Author: Newsdesk

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OMNIQ Corp. Reports Strong Sales of $15.8 Million for Third Quarter of 2020, up 21% Year over Year

  • Strong
    s
    equential
    r
    evenue
    g
    rowth
    of
    2
    5
    % over Q2 2020
  • Received orders from companies and organizations
    in diverse sectors,
    in
    cluding
    healthcare,
    f
    ood,
    logistics,
    public safety, and basic materials

SALT LAKE CITY, Nov. 12, 2020 (GLOBE NEWSWIRE) — OMNIQ Corp. (OTCQB: OMQS) (“OMNIQ” or “the Company”), a provider of Supply Chain and Artificial Intelligence (AI)-based solutions, today announced its financial results for the three- and nine-month periods ended September 30, 2020.

Third quarter and recent highlights include:

  • Generated sales of $15.8 million for the third quarter of 2020, a 21% increase from the same quarter last year and a 25% increase from the second quarter of 2020
  • Announced a partnership with Zebra Technologies that integrates OMNIQ’s AI-based machine vision technology with Zebra’s MotionWorks location solution for advanced logistics yard management
  • Announced orders totaling $3.5 million from a worldwide leader in third-party logistics for the supply of mobile data collection devices for order fulfillment and warehouse management
  • Announced a $4.0-million order from a leading healthcare and pharmaceutical supplier for the supply of mobile data collection devices
  • Received an additional $1.0 million in orders from a leading U.S. supermarket chain
  • Awarded a $1.0-million purchase order by a leading sales and marketing agency focused on supporting consumer packaged goods companies and retailers
  • Awarded a $1.8-million project related to the implementation of an advanced delivery logistics initiative for a global metal solutions company
  • Began deployment of AI-based SeeDOT™ systems for accurate, automated and real-time monitoring of commercial vehicles at weigh and safety stations in a Southern U.S. state
  • Launched e-commerce platform targeting small- and medium-sized businesses
  • Received order for AI-based machine vision solution for homeland security and public safety system applications for a Himalayan country
  • Cash balance at September 30, 2020 grew to over $5.0 million from $1.6 million at December 31, 2019

“Our strong top-line growth in the third quarter, both year over year and sequentially, reflects the underlying strength, quality and reliability of our product offerings, combined with the quality and strength of our unique, diversified customer base,” said Shai Lustgarten, CEO of OMNIQ. “As we stated in our recent Letter to Shareholders in October, we are seeing traction in our Supply Chain Mobility and Smart City markets across multiple industries. Specifically, our “contactless” technologies apply to many organizations that are increasingly focused on productivity, health, and safety due to the ongoing COVID-19 pandemic. Our third-quarter results reflect the successful efforts of our sales team and the increasing interest in our technology solutions, and thanks to our investments in R&D in the area of advanced AI technology, we started the fourth quarter with increasing demand for our AI-based solutions that we expect to improve our gross margin in the near future as we work to take the Company towards profitability.

“Despite the economic uncertainties resulting from the pandemic, we remain steadfast in cementing our position as a supplier of choice for Internet-of-Things-enabled supply chain solutions, as well as advanced AI-based machine vision solutions powered by deep neural-network algorithms for Fortune 500 companies, institutions, government agencies and municipalities around the world. We pride ourselves in the accuracy and efficiency of our object identification technologies, and helping our growing roster of customers with a broad range of applications, from supply chain logistics, to parking and traffic management, to border control, to campus safety, to law enforcement, and many more. We see tremendous opportunity in our fast-growing target markets and our team at OMNIQ is working relentlessly to deliver growth and to create value for our shareholders. We also believe that our plan to uplist to a senior stock exchange, if completed, will increase investor awareness and broaden our institutional and stakeholder base.”

Third
Quarter 2020 Financial Results

OMNIQ reported revenue of $15.8 million for the quarter ended September 30, 2020, an increase of 20.9% from $13.1 million in the third quarter of 2019. Sequentially, revenue increased by 25% from $12.7 million in the second quarter of 2020. The revenue increase reflects higher demand related to the COVID-19 pandemic from certain customers during the quarter as well as continued traction in our markets. The higher cost of goods sold in the third quarter of 2020, which reflects an unfavorable change in the product mix with large lower-margin orders related to the COVID-19 pandemic to certain large customers accounting for a greater percentage of overall sales, resulted in a lower gross margin than the third quarter last year.   Total operating expenses for the quarter were $5.8 million, compared with $4.2 million in the third quarter of 2019. The increase was largely attributable to an increase in non-cash stock-based compensation awarded to professional service providers.

Net loss for the quarter was $3.8 million, or a loss of $0.83 per basic share, compared with a loss of $1.4 million, or a loss of $0.38 per basic share, for the third quarter of last year. The increase in net loss is mainly attributable to lower gross margin due to product mix and – in spite of slightly lower salary and employee benefits – higher operating expenses mainly attributable to non-cash stock-based compensation paid for professional services during the quarter, compared with the same period in 2019.

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for the third quarter of 2020 was a loss of $2.4 million, compared with a loss of $0.3 million in the third quarter of 2019. Adjusted EBITDA for the third quarter of 2020 was a loss of $0.9 million, compared with Adjusted EBITDA of $0.5 million in the third quarter last year.

First
Nine
Months 2020 Financial Results

OMNIQ reported revenues of $42.3 million for the first nine months of 2020, a decrease of 7.7% compared with the first nine months of 2019. The decrease was primarily related to stronger fulfillment and deliveries by the Company during the first nine months of 2019. The higher cost of goods, which reflects an unfavorable change in product mix with several large lower-margin orders related to the COVID-19 pandemic to certain large customers accounting for a greater percentage of overall sales, resulted in a decrease in gross margin to 19.9% from 25.6% in the first nine months of 2019. Total operating expenses for the first nine months of 2020 were $14.8 million compared with $12.6 million for the same period last year. The increase in operating expense was largely related to an increase in non-cash stock-based compensation granted to professional service providers as well as increased research and development spending.

Net loss for the first nine months of 2020 was $8.6 million, or a loss of $2.03 per basic share, compared with a loss of $2.6 million, or a loss of $0.64 per basic share, for the first nine months of 2019.

EBITDA for the first nine months of 2020 was a loss of $5.0 million, compared with EBITDA of $781 thousand for the first nine months of 2019. Adjusted EBITDA for the first nine months of 2020 was a loss of $2.3 million, compared with adjusted EBITDA of $2.1 million for the same period in 2019.

Conference Call Information
OMNIQ will host a conference call and webcast on Friday, November 13, 2020, at 11:00 a.m. Eastern Time to discuss financial results for the third quarter ended September 30, 2020.

To access the live webcast, please click on this webcast link to register, or go to the Company’s Investor Relations page by clicking on this OMNIQ IR link.  

To participate in the call by phone, please dial (877) 407-9210 approximately five minutes prior to the scheduled start time. International callers please dial (201) 689-8049.

A replay of the teleconference will be available until December 13, 2020 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 38548.

About OMNIQ Corp.

OMNIQ Corp. (OTCQB: OMQS) provides computerized and machine vision image processing solutions that use patented and proprietary AI technology to deliver data collection, real-time surveillance and monitoring for supply chain management, homeland security, public safety, traffic & parking management and access control applications. The technology and services provided by the Company help clients move people, assets and data safely and securely through airports, warehouses, schools, national borders, and many other applications and environments.

OMNIQ’s customers include government agencies and leading Fortune 500 companies from several sectors, including manufacturing, retail, distribution, food and beverage, transportation and logistics, healthcare, and oil, gas, and chemicals. Since 2014, annual revenues have grown to more than $50 million from clients in the USA and abroad.

The Company currently addresses several billion-dollar markets, including the Global Safe City market, forecast to grow to $29 billion by 2022, and the Ticketless Safe Parking market, forecast to grow to $5.2 billion by 2023. For more information, visit www.omniq.com.

Information about Forward-Looking Statements

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

This release contains “forward-looking statements” that include information relating to future events and future financial and operating performance. The words “anticipate”, “may,” “would,” “will,” “expect,” “estimate,” “can,” “believe,” “potential” and similar expressions and variations thereof are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for the Company’s products particularly during the current health crisis , the introduction of new products, the Company’s ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the Company’s liquidity and financial strength to support its growth, the Company’s ability to manage credit and debt structures from vendors, debt holders and secured lenders, the Company’s ability to successfully integrate its acquisitions, and other information that may be detailed from time-to-time in OMNIQ Corp.’s filings with the United States Securities and Exchange Commission. Examples of such forward looking statements in this release include, among others, statements regarding revenue growth, driving sales, operational and financial initiatives, cost reduction and profitability, and simplification of operations. For a more detailed description of the risk factors and uncertainties affecting OMNIQ Corp., please refer to the Company’s recent Securities and Exchange Commission filings, which are available at http://www.sec.gov. OMNIQ Corp. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by law.

