Sana Biotechnology Announces Plan to Relocate Manufacturing to Bothell, Washington Along with Key Executive Hires in Manufacturing and Regulatory

Replacement of Fremont, CA Facility Estimated to Save Over $100M in the Next Three Years

Global Cell Therapy Manufacturing Expert Snehal Patel Appointed Head of Manufacturing

Veteran Regulatory Affairs Leader Julie Lepin Appointed Head of Regulatory, Safety, and Quality

SEATTLE, June 01, 2022 (GLOBE NEWSWIRE) — Sana Biotechnology, Inc. (NASDAQ: SANA), a company focused on creating and delivering engineered cells as medicines, today announced that the company has entered into a lease agreement to develop an approximately 80,000 square foot manufacturing facility in Bothell, Washington. Sana expects this move will result in over $100M in cost savings in the next three years.

The Bothell facility will replace the Fremont, California facility and is designed to support the manufacturing of Sana’s multiple product candidates across the company’s cell and gene therapy portfolio as they enter late-stage clinical development and early commercial supply. Bothell remains close to Sana’s existing technical and scientific capabilities and provides access to a strong biotech talent base. As previously guided, Sana will continue to work with contract manufacturing partners to expand its footprint and production capacity.

In addition to the new manufacturing plant, the company announced it has strengthened the leadership team with the appointments of Snehal Patel to lead Sana’s internal and external manufacturing and Julie Lepin to lead regulatory affairs.

“We have long viewed an internal manufacturing capability as core to our long-term success in consistently making these complex medicines at the scale and cost needed to maximize our impact,” said Steve Harr, Sana’s President and Chief Executive Officer. “This new facility enables us to continue to develop our internal manufacturing with no anticipated impact to the timing of our programs, and in a more cost-effective manner. Importantly, we continue to attract the strong talent needed to execute on this vision and our pipeline more broadly. I am excited to welcome Snehal and Julie to Sana.”

Snehal Patel, Senior Vice President and Head of Manufacturing

Prior to Sana, Snehal was the Global Head and Vice President for Cell Therapy Manufacturing at Bristol Myers Squibb (BMS). He led the growing global manufacturing network to produce Clinical and Commercial Cell Therapy Products, including two cell therapies recently commercially launched in 2021 by BMS. Prior to this role he served as Site Head for Cell Therapy Manufacturing in Bothell, Washington. Prior to BMS, Snehal worked at Genentech/Roche for 18 years, holding a variety of different roles with increasing responsibility, including Head of Global External Drug Product Manufacturing, Head of Drug Product Operations, and Head of Quality Operations.

Julie Lepin, Senior Vice President and Head of Regulatory, Safety, and Quality

Julie joined Sana from Amgen where she was Vice President, Regulatory Affairs for Oncology, leading the regulatory strategies for a diverse and extensive portfolio of clinical stage and marketed products. The most recent approval in her portfolio was Lumakras, the first KRASG12C targeting agent. Prior to Amgen, Julie was Head of Regulatory at Juno Therapeutics, Head of Regulatory, Oncology at Merck, and Head of Regulatory, Intercontinental at Amgen. Her leadership and regulatory insights were instrumental in numerous product approvals including Neulasta, Kepivance, Vectibix, Prolia, Keytruda, and more.

About Sana Biotechnology

Sana Biotechnology, Inc. is focused on creating and delivering engineered cells as medicines for patients. We share a vision of repairing and controlling genes, replacing missing or damaged cells, and making our therapies broadly available to patients. We are a passionate group of people working together to create an enduring company that changes how the world treats disease. Sana has operations in Seattle, Cambridge, South San Francisco, and Rochester.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements about Sana Biotechnology, Inc. (the “Company,” “we,” “us,” or “our”) within the meaning of the federal securities laws, including those related to the company’s vision, progress, and business plans; the ability of the manufacturing facility to support the manufacturing of Sana’s product candidates into late-stage clinical development and early commercial supply; the potential cost savings of the manufacturing facility in Bothell; and the potential impact of the move to the new facility to the timing of Sana’s programs. All statements other than statements of historical facts contained in this press release, including, among others, statements regarding the Company’s strategy, expectations, cash runway and future financial condition, future operations, and prospects, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “design,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “positioned,” “potential,” “predict,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. The Company has based these forward-looking statements largely on its current expectations, estimates, forecasts and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. In light of the significant uncertainties in these forward-looking statements, you should not rely upon forward-looking statements as predictions of future events. These statements are subject to risks and uncertainties that could cause the actual results to vary materially, including, among others, the risks inherent in drug development such as those associated with the initiation, cost, timing, progress and results of the Company’s current and future research and development programs, preclinical and clinical trials, as well as the economic, market and social disruptions due to the ongoing COVID-19 public health crisis. For a detailed discussion of the risk factors that could affect the Company’s actual results, please refer to the risk factors identified in the Company’s SEC reports, including but not limited to its Quarterly Report on Form 10-Q dated May 10, 2022. Except as required by law, the Company undertakes no obligation to update publicly any forward-looking statements for any reason.

Investor Relations & Media:

Nicole Keith
[email protected]
[email protected]



GBT to Host Investor Conference Call on Friday, June 10 and Participate in Upcoming Investor Conferences

Conference call and webcast will include data presented at EHA 2022 and business and R&D updates

Company to also participate in the William Blair and Goldman Sachs investor conferences

SOUTH SAN FRANCISCO, Calif., June 01, 2022 (GLOBE NEWSWIRE) — Global Blood Therapeutics, Inc. (GBT) (NASDAQ: GBT) today announced that it will host a conference call and webcast for the investment community on Friday, June 10, 2022, at 3:00 p.m. CEST (9:00 a.m. ET) to discuss data on its sickle cell programs presented at the European Hematology Association (EHA) Annual Congress and to provide business and R&D updates. To participate in the conference call, please dial (877) 407-3982 (domestic) or +1 (201) 493-6780 (international). A live webcast including presentation slides can be accessed on GBT’s website at www.gbt.com in the Investors section. The archived webcast will be available for three months following the event.

