by Marriott	Jacksonville	FL	120	10/02/2015	$14.0
4	Hotel Indigo	College Park	GA	142	10/02/2015	$11.0
5	Aloft¹	Atlanta	GA	254	08/22/2016	$43.6
6	Aloft	Leawood	KS	156	12/14/2016	$22.5
7	Home2 Suites	Lexington	KY	103	03/24/2017	$16.5
8	Home2 Suites	Round Rock	TX	91	03/24/2017	$16.8
9	Home2 Suites	Tallahassee	FL	132	03/24/2017	$21.5
10	Home2 Suites	Southaven	MS	105	04/14/2017	$19.0
11	Hampton Inn & Suites	Lake Mary	FL	130	06/19/2017	$19.3
12	Fairfield Inn & Suites	El Paso	TX	124	08/31/2017	$16.4
13	Residence Inn	Austin	TX	120	08/31/2017	$22.4
14	TownePlace Suites	Austin	TX	122	01/18/2018	$19.8
15	Home2 Suites	Summerville	SC	93	02/21/2018	$16.3
	Total Portfolio \| As of September 30, 2020			1,908		$288.1

1 \| Represents the purchase statistics from the purchase of this hotel by the originally 80% owned unconsolidated joint venture. The Company purchased the remaining 20% interest in the joint venture from our joint venture partner on February 14, 2020 for $7.3 million.


55 Dispositions \| For Period January 1, 2015 – September 30, 2020
	Hotel Name	City	State	Rooms	Disposition Date	Gross Proceeds (in millions)
1	Super 8	West Plains	MO	49	01/15/2015	$1.5
2	Super 8	Green Bay	WI	83	01/29/2015	$2.2
3	Super 8	Columbus	GA	74	03/16/2015	$0.9
4	Sleep Inn & Suites	Omaha	NE	90	03/19/2015	$2.9
5	Savannah Suites	Chamblee	GA	120	04/01/2015	$4.4
6	Savannah Suites	Augusta	GA	172	04/01/2015	$3.4
7	Super 8	Batesville	AR	49	04/30/2015	$1.5
8	Days Inn	Ashland	KY	63	07/01/2015	$2.2
9	Comfort Inn	Alexandria	VA	150	07/13/2015	$12.0
10	Days Inn	Alexandria	VA	200	07/13/2015	$6.5
11	Super 8	Manhattan	KS	85	08/28/2015	$3.2
12	Quality Inn	Sheboygan	WI	59	10/06/2015	$2.3
13	Super 8	Hays	KS	76	10/14/2015	$1.9
14	Days Inn	Glasgow	KY	58	10/16/2015	$1.8
15	Super 8	Tomah	WI	65	10/21/2015	$1.4
16	Rodeway Inn	Fayetteville	NC	120	11/03/2015	$2.6
17	Savannah Suites	Savannah	GA	160	12/22/2015	$4.0
	Total 2015			1,673		$54.7
18	Super 8	Kirksville	MO	61	01/04/2016	$1.5
19	Super 8	Lincoln	NE	133	01/07/2016	$2.8
20	Savannah Suites	Greenville	SC	170	01/08/2016	$2.7
21	Super 8	Portage	WI	61	03/30/2016	$2.4
22	Super 8	O’Neill	NE	72	04/25/2016	$1.7
23	Quality Inn	Culpeper	VA	49	05/10/2016	$2.2
24	Super 8	Storm Lake	IA	59	05/19/2016	$2.8
25	Clarion Inn	Cleveland	TN	59	05/24/2016	$2.2
26	Super 8	Coralville	IA	84	05/26/2016	$3.4
27	Super 8	Keokuk	IA	61	05/27/2016	$2.2
28	Comfort Inn	Chambersburg	PA	63	06/06/2016	$2.1
29	Super 8	Pittsburg	KS	64	08/08/2016	$1.6
30	Super 8	Mount Pleasant	IA	54	09/09/2016	$1.9
31	Quality Inn	Danville	KY	63	09/19/2016	$2.3
32	Super 8	Menomonie	WI	81	09/26/2016	$3.0
33	Comfort Inn	Glasgow	KY	60	10/14/2016	$2.4
34	Days Inn	Sioux Falls	SD	86	11/04/2016	$2.1
35	Comfort Inn	Shelby	NC	76	11/07/2016	$4.1
36	Comfort Inn	Rocky Mount	VA	61	11/17/2016	$2.2
37	Days Inn	Farmville	VA	59	11/17/2016	$2.4
38	Comfort Suites	Marion	IN	62	11/18/2016	$3.0
39	Comfort Inn	Farmville	VA	50	11/30/2016	$2.6
40	Quality Inn	Princeton	WV	50	12/05/2016	$2.1
41	Super 8	Burlington	IA	62	12/21/2016	$2.8
42	Savannah Suites	Atlanta	GA	164	12/22/2016	$2.9
	Total 2016			1,864		$61.4
43	Comfort Inn	New Castle	PA	79	03/27/2017	$2.5
44	Super 8	Billings	MT	106	03/28/2017	$4.2
45	Comfort Inn	Harlan	KY	61	04/03/2017	$1.9
46	Comfort Suites	Lafayette	IN	62	04/18/2017	$3.9
47	Key West Inn	Key Largo	FL	40	05/17/2017	$7.6
48	Quality Inn	Morgantown	WV	81	08/30/2017	$2.6
49	Days Inn	Bossier City	LA	176	09/13/2017	$1.4
50	Comfort Inn & Suites	Warsaw	IN	71	12/20/2017	$5.0
	Total 2017			676		$29.1
51	Supertel Inn/Conference Center	Creston	IA	41	01/25/2018	$2.1
52	Comfort Suites	South Bend	IN	135	03/15/2018	$6.1
53	Comfort Suites	Ft. Wayne	IN	127	05/30/2018	$7.1
54	Super 8	Creston	IA	121	08/30/2018	$5.1
	Total 2018			424		$20.4
55	Quality Inn	Solomons	MD	59	03/22/2019	$4.3
	Total 2019			59		$4.3

	Total Dispositions			4,696		$169.9


Acquisitions \| For Period January 1, 2015 – September 30, 2020
	Hotel Name	City	State	Rooms	Acquisition Date	Purchase Price (in millions)
1	SpringHill Suites	San Antonio	TX	116	10/01/2015	$17.5
2	Courtyard by Marriott	Jacksonville	FL	120	10/02/2015	$14.0
3	Hotel Indigo	College Park	GA	142	10/02/2015	$11.0
4	Aloft¹	Atlanta	GA	254	08/22/2016	$43.6
5	Aloft	Leawood	KS	156	12/14/2016	$22.5
6	Home2 Suites	Lexington	KY	103	03/24/2017	$16.5
7	Home2 Suites	Round Rock	TX	91	03/24/2017	$16.8
8	Home2 Suites	Tallahassee	FL	132	03/24/2017	$21.5
9	Home2 Suites	Southaven	MS	105	04/14/2017	$19.0
10	Hampton Inn & Suites	Lake Mary	FL	130	06/19/2017	$19.3
11	Fairfield Inn & Suites	El Paso	TX	124	08/31/2017	$16.4
12	Residence Inn	Austin	TX	120	08/31/2017	$22.4
13	TownePlace Suites	Austin	TX	122	01/18/2018	$19.8
14	Home2 Suites	Summerville	SC	93	02/21/2018	$16.3
	Total Acquisitions			1,808		$276.6

1 | Represents the purchase statistics from the purchase of this hotel by the originally 80% owned unconsolidated joint venture. The Company purchased the remaining 20% interest in the joint venture from our joint venture partner on February 14, 2020 for $7.3 million.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201116006035/en/