Investor Contact:

888-309-9994
[email protected]

OMNIQ CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(UNAUDITED)

  For the three months     For the nine months  
  ending September 30,     ending September 30,  
(In thousands, except share and per share data) 2020     2019     2020     2019  
Revenues                              
Total Revenues $ 15,833     $ 13,097     $ 42,309     $ 45,843  
                               
Cost of goods sold                              
Cost of goods sold   13,024       9,601       33,886       34,123  
                               
Gross profit   2,809       3,496       8,423       11,720  
                               
Operating expenses                              
General and administrative   837       727       2,414       1,941  
Salary and employee benefits   2,581       2,700       7,666       7,763  
Depreciation and amortization   594       536       1,696       1,620  
Professional fees   1,818       268       3,018       1,226  
Total operating expenses   5,830       4,231       14,794       12,550  
                               
Loss from operations   (3,021 )     (735 )     (6,371 )     (830 )
                               
Other income (expenses):                              
Interest expense   (744 )     (618 )     (1,957 )     (1,769 )
Other (expenses) income   (16 )     (90 )     (318 )     (9 )
Total other expenses   (760 )     (708 )     (2,275 )     (1,778 )
                               
Net Loss Before Income Taxes   (3781 )     (1,443 )     (8,646 )     (2,608 )
                               
Provision for Income Taxes                              
Current   –       –       –       –  
Total Provision for Income Taxes   –       –       –       –  
                               
Net Loss attributable to OMNIQ Corp. $ (3,781 )   $ (1,443 )   $ (8,646 )   $ (2,608 )
                               
Foreign currency translation adjustment   (16 )     12       (30 )     12  
                               
Comprehensive loss   (3,797 )     (1,431 )     (8,676 )     (2,596 )
                               
Reconciliation of net loss to net loss attributable to common shareholders                              
Net loss   (3,781 )     (1,443 )     (8,646 )     (2,608 )
                               
Less: Preferred stock – Series C dividend   (32 )     (48 )     (158 )     (141 )
                               
Net loss attributable to the common stockholders $ (3,813 )   $ (1,491 )   $ (8,804 )   $ (2,749 )
                               
Net (loss) per share – basic $ (0.83 )   $ (0.38 )   $ (2.03 )   $ (0.64 )
                               
Weighted average number of common shares outstanding – basic   4,588,944       3,879,159       4,339,634       3,865,647  
 
 
 

OMNIQ CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

  As of  
  September 30, 2020     December 31, 2019  
(In thousands, except share and per share data)          
ASSETS              
Current assets              
Cash and cash equivalents $ 5,066     $ 1,615  
Accounts receivable, net   9,901       6,694  
Inventory   1,671       1,889  
Prepaid expenses   782       362  
Other current assets   9       65  
Total current assets   17,429       10,625  
               
Property and equipment, net of accumulated depreciation of $555 and $2,195, respectively   332       463  
Goodwill   14,695       13,921  
Trade name, net of accumulated amortization of $1,156 and $2,932, respectively   1,156       1,458  
Customer relationships, net of accumulated amortization of $4,885 and $6,578, respectively   4,885       6,012  
Other intangibles, net of accumulated amortization of $1,104 and $185, respectively   1,104       1,138  
Cash, restricted   533       533  
Right of use lease asset   91       131  
Other assets   106       172  
Total assets $ 40,331     $ 34,453  
               
LIABILITIES AND STOCKHOLDERS’ EQUITY              
Current liabilities              
Accounts payable and accrued liabilities $ 28,480     $ 18,694  
Line of credit   3,235       1,365  
Accrued payroll and sales tax   1,542       1,556  
Notes payable, related parties – current portion   480       1,025  
Notes payable – current portion   6,997       6,497  
Lease liability – current portion   38       54  
Other current liabilities   1,267       1,599  
Total current liabilities   42,039       30,790  
               
Long term liabilities              
Notes payable, related party, less current portion   774       1,172  
Accrued interest and accrued liabilities, related party   50       76  
Notes payable, less current portion   352       143  
Lease liability   57       80  
Other long term liabilities   220       384  
Total liabilities   43,492       32,645  
               
Stockholders’ equity (deficit)              
Series A Preferred stock; $0.001 par value; 1,000,000 shares designated, 0 shares issued and outstanding   –       –  
Series B Preferred stock; $0.001 par value; 1 share designated, 0 shares issued and outstanding   –       –  
Series C Preferred stock; $0.001 par value; 5,000,000 shares designated, 2,145,030 and 4,828,530 shares issued and outstanding, respectively   2       5  
Common stock; $0.001 par value; 15,000,000 shares authorized; 4,634,637 and 3,960,405 shares issued and outstanding, respectively.   5       4  
Additional paid-in capital   50,710       46,861  
Accumulated (deficit)   (53,849 )     (45,063 )
Accumulated other comprehensive loss   (29 )     1  
Total stockholders’ equity (deficit)   (3,161 )     1,808  
Total liabilities and stockholders’ equity (deficit) $ 40,331     $ 34,453  
 
 
 

OMNIQ CORP
.

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

(UNAUDITED)

  For the three months     For the nine months  
  ending September 30,     ending September 30,  
(In thousands, except share and per share data) 2020     2019     2020     2019  
EBITDA Calculation                              
Net loss $ (3,781 )    $ (1,443 )    $ (8,646 )    $ (2,608 ) 
Depreciation & amortization   594       536       1,696       1,620  
Interest expense   744       618       1,957       1,769  
Income taxes   –       –       –       –  
EBITDA $ (2,443 )    $ (289 )    $ (4,993 )    $ 781  
                               
Adjusted EBITDA calculation                              
Net loss $  (3,781 )    $  (1,443 )    $  (8,646 )    $  (2,608 ) 
Depreciation & amortization   594       536       1,696       1,620  
Interest expense   744       618       1,957       1,769  
Income taxes   –       –        –       –   
Stock compensation   1,522       670       2,275       1,093  
Non-cash penalty on conversion agreements   –       –       260       –  
Nonrecurring one-time income/expenses   16       117       169       180  
Adjusted EBITDA $  (905 )    $  498     $  (2,289 )    $  2,054  

 

Posted on

Fairfax and Allied World Announce Sale of Vault Insurance

TORONTO and HAMILTON, Bermuda, Nov. 12, 2020 (GLOBE NEWSWIRE) — Fairfax Financial Holdings Limited (“Fairfax”) (TSX: FFH and FFH.U) and Allied World Assurance Company Holdings, Ltd (“Allied World”) announce that they have, through their subsidiaries, entered into an agreement with Cornell Capital and Hudson Structured Capital Management Ltd., doing its reinsurance business as HSCM Bermuda, to sell their majority interests in Vault Insurance. Fairfax through Allied World will continue to own a 10% stake in Vault following the sale. Scott Carmilani intends to continue to have an ownership interest in Vault and play a leadership role in Vault. The transaction is subject to customary closing conditions, including various regulatory approvals, and is expected to close by the end of the first quarter of 2021.

Founded in 2017 and based in St. Petersburg, Florida, Vault is a combination of a policyholder-owned reciprocal insurance exchange and a surplus lines company focused on serving the needs of the high net worth market. As the former CEO of Allied World, Scott Carmilani was instrumental in creating and growing Vault, and he is excited to pivot from his role with Fairfax to the Chairman of the Board and a continued owner of Vault.

“We are very pleased to complete this transaction with Cornell Capital and HSCM Bermuda,” said Prem Watsa, Chairman and CEO of Fairfax. “We are also very grateful to Scott for all of his contributions to the Fairfax Insurance Group, especially at Allied World, a company which he led from being a start-up to becoming an industry leading and highly successful worldwide insurance and reinsurance business. We wish Scott all the very best.”

About Fairfax

Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and the associated investment management.

About Allied World

Allied World, through its subsidiaries, is a global provider of insurance and reinsurance solutions. We operate under the brand Allied World and have supported clients, cedents and trading partners with thoughtful service and meaningful coverages since 2001. We are a subsidiary of Fairfax, and we benefit from a worldwide network of affiliated entities that allow us to think and respond in non-traditional ways. Our capital base is strong, our solutions anticipate rather than react to changing trends, and our teams are focused on establishing long-term relationships that are mutually beneficial.

For further information contact:    
    Fairfax
    John Varnell, Vice President, Corporate Development
    at (416) 367-4941
     
    Allied World
    Rachel Pankratz
    Vice President, Global Branding
    Marketing & Communications
    +44-0207-220-0630
    [email protected]

Posted on

Processa Pharmaceuticals Announces Third Quarter 2020 Results, Provides Corporate Update

Highlights include closing $19.2 million public offering, uplisting to Nasdaq, and positive progress with multiple candidates currently in Processa’s clinical drug pipeline

HANOVER, MD., Nov. 12, 2020 (GLOBE NEWSWIRE) — via InvestorWire — Processa Pharmaceuticals, Inc. (NASDAQ: PCSA) (“Processa” or the “Company”), a clinical-stage biopharmaceutical company focused on the development of drug products that are intended to provide treatment for and improve the survival and/or quality of life for patients who have unmet medical needs or conditions or who have no alternative treatment, today reports financial results for the third quarter of 2020.

Dr. David Young, CEO and chairman of Processa, commented, “The third quarter was a period of tremendous value creation. Over that time, we in-licensed important clinical drug candidates PCS12852 and PCS6422, uplisted to Nasdaq and closed a $19.2 million public offering. Due to those achievements, we now have sufficient funds to complete three trials for three distinct markets, each exceeding $1 billion. Importantly, we are developing products for which existing clinical evidence of efficacy has already been established. With key milestones to announce over the next 12-18 months, including interim data for PCS6422 in 3Q21 and PCS499 in 4Q21, we are excited about the near-term opportunity of increasing shareholder value.”  