In addition, GBT will participate at the following investor conferences:

  • William Blair 42nd Annual Growth Stock Conference in Chicago, IL. GBT will present on Wednesday, June 8, at 10:40 a.m. CT; and
  • Goldman Sachs 43rd Annual Global Healthcare Conference in Rancho Palos Verdes, CA. GBT will participate in a fireside chat on Wednesday, June 15, at 8:40 a.m. PT.

The presentation and fireside chat will each be webcast live from GBT’s website at www.gbt.com in the Investors section. Replays of the webcasts will be archived and available for one month following each event.

About Global Blood Therapeutics

Global Blood Therapeutics (GBT) is a biopharmaceutical company dedicated to the discovery, development and delivery of life-changing treatments that provide hope to underserved patient communities, starting with sickle cell disease (SCD). Founded in 2011, GBT is delivering on its goal to transform the treatment and care of SCD, a lifelong, devastating inherited blood disorder. The company has introduced Oxbryta® (voxelotor), the first FDA-approved medicine that directly inhibits sickle hemoglobin (HbS) polymerization, the root cause of red blood cell sickling in SCD. GBT is also advancing its pipeline program in SCD with inclacumab, a P-selectin inhibitor in Phase 3 development to address pain crises associated with the disease, and GBT021601 (GBT601), the company’s next generation HbS polymerization inhibitor. In addition, GBT’s drug discovery teams are working on new targets to develop the next generation of treatments for SCD. To learn more, please visit www.gbt.com and follow the company on Twitter @GBT_news.

Contact:

Steven Immergut (media)
650-410-3258
[email protected]

Courtney Roberts (investors)
650-351-7881
[email protected]



Elastic Reports Strong Fourth Quarter and Fiscal 2022 Financial Results

Elastic Reports Strong Fourth Quarter and Fiscal 2022 Financial Results

Q4 Revenue of $239.4 million, Up 35% year-over-year (37% in constant currency)

Q4 Elastic Cloud Revenue of $87.7 million, Up 71% year-over-year (72% in constant currency)

FY22 Revenue of $862.4 million, Up 42% year-over-year (41% in constant currency)

MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)–Elastic (NYSE: ESTC) (“Elastic”), the company behind Elasticsearch and the Elastic Stack, announced strong results for its fourth quarter and full fiscal year (ended April 30, 2022).

Fourth Quarter Fiscal 2022 Financial Highlights

  • Total revenue was $239.4 million, an increase of 35% year-over-year, or 37% on a constant currency basis
  • Elastic Cloud revenue was $87.7 million, an increase of 71% year-over-year, or 72% on a constant currency basis
  • GAAP operating loss was $59.6 million; GAAP operating margin was -25%
  • Non-GAAP operating loss was $7.9 million; non-GAAP operating margin was -3%
  • GAAP net loss per share was $0.70; non-GAAP net loss per share was $0.16
  • Operating cash flow was -$3.1 million with adjusted free cash flow of -$5.3 million
  • Cash and cash equivalents were $860.9 million as of April 30, 2022

Full Fiscal 2022 Financial Highlights

  • Total revenue was $862.4 million, an increase of 42% year-over-year, or 41% on a constant currency basis
  • Elastic Cloud revenue was $298.6 million, an increase of 80% year-over-year, or 79% on a constant currency basis
  • GAAP operating loss was $173.7 million; GAAP operating margin was -20%
  • Non-GAAP operating profit was $0.9 million; non-GAAP operating margin was 0%
  • GAAP net loss per share was $2.20; non-GAAP net loss per share was $0.33
  • Operating cash flow was $5.7 million with adjusted free cash flow of $10.7 million

“We had a strong fourth quarter and closed out an excellent year, driven by robust growth in Elastic Cloud, which grew 80% year-over-year in fiscal year 2022, and increased to 37% of total revenue in Q4,” said Ash Kulkarni, CEO, Elastic. “The strong momentum in Elastic Cloud puts us on the path to deliver over 50% of total revenue from Elastic Cloud exiting Q4 of fiscal year 2024, which is ahead of our prior outlook. The enormous market opportunity, the strategic relevance of our solutions to our customers and partners, and the momentum in Elastic Cloud make us confident that we can achieve $2 billion in total revenue in fiscal year 2025.”

Fourth Quarter Fiscal 2022 Key Metrics and Recent Business Highlights

Key Customer Metrics

  • Total subscription customer count was over 18,600, compared to over 17,900 in Q3 FY22, and over 15,000 in Q4 FY21
  • Total customer count with Annual Contract Value (ACV) greater than $100,000 was over 960, compared to over 890 in Q3 FY22, and over 730 in Q4 FY21
  • Net Expansion Rate was just under 130%, and was flat compared to Q3 FY22

Cloud Partner Momentum

  • Announced expanded collaboration with AWS to accelerate momentum and build, market, and deliver seamless access for shared customers
  • Announced expanded strategic partnership with Microsoft to simplify cloud operations, launch co-selling activities, and make it easy to bring data from Azure services into Elastic, and added four new Azure regions in the Americas, Asia, and Africa
  • Joined the Data Cloud Alliance, led by Google Cloud, as a founding member to accelerate the path to value creation and solve the modern data challenges of today’s enterprises

Product Innovations and Updates

  • Announced Elastic 8.1 with new capabilities to help customers defend against cyberattacks and accelerate app development with expanded data integrations, faster indexing speeds, and more efficient storage utilization
  • Announced Elastic 8.2 with new capabilities that enable customers to build seamless search experiences, accelerate troubleshooting of cloud-native services, and streamline security analyst workflows
  • Enhanced machine learning and natural language processing capabilities across both releases to deliver more relevant results
  • Achieved Payment Card Industry Data Security Standard (PCI-DSS) compliance across all Elastic Cloud regions