Jill Burger

Interim Chief Financial Officer and Chief Accounting Officer

[email protected]

(402) 316-1012

KEYWORDS: Nebraska United States North America

INDUSTRY KEYWORDS: REIT Other Construction & Property Lodging Construction & Property Travel

MEDIA:

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November 16, 2020 4:58 pm

Kite Realty Group Trust to Present at NAREIT’s REITworld: 2020 Virtual Investor Conference

INDIANAPOLIS, Nov. 16, 2020 (GLOBE NEWSWIRE) — Kite Realty Group Trust (NYSE:KRG) announced today that it will present at Nareit’s REITworld: 2020 Virtual Investor Conference on Wednesday, November 18, 2020 at 9:30 a.m. ET. To access the Company’s live presentation, attendees are required to register for Nareit’s REITworld, using the complimentary registration link below. A replay of the presentation link will be available on the Company’s website up to 90 days following the presentation. The webcast information is as follows:

Kite Realty Group Trust Management Presentation

Date: November 18, 2020
Time: 9:30 a.m. – 10 a.m. ET
Speaker: John Kite, Chairman & CEO
Registration Link: REITworld:2020 Virtual Investor Conference Registration

About Kite Realty Group Trust

Kite Realty Group Trust is a full-service, vertically integrated real estate investment trust (REIT) that provides communities with convenient and beneficial shopping experiences. We connect consumers to retailers in desirable markets through our portfolio of neighborhood, community, and lifestyle centers. Using operational, development, and redevelopment expertise, we continuously optimize our portfolio to maximize value and return to our shareholders. For more information, please visit our website at kiterealty.com.

Connect with KRG: LinkedIn | Twitter | Instagram | Facebook

Safe Harbor

This release, together with other statements and information publicly disseminated by us, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks, uncertainties and other factors, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, performance, transactions or achievements, financial or otherwise, may differ materially from the results, performance, transactions or achievements, financial or otherwise, expressed or implied by the forward-looking statements.

Currently, one of the most significant factors that could cause actual outcomes to differ materially from the forward-looking statements is the potential adverse effect of the current pandemic of the novel coronavirus, or COVID-19, on the financial condition, result of operations, cash flows and performance of the Company and its tenants, the real estate market and the global economy and financial markets. The effects of COVID-19 have caused many of the Company’s tenants to close stores, reduce hours or significantly limit service, making it difficult for them to meet their obligations, and therefore will significantly impact the Company for the foreseeable future. The extent to which the COVID-19 pandemic impacts the Company and its tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, and possible short-term and long-term effects of the pandemic on consumer behavior, among others. Moreover, investors are cautioned to interpret many of the risks identified under the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic.

Additional risks, uncertainties and other factors that might cause such differences, some of which could be material, include but are not limited to: national and local economic, business, real estate and other market conditions, particularly in connection with low or negative growth in the U.S. economy as well as economic uncertainty; financing risks, including the availability of, and costs associated with, sources of liquidity; the Company’s ability to refinance, or extend the maturity dates of, the Company’s indebtedness; the level and volatility of interest rates; the financial stability of tenants, including their ability to pay rent and the risk of tenant insolvency and bankruptcy; the competitive environment in which the Company operates; acquisition, disposition, development and joint venture risks; property ownership and management risks; the Company’s ability to maintain the Company’s status as a real estate investment trust for U.S. federal income tax purposes; potential environmental and other liabilities; impairment in the value of real estate property the Company owns; the actual and perceived impact of e-commerce on the value of shopping center assets; risks related to the geographical concentration of the Company’s properties in Florida, Indiana, Texas, Nevada and North Carolina; civil unrest, acts of terrorism or war, acts of God, climate change, epidemics, pandemics (including COVID-19), natural disasters and severe weather conditions such as hurricanes, tropical storms, tornadoes, earthquakes, droughts, floods and fires that may result in underinsured or uninsured losses; changes in laws and government regulations; governmental orders affecting the use of the Company’s properties or the ability of its tenants to operate; insurance costs and coverage; risks associated with cybersecurity attacks and the loss of confidential information and other business disruptions; other factors affecting the real estate industry generally; and other risks identified in reports the Company files with the Securities and Exchange Commission (“the SEC”) or in other documents that it publicly disseminates, including, in particular, the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and in the Company’s quarterly reports on Form 10-Q. The Company undertakes no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information: Kite Realty Group Trust

Jason Colton
SVP, Capital Markets & Investor Relations
317.713.2762
[email protected]

November 16, 2020 4:53 pm

GDS Holdings Limited Reports Third Quarter 2020 Results

SHANGHAI, China, Nov. 16, 2020 (GLOBE NEWSWIRE) — GDS Holdings Limited (“GDS Holdings”, “GDS” or the “Company”) (NASDAQ: GDS; HKEX: 9698), a leading developer and operator of high-performance data centers in China, today announced its unaudited financial results for the third quarter ended September 30, 2020.

Third Quarter 2020 Financial Highlights

Net revenue increased by 43.0% year-over-year (“Y-o-Y”) to RMB1,524.7 million (US$224.6 million) in the third quarter of 2020 (3Q2019: RMB1,066.2 million).
Service revenue increased by 43.8% Y-o-Y to RMB1,522.4 million (US$224.2 million) in the third quarter of 2020 (3Q2019: RMB1,058.9 million).
Net loss was RMB204.6 million (US$30.1 million) in the third quarter of 2020, compared with a net loss of RMB108.6 million in the third quarter of 2019.
Adjusted EBITDA (non-GAAP) increased by 48.3% Y-o-Y to RMB717.1 million (US$105.6 million) in the third quarter of 2020 (3Q2019: RMB483.7 million). See “Non-GAAP Disclosure” and “Reconciliations of GAAP and non-GAAP results” elsewhere in this earnings release.
Adjusted EBITDA margin (non-GAAP) increased to 47.0% in the third quarter of 2020 (3Q2019: 45.4%).

Operating Highlights

Total area committed and pre-committed increased by 23,884 square meters (“sqm”) in the third quarter of 2020 to 357,344 sqm as of September 30, 2020, an increase of 47.4% Y-o-Y (September 30, 2019: 242,435 sqm).
Area in service increased by 13,358 sqm in the third quarter of 2020 to 279,618 sqm as of September 30, 2020, an increase of 41.2% Y-o-Y (September 30, 2019: 198,097 sqm).
Area utilized (or area in service which is revenue-generating) increased by 16,589 sqm in the third quarter of 2020 to 209,751 sqm as of September 30, 2020, an increase of 52.2% Y-o-Y (September 30, 2019: 137,820 sqm).
Commitment rate for area in service was 95.8% as of September 30, 2020 (September 30, 2019: 91.7%), and utilization rate was 75.0% as of September 30, 2020 (September 30, 2019: 69.6%).
Area under construction was 135,871 sqm as of September 30, 2020 (September 30, 2019: 84,765 sqm).
Pre-commitment rate for area under construction was 65.9% as of September 30, 2020 (September 30, 2019: 71.6%).

“We recorded another quarter of strong growth, propelled by sustained sales momentum,” said Mr. William Huang, Chairman and Chief Executive Officer. “During the third quarter, we secured approximately 24,000 sqm (net) of new customer commitments. With one quarter left for 2020, we have already exceeded the organic sales performance for the whole of last year. To underpin our growth, we added to our land bank in Beijing and Shenzhen and increased our presence in key locations with strategic acquisitions in Beijing and Shanghai. While celebrating the fourth anniversary of our U.S. IPO and Nasdaq listing on November 2, 2020, we completed our Hong Kong IPO and secondary listing on the Main Board of the Hong Kong Stock Exchange, an important milestone and the beginning of a new chapter for our company.”