Recent Highlights and New Developments

  • Entered into an exclusive licensing agreement with Elion Oncology, Inc. to develop, manufacture and commercialize eniluracil (PCS6422) globally. PCS6422 is an oral drug to be administered with fluoropyrimidine cancer drugs (e.g., capecitabine, 5-FU). PCS6422 is designed to decrease the breakdown of the cancer drugs, which, without such intervention, reduce to inactive metabolites or metabolites that are known to cause unwanted side effects and to interfere with the anticancer activity.
  • Entered into a licensing agreement with Yuhan Corporation, a publicly traded South Korean company, to license PCS12852, a small molecule drug in development for the treatment of functional gastrointestinal (GI) disorders (FGID).
  • Appointed Dr. Khalid Islam to the Company’s board of directors.
  • Appointed Michael Floyd as the Company’s chief operating officer.
  • Uplisted to Nasdaq.
  • Closed an underwritten public offering of 4,800,000 shares of common stock for a price to the public of $4.00 per share. Net proceeds to the Company were approximately $17.1 million.

Upcoming Clinical Drug Development Milestones

1H 2021 

  • Phase 1B First Patient Dosed: PCS6422 (Cancer) 
  • Phase 2B First Patient Dosed: PCS499 (Ulcerative NL)  
  • FDA IND Submission: PCS12852 (GI/Gastroparesis)  

2H 2021 

•     Interim Cohort Results Begin: PCS6422 

•     Interim Results: PCS499 

•     Phase 2A First Patient Dosed: PCS12852 

Financial Results for the Third Quarter Ended Sept. 30, 2020

General and administrative expenses were approximately $423 thousand for the quarter ended Sept. 30, 2020, compared to approximately $419 thousand during the third quarter ended Sept. 30, 2019.

Research and development expense totaled approximately $533 thousand for the third quarter ended Sept. 30, 2020, compared to approximately $585 thousand during the third quarter ended Sept. 30, 2019.

Net loss attributable to common stockholders for the third quarter ended Sept. 30, 2020 was $3.1 million, compared to $864 thousand for the third quarter ended Sept. 30, 2019.

As of Sept. 30, 2020, the Company had cash and cash equivalents of approximately $325 thousand. Subsequent to the quarter end, Processa closed a $19.2 million gross proceeds public offering of common stock resulting in net proceeds of approximately $17.1 million after deducting underwriting discounts and commissions and other offering expenses payable by the Company.

Following the close of the offering and related transactions the Company will have 13.8 million common shares outstanding.

Conference Call Information

To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.

Date: Nov. 12, 2020 
Time: 5:30 p.m. ET 
Dial-In Information: Toll Free: 877-876-9176 
International: 785-424-1670

Live Webcast: https://www.webcaster4.com/Webcast/Page/2572/38528

Conference Call Replay Information

Toll-free: 877-481-4010 
International: 919-882-2331 
Replay Passcode: 38528

Replay Webcast: https://www.webcaster4.com/Webcast/Page/2572/38528

About Processa Pharmaceuticals, Inc.

The mission of Processa is to develop products with existing clinical evidence of efficacy for patients with unmet or underserved medical conditions who need treatment options that improve survival and/or quality of life. The Company used these criteria for selection to further develop its pipeline programs to achieve high-value milestones effectively and efficiently. Active pipeline programs include: PCS6422 (metastatic colorectal cancer and breast cancer), PCS499 (ulcerative necrobiosis lipoidica) and PCS12852 (GI motility/gastroparesis). The members of the Processa development team have been involved with more than 30 drug approvals by the FDA (including drug products targeted to orphan disease conditions) and more than 100 FDA meetings throughout their careers. For more information, visit the company’s website at www.ProcessaPharma.com.

Forward-Looking Statements

This release contains forward-looking statements. The statements in this press release that are not purely historical are forward-looking statements that involve risks and uncertainties. Actual future performance outcomes and results may differ materially from those expressed in forward-looking statements. Please refer to the documents filed by Processa Pharmaceuticals with the SEC, specifically the most recent reports on Forms 10-K and 10-Q, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.

For More Information:
Michael Floyd
(301) 651-4256
[email protected]

James Carbonara
Hayden IR
(646) 755-7412
[email protected]

Corporate Communications:

InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
[email protected]

Posted on

Electro-Sensors, Inc. Announces Third Quarter 2020 Financial Results

PR Newswire

MINNETONKA, Minn., Nov. 12, 2020 /PRNewswire/ — Electro-Sensors, Inc. (NASDAQ: ELSE), a leading global provider of machine monitoring sensors and hazard monitoring systems, today announced financial results for the third quarter ended September 30, 2020.

  • Quarterly revenue of $1,899,000, down 7.3% from prior-year quarter
  • Gross margin of 52.2%
  • Cash and investments of approximately $9.1 million

Selected Financial Information (unaudited; in thousands, except per share data)



Q3 2020



Q3 2019



Change

Net Sales

$

1,899

$

2,049

-7.3%

Gross Margin

52.2%

52.4%

-20
bps

Operating Loss

$

(54)

$

(18)

-200.0%

Operating Loss Margin

(2.9)%

(0.9)%

-200
bps

Income (Loss) Before Income Taxes

$

(54)

$

25

-316.0%

Earnings (Loss) Per Share (diluted)

$

(0.01)

$

0.01

-200.0%

Net sales in the third quarter decreased 7.3% to $1,899,000 from $2,049,000 in the prior-year quarter.  For the first nine months of 2020, net sales decreased 6.4% to $5,914,000 from $6,317,000 for the first nine months of the prior year.  Sales during the quarter continued to be negatively impacted by the COVID-19 pandemic, which significantly impacted our ability to travel and visit customers.

“While COVID-19 continues to negatively impact our business, sales of our traditional wire-based products were fairly stable during the quarter,” said David L. Klenk, Electro-Sensors’ president. “The larger impact was to sales of our HazardPRO wireless systems, which typically require greater engagement with the customer to move the sales process forward.”

A full analysis of results for the period ended September 30, 2020 is available in the Company’s Form 10-Q, which is available on the Company’s website at www.electro-sensors.com or through the Securities and Exchange Commission’s Edgar database at www.sec.gov.


Electro-Sensors, Inc.


Statements of Income


For the Three and Nine Months Ended September 30, 2020 and 2019 (unaudited)


(in thousands except share and per share amounts)


Three Months Ended September 30,


2020


2019

Sales

$

1,899

$

2,049

Cost of goods sold

907

975

Gross profit

992

1,074

Operating expenses

1,046

1,092

Operating loss

(54)

(18)

Non-operating income

0

43

Income (loss) before income taxes

(54)

25

Provision for (benefit of) income taxes

(8)

6

Net income (loss)

$

(46)

$

19

Earnings (loss) per share – diluted

$

(0.01)

$

0.01

Average shares outstanding – diluted

3,395,521

3,398,533


Nine Months Ended September 30,


2020


2019

Sales

$

5,914

$

6,317

Cost of goods sold

2,825

2,941

Gross profit

3,089

3,376

Operating expenses

3,265

3,392

Operating loss

(176)

(16)

Non-operating income

31

132

Income (loss) before income taxes

(145)

116

Provision for (benefit from) income taxes

(26)

25

Net income (loss)

$

(119)

$

91

Earnings (loss) per share – diluted

$

(0.04)

$

0.03

Average shares outstanding – diluted

3,395,521

3,397,385

 


Electro-Sensors, Inc.


Balance Sheets


September 30, 2020 and December 31, 2019


(in thousands)


September 30,


December 31,


2020


2019


Assets


(unaudited)

Current Assets

Cash and investments

$

9,103

$

8,830

Trade receivables, net

1,039

1,036

Inventories

1,659

1,695

Other current assets

219

159

Total current assets

12,020

11,720

Deferred income tax asset, long-term

227

203

Intangible assets, net

294

489

Property and equipment, net

1,010

1,063

Total assets

$

13,551

$

13,475


Liabilities and Stockholders’ Equity

Current Liabilities

Current maturities of financing lease

$

6

$

5

Accounts payable and accrued expenses

754

560

Total current liabilities

760

565

Long-term liabilities

Financing lease, net of current maturities

14

19

Total long-term liabilities

14

19

Stockholders’ equity

Common stock

339

339

Additional paid-in capital

2,035

2,030

Retained earnings

10,403

10,522

Total stockholders’ equity

12,777

12,891

Total liabilities and stockholders’ equity

$

13,551

$

13,475

About Electro-Sensors

Electro-Sensors, Inc. is an industry leading designer and manufacturer of rugged and reliable machine monitoring sensors and wireless/wired hazard monitoring systems applied across multiple industries and applications. These products improve processes by protecting people, safeguarding systems, reducing downtime, and preventing waste. Most standard products ship within one to two days and have an industry-leading 5-year warranty. Electro-Sensors is proud to be an ISO9001:2015 quality certified company and is committed to providing excellent customer service and technical support. Founded in 1968 and located in Minnetonka, Minnesota, Electro-Sensors provides its loyal customers with reliable products that improve safety and help plants operate with greater efficiency, productivity and control.

Cautionary Statement Regarding Forward Looking Statements

This press release may include statements about possible or anticipated future financial performance, business activities, plans, or opportunities.  These forward-looking statements may include the words “will,” “should,” “believes,” “expects,” “anticipates,” “intends” or similar expressions.  For these forward-looking statements, the Company claims the protection of the safe harbor for forward−looking statements contained in federal securities laws.  Forward-looking statements reflect the company’s current views with respect to future events and financial performance and include any statement that does not directly relate to a current or historical fact.  These forward-looking statements are subject to a number of factors, risks and uncertainties, including those disclosed in our periodic filings with the SEC that could cause actual performance, activities, plans, or opportunities after the date the statements are made to differ significantly from those indicated in the forward-looking statements.