Other Business Highlights

  • Named a Strong Performer by Forrester Research in The Forrester Wave™: Endpoint Detection and Response (EDR) Providers, Q2 2022
  • Appointed Carolyn Herzog as chief legal officer
  • Appointed Janesh Moorjani as chief operating officer in addition to his role as chief financial officer

Financial Outlook

The Company is providing the following guidance:

For the first quarter of fiscal 2023 (ending July 31, 2022):

  • Total revenue is expected to be between $244 million and $246 million, representing 27% year-over-year growth at the midpoint (32% year-over-year constant currency growth at the midpoint)
  • Non-GAAP operating margin is expected to be between -3.8% and -2.8%
  • Non-GAAP net loss per share is expected to be between $0.20 and $0.16, assuming between 94.0 million and 95.0 million weighted average ordinary shares outstanding

For fiscal 2023 (ending April 30, 2023):

  • Total revenue is expected to be between $1,080 million and $1,086 million, representing 26% year-over-year growth at the midpoint (29% year-over-year constant currency growth at the midpoint)
  • Non-GAAP operating margin is expected to be between 0.0% and 0.5%
  • Non-GAAP net loss per share is expected to be between $0.36 and $0.28, assuming between 95.0 million and 97.0 million weighted average ordinary shares outstanding

See the section titled “Forward-Looking Statements” below for information on the factors that could cause our actual results to differ materially. We present forward-looking non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. See the section entitled “About Non-GAAP Financial Measures” for an explanation of these non-GAAP measures. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures for operating margin and net loss per share is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, many of the costs and expenses that may be incurred in the future. These items necessary to reconcile such non-GAAP measures could be material and have a significant impact on the Company’s results computed in accordance with GAAP.

Conference Call and Webcast

Elastic’s executive management team will host a conference call today at 2:00 p.m. PT/5:00 p.m. ET to discuss the Company’s financial results and business outlook. A live audio webcast of the conference call will be available through Elastic’s Investor Relations website at ir.elastic.co. Slides will accompany the webcast. The replay of the webcast and slides will be available for two months.

About Elastic

Elastic (NYSE: ESTC) is a leading platform for search-powered solutions. We help organizations, their employees, and their customers accelerate the results that matter. With solutions in Enterprise Search, Observability, and Security, we enhance customer and employee search experiences, keep mission-critical applications running smoothly, and protect against cyber threats. Delivered wherever data lives, in one cloud, across multiple clouds, or on-premise, Elastic enables its customers to achieve new levels of success at scale and on a single platform. Learn more at elastic.co.

Elastic and associated marks are trademarks or registered trademarks of Elastic N.V. and its subsidiaries. All other company and product names may be trademarks of their respective owners.

Use of Non-GAAP Financial Measures

In relation to constant currency non-GAAP financial measures, the only reconciling item between GAAP financial measures and non-GAAP financial measures is the effect of foreign currency rate fluctuations. Further details on how we calculate such effects can be found in the definition of “Constant Currency” below. Reconciliations of other GAAP financial measures to their respective non-GAAP financial measures are included at the end of this press release following the accompanying financial data. For a description of non-GAAP financial measures, including the reasons management uses each measure, please see the section of this press release titled “About Non-GAAP Financial Measures.”

Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risk and uncertainties, which include, but are not limited to, statements regarding our expected financial results for the fiscal quarter ending July 31, 2022 and the fiscal year ending April 30, 2023, our expectations regarding demand for our products and solutions and our future revenue, our assessments of the strength of our solutions and products, the expected performance or benefits of our offerings, our expectations regarding market and growth opportunities and our ability to address those opportunities, our expectations regarding the growth and adoption of our Elastic Cloud offering, and the expected benefits of our investments. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Our expectations and beliefs in light of currently available information regarding these matters may not materialize. Actual outcomes and results may differ materially from those contemplated by these forward-looking statements due to uncertainties, risks, and changes in circumstances, including but not limited to those related to: our future financial performance, including our expectations regarding our revenue, cost of revenue, gross profit or gross margin, operating expenses (which include changes in sales and marketing, research and development and general and administrative expenses), and our ability to achieve and maintain future profitability; the effects of currency movements on our financial results, our ability to continue to deliver and improve our offerings and develop new offerings, including security-related product and Elastic Cloud offerings; customer acceptance and purchase of our existing offerings and new offerings, including the expansion and adoption of our Elastic Cloud offerings; our inability to realize value from investments in the business, including R&D investments and strategic transactions; our ability to maintain and expand our user and customer base; the impact of the COVID-19 pandemic, including any variants, on the macroeconomic environment, on our business, operations, hiring and financial results, and on businesses of our customers and partners, including their spending priorities, the effect of lockdowns, restrictions and new regulations; the impact of our licensing model on the use and adoption of our software; our pricing model strategies and their anticipated impacts on our business and results of operations; the impact of foreign currency exchange rate and interest rate fluctuations on our results; our international expansion strategy; our operating results and cash flows; our beliefs and objectives for future operations; the sufficiency of our capital resources; our ability to successfully execute our go-to-market strategy, including by expanding our relationships with our partners, and expand in our existing markets and into new markets, and our ability to forecast customer retention and expansion; and general market, political, economic and business conditions (including impacts arising from the ongoing military conflict between Russia and Ukraine).

Any additional or unforeseen effect from the COVID-19 pandemic or ongoing conflict between Russia and Ukraine may exacerbate these risks. Additional risks and uncertainties that could cause actual outcomes and results to differ materially are included in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the fiscal year ended April 30, 2021 and any subsequent reports filed with the SEC. SEC filings are available on the Investor Relations section of Elastic’s website at ir.elastic.co and the SEC’s website at www.sec.gov. Elastic assumes no obligation to, and does not currently intend to, update any such forward-looking statements, except as required by law.