“Our financial performance was once again robust in the third quarter with 43.0% revenue growth and 48.3% adjusted EBITDA growth,” commented Mr. Dan Newman, Chief Financial Officer. “Our adjusted EBITDA margin remained at 47.0%, compared with 45.4% a year ago. Through our successful IPO in Hong Kong, we raised over US$1.8 billion of net proceeds, significantly strengthening our capital base to support our future business expansion.”

Third Quarter 2020 Financial Results

Net revenue in the third quarter of 2020 was RMB1,524.7 million (US$224.6 million), a 43.0% increase over the third quarter of 2019 of RMB1,066.2 million and a 13.6% increase over the second quarter of 2020 of RMB1,342.2 million. Service revenue in the third quarter of 2020 was RMB1,522.4 million (US$224.2 million), a 43.8% increase over the third quarter of 2019 of RMB1,058.9 million and a 14.1% increase over the second quarter of 2020 of RMB1,334.5 million. The increase over the previous quarter was mainly due to full quarter revenue contribution from additional area utilized in the previous quarter (including from the Beijing 10, 11, 12 (“BJ10/11/12”) acquisition which closed on June 5, 2020) and the contribution from 16,589 sqm of net additional area utilized in the third quarter of 2020 which mainly related to the Kunshan 2 (“KS2”), Beijing 6 (“BJ6”), Beijing 12 (“BJ12”), and Langfang 7 (“LF7”) data centers. Revenue from IT equipment sales was RMB2.4 million (US$0.4 million), compared with RMB7.3 million in the third quarter of 2019 and RMB7.7 million in the second quarter of 2020.

Cost of revenue in the third quarter of 2020 was RMB1,115.8 million (US$164.3 million), a 40.9% increase over the third quarter of 2019 of RMB792.0 million and a 13.7% increase over the second quarter of 2020 of RMB981.1 million. The increase over the previous quarter was mainly due to an increase in power consumption as a result of higher area utilized, and an increase in depreciation and amortization costs related to new data centers coming into service or acquired in the previous quarter, namely KS2, Langfang 6 (“LF6”), LF7, and BJ10/11/12, and in the third quarter of 2020, namely Kunshan 3 (“KS3”), Shanghai 15 (“SH15”) and Langfang 2 (“LF2”). These increased costs were partially offset by a lower level of IT equipment cost due to a lower level of IT equipment sales.

Gross profit was RMB409.0 million (US$60.2 million) in the third quarter of 2020, a 49.1% increase over the third quarter of 2019 of RMB274.2 million, and a 13.3% increase over the second quarter of 2020 of RMB361.1 million. Gross profit margin was 26.8% in the third quarter of 2020, compared with 25.7% in the third quarter of 2019, and 26.9% in the second quarter of 2020.

Adjusted Gross Profit¹ (“Adjusted GP”) (non-GAAP) is defined as gross profit excluding depreciation and amortization, accretion expenses for asset retirement costs and share-based compensation expenses allocated to cost of revenue. Adjusted GP was RMB812.3 million (US$119.6 million) in the third quarter of 2020, a 42.2% increase over the third quarter of 2019 of RMB571.0 million and an 12.7% increase over the second quarter of 2020 of RMB721.0 million.

Adjusted GP margin¹ (non-GAAP) was 53.3% in the third quarter of 2020, compared with 53.6% in the third quarter of 2019, and 53.7% in the second quarter of 2020. The decrease over the previous quarter was mainly due to seasonally higher power consumption.

Selling and marketing expenses, excluding share-based compensation expenses of RMB13.6 million (US$2.0 million), were RMB21.5 million (US$3.2 million) in the third quarter of 2020, a 3.5% decrease from the third quarter of 2019 of RMB22.3 million (excluding share-based compensation of RMB10.3 million) and a 27.7% increase from the second quarter of 2020 of RMB16.9 million (excluding share-based compensation of RMB12.9 million). The increase over the previous quarter was primarily due to the resumption of a normal level of sales and marketing activities which were disrupted by COVID-19 in the second quarter of 2020.

General and administrative expenses, excluding share-based compensation expenses of RMB49.8 million (US$7.3 million), depreciation and amortization expenses of RMB71.5 million (US$10.5 million), and operating lease cost relating to prepaid land use rights of RMB6.9 million (US$1.0 million), were RMB75.3 million (US$11.1 million) in the third quarter of 2020, a 22.0% increase over the third quarter of 2019 of RMB61.7 million (excluding share-based compensation expenses of RMB26.9 million and depreciation and amortization expenses of RMB16.9 million) and a 9.5% increase from the second quarter of 2020 of RMB68.7 million (excluding share-based compensation of RMB35.6 million, depreciation and amortization expenses of RMB47.6 million, and operating lease cost relating to prepaid land use rights of RMB4.7 million). The increase over the previous quarter was primarily due to the resumptions of a normal level of corporate activities which were disrupted by COVID-19 in the second quarter of 2020.

Research and development costs were RMB11.0 million (US$1.6 million) in the third quarter of 2020, compared with RMB6.2 million in the third quarter 2019 and RMB10.2 million in the second quarter of 2020.

Net interest expenses for the third quarter of 2020 were RMB339.2 million (US$50.0 million), a 40.7% increase over the third quarter of 2019 of RMB241.0 million and a 12.8% increase over the second quarter of 2020 of RMB300.6 million. The increase over the previous quarter was mainly due to higher total gross debt balance to finance data center capacity expansion.

Foreign currency exchange loss for the third quarter of 2020 was RMB134 thousand (US$20 thousand), compared with a loss of RMB2.8 million in the third quarter of 2019 and a loss of RMB4.6 million in the second quarter of 2020.

Others, net for the third quarter of 2020 was RMB10.5 million (US$1.5 million), compared with RMB4.6 million in the third quarter of 2019 and RMB11.0 million in the second quarter of 2020.

Net loss in the third quarter of 2020 was RMB204.6 million (US$30.1 million), compared with a net loss of RMB108.6 million in the third quarter of 2019 and a net loss of RMB101.0 million in the second quarter of 2020.

Adjusted EBITDA (non-GAAP) is defined as net loss excluding net interest expenses, income tax expenses (benefits), depreciation and amortization, operating lease cost relating to prepaid land use rights, accretion expenses for asset retirement costs, share-based compensation expenses and gain from purchase price adjustment. Adjusted EBITDA was RMB717.1 million (US$105.6 million) in the third quarter of 2020, a 48.3% increase over the third quarter of 2019 of RMB483.7 million and a 13.2% increase over the second quarter of 2020 of RMB633.4 million.

Adjusted EBITDA margin (non-GAAP) was 47.0% in the third quarter of 2020, compared with 45.4% in the third quarter of 2019, and 47.2% in the second quarter of 2020. The slight decrease over the previous quarter was mainly due to seasonally higher power consumption.

Basic and diluted loss per ordinary share in the third quarter of 2020 was RMB0.18 (US$0.03), compared with RMB0.11 in the third quarter of 2019, and RMB0.10 in the second quarter of 2020.

Basic and diluted loss per American Depositary Share (“ADS”) in the third quarter of 2020 was RMB1.42 (US$0.21), compared with RMB0.87 in the third quarter of 2019, and RMB0.77 in the second quarter of 2020. Each ADS represents eight Class A ordinary shares.