For more information please visit our website at: www.electro-sensors.com. Also look us up on:

LinkedIn: linkedin.com/company/electro-sensors-inc-
Twitter: twitter.com/ESIsensors 
Facebook: facebook.com/ElectroSensors

Cision View original content:http://www.prnewswire.com/news-releases/electro-sensors-inc-announces-third-quarter-2020-financial-results-301172415.html

SOURCE Electro-Sensors, Inc.

Posted on

Caldwell Issues Fiscal 2020 Fourth Quarter and Full Year Financial Results

PR Newswire

  • Fourth quarter revenue of $11.3 million.
  • Fourth quarter operating profit of $2.3 million.
  • Annual revenue of $58.2 million.
  • Annual operating profit of $3.8 million.

TORONTO, Nov. 12, 2020 /PRNewswire/ – Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2020 fourth quarter and full year ended August 31, 2020. All references to quarters or years are for the fiscal periods unless otherwise noted and all currency amounts are in Canadian dollars.

Financial Highlights (in $000s except per share amounts)


THREE MONTHS ENDED
AUGUST 31


YEAR ENDED
AUGUST 31


2020


2019


2020


2019

Professional fees

$11,128

$20,502

$56,690

$69,749

License fees

$24

$71

$177

$700

Direct expense reimbursements

$102

$398

$1,326

$1,689

     Revenues

$11,254

$20,971

$58,193

$72,138

Cost of sales

$8,696

$14,838

$44,352

$53,046

Government stimulus grants

($2,205)

–

($2,446)

–

Reimbursed direct expenses

$102

$398

$1,326

$1,689

Gross profit

$4,661

$5,735

$14,961

$17,403

Selling, general and administrative expenses

$2,752

$4,460

$11,588

$14,074

Goodwill impairment

–

$1,521

–

$1,521

Government stimulus grants

($393)

–

($393)

–

     Operating profit (loss)

$2,302

($246)

$3,766

$1,808

Interest expense on lease liability¹

$147

–

$367

–

Investment income (loss)

($7)

($67)

$605

($211)

Foreign exchange (gain) loss

($128)

$105

($179)

$168

     Earnings (loss) before tax

$2,290

($284)

$2,973

$1,851

Income tax expense (income)

($282)

$670

$127

$1,526

     Net earnings (loss) after tax

$2,572

($954)

$2,846

$325

     Net earnings (loss) per share

$0.126

($0.047)

$0.139

$0.016


1.


Effective September 1, 2019 IFRS 16 was implemented resulting in a change to the way leases are treated and giving rise to interest expense on lease liability. During periods prior to fiscal 2020, all lease related expenses were recognized as occupancy costs and included in expenses in arriving at operating profit.

“Fiscal 2020 was a year unlike any other,” said John Wallace, chief executive officer. “After an incredible start to the year, the world went in a completely unexpected direction due to the pandemic and the ensuing economic uncertainty. The effect on our business has been significant, as employment levels and hiring at our clients were dramatically reduced, but it has also been the catalyst for an impressive level of innovation and adaptation inside our firm. Our team has done a superlative job of delivering outstanding and transformative leadership talent for our clients, and we have seen monthly sequential increases in new search volumes and business development activity. We remain extremely confident in the team’s ability to garner market share throughout a recovering market.”

Wallace continued: “As a result of quick and decisive steps to actively manage costs, preserve capital and enhance liquidity, we have come out of a challenging year in a position of financial strength. We have a balance sheet and a cash position with liquidity to operate during the current pandemic environment and do intend to make strategic investments to expand our industry, geographic and service coverage as the opportunities arise.”

Financial Highlights (all numbers expressed in $000s)

Impact of the COVID-19 pandemic on our business:
We experienced record growth results leading up to the pandemic’s occurrence. Fiscal 2019 revenue of $72.1 million was the highest in our firm’s history, and the first half of fiscal 2020 (September 1, 2019 to February 28, 2020) was 12% higher than the same period in fiscal 2019. Since the onset of the pandemic, we have seen significant pressure on our business.

On January 30, 2020, the World Health Organization (WHO) characterized the novel coronavirus (COVID-19) as a public health emergency. At that time, there had not been a direct negative impact seen in the regions we operate in of Canada, the United States and the United Kingdom. On March 11, the WHO expanded its characterization of COVID-19 to a global pandemic. The impact of COVID-19 on the Company has been significant, impacting both revenue and costs. We were working entirely remotely beginning in March, and while we have reopened our offices as health restrictions provide, we are still encouraging our people to continue working remotely while safety concerns remain. We do not anticipate a full return to our offices until sometime later in 2021.

Government stimulus grants:
As discussed more fully in note 11 to our annual financial statements, we have participated in available stimulus grants offered by the governments in Canada and the United States to help offset the negative impact of the COVID-19 pandemic. The total amount of government stimulus grants recognized during 2020 was $2,839 ($241 and $2,598 in the third and fourth quarters, respectively). The costs are shown as offsets to the functional cost categories they applied to. Of the total, $707 was a direct grant pertaining to Canada, shown as an offset to cost of sales in the third and fourth quarters of $241 and $466, respectively. $2,132 pertained to the United States in the form of a loan that is eligible for forgiveness if certain conditions are met. We believe we have complied with the relevant provisions of the program by validly using the entire proceeds of the loan for qualifying expenses during the coverage period and have therefore concluded that forgiveness of the loan is probable. As a result, we have recategorized the proceeds from a loan to that of a government grant, represented by deductions in cost of goods sold ($1,739) and selling, general and administrative expenses ($393), respectively.

We applied for forgiveness review by our lender and the US government on September 21, 2020. It is unknown how long the loan forgiveness review process will take, with indication from our lender of up to five months. Ultimate forgiveness is dependent on the bank review and a further review by the Small Business Administration of the United States. While we believe the forgiveness criteria has been achieved, no guarantee of forgiveness can be given until formal forgiveness is received. It is possible the loan will not be forgiven and will need to be repaid.

  • Operating revenue:

    Fourth Quarter

    • Professional fees for the fourth quarter of fiscal 2020 decreased 45.7% (46.5% excluding a favourable 0.8% variance from exchange rate fluctuations) from the comparable period last year to $11,128 (2019: $20,502).

      The decrease in professional fees is attributable to reductions in the Number of Assignments to 110 (2019: 127) and Average Fee per Assignment to $101 ($100 excluding exchange rate fluctuations; 2019: $161). The decrease in both factors is primarily the result of the pandemic’s economic impact on our clients and related pricing pressures among executive search firms. The Number of Assignments decreased on a lower Number of Assignments per Partner at 2.9 (2019: 3.2) and a lower Average Number of Partners at 37.3 (2019: 40.0).

      On a segment basis, $7,541 of professional fees were generated from the US (2019: $15,950), $2,304 from Canada (2019: $4,496) and $1,283 from Europe (2019: $56).

    • License fees from our licensee in New Zealand for the use of the Caldwell brand and intellectual property for the fiscal 2020 fourth quarter were $24 (2019: $71).
    • Direct expenses incurred and billed to clients during the fiscal 2020 fourth quarter were $102 (2019: $398).

      Full year

      Professional fees for 2020 decreased 18.7% (19.5% excluding a favourable 0.8% variance from exchange rate fluctuations) over the comparable period last year to $56,690 (2019: $69,749).

      The decrease in professional fees is attributable to a reduction in the Number of Assignments to 408 (2019: 439) and a lower Average Fee per Assignment of $139 ($138, excluding exchange rate fluctuations; 2019: $159). Similar to the fourth quarter figures, both factors were negatively impacted by the pandemic in the second half of the year. The Number of Assignments decreased on a lower Number of Assignments per Partner at 10.6 (2019: 11.1) and a lower Average Number of Partners at 38.5 (2019: 39.5).

      On a segment basis, $42,842 of professional fees was generated from the US (2019: $53,282), $10,607 from Canada (2019: $15,497) and $3,241 from Europe (2019: $970).

    • License fees for the year ended August 31, 2020 were $177 (2019: $700).
    • Year to date direct expenses incurred and billed to clients were $1,326 (2019: $1,689).
  • Operating profit:
    Fourth Quarter

    • The fourth quarter’s operating profit increased $2,548 to $2,302 (2019: loss of $246). The increase was the result of lower Revenue, Net of Reimbursements ($9,421) being more than offset by lower cost of sales ($6,142), lower selling, general and administrative expenses ($1,708), government stimulus grants received in 2020 ($2,598) and the impairment expense taken in the fourth quarter of fiscal 2019 to write-off the goodwill balance of our European segment ($1,521). Excluding the net favourable impact of exchange rate changes on our operations of for the quarter of $33, operating profit on a constant currency basis increased $2,515 to $2,269.
    • Selling, general and administrative expenses for the fourth quarter decreased $1,708 (38.3%), from $4,460 to $2,752. Excluding unfavourable exchange rate variances of $15 (0.3%), expenses decreased $1,723 (38.6%). This constant currency decrease was the result of management bonus accrual reversals as a result of not meeting targeted performance ($604); decreased share-based compensation expense, the result of a lower share price and a reduction in performance factors, as targeted performance was not achieved ($439); lower marketing and business development expenses due to our consultants’ inability to travel as a result of COVID-19 travel restrictions and reduced marketing spend ($381); a municipal tax assessment in Q4 2019 primarily related to prior years ($350); and offsetting favourable variances across other smaller cost categories (-$51).
    • Effective September 1, 2019 we implemented IFRS 16. An interest expense on lease liability of $104 (2019: $nil) was recognized during the quarter per IFRS 16.
    • On a segment basis, fourth quarter operating profit was $678 (2019: loss of $5) from Canada, $1,360 (2019: $1,714) from the US and $264 (2019: loss of $1,955) from Europe.