Contact Information

Nikolay Beliov

Elastic Investor Relations

[email protected]

Lisa Boughner

Elastic Corporate Communications

[email protected]

Elastic N.V.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except share and per share amounts)

(Unaudited)

 

 

Three Months Ended April 30,

 

Year Ended April 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenue

 

 

 

 

 

 

 

License – self-managed

$

22,507

 

 

$

22,321

 

 

$

76,964

 

 

$

67,994

 

Subscription – self-managed and SaaS

 

199,207

 

 

 

142,218

 

 

 

721,806

 

 

 

499,345

 

Total subscription revenue

 

221,714

 

 

 

164,539

 

 

 

798,770

 

 

 

567,339

 

Professional services

 

17,641

 

 

 

13,071

 

 

 

63,604

 

 

 

41,150

 

Total revenue

 

239,355

 

 

 

177,610

 

 

 

862,374

 

 

 

608,489

 

Cost of revenue

 

 

 

 

 

 

 

Cost of license – self-managed

 

306

 

 

 

347

 

 

 

1,548

 

 

 

1,386

 

Cost of subscription – self-managed and SaaS

 

50,559

 

 

 

34,663

 

 

 

176,656

 

 

 

121,127

 

Total cost of revenue – subscription

 

50,865

 

 

 

35,010

 

 

 

178,204

 

 

 

122,513

 

Cost of professional services

 

16,499

 

 

 

10,797

 

 

 

53,990

 

 

 

38,541

 

Total cost of revenue

 

67,364

 

 

 

45,807

 

 

 

232,194

 

 

 

161,054

 

Gross profit

 

171,991

 

 

 

131,803

 

 

 

630,180

 

 

 

447,435

 

Operating expenses

 

 

 

 

 

 

 

Research and development

 

78,867

 

 

 

55,437

 

 

 

273,761

 

 

 

199,203

 

Sales and marketing

 

118,603

 

 

 

82,165

 

 

 

406,658

 

 

 

273,877

 

General and administrative

 

34,143

 

 

 

31,278

 

 

 

123,441

 

 

 

103,833

 

Total operating expenses

 

231,613

 

 

 

168,880

 

 

 

803,860

 

 

 

576,913

 

Operating loss

 

(59,622

)

 

 

(37,077

)

 

 

(173,680

)

 

 

(129,478

)

Other income (expense), net

 

 

 

 

 

 

 

Interest expense

 

(6,389

)

 

 

(107

)

 

 

(20,716

)

 

 

(185

)

Other income (expense), net

 

(2,884

)

 

 

(553

)

 

 

(3,393

)

 

 

7,949

 

Loss before income taxes

 

(68,895

)

 

 

(37,737

)

 

 

(197,789

)

 

 

(121,714

)

Provision for (benefit from) income taxes

 

(3,285

)

 

 

5,564

 

 

 

6,059

 

 

 

7,720

 

Net loss

$

(65,610

)

 

$

(43,301

)

 

$

(203,848

)

 

$

(129,434

)

Net loss per share attributable to ordinary shareholders, basic and diluted

$

(0.70

)

 

$

(0.48

)

 

$

(2.20

)

 

$

(1.48

)

Weighted-average shares used to compute net loss per share attributable to ordinary shareholders, basic and diluted

 

93,806,902

 

 

 

90,028,822

 

 

 

92,547,145

 

 

 

87,207,094

 

 

Elastic N.V.

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except share and per share amounts)

(Unaudited)

 

 

As of

April 30, 2022

 

As of

April 30, 2021

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

860,949

 

 

$

400,814

 

Restricted cash

 

2,688

 

 

 

2,894

 

Accounts receivable, net of allowance for credit losses of $2,700 and $2,344 as of April 30, 2022 and April 30, 2021, respectively

 

215,228

 

 

 

160,415

 

Deferred contract acquisition costs

 

43,628

 

 

 

36,089

 

Prepaid expenses and other current assets

 

41,215

 

 

 

37,002

 

Total current assets

 

1,163,708

 

 

 

637,214

 

Property and equipment, net

 

7,207

 

 

 

8,881

 

Goodwill

 

303,906

 

 

 

198,851

 

Operating lease right-of-use assets

 

25,437

 

 

 

25,464

 

Intangible assets, net

 

45,800

 

 

 

36,286

 

Deferred contract acquisition costs, non-current

 

74,419

 

 

 

50,263

 

Deferred tax assets

 

5,811

 

 

 

3,697

 

Other assets

 

16,643

 

 

 

12,516

 

Total assets

$

1,642,931

 

 

$

973,172

 

Liabilities and Shareholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

28,403

 

 

$

7,248

 

Accrued expenses and other liabilities

 

53,930

 

 

 

28,909

 

Accrued compensation and benefits

 

68,002

 

 

 

52,525

 

Operating lease liabilities

 

11,219

 

 

 

8,528

 

Deferred revenue

 

431,776

 

 

 

352,805

 

Total current liabilities

 

593,330

 

 

 

450,015

 

Deferred revenue, non-current

 

33,518

 

 

 

44,895

 

Long-term debt, net

 

566,520

 

 

 

 

Operating lease liabilities, non-current

 

16,482

 

 

 

19,649

 

Other liabilities, non-current

 

17,648

 

 

 

7,782

 

Total liabilities

 

1,227,498

 

 

 

522,341

 

Commitments and contingencies

 

 

 

Shareholders’ equity:

 

 

 

Convertible preference shares, €0.01 par value; 165,000,000 shares authorized, 0 shares issued and outstanding as of April 30, 2022 and April 30, 2021

 

 

 

 

 

Ordinary shares, par value €0.01 per share: 165,000,000 shares authorized; 94,174,914 and 90,533,985 shares issued and outstanding as of April 30, 2022 and April 30, 2021, respectively