Sales

Total area committed and pre-committed at the end of the third quarter of 2020 was 357,344 sqm, compared with 242,435 sqm at the end of the third quarter of 2019 and 333,461 sqm at the end of the second quarter of 2020, an increase of 47.4% Y-o-Y and 7.2% quarter-over-quarter (“Q-o-Q”), respectively. In the third quarter of 2020, net additional total area committed was 23,884 sqm, including significant contributions from the Langfang 4 (“LF4”), Langfang 9 (“LF9”), and Guangzhou 6 (“GZ6”) data centers. The sales increase was driven primarily by booming Cloud adoption in China leading to higher demand from Cloud service providers, as well as significant new commitments from large Internet customers.

Data Center Resources

Area in service at the end of the third quarter of 2020 was 279,618 sqm, compared with 198,097 sqm at the end of the third quarter of 2019 and 266,260 sqm at the end of the second quarter of 2020, an increase of 41.2% Y-o-Y and 5.0% Q-o-Q. In the third quarter of 2020, KS3, SH15 and LF2 data centers came into service.

Area under construction at the end of the third quarter of 2020 was 135,871 sqm, compared with 84,765 sqm at the end of the third quarter of 2019 and 133,208 sqm at the end of the second quarter of 2020, an increase of 60.3% Y-o-Y and 2.0% Q-o-Q, respectively. In the third quarter of 2020, construction commenced on the Kunshan 4 (“KS4”) and LF9 data centers. KS4 is one of the three adjacent buildings which the Company is developing at a site in Kunshan, around 6 km away from its existing Kunshan campus. KS4 has a net floor area of approximately 3,500 sqm. The remaining two buildings on the site, namely Kunshan 5 and Kunshan 6 with a combined net floor area of approximately 12,800 sqm, are currently held for future development. KS4 is expected to come into service in 1H21. LF9 is a leased building in Langfang, located around 10 km away from the Company’s existing Langfang cluster. LF9 has a net floor area of approximately 10,830 sqm and it has been fully pre-committed. LF9 is expected to come into service in 1H21.

Commitment rate of area in service was 95.8% at the end of the third quarter of 2020, compared with 91.7% at the end of the third quarter of 2019 and 94.1% at the end of second quarter 2020. Pre-commitment rate of area under construction was 65.9% at the end of the third quarter of 2020, compared with 71.6% at the end of the third quarter of 2019 and 62.3% at the end of the second quarter of 2020.

Area utilized at the end of the third quarter of 2020 was 209,751 sqm, compared with 137,820 sqm at the end of the third quarter of 2019 and 193,162 sqm at the end of the second quarter of 2020, an increase of 52.2% Y-o-Y and 8.6% Q-o-Q. Net additional area utilized was 16,589 sqm in the third quarter, which mainly came from additional area utilized in the KS2, BJ6, BJ12 and LF7 data centers.

Utilization rate of area in service was 75.0% at the end of the third quarter of 2020, compared with 69.6% at the end of the third quarter of 2019 and 72.5% at the end of the second quarter of 2020.

Langfang Land Site 3

During the third quarter of 2020, the Company acquired all the equity interests in a target company which owns the right of use for a new greenfield site (namely Langfang Land Site 3), which is located within the Company’s existing Langfang cluster, close to the LF7 data center. Langfang Land Site 3 has a land area of approximately 34,600 sqm and, once developed, will yield a net floor area of approximately 18,750 sqm according to the initial design. Langfang Land Site 3 is currently held for future development.

Beijing 14 Acquisition

On September 22, 2020, the Company announced that it has extended a legally-binding offer to acquire 100% of the equity interests in target companies which own a major data center in the Shunyi district of Beijing (“BJ14”) (the “BJ14 Acquisition”). The target companies are owned by a private equity fund controlled by CITIC Private Equity Funds Management Co., Limited (“CPE”), a leading alternative asset manager in China, and its affiliated parties. The offer has been accepted, with exclusivity terms agreed by both parties.

BJ14 is one of the largest and highest quality data center assets in the Beijing market. It is located adjacent to the Company’s Beijing 5 data center and 8 kilometers from its BJ10/11/12 data center campus, forming a cluster in the Shunyi District of Beijing which can generate significant operation synergies. BJ14 has a net floor area of over 19,000 sqm. It is fully committed by five hyperscale customers, including a new large internet customer logo. BJ14 is fully operational and is currently approximately 68% utilized. It is expected to be fully utilized in 2022.

The total enterprise value of the BJ14 Acquisition is approximately RMB3.8 billion, with a further RMB500 million contingent on the acquisition by the target companies of the property interests in the site.

Liquidity

As of September 30, 2020, cash was RMB6,004.5 million (US$884.4 million). Total short-term debt was RMB2,047.1 million (US$301.5 million), comprised of short-term borrowings and the current portion of long-term borrowings of RMB1,811.4 million (US$266.8 million) and the current portion of finance lease and other financing obligations of RMB235.7 million (US$34.7 million). Total long-term debt was RMB20,107.0 million (US$2,961.4 million), comprised of long-term borrowings (excluding current portion) of RMB10,119.0 million (US$1,490.4 million), convertible bonds of RMB2,009.8 million (US$296.0 million) and the non-current portion of finance lease and other financing obligations of RMB7,978.2 million (US$1,175.0 million). During the third quarter of 2020, the Company obtained new debt financing and re-financing facilities of RMB4,662.0 million (US$686.6 million).

Recent Developments

Hong Kong Initial Public Offering

On November 2, 2020, the Company successfully completed its Hong Kong Initial Public Offering of 160,000,000 Class A ordinary shares (the “Shares”), equivalent to 20,000,000 American Depositary Shares (“ADSs”). The Shares began trading on the Main Board of the Hong Kong Stock Exchange on the same day under the stock code “9698”. The public offering price was HK$80.88 per Share, equivalent to approximately US$83.49 per ADS, based upon each ADS representing eight Shares and an exchange rate of HK$7.7498 to US$1.00². On November 6, 2020, the Company announced that the underwriters had fully exercised their over-allotment option in respect of 24,000,000 Shares, equivalent to 3,000,000 ADSs, to cover over-allocations. The Company received net proceeds from this offering of approximately HK$14,417.3 million (US$1,860.3 million), after deducting estimated underwriting discounts and commissions and the estimated offering expenses payable by the Company.

Huidong Land

In order to supplement its resource supply in the Greater Bay Area, the Company recently entered into a land use right grant contract with the local government to acquire a greenfield site in Huidong County, Huizhou City, Guangdong Province (“Huidong Land”). Huizhou is one of the key areas identified for data center development in the Guangdong Province’s recently published New Infrastructure plan. The site is located within the Greater Bay Data Center Industrial Park, around 24 km away from the Company’s Shenzhen 4 data center. Huidong Land has a land area of approximately 115,000 sqm, and once fully developed, will yield a net floor area of approximately 72,000 sqm according to the initial design.

Shanghai 19 Acquisition

The Company recently acquired a data center project in Shanghai (“SH19”), located in the same area as its existing Waigaoqiao data center cluster. SH19 has a net floor area of approximately 12,789 sqm, and is being developed in two phases. SH19 Phase 1, with a net floor area of approximately 7,963 sqm, has just come into service. It is fully committed by one of the Company’s existing top customers. SH19 Phase 2, with a net floor area of approximately 4,826 sqm, is currently under construction. It is expected to come into service in 2H21. The estimated total acquisition and development cost of SH19, including cost to date, cost to complete and acquisition premium, is approximately RMB778 million.