      Full year

    • Operating profit for the full year increased $1,958 to $3,766 (2019: $1,808). The increase was the result of lower Revenue, Net of Reimbursements ($13,582) being more than offset by lower cost of sales ($8,694), lower selling, general and administrative expenses ($2,486), government stimulus grants received in 2020 ($2,839), and the impairment expense taken in the fourth quarter of fiscal 2019 to write-off the goodwill balance of our European segment ($1,521).
    • Selling, general and administrative expenses for the full year decreased $2,486 (17.7%), to 11,588 from $14,074. Excluding unfavourable exchange rate variances of $74 (0.5%), expenses decreased $2,560 (18.2%). This constant currency decrease was the result of lower share-based compensation expense as a result of a lower share price and a reduction in performance factors as a result of not meeting targeted performance in the current period ($804); management bonus accrual reversals as a result of not meeting targeted performance ($670); lower marketing and business development expenses ($532); Lower office expenses as a result of adoption of IFRS 16 ($456), largely offset by the interest on lease liability (see below); a municipal tax assessment in Q4 2019 primarily related to prior years ($350); lower legal expenses with last year’s expenses being higher than usual due to our pursuit of a claim against a former client ($265); lower costs of annual practice meetings, held last year but not in the current year ($188); lower partner recruitment expenses ($111); and offsetting investment costs in our Caldwell Analytics growth initiative through higher consulting fees (-$501); Higher office expenses on the early termination of and losses on disposition related to Dallas lease (-$292); and unfavourable variances across other smaller cost categories (-$23).
    • For 2020 an interest expense on lease liability of $324 (2019: $nil) was recognized.
    • On a segment basis, operating profit for the year was $1,290 (2019: $1,490) from Canada, $2,494 (2019: $3,334) from the US and a loss of $18 (2019: loss of $3,016) from Europe.
  • Net earnings after tax:
    • Fourth quarter net income was $2,572 ($0.126 per share), as compared to a net loss of $954 ($0.047 per share) in the comparable period a year earlier.
    • Full-year net income was $2,846 ($0.139 per share) compared to $325 ($0.016 per share) last year.
    • Income tax expense was lower than statutory rates in the fourth quarter and for the full year. This was largely due the cancellation of an intercompany loan balance between our US and UK entities. The cancellation generated a deductible loss in the US which was able to be carried back up to five years to generate an immediate benefit. In the UK, the cancellation generated taxable income, but we were able to fully applied loss carryforward from prior years to shield current tax expense.

Average Number of Partners, Annualized Professional Fees per Partner, Number of Assignments, Number of Assignments per Partner, Average Fee per Assignment, Revenue, Net of Reimbursements and Unencumbered Cash do not have any standardized meaning under IFRS and may not be comparable to measures presented by other companies. These operating measures are used by the Company to analyze its results. Please refer to section “Non–GAAP Financial Measures and Other Operating Measures” in the Company’s MD&A for a definition of these terms.

For a complete discussion of the quarterly financial results, please see the company’s Management Discussion and Analysis posted on SEDAR at www.sedar.com.

About Caldwell

At Caldwell we believe Talent Transforms. As a leading provider of executive talent, we enable our clients to thrive and succeed by helping them identify, recruit and retain the best people. Our reputation–50 years in the making–has been built on transformative searches across functions and geographies at the very highest levels of management and operations. With offices and partners across North America, Europe and Asia Pacific, we take pride in delivering an unmatched level of service and expertise to our clients.

Understanding that transformative talent is not limited to executive levels, our Caldwell Advance solution focuses on emerging leaders and advancing professionals who can also have a profound impact on a company’s ability to turn potential into success. We also leverage our skills and networks to provide agile talent solutions in the form of flexible and on-demand advisory solutions for companies looking for support in strategy and operations. Caldwell Analytics is a talent optimization solution that uses highly respected, results-driven assessments to align our clients’ talent and business strategies, driving better business results.

Caldwell’s Common shares are listed on The Toronto Stock Exchange (TSX: CWL). Please visit our website at www.caldwellpartners.com for further information.

Forward-Looking Statements

Forward-looking statements in this document are based on current expectations that are subject to the significant risks and uncertainties cited. These forward-looking statements generally can be identified by use of statements that include phrases such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” “may,” “will,” “likely,” “estimates,” “potential,” “continue” or other similar words or phrases. Similarly, statements that describe our objectives, plans or goals also are forward-looking statements. The Company is subject to many factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statement including, but not limited to, our ability to attract and retain key personnel; exposure to our partners taking our clients with them to another firm; the performance of the US, Canadian and international economies,
including the impact of pandemic diseases;
 competition from other companies directly or indirectly engaged in executive search; liability risk in the services we perform; potential legal liability from clients, employees and candidates for employment; cybersecurity requirements, vulnerabilities, threats and attacks; damage to our brand reputation; our ability to align our cost structure to changes in our revenue; adverse tax law rulings; our ability to generate sufficient cash flow from operations to support our growth and maintain our dividend;
 
technological advances may significantly disrupt the labour market and weaken demand for human capital at a rapid rate; foreign currency exchange rate fluctuations; affiliation agreements may fail to renew or affiliates may be acquired; marketable securities valuation fluctuations; increasing dependence on third parties for the execution of critical functions; volatility of the market price and volume of our common shares; potential impairment of our acquired goodwill and intangible assets; and disruption as a result of actions of certain stockholders or potential acquirers of the Company. For more information on the factors that could affect the outcome of forward-looking statements, refer to the “Risk Factors” section of our Annual Information Form and other public filings (copies of which may be obtained at www.sedar.com). These factors should be considered carefully, and the reader should not place undue reliance on forward-looking statements. Although any forward-looking statements are based on what management currently believes to be reasonable assumptions, we cannot assure readers that actual results, performance or achievements will be consistent with these forward-looking statements, and management’s assumptions may prove to be incorrect. Except as required by Canadian securities laws, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf; such statements speak only as of the date made. The forward-looking statements included herein are expressly qualified in their entirety by this cautionary language.


THE CALDWELL PARTNERS INTERNATIONAL INC.


CONSOLIDATED STATEMENTS OF FINANCIAL POSITION


(in $000s Canadian)


As at


As at


August 31


August 31


2020


2019


Assets

Current assets

Cash and cash equivalents

14,481

10,623

Marketable securities

–

5,832

Accounts receivable

7,316

11,915

Income taxes receivable

928

–

Unbilled revenue

2,430

4,086

Prepaid expenses and other assets

2,553

2,320

27,708

34,776

Non-current assets

Restricted cash

45

45

Marketable securities

71

85

Advances

695

1,047

Property and equipment

2,128

1,379

Right-of-use assets

7,691

–

Goodwill

1,288

1,313

Deferred income taxes

1,245

1,963

Total assets

40,871

40,608


Liabilities

Current liabilities

Accounts payable

1,764

3,389

Compensation payable

12,812

21,222

Lease liability

1,873

–

Dividends payable

–

459

Income taxes payable

–

576

16,449

25,646

Non-current liabilities

Compensation payable

734

1,068

Provisions

–

49

Lease liability

6,932

–

24,115

26,763

Equity attributable to owners of the Company

Share capital

7,515

7,515

Contributed surplus

15,013

15,005

Accumulated other comprehensive income

419

581

Deficit 

(6,191)

(9,256)

Total equity

16,756

13,845

Total liabilities and equity

40,871

40,608

 


THE CALDWELL PARTNERS INTERNATIONAL INC.


CONSOLIDATED STATEMENTS OF EARNINGS


Twelve months ended


August 31


(in $000s Canadian, except per share amounts)


2020


2019

Revenues

Professional fees

56,690

69,749

Licence fees

177

700

Direct expense reimbursements

1,326

1,689

58,193

72,138

Cost of sales expenses

Cost of sales

44,352

53,046

Government stimulus grants

(2,446)

–

Reimbursed direct expenses

1,326

1,689

43,232

54,735

Gross profit

14,961

17,403

Operating expenses

Selling, general and administrative

11,588

14,074

Goodwill impairment

–

1,521

Government stimulus grants

(393)

–

11,195

15,595

Operating profit

3,766

1,808

Finance expenses (income)

Interest expense on lease liability

367

–

Investment loss (income)

605

(211)

Foreign exchange (gain) loss

(179)

168

Earnings before income tax

2,973

1,851

Income tax expense

127

1,526

Net earnings for the year attributable to owners of the Company

2,846

325

Earnings per share

Basic & Diluted

$0.139

$0.016


CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS


(in $000s Canadian)


Twelve months ended


August 31


2020


2019

Net earnings for the year

2,846

325

Other comprehensive income:

Items that may be reclassified subsequently to net earnings

Gain (loss) on marketable securities

210

(55)

Cumulative translation adjustment

(372)

197

Comprehensive earnings for the year attributable to owners of the Company

2,684

467

Certain comparative figures have been restated to conform with current year presentation.