 

990

 

 

 

948

 

Treasury stock

 

(369

)

 

 

(369

)

Additional paid-in capital

 

1,250,108

 

 

 

1,071,675

 

Accumulated other comprehensive loss

 

(18,130

)

 

 

(8,105

)

Accumulated deficit

 

(817,166

)

 

 

(613,318

)

Total shareholders’ equity

 

415,433

 

 

 

450,831

 

Total liabilities and shareholders’ equity

$

1,642,931

 

 

$

973,172

 

 

Elastic N.V.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)

(Unaudited)

 

 

Three Months Ended April 30,

 

Year Ended April 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Cash flows from operating activities

 

 

 

 

 

 

 

Net loss

$

(65,610

)

 

$

(43,301

)

 

$

(203,848

)

 

$

(129,434

)

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

 

 

 

 

 

 

 

Depreciation and amortization

 

5,170

 

 

 

4,381

 

 

 

19,728

 

 

 

17,237

 

Amortization of deferred contract acquisition costs

 

17,365

 

 

 

12,536

 

 

 

60,738

 

 

 

40,991

 

Amortization of debt issuance costs

 

249

 

 

 

 

 

 

803

 

 

 

 

Non-cash operating lease cost

 

2,377

 

 

 

2,671

 

 

 

8,636

 

 

 

7,927

 

Stock-based compensation expense, net of amounts capitalized

 

43,641

 

 

 

28,375

 

 

 

140,612

 

 

 

93,680

 

Deferred income taxes

 

(2,211

)

 

 

321

 

 

 

(2,430

)

 

 

33

 

Foreign currency transaction (gain) loss

 

277

 

 

 

(44

)

 

 

1,984

 

 

 

(9,507

)

Other

 

 

 

 

(153

)

 

 

98

 

 

 

(142

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable, net

 

(71,988

)

 

 

(39,283

)

 

 

(62,187

)

 

 

(24,037

)

Deferred contract acquisition costs

 

(35,521

)

 

 

(26,525

)

 

 

(96,755

)

 

 

(81,137

)

Prepaid expenses and other current assets

 

(777

)

 

 

(9,009

)

 

 

(3,427

)

 

 

(4,192

)

Other assets

 

1,628

 

 

 

(9,344

)

 

 

825

 

 

 

(4,107

)

Accounts payable

 

6,584

 

 

 

1,546

 

 

 

21,036

 

 

 

(4,775

)

Accrued expenses and other liabilities

 

9,653

 

 

 

6,422

 

 

 

27,192

 

 

 

8,118

 

Accrued compensation and benefits

 

13,089

 

 

 

9,726

 

 

 

17,775

 

 

 

3,867

 

Operating lease liabilities

 

(2,450

)

 

 

(2,512

)

 

 

(8,888

)

 

 

(7,914

)

Deferred revenue

 

75,474

 

 

 

62,628

 

 

 

83,780

 

 

 

115,937

 

Net cash provided by (used in) operating activities

 

(3,050

)

 

 

(1,565

)

 

 

5,672

 

 

 

22,545

 

Cash flows from investing activities

 

 

 

 

 

 

 

Purchases of property and equipment

 

(1,498

)

 

 

(1,180

)

 

 

(2,485

)

 

 

(3,912

)

Capitalization of internal-use software costs

 

(705

)

 

 

(317

)

 

 

(4,932

)

 

 

(317

)

Business acquisitions, net of cash acquired

 

 

 

 

 

 

 

(119,854

)

 

 

 

Other

 

 

 

 

1,391

 

 

 

 

 

 

2,711

 

Net cash used in investing activities

 

(2,203

)

 

 

(106

)

 

 

(127,271

)

 

 

(1,518

)

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from the issuance of senior notes

 

 

 

 

 

 

 

575,000

 

 

 

 

Proceeds from issuance of ordinary shares upon exercise of stock options

 

8,870

 

 

 

9,704

 

 

 

36,410

 

 

 

77,258

 

Payments of debt issuance costs

 

 

 

 

 

 

 

(9,283

)

 

 

 

Net cash provided by financing activities

 

8,870

 

 

 

9,704

 

 

 

602,127

 

 

 

77,258

 

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

(8,271

)

 

 

186

 

 

 

(20,599

)

 

 

6,034

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

(4,654

)

 

 

8,219

 

 

 

459,929

 

 

 

104,319

 

Cash, cash equivalents, and restricted cash, beginning of period

 

868,291

 

 

 

395,489

 

 

 

403,708

 

 

 

299,389

 

Cash, cash equivalents, and restricted cash, end of period

$

863,637

 

 

$

403,708

 

 

$

863,637

 

 

$

403,708

 

 

Elastic N.V.

REVENUE BY TYPE

(amounts in thousands, except percentages)

(Unaudited)

 

 

Three Months Ended April 30,

 

Year Ended April 30,

 

2022

 

2021

 

2022

 

2021

 

Amount

 

% of

Total

Revenue

 

Amount

 

% of

Total

Revenue

 

Amount

 

% of

Total

Revenue

 

Amount

 

% of

Total

Revenue

Elastic Cloud

$

87,652

 

37

%

 

$

51,335

 

29

%

 

$

298,615

 

35

%

 

$

166,319

 

27

%

Other subscription

 

134,062

 

56

%

 

 

113,204

 

64

%

 

 

500,155

 

58

%

 

 

401,020

 

66

%

Total subscription revenue

 

221,714

 

93

%

 

 

164,539

 

93

%

 

 

798,770

 

93

%

 

 

567,339

 

93

%

Professional services

 

17,641

 

7

%

 

 

13,071

 

7

%

 

 

63,604

 

7

%

 

 

41,150

 

7

%

Total revenue

$

239,355

 

100

%

 

$

177,610

 

100

%

 

$

862,374

 

100

%

 

$

608,489

 

100

%

 

Elastic N.V.