Updated Business Outlook

For the full year of 2020, the Company now expects its total revenues to be in the range of RMB5,700 million to RMB5,750 million, increasing the low end of the original guidance of RMB5,510 million by approximately 3.4% and keeping the high end of the original guidance of RMB5,750 million unchanged. For the full year of 2020, the Company now expects its adjusted EBITDA to be in the range of RMB2,660 million to RMB2,670 million, increasing the low end of the original guidance of RMB2,550 million by approximately 4.3% and keeping the high end of the original guidance of RMB2,670 million unchanged. The updated estimates imply an increase of 38.3% to 39.5% Y-o-Y in total revenues and 45.8% to 46.4% Y-o-Y in adjusted EBITDA. The Company’s guidance for capital expenditure of RMB10,000 million for the full year of 2020 remains unchanged.

Conference Call

Management will hold a conference call at 7:00 p.m. U.S. Eastern Time on November 16, 2020 (8:00 a.m. Beijing Time on November 17, 2020) to discuss financial results and answer questions from investors and analysts. Listeners may access the call by dialing:

United States:	+1-845-675-0437
International:	+65-6713-5090
Hong Kong:	+852-3018-6771
Mainland China:	400-620-8038
Conference ID:	6869567

Participants should dial in at least 10 minutes before the scheduled start time and provide the Conference ID to the Operator to be connected to the conference. Due to conditions surrounding the outbreak of COVID-19, participants may experience longer than normal hold period before being assisted to join the call. The Company thanks everyone in advance for their patience and understanding.

A telephone replay will be available approximately two hours after the call until November 24, 2020 07:59 AM U.S. ET by dialing:

United States:	+1-646-254-3697
International: Hong Kong: Mainland China:	+61-2-8199-0299 +852-3051-2780 400-632-2162
Replay Access Code:	6869567

A live and archived webcast of the conference call will be available on the Company’s investor relations website at investors.gds-services.com.

Non-GAAP Disclosure

Our management and board of directors use adjusted GP, adjusted GP margin, adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP financial measures, to evaluate our operating performance, establish budgets and develop operational goals for managing our business. In particular, we believe that the exclusion of the expenses eliminated in calculating adjusted GP and adjusted EBITDA can provide a useful measure of our core operating performance.

We also present these non-GAAP measures because we believe these non-GAAP measures are frequently used by securities analysts, investors and other interested parties as measures of the financial performance of companies in our industry.

These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, cash flows or our liquidity, investors should not consider them in isolation, or as a substitute for gross profit, net income (loss), cash flows provided by (used in) operating activities or other consolidated statements of operations and cash flow data prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of these non-GAAP financial measures instead of their nearest GAAP equivalent. First, adjusted EBITDA, adjusted EBITDA margin, adjusted GP, and adjusted GP margin are not substitutes for gross profit, net income (loss), cash flows provided by (used in) operating activities or other consolidated statements of operation and cash flow data prepared in accordance with U.S. GAAP. Second, other companies may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of these non-GAAP financial measures as tools for comparison. Finally, these non-GAAP financial measures do not reflect the impact of net interest expenses, incomes tax benefits (expenses), depreciation and amortization, operating lease cost relating to prepaid land use rights, accretion expenses for asset retirement costs, share-based compensation expenses and gain from purchase price adjustment, each of which have been and may continue to be incurred in our business.

We mitigate these limitations by reconciling the non-GAAP financial measure to the most comparable U.S. GAAP performance measure, all of which should be considered when evaluating our performance.

For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and non-GAAP results” set forth at the end of this press release.

Exchange Rate

This announcement contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB 6.7896 to US$1.00, the noon buying rate in effect on September 30, 2020 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all.

Statement Regarding Preliminary Unaudited Financial Information

The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited financial information.

About GDS Holdings Limited

GDS Holdings Limited (NASDAQ: GDS; HKEX: 9698) is the largest carrier-neutral data center service provider in China. The Company’s data centers are designed and configured as high-performance data centers with large net floor area and power capacity, high power density and efficiency, and multiple redundancy across all critical systems. The Company’s data centers are strategically located in China’s primary economic hubs where demand for high-performance data center services is concentrated. GDS is carrier and cloud-neutral, which enables its customers to access all the major PRC telecommunications networks, as well as the largest PRC and global public clouds which GDS hosts in many of its facilities. The Company offers colocation and managed services, including an innovative and unique managed cloud value proposition. The Company has a 19-year track record of service delivery, successfully fulfilling the requirements of some of the largest and most demanding customers for outsourced data center services in China.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “aim,” “anticipate,” “believe,” “continue,” “estimate,” “expect,” “future,” “guidance,” “intend,” “is/are likely to,” “may,” “ongoing,” “plan,” “potential,” “target,” “will,” and similar statements. Among other things, statements that are not historical facts, including statements about GDS Holdings’ beliefs and expectations regarding the growth of its businesses and its revenue for the full fiscal year, the business outlook and quotations from management in this announcement, as well as GDS Holdings’ strategic and operational plans, are or contain forward-looking statements. GDS Holdings may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) on Forms 20-F and 6-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause GDS Holdings’ actual results or financial performance to differ materially from those contained in any forward-looking statement, including but not limited to the following: GDS Holdings’ goals and strategies; GDS Holdings’ future business development, financial condition and results of operations; the expected growth of the market for high-performance data centers, data center solutions and related services in China; GDS Holdings’ expectations regarding demand for and market acceptance of its high-performance data centers, data center solutions and related services; GDS Holdings’ expectations regarding building, strengthening and maintaining its relationships with new and existing customers; the continued adoption of cloud computing and cloud service providers in China; risks and uncertainties associated with increased investments in GDS Holdings’ business and new data center initiatives; risks and uncertainties associated with strategic acquisitions and investments; GDS Holdings’ ability to maintain or grow its revenue or business; fluctuations in GDS Holdings’ operating results; changes in laws, regulations and regulatory environment that affect GDS Holdings’ business operations; competition in GDS Holdings’ industry in China; security breaches; power outages; and fluctuations in general economic and business conditions in China and globally, the impact of the COVID-19 outbreak, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in the GDS Holdings’ filings with the SEC, including its annual report on form 20-F. All information provided in this press release is as of the date of this press release and are based on assumptions that GDS Holdings believes to be reasonable as of such date, and GDS Holdings does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

GDS Holdings Limited

Laura Chen
Phone: +86 (21) 5176-5509
Email: [email protected]

The Piacente Group, Inc.

Ross Warner
Phone: +86 (10) 6508-0677
Email: [email protected]

Brandi Piacente
Phone: +1 (212) 481-2050
Email: [email protected]

GDS Holdings Limited

GDS HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))

		As of December 31, 2019		As of September 30, 2020
		RMB		RMB		US$

	Assets
Current assets
	Cash	5,810,938		6,004,537		884,373
	Accounts receivable, net of allowance for doubtful accounts	879,962		1,579,257		232,599
	Value-added-tax (“VAT”) recoverable	129,994		114,245		16,826
	Prepaid expenses and other current assets	263,815		417,475		61,487
	Total current assets	7,084,709		8,115,514		1,195,285

Property and equipment, net		19,184,639		27,223,398		4,009,573
Prepaid land use rights, net		747,187		713,613		105,104
Operating lease right-of-use assets		796,679		2,578,471		379,768
Goodwill and intangible assets, net		2,300,468		2,957,590		435,606
Other non-current assets		1,378,849		2,058,873		303,239
	Total assets	31,492,531		43,647,459		6,428,575

	Liabilities, Mezzanine Equity and Shareholders’ Equity
Current liabilities
	Short-term borrowings and current portion of long-term borrowings	1,137,737		1,811,363		266,785
	Accounts payable	1,675,966		3,431,162		505,356
	Accrued expenses and other payables	908,199		1,147,220		168,967
	Operating lease liabilities, current	55,139		82,950		12,217
	Finance lease and other financing obligations, current	222,473		235,703		34,715
	Total current liabilities	3,999,514		6,708,398		988,040