 


THE CALDWELL PARTNERS INTERNATIONAL INC.


CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY


(in $000s Canadian)

Accumulated Other Comprehensive

Income (Loss)

Unrealized

Cumulative

Gains (Loss) on

Contributed

Translation

Marketable

Total

Deficit

Share Capital

Surplus

Adjustment

Securities

Equity


Balance – August 31, 2018


(9,854)


7,515


15,002


770


487


13,920

Adoption of IFRS 9

818

–

–

–

(818)

0

Adoption of IFRS 15

1,291

–

–

–

–

1,291

Net earnings for the year

325

–

–

–

–

325

Dividend payments declared

(1,836)

–

–

–

–

(1,836)

Share-based payment expense

–

–

3

–

–

3

Change in unrealized loss on

–

–

–

–

(55)

(55)

     marketable securities available for sale 

Change in cumulative translation adjustment

–

–

–

197

–

197


Balance – August 31, 2019


(9,256)


7,515


15,005


967


(386)


13,845

Adoption of IFRS 16

1,137

–

–

–

–

1,137

Net earnings for the year

2,846

–

–

–

–

2,846

Dividend payments declared

(918)

–

–

–

–

(918)

Share-based payment expense

–

–

8

–

–

8

Change in unrealized loss on

–

–

–

–

210

210

     marketable securities available for sale 

Change in cumulative translation adjustment

–

–

–

(372)

–

(372)


Balance – August 31, 2020


(6,191)


7,515


15,013


595


(176)


16,756

The accompanying notes are an integral part of these consolidated financial statements.

 


THE CALDWELL PARTNERS INTERNATIONAL INC.


CONSOLIDATED STATEMENTS OF CASH FLOW


(in $000s Canadian)


Twelve months ended


   August 31


2020


2019

Cash flow provided by (used in)

Operating activities

Net earnings for the year

2,846

325

Add (deduct) items not affecting cash

Depreciation of property and equipment

461

520

Amortization of intangible assets

–

94

Depreciation of right-of-use assets

1,565

–

Amortization of advances

1,128

898

Gain on government stimulus grants

(2,132)

–

Loss on disposition of assets

103

20

Loss on disposition of right-of-use assets

87

–

Reduction in lease liability due to early termination

(91)

–

Interest expense on lease liabilities

367

–

Fees received in shares

(23)

–

Loss (gain) on marketable securities classified as FVPL

625

(177)

Share based payment expense

8

3

(Gain) loss on unrealized foreign exchange on subsidiary loans

(262)

136

Decrease in provisions

–

(44)

Decrease in deferred revenue

–

(449)

Decrease (increase) in unbilled revenue

1,623

(558)

Decrease (increase) in deferred income taxes

520

(541)

Decrease in cash settled share-based compensation

(334)

(547)

Decrease in goodwill

–

1,521

Changes in working capital

(5,102)

(1,160)

Net cash provided by operating activities

1,389

41

Investing activities

Proceeds from sale of marketable securities

5,207

–

Tenant inducement on right-of-use assets

367

–

Payment of advances

(576)

(2,260)

Proceeds from release of restricted cash

–

94

Purchase of property and equipment

(1,320)

(564)

Proceeds from the disposition of property and equipment

–

38

Net cash used in investing activities

3,678

(2,692)

Financing activities

Dividend payments

(1,377)

(1,836)

Payment of lease liabilities

(2,021)

–

Sublease payments received

310

–

Proceeds from government loan

2,267

–

Net cash provided by (used in) financing activities

(821)

(1,836)

Effect of exchange rate changes on cash and cash equivalents

(388)

225

Net increase (decrease) in cash and cash equivalents

3,858

(4,262)

Cash and cash equivalents, beginning of year

10,623

14,885

Cash and cash equivalents, end of year

14,481

10,623


The net impact of opening balance sheet adjustments as a result of implementing IFRS 15 and 16 have been
eliminated in the creation of the consolidated statements of cash flow.

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SOURCE The Caldwell Partners International Inc.

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Avalon Holdings Corporation Announces Third Quarter Results

PR Newswire

WARREN, Ohio, Nov. 12, 2020 /PRNewswire/ — Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the third quarter of 2020.

Net operating revenues in the third quarter of 2020 were $16.6 million compared with $18.0 million in the third quarter of 2019.  The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $0.8 million in the third quarter of 2020 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.1 million in the third quarter of 2019.  For the third quarter of 2020, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.20 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.04 in the third quarter of 2019.

For the first nine months of 2020, net operating revenues were $44.1 million compared with $51.1 million for the first nine months of 2019.  The Company incurred a net loss attributable to Avalon Holdings Corporation common shareholders of approximately $0.5 million in the first nine months of 2020 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of less than $0.1 million in the first nine months of 2019.  For the first nine months of 2020, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.12 compared with basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.00 in the first nine months of 2019.

Avalon Holdings Corporation provides waste management services to industrial, commercial, municipal and governmental customers in selected northeastern and midwestern U.S. markets, captive landfill management services and salt water injection well operations.  Avalon Holdings Corporation also owns Avalon Resorts and Clubs Inc., which includes the operation of a hotel and its associated resort amenities, four golf courses and related country clubs and a multipurpose recreation center.

 


AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)


(in thousands, except for per share amounts)


Three Months Ended


Nine Months Ended 


September 30,


September 30,


2020


2019


2020


2019

Net operating revenues:

Waste management services

$            9,326

$          11,572

$          29,547

$          35,908

Food, beverage and merchandise sales

2,851

2,587

5,247

6,027

Other golf and related operations

4,448

3,859

9,301

9,116

Total golf and related operations

7,299

6,446

14,548

15,143

Total net operating revenues

16,625

18,018

44,095

51,051

Costs and expenses:

Waste management services operating costs

7,393

9,229

23,473

28,773

Cost of food, beverage and merchandise

1,092

1,169

2,184

2,683

Golf and related operations operating costs

4,270

4,266

9,777

10,361

Depreciation and amortization expense

741

630

2,152

1,848

Selling, general and administrative expenses

2,110

2,379

6,269

6,990

Operating income

1,019

345

240

396

Other income (expense):

Interest expense

(302)

(222)

(913)

(600)

Other income, net

83

41

264

257

Income (loss) before income taxes

800

164

(409)

53

Provision for income taxes

27

38

95

135

Net income (loss)

773

126

(504)

(82)

Less net loss attributable to non-controlling interest in subsidiary

(8)

(18)

(37)

(67)

Net income (loss) attributable to Avalon Holdings Corporation common shareholders

$               781

$               144

$              (467)

$                (15)

Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:

Basic net income (loss) per share

$              0.20

$              0.04

$             (0.12)

$             (0.00)

Diluted net income (loss) per share

$              0.20

$              0.04

$             (0.12)

$             (0.00)

Weighted average shares outstanding – basic 

3,875

3,875

3,875

3,875

Weighted average shares outstanding – diluted

3,875

3,893

3,875

3,875

 

 


AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)


(in thousands)


September 30,


December 31,


2020


2019


Assets

Current Assets:

Cash and cash equivalents

$              4,667

$              1,446

Accounts receivable, net

8,679

12,009

Unbilled membership dues receivable

866

602

Inventories

1,034

813

Prepaid expenses

810

725

Other current assets

15

15

Total current assets

16,071

15,610

Property and equipment, net

50,473

48,978

Property and equipment under finance leases, net

5,913

5,878

Operating lease right-of-use assets

1,280

1,466

Restricted cash

4,246

7,185

Noncurrent deferred tax asset

8

8

Other assets, net

36

39

Total assets

$             78,027

$             79,164


Liabilities and Equity

Current liabilities:

Current portion of long term debt

$              2,622

$              1,015

Current portion of obligations under finance leases

343

295

Current portion of obligations under operating leases

533

513

Accounts payable

8,094

11,719

Accrued payroll and other compensation

956

961

Accrued income taxes

46

93

Other accrued taxes

362

434

Deferred membership dues revenue

4,041

3,153

Other liabilities and accrued expenses

1,125

839

Total current liabilities

18,122

19,022

Long term debt, net of current portion

21,972

21,570

Obligations under finance leases, net of current portion

622

555

Obligations under operating leases, net of current portion

747

953

Asset retirement obligation

100

100

Equity:

Total Avalon Holdings Corporation Shareholders’ Equity

36,567

37,030

Non-controlling interest in subsidiary

(103)

(66)

Total shareholders’ equity

36,464

36,964

Total liabilities and equity

$             78,027

$             79,164

 

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SOURCE Avalon Holdings Corporation

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The Walt Disney Company Board Decides to Forgo Next Semi-Annual Cash Dividend

The Walt Disney Company Board Decides to Forgo Next Semi-Annual Cash Dividend

BURBANK, Calif.–(BUSINESS WIRE)–
The Walt Disney Company (NYSE: DIS) Board of Directors today announced that it will not declare a semi-annual cash dividend for the second half of fiscal 2020, in light of the ongoing impact of COVID-19 and the Company’s decision to prioritize investment in its direct-to-consumer initiatives.

Forward Looking Statements

Certain statements and information in this communication may be deemed to be “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995, including statements identified by the words “will not” or similar words and other statements that are not historical in nature. These statements are made on the basis of management’s views and assumptions regarding future events and business performance as of the time the statements are made. Management does not undertake any obligation to update these statements.