RECONCILIATION OF GAAP TO NON-GAAP DATA

CALCULATED BILLINGS

(amounts in thousands)

(Unaudited)

 

 

Three Months Ended April 30,

 

Year Ended April 30,

 

 

2022

 

 

 

2021

 

 

2022

 

 

 

2021

 

Total revenue

$

239,355

 

 

$

177,610

 

$

862,374

 

 

$

608,489

 

Add: Increase in deferred revenue

 

75,474

 

 

 

62,628

 

 

83,780

 

 

 

115,937

 

Less: Decrease (increase) in unbilled accounts receivable

 

(1,939

)

 

 

632

 

 

(4,041

)

 

 

(2,582

)

Calculated billings

$

312,890

 

 

$

240,870

 

$

942,113

 

 

$

721,844

 

 

Elastic N.V.

RECONCILIATION OF GAAP TO NON-GAAP DATA

ADJUSTED FREE CASH FLOW

(amounts in thousands, except percentages)

(Unaudited)

 

 

Three Months Ended April 30,

 

Year Ended April 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

Net cash provided by (used in) operating activities

$

(3,050

)

 

$

(1,565

)

 

$

5,672

 

 

$

22,545

 

Less: Purchases of property and equipment

 

(1,498

)

 

 

(1,180

)

 

 

(2,485

)

 

 

(3,912

)

Less: Capitalization of internal-use software

 

(705

)

 

 

(317

)

 

 

(4,932

)

 

 

(317

)

Add: Interest paid on long-term debt

 

 

 

 

 

 

 

12,452

 

 

 

Adjusted free cash flow

$

(5,253

)

 

$

(3,062

)

 

$

10,707

 

 

$

18,316

 

Net cash used in investing activities

$

(2,203

)

 

$

(106

)

 

$

(127,271

)

 

$

(1,518

)

Net cash provided by financing activities

$

8,870

 

 

$

9,704

 

 

$

602,127

 

 

$

77,258

 

Net cash provided by (used in) operating activities (as a percentage of total revenue)

 

(1

)%

 

 

(1

)%

 

 

1

%

 

 

4

%

Less: Purchases of property and equipment (as a percentage of total revenue)

 

(1

)%

 

 

(1

)%

 

 

%

 

 

(1

)%

Less: Capitalization of internal-use software (as a percentage of total revenue)

 

%

 

 

%

 

 

(1

)%

 

 

%

Add: Interest paid on long-term debt (as a percentage of total revenue)

 

%

 

 

%

 

 

1

%

 

 

%

Adjusted free cash flow margin

 

(2

)%

 

 

(2

)%

 

 

1

%

 

 

3

%

 

Elastic N.V.

RECONCILIATION OF GAAP TO NON-GAAP DATA

(amounts in thousands, except percentages, share and per share amounts)

(Unaudited)

 

 

Three Months Ended April 30,

 

Year Ended April 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Gross Profit Reconciliation:

 

 

 

 

 

 

 

GAAP gross profit

$

171,991

 

 

$

131,803

 

 

$

630,180

 

 

$

447,435

 

Stock-based compensation expense

 

3,976

 

 

 

3,577

 

 

 

14,831

 

 

 

11,929

 

Employer payroll taxes on employee stock transactions

 

328

 

 

 

424

 

 

 

1,393

 

 

 

1,335

 

Amortization of acquired intangibles

 

2,947

 

 

 

2,109

 

 

 

10,503

 

 

 

8,437

 

Non-GAAP gross profit

$

179,242

 

 

$

137,913

 

 

$

656,907

 

 

$

469,136

 

Gross Margin Reconciliation(1):

 

 

 

 

 

 

 

GAAP gross margin

 

71.9

%

 

 

74.2

%

 

 

73.1

%

 

 

73.5

%

Stock-based compensation expense

 

1.7

%

 

 

2.0

%

 

 

1.7

%

 

 

2.0

%

Employer payroll taxes on employee stock transactions

 

0.1

%

 

 

0.2

%

 

 

0.2

%

 

 

0.2

%

Amortization of acquired intangibles

 

1.2

%

 

 

1.2

%

 

 

1.2

%

 

 

1.4

%

Non-GAAP gross margin

 

74.9

%

 

 

77.6

%

 

 

76.2

%

 

 

77.1

%

Operating Loss Reconciliation:

 

 

 

 

 

 

 

GAAP operating loss

$

(59,622

)

 

$

(37,077

)

 

$

(173,680

)

 

$

(129,478

)

Stock-based compensation expense

 

43,641

 

 

 

28,375

 

 

 

141,194

 

 

 

93,680

 

Employer payroll taxes on employee stock transactions

 

1,327

 

 

 

3,940

 

 

 

9,961

 

 

 

14,376

 

Amortization of acquired intangibles

 

4,139

 

 

 

3,537

 

 

 

15,783

 

 

 

14,167

 

Acquisition-related expenses

 

2,633

 

 

 

 

 

 

7,632

 

 

 

 

Non-GAAP operating income (loss)

$

(7,882

)

 

$

(1,225

)

 

$

890

 

 

$

(7,255

)

Operating Margin Reconciliation(1):

 

 

 

 

 

 

 

GAAP operating margin

 

(24.9

)%

 

 

(20.9

)%

 

 

(20.1

)%

 

 

(21.3

)%

Stock-based compensation expense

 

18.2

%

 

 

16.0

%

 

 

16.4

%

 

 

15.4

%

Employer payroll taxes on employee stock transactions

 

0.6

%

 

 

2.2

%

 

 

1.2

%

 

 

2.4

%

Amortization of acquired intangibles

 

1.7

%

 

 

2.0

%

 

 

1.8

%

 

 

2.3

%

Acquisition-related expenses

 

1.1

%

 

 

0.0

%

 

 

0.9

%

 

 

0.0

%

Non-GAAP operating margin

 