Long-term borrowings, excluding current portion		8,028,473		10,119,004		1,490,368
Convertible bonds payable		2,049,654		2,009,785		296,009
Operating lease liabilities, non-current		709,998		1,272,835		187,468
Finance lease and other financing obligations, non-current		4,751,121		7,978,175		1,175,058
Other long-term liabilities		598,209		787,337		115,963
	Total liabilities	20,136,969		28,875,534		4,252,906

Mezzanine equity
	Redeemable preferred shares	1,061,981		1,023,643		150,766
	Redeemable non-controlling interests	0		110,902		16,334
	Total mezzanine equity	1,061,981		1,134,545		167,100

Shareholders’ equity
	Ordinary shares	412		445		66
	Additional paid-in capital	12,403,043		16,196,505		2,385,487
	Accumulated other comprehensive loss	(52,684	)	(105,907	)	(15,598	)
	Accumulated deficit	(2,057,190	)	(2,453,663	)	(361,386	)
	Total shareholders’ equity	10,293,581		13,637,380		2,008,569
Commitments and contingencies

	Total liabilities, mezzanine equity and shareholders’ equity	31,492,531		43,647,459		6,428,575

GDS HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)

except for number of shares and per share data)

		Three months ended								Nine months ended
		September 30, 2019		June 30, 2020		September 30, 2020					September 30, 2019			September 30, 2020
		RMB		RMB		RMB		US$				RMB		RMB		US$

Net revenue
Service revenue		1,058,921		1,334,475		1,522,353		224,218				2,934,961		4,089,417		602,306
Equipment sales		7,267		7,730		2,396		353				8,257		17,955		2,644
Total net revenue		1,066,188		1,342,205		1,524,749		224,571				2,943,218		4,107,372		604,950
Cost of revenue		(791,963	)	(981,103	)	(1,115,784	)	(164,337	)			(2,195,215	)	(2,986,967	)	(439,933	)
Gross profit		274,225		361,102		408,965		60,234				748,003		1,120,405		165,017

Operating expenses
	Selling and marketing expenses	(32,596	)	(29,755	)	(35,157	)	(5,178	)			(90,233	)	(95,217	)	(14,024	)
	General and administrative expenses	(105,524	)	(156,679	)	(203,460	)	(29,966	)			(290,527	)	(477,182	)	(70,281	)
	Research and development expenses	(6,193	)	(10,243	)	(11,020	)	(1,623	)			(15,032	)	(30,007	)	(4,420	)
Income from operations		129,912		164,425		159,328		23,467				352,211		517,999		76,292
Other income (expenses):
	Net interest expenses	(241,038	)	(300,649	)	(339,245	)	(49,965	)			(682,061	)	(900,759	)	(132,667	)
	Foreign currency exchange loss, net	(2,796	)	(4,587	)	(134	)	(20	)			(5,554	)	(17,340	)	(2,554	)
	Gain from purchase price adjustment	0		55,154		0		0				0		55,154		8,123
	Others, net	4,602		10,988		10,481		1,544				9,122		24,385		3,592
Loss before income taxes		(109,320	)	(74,669	)	(169,570	)	(24,974	)			(326,282	)	(320,561	)	(47,214	)
Income tax benefits (expenses)		678		(26,378	)	(35,065	)	(5,165	)			(12,139	)	(77,152	)	(11,363	)
Net loss		(108,642	)	(101,047	)	(204,635	)	(30,139	)			(338,421	)	(397,713	)	(58,577	)
Net loss attributable to redeemable non-controlling interests		0		0		1,240		183				0		1,240		183
Net loss attributable to GDS Holdings Limited shareholders		(108,642	)	(101,047	)	(203,395	)	(29,956	)			(338,421	)	(396,473	)	(58,394	)
Accretion to redemption value of redeemable non-controlling interests		0		0		(7,142	)	(1,052	)			0		(7,142	)	(1,052	)
Net loss available to GDS Holdings Limited shareholders		(108,642	)	(101,047	)	(210,537	)	(31,008	)			(338,421	)	(403,615	)	(59,446	)
Change in redemption value of redeemable preferred shares		0		0		0		0				(17,760	)	0		0
Cumulative dividend on redeemable preferred shares		(13,386	)	(13,442	)	(13,284	)	(1,957	)			(26,858	)	(39,951	)	(5,884	)
Net loss available to GDS Holdings Limited ordinary shareholders		(122,028	)	(114,489	)	(223,821	)	(32,965	)			(383,039	)	(443,566	)	(65,330	)

Loss per ordinary share
Basic and diluted		(0.11	)	(0.10	)	(0.18	)	(0.03	)			(0.35	)	(0.37	)	(0.05	)

Weighted average number of ordinary share outstanding
Basic and diluted		1,126,969,256		1,190,834,806		1,257,370,403		1,257,370,403				1,089,589,663		1,210,075,809		1,210,075,809

GDS HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))

	Three months ended								Nine months ended
	September 30, 2019		June 30, 2020		September 30, 2020				September 30, 2019		September 30, 2020
	RMB		RMB		RMB		US$		RMB		RMB		US$

Net loss	(108,642	)	(101,047	)	(204,635	)	(30,139	)	(338,421	)	(397,713	)	(58,577	)
Foreign currency translation adjustments, net of nil tax	29,165		15,158		(58,832	)	(8,665	)	96,037		(53,223	)	(7,839	)
Comprehensive loss	(79,477	)	(85,889	)	(263,467	)	(38,804	)	(242,384	)	(450,936	)	(66,416	)
Comprehensive loss attributable to redeemable non-controlling interests	0		0		1,240		183		0		1,240		183
Comprehensive loss attributable to GDS Holdings Limited shareholders	(79,477	)	(85,889	)	(262,227	)	(38,621	)	(242,384	)	(449,696	)	(66,233	)

GDS HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))

	Three months ended								Nine months ended
	September 30, 2019		June 30, 2020		September 30, 2020				September 30, 2019		September 30, 2020
	RMB		RMB		RMB		US$		RMB		RMB		US$

Net loss	(108,642	)	(101,047	)	(204,635	)	(30,139	)	(338,421	)	(397,713	)	(58,577	)
Depreciation and amortization	299,349		390,197		450,851		66,403		822,562		1,160,074		170,860
Amortization of debt issuance cost and debt discount	31,992		42,758		23,957		3,528		85,504		81,092		11,944
Share-based compensation expense	51,886		66,699		88,607		13,050		114,820		222,449		32,763
Gain from purchase price adjustment	0		(55,154	)	0		0		0		(55,154	)	(8,123	)
Others	(19,435	)	(27,522	)	(8,727	)	(1,285	)	(40,508	)	(61,475	)	(9,054	)
Changes in operating assets and liabilities	(89,931	)	(129,894	)	(357,996	)	(52,727	)	(422,634	)	(940,978	)	(138,591	)
Net cash provided by (used in) operating activities	165,219		186,037		(7,943	)	(1,170	)	221,323		8,295		1,222

Purchase of property and equipment and land use rights	(1,114,350	)	(1,021,925	)	(2,140,979	)	(315,332	)	(2,460,830	)	(5,688,582	)	(837,838	)
Payments related to acquisitions and investments	(36,090	)	(326,971	)	(606,963	)	(89,396	)	(63,203	)	(944,196	)	(139,065	)
Net cash used in investing activities	(1,150,440	)	(1,348,896	)	(2,747,942	)	(404,728	)	(2,524,033	)	(6,632,778	)	(976,903	)