Actual results may differ materially from those expressed or implied. Such differences may result from actions taken by the Company, including restructuring or strategic initiatives (including capital investments, asset acquisitions or dispositions, integration initiatives and timing of synergy realization, new or expanded business lines or cessation of certain operations) or other business decisions, as well as from developments beyond the Company’s control, including:

  • changes in domestic and global economic conditions, competitive conditions and consumer preferences;
  • adverse weather conditions or natural disasters;
  • health concerns;
  • international, regulatory, political, or military developments;
  • technological developments; and
  • labor markets and activities;

each such risk includes the current and future impacts of, and is amplified by, COVID-19 and related mitigation efforts.

Such developments may further affect entertainment, travel and leisure businesses generally and may, among other things, affect (or further affect, as applicable):

  • the performance of the Company’s theatrical and home entertainment releases;
  • the advertising market for broadcast and cable television programming;
  • demand for our products and services;
  • construction;
  • expenses of providing medical and pension benefits;
  • income tax expense;
  • performance of some or all company businesses either directly or through their impact on those who distribute our products; and
  • achievement of anticipated benefits of the TFCF transaction.

Additional factors are set forth in the Company’s Annual Report on Form 10-K for the year ended September 28, 2019 under Item 1A, “Risk Factors,” Item 7, “Management’s Discussion and Analysis,” Item 1, “Business,” and subsequent reports, including, among others, quarterly reports on Form 10-Q.

Media Contacts

Zenia Mucha

[email protected]

(818) 560-5300

David Jefferson

[email protected]

(818) 560-4832

Investor Contact

Lowell Singer

[email protected]

(818) 560-6601

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Entertainment Theme Parks Mobile Entertainment Other Entertainment General Entertainment TV and Radio Film & Motion Pictures Music Licensing (Entertainment)

MEDIA:

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Monarch Gold Reports Its First Quarter Results

PR Newswire

MONTREAL, Nov. 12, 2020 /PRNewswire/ – MONARCH GOLD CORPORATION (“Monarch” or the “Corporation“) (TSX: MQR) (OTCQX: MRQRF) (FRANKFURT: MR7) reported its results today for the first quarter ended September 30, 2020. Amounts are in Canadian dollars unless otherwise indicated.

Summary of financial results


 (In
dollars, except per share data
)


THREE MONTHS ENDED
SEPTEMBER 30


2020

2019

Revenues


–

3,144,699

Gross margin


–

1,586,598

Net earnings (net loss)


(2,531,837)

1,178,934

Net earnings (net loss) per share, basic and diluted


(0.009)

0.005


(In dollars)


SEPTEMBER 30, 2020

JUNE 30, 2020

Cash and cash equivalents


15,809,741

11,274,470

Investments


14,825,617

14,939,261

Total assets


98,449,289

92,987,397

“The recently announced transaction with Yamana Gold (see press release dated November 2, 2020) is the highlight of this new fiscal year for Monarch and will change the face of Monarch forever for the benefit of our shareholders,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch.

“The new company that will result from the transaction with Yamana Gold will be called Monarch Mining Corp (“Monarch Mining“). It will be a fully integrated mining company, from exploration through to production. Its assets will include the Beaufor mine, the Croinor Gold, McKenzie Break and Swanson gold properties and the Beacon mill, as well as $14 million in cash. It is important to note that all those assets will be wholly owned, and that 100% of our titles will be free and clear once the transaction is completed.”

“Monarch Mining’s mission will be to become a gold producer, while continuing to develop its projects with strong exploration potential. A 42,500-metre drilling program is currently under way at the Beaufor mine to increase the mine’s resources with a view to resuming production and exploration is ongoing at McKenzie Break to build the resource on this very promising high-grade gold project, with results expected in the coming weeks on both projects. Furthermore, given the bull market for gold, we intend to pursue of efforts to find a partner to help us put Croinor Gold into production. The material mined from Croinor Gold and Beaufor could be processed at our fully permitted and operational Beacon mill. Overall, our plan is straightforward, and we intend to execute it to the best of our abilities to make Monarch Mining a success for our shareholders as well,” concluded Mr. Lacoste.

The technical and scientific content of this press release has been reviewed and approved by Marc-André Lavergne, P.Eng., the Corporation’s qualified person under National Instrument 43–101.

Forward-Looking Statements
The forward-looking statements in this press release involve known and unknown risks, uncertainties and other factors that may cause Monarch’s actual results, performance and achievements to be materially different from the results, performance or achievements expressed or implied therein. Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this press release.


www.monarquesgold.com

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SOURCE Monarch Gold Corporation

Posted on

Creative Realities Reports Third Quarter 2020 Results

PR Newswire

LOUISVILLE, Ky., Nov. 12, 2020 /PRNewswire/ — Creative Realities, Inc. (“Creative Realities,” “CRI,” or the “Company”) (NASDAQ: CREX, CREXW), a leading provider of digital marketing solutions, announced its financial results for the three- and nine-months ended September 30, 2020.

Rick Mills, Chief Executive Officer, commented, “CRI’s third quarter results highlight the tremendous adaptability and commitment that our personnel have shown in the face of adversity and challenges in our core business throughout the COVID-19 pandemic, specifically both (1) the flexibility to pivot our business to Safe Space Solutions’ products and services that remain relevant in a marketplace with continued business closures, and (2) the ability to continue to drive reductions in expenses despite the incremental costs associated with launching new products and services.”

Mr. Mills continued, “Revenue for the third quarter 2020 increased approximately $1.4 million as compared to the first and second quarter of 2020 as we began to see adoption of our Thermal Mirror product in the marketplace. We continue to believe that CRI’s solution is a market leader and has opportunity for continued adoption in the marketplace throughout the remainder of 2020 and into 2021 as employers seek to adopt technology that will further enhance the safety of the workplace for their employees. We continued to focus on reducing controllable expenses, reducing total operating expenses by approximately $0.7 million, or 23%, versus the same quarter in 2019, exclusive of non-cash charges in each period. Net loss in the quarter reduced to $0.6 million, which resulted in the generation of $0.3 million of EBITDA, an improvement of $2.0 million versus the second quarter of 2020. As we look forward and into 2021, and as businesses continue to reopen throughout the United States and Canada, we fully expect our Safe Space Solutions, including the Thermal Mirror product, to be a go-to consideration for return to work products and for our core digital signage revenues to return to growth.”



Third Quarter Financial Update

Revenue, gross profit, and gross margin:

  • Revenues were $5.1 million for the three months ended September 30, 2020, a decrease of $1.6 million, or 24%, as compared to the same period in 2019.
  • Hardware revenues were $2.8 million for the three months ended September 30, 2020, an increase of $0.8 million, or 40%, as compared to the same quarter in the prior year, driven by the introduction of the Thermal Mirror product which generated approximately $1.8 million in hardware sales during the quarter. Gross margin on hardware revenue was 34.0% in the third quarter of 2020 as compared to 27.0% during the same period in 2019 due to the shift in mix of hardware revenues from displays to the Thermal Mirror product which generates higher gross profit.
  • Services and other revenues were $2.3 million for the three months ended September 30, 2020, a decrease of $2.4 million, or 52%, as compared to the same period in 2019, driven primarily by a reduction in installation services of $1.5 million year-over-year combined with a general reduction in other software and managed services revenue due to customer closures in response to the COVID-19 pandemic. Gross margin on services and other revenue was 65.4% in the quarter ended September 30, 2020 compared to 58.9% in the same period in 2019 driven by less labor-intensive services offerings related to the Thermal Mirror product.
  • Managed services revenue, which includes both software-as-a-service (“SaaS”) and help desk technical subscription services for our traditional digital signage and new Thermal Mirror product offerings, were $1.3 million for the three months ended September 30, 2020, a reduction of $0.5 million, or 28%, driven by customer closures in response to the COVID-19 pandemic.
  • Gross profit was $2.4 million for the three months ended September 30, 2020, a decrease of $0.9 million, or 26%, compared to the same period in 2019. Consolidated gross margin decreased to 47.9% for the three months ended September 30, 2020 from 49.1% in the same quarter in the prior year, driven primarily by a higher ratio of hardware revenue to total revenue in the period on continued sales of the Thermal Mirror product.

Operating expenses:

  • For the three months ended September 30, 2020 as compared to the same period in the prior year:
    • Sales and marketing expenses decreased by $0.1 million, or 21% while research and development expenses decreased by $0.1 million, or 25%, each driven by a reduction in employee-related expenses as a result of a combination of headcount reductions, salary reductions implemented for retained personnel, and a reduction in travel-related expenses in the current year including the elimination of participation in industry trade shows.
    • General and administrative expenses decreased by $0.3 million, or 12%; inclusive of incremental non-cash charges related to the amortization of stock compensation of $0.2 million during the period. Exclusive of the incremental year-over-year increase in non-cash charges, general and administrative expenses decreased by $0.5 million, or 22%, for the three months ended September 30, 2020 as compared to the same period in 2019.

Operating loss, net loss, and EBITDA:

  • Operating loss was $0.4 million for the three months ended September 30, 2020 as compared to operating income of $0.1 million during the same period in 2019, despite a reduction in revenue period-over-period of $1.6 million.
  • Net loss was $0.6 million for the three months ended September 30, 2020 as compared to net income of $0.2 million for the same period in 2019.
  • EBITDA was $0.3 million for the three months ended September 30, 2020 as compared to $0.8 million the same period in 2019. Adjusted EBITDA was $0.2 million for the three months ended September 30, 2020, compared to $0.4 million for the same period in 2019. See below for a description of these non-GAAP financial measures and reconciliation to our net loss.