(3.3

)%

 

 

(0.7

)%

 

 

0.1

%

 

 

(1.2

)%

Net Loss Reconciliation:

 

 

 

 

 

 

 

GAAP net loss

$

(65,610

)

 

$

(43,301

)

 

$

(203,848

)

 

$

(129,434

)

Stock-based compensation expense

 

43,641

 

 

 

28,375

 

 

 

141,194

 

 

 

93,680

 

Employer payroll taxes on employee stock transactions

 

1,327

 

 

 

3,940

 

 

 

9,961

 

 

 

14,376

 

Amortization of acquired intangibles

 

4,139

 

 

 

3,537

 

 

 

15,783

 

 

 

14,167

 

Acquisition-related expenses

 

2,633

 

 

 

 

 

 

7,632

 

 

 

 

Income tax(2)

 

(817

)

 

 

(200

)

 

 

(1,496

)

 

 

(777

)

Non-GAAP net loss

$

(14,687

)

 

$

(7,649

)

 

$

(30,774

)

 

$

(7,988

)

Non-GAAP net loss per share attributable to ordinary shareholders, basic and diluted

$

(0.16

)

 

$

(0.08

)

 

$

(0.33

)

 

$

(0.09

)

Weighted-average shares used to compute net loss per share attributable to ordinary shareholders, basic and diluted

 

93,806,902

 

 

 

90,028,822

 

 

 

92,547,145

 

 

 

87,207,094

 

(1) Totals may not sum, due to rounding. Gross margin, operating margin, and earnings per share are calculated based upon the respective underlying, non-rounded data.

 

(2) Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures presented above as well as significant tax adjustments. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities.

Elastic N.V.

RECONCILIATION OF GAAP TO NON-GAAP DATA

(amounts in thousands)

(Unaudited)

 

 

Three Months Ended April 30,

 

Year Ended April 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Cost of revenue reconciliation:

 

 

 

 

 

 

 

GAAP cost of license – self-managed

$

306

 

 

$

347

 

 

$

1,548

 

 

$

1,386

 

Amortization of acquired intangibles

 

(306

)

 

 

(347

)

 

 

(1,548

)

 

 

(1,386

)

Non-GAAP cost of license – self -managed

$

 

 

$

 

 

$

 

 

$

 

GAAP cost of subscription – self-managed and SaaS

$

50,559

 

 

$

34,663

 

 

$

176,656

 

 

$

121,127

 

Stock-based compensation expense

 

(2,106

)

 

 

(2,040

)

 

 

(8,368

)

 

 

(7,105

)

Employer payroll taxes on employee stock transactions

 

(207

)

 

 

(187

)

 

 

(681

)

 

 

(674

)

Amortization of acquired intangibles

 

(2,641

)

 

 

(1,762

)

 

 

(8,955

)

 

 

(7,051

)

Non-GAAP cost of subscription – self-managed and SaaS

$

45,605

 

 

$

30,674

 

 

$

158,652

 

 

$

106,297

 

GAAP cost of professional services

$

16,499

 

 

$

10,797

 

 

$

53,990

 

 

$

38,541

 

Stock-based compensation expense

 

(1,870

)

 

 

(1,537

)

 

 

(6,463

)

 

 

(4,824

)

Employer payroll taxes on employee stock transactions

 

(121

)

 

 

(237

)

 

 

(712

)

 

 

(661

)

Non-GAAP cost of professional services

$

14,508

 

 

$

9,023

 

 

$

46,815

 

 

$

33,056

 

Operating expenses reconciliation:

 

 

 

 

 

 

 

GAAP research and development expense

$

78,867

 

 

$

55,437

 

 

$

273,761

 

 

$

199,203

 

Stock-based compensation expense

 

(18,127

)

 

 

(10,958

)

 

 

(59,911

)

 

 

(35,267

)

Employer payroll taxes on employee stock transactions

 

(400

)

 

 

(968

)

 

 

(3,316

)

 

 

(3,670

)

Acquisition-related expenses

 

(2,409

)

 

 

 

 

 

(6,104

)

 

 

 

Non-GAAP research and development expense

$

57,931

 

 

$

43,511

 

 

$

204,430

 

 

$

160,266

 

GAAP sales and marketing expense

$

118,603

 

 

$

82,165

 

 

$

406,658

 

 

$

273,877

 

Stock-based compensation expense

 

(15,000

)

 

 

(9,062

)

 

 

(45,798

)

 

 

(31,581

)

Employer payroll taxes on employee stock transactions

 

(413

)

 

 

(1,905

)

 

 

(4,287

)

 

 

(5,399

)

Amortization of acquired intangibles

 

(1,192

)

 

 

(1,428

)

 

 

(5,280

)

 

 

(5,730

)

Non-GAAP sales and marketing expenses

$

101,998

 

 

$

69,770

 

 

$

351,293

 

 

$

231,167

 

GAAP general and administrative expense

$

34,143

 

 

$

31,278

 

 

$

123,441

 

 

$

103,833

 

Stock-based compensation expense

 

(6,538

)

 

 

(4,778

)

 

 

(20,654

)

 

 

(14,903

)

Employer payroll taxes on employee stock transactions

 

(186

)

 

 

(643

)

 

 

(965

)

 

 

(3,972

)

Acquisition-related expenses

 

(224

)

 

 

 

 

 

(1,528

)

 

 

 

Non-GAAP general and administrative expense

$

27,195

 

 

$

25,857

 

 

$

100,294

 

 

$

84,958

 

 

 

 

 

 

 

 

 

About Non-GAAP Financial Measures

In addition to our results determined in accordance with U.S. GAAP, we believe the non-GAAP measures listed below are useful in evaluating our operating performance. We use these non-GAAP financial measures to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with U.S. GAAP. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures and key metrics as analytical tools. Investors are encouraged to review the differences between GAAP financial measures and the corresponding non-GAAP financial measures, and not to rely on any single financial measure to evaluate our business.