Net proceeds from financing activities	887,546		5,268,130		1,154,008		169,967		5,656,923		7,026,400		1,034,877
Net cash provided by financing activities	887,546		5,268,130		1,154,008		169,967		5,656,923		7,026,400		1,034,877
Effect of exchange rate changes on cash and restricted cash	109,558		23,900		(151,479	)	(22,310	)	222,878		(101,992	)	(15,021	)

Net increase (decrease) of cash and restricted cash	11,883		4,129,171		(1,753,356	)	(258,241	)	3,577,091		299,925		44,175
Cash and restricted cash at beginning of period	5,849,956		3,897,372		8,026,543		1,182,182		2,284,748		5,973,262		879,766
Cash and restricted cash at end of period	5,861,839		8,026,543		6,273,187		923,941		5,861,839		6,273,187		923,941

GDS HOLDINGS LIMITED

UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)

except for percentage data)

Three months ended

Nine months ended

September 30, 2019

June 30, 2020

September 30, 2020

September 30, 2019

September 30, 2020

RMB

US$

RMB

US$

Gross profit

274,225

361,102

408,965

60,234

748,003

1,120,405

165,017

Depreciation and amortization

282,112

341,618

378,291

55,716

771,297

1,016,510

149,716

Accretion expenses for asset retirement costs

743

944

1,070

158

2,177

2,910

429

Share-based compensation expenses

13,960

17,336

23,951

3,528

28,818

58,390

8,599

Adjusted GP

571,040

721,000

812,277

119,636

1,550,295

2,198,215

323,761

Adjusted GP margin

53.6
%

53.7
%

53.3
%

52.7
%

53.5
%

GDS HOLDINGS LIMITED

UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)

except for percentage data)

	Three months ended								Nine months ended
	September 30, 2019		June 30, 2020		September 30, 2020				September 30, 2019		September 30, 2020
	RMB		RMB		RMB		US$		RMB		RMB		US$

Net loss	(108,642	)	(101,047	)	(204,635	)	(30,139	)	(338,421	)	(397,713	)	(58,577	)
Net interest expenses	241,038		300,649		339,245		49,965		682,061		900,759		132,667
Income tax (benefits) expenses	(678	)	26,378		35,065		5,165		12,139		77,152		11,363
Depreciation and amortization	299,349		390,197		450,851		66,403		822,562		1,160,074		170,860
Operating lease cost relating to prepaid land use rights	0		4,721		6,914		1,018		0		12,131		1,787
Accretion expenses for asset retirement costs	743		944		1,070		158		2,177		2,910		429
Share-based compensation expenses	51,886		66,699		88,607		13,050		114,820		222,449		32,763
Gain from purchase price adjustment	0		(55,154	)	0		0		0		(55,154	)	(8,123	)
Adjusted EBITDA	483,696		633,387		717,117		105,620		1,295,338		1,922,608		283,169
Adjusted EBITDA margin	45.4 %		47.2 %		47.0 %		47.0 %		44.0 %		46.8 %		46.8 %

____________________________

¹ During the third quarter of 2020, the Company has changed the description of “Adjusted Net Operating Income” and “Adjusted Net Operating Income Margin”, to “Adjusted Gross Profit” and “Adjusted Gross Profit Margin”, respectively. The change in description and presentation of non-GAAP reconciliation does not change the outcome of the operating metrics or financial results.

² As of October 23, 2020, as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System.

November 16, 2020 4:52 pm

HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Precigen, Inc. (PGEN), f/k/a Intrexon Corp. (XON) Investors with Losses to Contact Its Attorneys, Securities Fraud Action Filed, Important Deadline Approaching

SAN FRANCISCO, Nov. 16, 2020 (GLOBE NEWSWIRE) — Hagens Berman urges Precigen, Inc. (NASDAQ: PGEN) (f/k/a Intrexon) investors with significant losses to submit your losses now. A securities fraud class action has been filed and certain investors may have valuable claims.

Class
Period: May 10, 2017 – Sept. 25, 2020
Lead Plaintiff Deadline: Dec. 4, 2020
Visit:www.hbsslaw.com/investor-fraud/PGEN
Contact An Attorney Now:[email protected]
844-916–0895

Precigen
, Inc.
(
PGEN
)
Securities Fraud Class Action
:

The complaint alleges that Defendants misrepresented and concealed that: (1) the Company was using pure methane as feedstock for its announced yields for its methanotroph bioconversion (“MCB”) platform instead of natural gas; (2) yields from natural gas as a feedstock were substantially lower than the announced pure methane yields; (3) due to the substantial price difference between pure methane and natural gas, pure methane was not a commercially viable feedstock; (4) the Company’s 1Q 2018 financial statements were false; (5) the Company had material weaknesses in its internal controls over financial reporting; and (6) the Company was under investigation by the SEC since October 2018.

Investors allegedly began to learn the truth through a series of disclosures beginning on Aug. 9, 2018, when the company announced that its 1Q 2018 financial results could no longer be relied on. In its restated 1Q 2018 results, the company made significant changes to deferred revenue, collaboration and licensing revenues and accumulated deficit, as well as admitted to material weaknesses in its internal controls over financial reporting.

Then, on Mar. 2, 2020, the company disclosed it received a subpoena in Oct. 2018 from the SEC concerning Precigen’s MCB-related disclosures.

Finally, on Sept. 25, 2020, the SEC issued a cease and desist order involving “inaccurate reports concerning the company’s purported success converting relatively inexpensive natural gas into more expensive industrial chemicals using a proprietary [MCB] program.”

“We’re focused on investors’ losses and proving that Precigen cooked its books and promoted fake technology,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you are a Precigen investor and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.

Whistleblowers: Persons with non-public information regarding Precigen should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844–916–0895 or email [email protected].

About Hagens Berman

Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.

Contact
:

Reed Kathrein, 844-916-0895

November 16, 2020 4:52 pm

HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Loop Industries (LOOP) Investors to Contact Its Attorneys, Securities Fraud Action Filed, Application Deadline Approaching

SAN FRANCISCO, Nov. 16, 2020 (GLOBE NEWSWIRE) — Hagens Berman urges Loop Industries, Inc. (NASDAQ: LOOP) investors with significant losses to submit your losses now.

Class
Period: Sept. 24, 2018 – Oct. 12, 2020
Lead Plaintiff Deadline: Dec. 14, 2020
Visit:www.hbsslaw.com/investor-fraud/LOOP
Contact An Attorney Now:[email protected] | 844-916–0895

Loop
(
LOOP
)
Securities Fraud Class Action
:

The complaint alleges that Loop made false and misleading statements about its purportedly “proven” technology that breaks down PET plastic to its base chemicals at a recovery rate of 100%. The complaint also alleges that Loop misrepresented its partnerships with key customers.

Specifically, the complaint alleges that Defendants failed to disclose to investors: (1) that Loop scientists were encouraged to misrepresent the results of Loop’s purportedly proprietary process; (2) that Loop did not have the technology to break PET down to its base chemicals at a recovery rate of 100%; (3) that, as a result, the Company was unlikely to realize the purported benefits of Loop’s announced partnerships with Indorama and Thyssenkrupp.

Investors allegedly began to learn the truth on Oct. 13, 2020, when Hindenburg Research published a report concluding “Loop is smoke and mirrors with no viable technology.” Hindenburg reported that: (i) Loop’s technology is no more efficient or cost effective than traditional PET recycling methods and its previous claims of breaking PET down to its base chemicals at a recovery rate of 100% were “‘technically and industrially impossible;’” (ii) under pressure from CEO Daniel Solomita, Loop’s scientists were tacitly encouraged to lie about the results of the Company’s process internally; and (iii) the Indorama partnership has not even been finalized, and the Thyssenkrupp partnership is on indefinite hold.

Following Hindenburg’s report, the price of Loop shares crashed on Oct. 13, 2020.