Mr. Mills concluded, “We believe that we have weathered the worst of the COVID-19 pandemic and that the incremental changes we have made to both our business operations and cost structure will continue to benefit us well into the future as CRI returns to revenue growth. Despite the challenges that 2020 has brought, we believe that CRI has gained momentum against our peers within the industry by remaining an open, flexible, and transparent business partner to our vendors and customers and our flexibility and responsiveness during this crisis will contribute to our continued success as businesses reopen and markets stabilize.”

Conference Call Details
The Company will host a conference call to review the third quarter results and provide additional commentary about the Company’s recent performance, on Friday, November 13, 2020 at 9:00 am Eastern Time.

Prior to the call, participants should register at http://bit.ly/criearnings2020Q3. Once registered, participants can use the weblink provided in the registration email to listen to the live webcast.  An archived edition of the second quarter earnings conference call will also be posted on our website at www.cri.com later that same day and will remain available to interested parties via the same link for one year.

About Creative Realities, Inc.
Creative Realities helps clients use the latest omnichannel technologies to inspire better customer experiences.  Founded over 15 years ago, CRI designs, develops and deploys consumer experiences for high-end enterprise level networks, and is actively providing recurring SaaS and support services for more than fifteen diverse vertical markets, including Automotive, Advertising Networks, Apparel & Accessories, Convenience Stores, Foodservice/QSR, Gaming, Movie Theater, and Stadium Venues.

Use of Non-GAAP Measures
Creative Realities, Inc. prepares its consolidated financial statements in accordance with United States generally accepted accounting principles (“GAAP”). In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding “EBITDA” and “Adjusted EBITDA.”  CRI defines “EBITDA” as earnings before interest, income taxes, depreciation and amortization of intangibles. CRI defines “Adjusted EBITDA” as EBITDA excluding stock-based compensation, fair value adjustments and both cash and non-cash non-recurring gains and charges. EBITDA and Adjusted EBITDA are not measures of performance defined in accordance with GAAP. However, EBITDA and Adjusted EBITDA are used internally in planning and evaluating the Company’s operating performance. Accordingly, management believes that disclosure of these metrics offers investors, bankers and other stakeholders an additional view of the Company’s operations that, when coupled with the GAAP results, provides a more complete understanding of the Company’s financial results.

EBITDA and Adjusted EBITDA should not be considered as an alternative to net income/(loss) or to net cash used in operating activities as measures of operating results or liquidity. Our calculation of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures used by other companies, and the measures exclude financial information that some may consider important in evaluating the Company’s performance. A reconciliation of GAAP net income/(loss) to EBITDA and Adjusted EBITDA is included in the accompanying financial schedules.

For further information, please refer to Creative Realities, Inc.’s Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on March 12, 2020, and its other filings available online at www.sec.gov.

Cautionary Note on Forward-Looking Statements
This press release contains certain statements that are deemed “forward-looking statements” under Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and includes, among other things, discussions of our business strategies, future operations and capital resources.  Words such as “may,” “likely,” “anticipate,” “expect,” “intend,” “plans,” “seeks,” will,” should,” “future,” “propose,” “believe” and variations of these words or similar expressions (or the negative versions of such words or expressions) indicate forward-looking statements.  These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.  Some of these risks are discussed in the “Risk Factors” section contained in Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2019, and Item 1A of our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020, and the Company’s subsequent filings with the U.S. Securities and Exchange Commission.  Important factors, among others, that may affect actual results or outcomes include: the inability to recognize the anticipated benefits of our acquisition of Allure Global Solutions, Inc.; our ability to meet Nasdaq’s continued listing standards; our ability to execute on our business plan; our ability to retain key personnel; potential litigation; and general economic and market conditions impacting demand for our products and services, including those as a result of the COVID-19 pandemic.

Except where required by law, the Company assumes no obligation to update forward-looking statements to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.

RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA

(in thousands, unaudited)

Creative Realities, Inc. prepares its consolidated financial statements in accordance with United States generally accepted accounting principles (“GAAP”). In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding “EBITDA” and “Adjusted EBITDA.”  CRI defines “EBITDA” as earnings before interest, income taxes, depreciation and amortization of intangibles. CRI defines “Adjusted EBITDA” as EBITDA excluding stock-based compensation, fair value adjustments and both cash and non-cash non-recurring gains and charges.

EBITDA and Adjusted EBITDA are non-GAAP financial measures and should not be considered as a substitute for net income (loss), operating income (loss) or any other performance measure derived in accordance with United States generally accepted accounting principles (“GAAP”) or as an alternative to net cash provided by operating activities as a measure of CRI’s profitability or liquidity. CRI’s management believes EBITDA and Adjusted EBITDA are useful financial metrics because they allow external users of CRI’s financial statements, such as industry analysts, investors, lenders and rating agencies, to more effectively evaluate CRI’s operating performance, compare the results of its operations from period to period and against CRI’s peers without regard to CRI’s financing methods, hedging positions or capital structure and because it highlights trends in CRI’s business that may not otherwise be apparent when relying solely on GAAP measures. CRI also presents EBITDA and Adjusted EBITDA because it believes EBITDA and Adjusted EBITDA are important supplemental measures of its performance that are frequently used by others in evaluating companies in its industry. Because EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income (loss) and may vary among companies, the EBITDA and Adjusted EBITDA CRI presents may not be comparable to similarly titled measures of other companies.

The following table presents a reconciliation of EBITDA and Adjusted EBITDA from net loss, CRI’s most directly comparable financial measure calculated and presented in accordance with GAAP.


September 30,


June 30,


March 31,


December 31,


September 30,


Quarters ended


2020


2020


2020


2019


2019

GAAP net loss

$

(585)

$

(2,459)

$

(13,183)

$

563

$

242

Interest expense:

Amortization of debt discount

85

84

85

105

105

Other interest, net

179

176

142

109

94

Depreciation/amortization:

Amortization of intangible assets

161

158

159

204

147

 Amortization of finance lease assets

5

5

7

7

8

 Amortization of share-based awards

248

100

50

21

31

    Depreciation of property, equipment & software

212

216

200

167

123

Income tax expense/(benefit)

(1)

4

(155)

128

51

EBITDA

$

304

$

(1,716)

$

(12,695)

$

1,304

$

801

Adjustments

Change in fair value of Special Loan

–

551

151

–

–

Gain on settlement of obligations

(114)

(1)

(40)

(1,632)

(406)

Gain on earnout liability

–

–

–

(250)

–

Loss on disposal of assets

13

–

–

–

–

Loss on goodwill impairment

–

–

10,646

–

–

  Stock-based compensation – Director grants

25

19

31

31

31

Stock-based compensation – PRSU vesting

–

–

–

–

–

Adjusted EBITDA

$

228

$

(1,147)

$

(1,907)

$

(547)

$

426

 

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SOURCE Creative Realities, Inc.

Posted on

American Homes 4 Rent Announces Distributions

PR Newswire

AGOURA HILLS, Calif., Nov. 12, 2020 /PRNewswire/ — American Homes 4 Rent (NYSE: AMH) (the “Company”), a leading provider of high-quality single-family homes for rent, today announced that the Board of Trustees declared a dividend of $0.05 per share on the Company’s common shares for the fourth quarter of 2020. The distribution will be payable in cash on January 11, 2021 to shareholders of record on January 4, 2021.

The Board of Trustees also declared a per share quarterly distribution on the Company’s cumulative redeemable perpetual preferred shares of $0.40625 per share on the 6.5% Series D shares, $0.39688 per share on the 6.35% Series E shares, $0.36719 per share on the 5.875% Series F shares, $0.36719 per share on the 5.875% Series G shares and $0.39063 per share on the 6.25% Series H shares payable in cash on December 31, 2020 to shareholders of record on December 15, 2020.


About American Homes 4 Rent

American Homes 4 Rent (NYSE: AMH) is a leader in the single-family home rental industry and “American Homes 4 Rent” is fast becoming a nationally recognized brand for rental homes, known for high-quality, good value and tenant satisfaction. We are an internally managed Maryland real estate investment trust, or REIT, focused on acquiring, developing, renovating, leasing, and operating attractive, single-family homes as rental properties. As of September 30, 2020, we owned 53,229 single-family properties in selected submarkets in 22 states.

Additional information about American Homes 4 Rent is available on our website at www.americanhomes4rent.com.


Forward-Looking Statements

This press release contains “forward-looking statements” that relate to beliefs, expectations or intentions and similar statements concerning matters that are not of historical fact and are generally accompanied by words such as “believe,” “expect,” “will,” “intend,” “anticipate” or other words that convey the uncertainty of future events or outcomes. These forward-looking statements include the payment and anticipated timing of the payment of distributions of the Company’s common and preferred shares. The Company has based these forward-looking statements on its current expectations and assumptions about future events. While the Company’s management considers these expectations to be reasonable, they are inherently subject to risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond the Company’s control and could adversely affect our cash flows and ability to pay distributions. Additional information about these and other important factors that may cause our actual results to differ materially from anticipated results expressed or implied by these forward-looking statements is available in the Company’s most recent Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement to conform to actual results or changes in expectations, except as required by applicable law.

Contact:
American Homes 4 Rent
Investor Relations
Phone: (855) 794-2447
Email: [email protected]

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SOURCE American Homes 4 Rent