Most recently, on Oct. 16, 2020 Loop announced the SEC subpoenaed the Company seeking information regarding testing, testing results and details of results about its technologies, partnerships and agreements, sending the price of Loop shares crashing again.

“We’re focused on investors’ losses and proving Loop misrepresented its technological capabilities,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you are a Loop Industries investor and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.

Whistleblowers: Persons with non-public information regarding Loop Industries should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844–916–0895 or email [email protected].

Contact
:

Reed Kathrein, 844-916-0895

November 16, 2020 4:51 pm

ProMIS Neurosciences Completes Offering of Special Warrants

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES

TORONTO and CAMBRIDGE, Mass., Nov. 16, 2020 (GLOBE NEWSWIRE) — ProMIS Neurosciences Inc. (TSX: PMN) (OTCQB: ARFXF), a biotechnology company focused on the discovery and development of antibody therapeutics targeting toxic oligomers implicated in the development of neurodegenerative diseases, is pleased to announce that it has completed its previously announced private placement offering (the “Offering”) of special warrants of the Company (“Special Warrants”). A total of 16,219,581 Special Warrants were issued in two closings at a price of $0.12 per Special Warrant, for gross proceeds of $1,946,349.72.

The Company will be filing a short form prospectus to qualify the distribution of the Shares and Warrants issuable upon the deemed exercise of the Special Warrants (other than those Special Warrants issued to residents of Quebec). Each Special Warrant will convert, without payment of any additional consideration, into one common share of the Company and one transferable common share purchase warrant (a “Warrant”). Each Warrant will entitle the holder thereof to acquire one common share at an exercise price of $0.20 per share for a period of 60 months, subject to acceleration of the expiry date if the twenty-day volume-weighted average trading price of the common shares exceeds $0.60.

The Company issued 13,819,581 Special Warrants in the first closing on November 4, 2020 and 2,400,000 Special Warrants in the second closing on November 16, 2020. In connection with the second closing, the Company paid cash finders’ fees in the amount of $11,760 and issued a total of 70,000 compensation warrants, each such compensation warrant having the same terms as the Warrants. The Company also wishes to correct the quantum of finders fees disclosed in its November 5, 2020 news release. In connection with the first closing, the Company paid cash finders’ fees in the amount of $58,464 and issued a total of 487,200 compensation warrants.

This press release is not an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements and applicable U.S. state securities laws.

About ProMIS Neurosciences

ProMIS Neurosciences, Inc. is a development stage biotechnology company whose unique core technology is the ability to rationally predict the site and shape (conformation) of novel targets known as Disease Specific Epitopes (DSEs) on the molecular surface of proteins. In neurodegenerative diseases, such as Alzheimer’s, ALS and Parkinson’s disease, the DSEs are misfolded regions on toxic forms of otherwise normal proteins. In the infectious disease setting, these DSEs represent peptide antigens that can be used as an essential component to create accurate and sensitive serological assays to detect the presence of antibodies that arise in response to a specific infection, such as COVID-19. ProMIS proprietary peptide antigens can also be used to create potential therapeutic antibodies, as well as serve as the basis for development of vaccines. ProMIS is headquartered in Toronto, Ontario, with offices in Cambridge, Massachusetts. ProMIS is listed on the Toronto Stock Exchange under the symbol PMN, and on the OTCQB Venture Market under the symbol ARFXF.

Visit us at www.promisneurosciences.com, follow us on Twitter and LinkedIn. To learn more about protein misfolding diseases, listen to Episodes 11, 24, of Saving Minds, a podcast available at iTunes or Spotify.

For Investor Relations please contact:
Alpine Equity Advisors
Nicholas Rigopulos, President
[email protected]
Tel. 617 901-0785

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This information release contains certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company’s current beliefs as well as assumptions made by and information currently available to it as well as other factors.
Among other factors,
the completion of the Offering
is subject to receipt of the final approval of the Toronto Stock Exchange
and the timing of the deemed exercise of the Special Warrants is subject to approvals of applicable securities regulators
.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

November 16, 2020 4:51 pm

Avolon Announces Pricing of US$1 Billion Senior Unsecured Notes Offering

Avolon Announces Pricing of US$1 Billion Senior Unsecured Notes Offering

US$1BN Senior Unsecured Notes due 2026

DUBLIN–(BUSINESS WIRE)–
Avolon Holdings Limited (“Avolon”), the international aircraft leasing company, announces the successful pricing of a private offering (the “Offering”) by its wholly owned subsidiary, Avolon Holdings Funding Limited (“AHFL”), for a principal aggregate amount of US$1 billion of 4.25% senior unsecured notes due 2026 (the “Notes”). The Notes will be fully and unconditionally guaranteed by Avolon, and by certain of its subsidiaries.

The Offering is expected to close on or about 23 November, 2020, subject to customary closing conditions. Net proceeds from the Offering will be used to fund the previously announced cash tender offers (the “Tender Offers”) by AHFL and Park Aerospace Holdings Limited (together, the “Issuers”) to purchase certain notes previously issued by the Issuers and to pay fees and expenses in connection therewith. In the event that the Tender Offers are not consummated, or the net proceeds from the Offering are otherwise in excess of the amount needed to fund the Tender Offers and to pay related fees and expenses, the Issuers intend to use the remaining proceeds for general corporate purposes, which may include the future repayment of outstanding indebtedness.

The Notes will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or any state securities law and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act and applicable state securities laws. The Notes will be offered in the United States only to qualified institutional buyers under Rule 144A of the Securities Act and outside the United States under Regulation S of the Securities Act.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there by any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, qualification or an exemption under the securities laws of any such jurisdiction.

About Avolon

Headquartered in Ireland, with offices in the United States, Dubai, Singapore, Hong Kong and Shanghai, Avolon provides aircraft leasing and lease management services. Avolon is 70% owned by an indirect subsidiary of Bohai Leasing Co., Ltd., a public company listed on the Shenzhen Stock Exchange (SLE: 000415) and 30% owned by ORIX Aviation Systems, a subsidiary of ORIX Corporation which is listed on the Tokyo and New York Stock Exchanges (TSE: 8591; NYSE: IX). Avolon is the world’s third largest aircraft leasing business with an owned, managed and committed fleet, as of 30 September 2020 of 837 aircraft.

Website: www.avolon.aero

Twitter: @avolon_aero

Note Regarding Forward-Looking Statements

This document includes forward-looking statements, beliefs or opinions, including statements with respect to Avolon’s business, financial condition, results of operations and plans. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond our control and all of which are based on our management’s current beliefs and expectations about future events. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as “believe,” “expects,” “may,” “will,” “could,” “should,” “shall,” “risk,” “intends,” “estimates,” “aims,” “plans,” “predicts,” “continues,” “assumes,” “positioned” or “anticipates” or the negative thereof, other variations thereon or comparable terminology or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. Forward-looking statements may and often do differ materially from actual results. No assurance can be given that such future results will be achieved, that any private placement of senior unsecured notes will occur following the investor calls or, regardless of whether a private placement of senior unsecured notes is consummated, that any ratings agencies will upgrade Avolon to investment grade. Avolon does not intend, and undertakes no duty, to update any information contained herein to reflect future events or circumstances, except as required by applicable law.

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Ross O’Connor

Head of Investor Relations

[email protected]

T: +353 1 231 5818

Emmet Moloney

Head of Communications

[email protected]

T: +353 1 556 4429

Jonathan Neilan

FTI Consulting

[email protected]

M: +353 86 231 4135

KEYWORDS: Ireland Europe

INDUSTRY KEYWORDS: Air Transport Logistics/Supply Chain Management Other Transport

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