Non-GAAP Gross Profit and Non-GAAP Gross Margin

We define non-GAAP gross profit and non-GAAP gross margin as GAAP gross profit and GAAP gross margin, respectively, excluding stock-based compensation expense, employer payroll taxes on employee stock transactions, and amortization of acquired intangible assets. We believe non-GAAP gross profit and non-GAAP gross margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations, as these metrics generally eliminate the effects of certain variables from period to period for reasons unrelated to overall operating performance.

Non-GAAP Operating Income (Loss) and Non-GAAP Operating Margin

We define non-GAAP operating income (loss) and non-GAAP operating margin as GAAP operating loss and GAAP operating margin, respectively, excluding stock-based compensation expense, employer payroll taxes on employee stock transactions, amortization of acquired intangible assets, and acquisition-related expenses. We believe non-GAAP operating income (loss) and non-GAAP operating margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations, as these metrics generally eliminate the effects of certain variables from period to period for reasons unrelated to overall operating performance.

Non-GAAP Net Loss Per Share

We define non-GAAP net loss per share as GAAP net loss per share, excluding stock-based compensation expense, employer payroll taxes on employee stock transactions, amortization of acquired intangible assets, acquisition-related expenses and the tax effects related to the foregoing. We believe non-GAAP net loss per share provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this metric generally eliminates the effects of certain variables from period to period for reasons unrelated to overall operating performance.

Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin

Adjusted free cash flow is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities adjusted for cash paid for interest less cash used for investing activities for purchases of property and equipment, and capitalized internal-use software costs. Adjusted free cash flow margin is calculated as adjusted free cash flow divided by total revenue. Adjusted free cash flow does not represent residual cash flow available for discretionary expenditures since, among other things, we have mandatory debt service requirements.

Calculated Billings

We define calculated billings as total revenue plus the increase (decrease) in total deferred revenue as presented on or derived from our consolidated statements of cash flows less the (increase) decrease in total unbilled accounts receivable in a given period. Calculated billings exclude deferred revenue and unbilled accounts receivable acquired through acquisitions in the period of acquisition. We typically invoice our customers annually in advance, and to a lesser extent multi-year in advance, quarterly in advance, monthly in advance, monthly in arrears or upon delivery. Our management uses calculated billings to understand and evaluate our near-term cash flows and operating results.

Constant Currency

We compare the percent change in certain results from one period to another period using constant currency information to provide a framework for assessing how our business performed excluding the effect of foreign currency rate fluctuations. In presenting this information, current and comparative prior period results are converted into United States dollars at the exchange rates in effect on the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods.

Nikolay Beliov

Elastic Investor Relations

[email protected]

Lisa Boughner

Elastic Corporate Communications

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Software Technology Data Management Security

MEDIA:

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Renovacor Announces Data from Pilot Pig Study Showing Successful Cardiac Transduction with REN-001 Delivered Via Low-Dose Retrograde Coronary Sinus Infusion Published in Journal of the American College of Cardiology: Basic to Translational Research

Renovacor Announces Data from Pilot Pig Study Showing Successful Cardiac Transduction with REN-001 Delivered Via Low-Dose Retrograde Coronary Sinus Infusion Published in Journal of the American College of Cardiology: Basic to Translational Research

REN-001 delivered locally via low-dose retrograde coronary sinus infusion demonstrated robust, diffuse cardiomyocyte transduction in a large animal heart

CAMBRIDGE, Mass.–(BUSINESS WIRE)–
Renovacor, Inc. (NYSE: RCOR), a biotechnology company focused on delivering innovative precision therapies to improve the lives of patients and families battling genetically-driven cardiovascular and mechanistically-related diseases, today announced the publication of the results of a preclinical study demonstrating cardiac transduction with low-doses of REN-001 delivered via retrograde coronary sinus infusion (RCSI) in healthy Yucatan pigs. The paper, titled, “Cardiac Transduction in Mini-Pigs After Low-Dose Retrograde Coronary Sinus Infusion of AAV9-BAG3: A Pilot Study,” was published in the peer-reviewed Journal of the American College of Cardiology: Basic to Translational Science (JACC: BTS).

REN-001 is an AAV-based gene therapy designed to directly address the underlying cause of BAG3‑associated dilated cardiomyopathy (BAG3-DCM) by using a validated AAV9 capsid to deliver a functional copy of the BAG3 gene to cardiac tissue. In the pilot Yucatan pig study featured in JACC: BTS, low doses (<1e13 vector genome (vg) per kilogram (kg)) of REN-001 delivered locally to the heart using RCSI resulted in each evaluated cardiomyocyte containing, on average, at least one copy of the delivered BAG3 gene (i.e., vector copy number threshold ≥1). The study also demonstrated diffuse transduction patterns across multiple regions of the heart and documented the presence of vector mRNA / transcript. Additionally, all animals tolerated the procedure without evidence of heart injury (e.g., arrythmia, presence of myocardial scar, or coronary sinus injury at necropsy).

The pilot Yucatan pig study published in JACC: BTS included three dose groups. Group A evaluated a 1.46e12 vg/kg dose, Group B evaluated a 3.45e12 vg/kg dose and Group C evaluated a 7.58e12 vg/kg dose (based on median pig weights for each group). Levels of vector genomes and corresponding RNA transcripts were quantified. A summary of the data is shown below.

Group

Vector Genomes/Porcine

Cardiomyocyte (mean ± SEM)

Vector Transcripts*

(Relative Quantities; mean ± SEM)

Group A (n=4)

0.7 ± 0.2

4.1 ± 1.0

Group B (n=2)

2.0 ± 0.8

9.0 ± 4.5

Group C (n=1)

1.3

8.5

*Vector mRNA was assessed using qPCR targeting vector cDNA and expressed as relative quantities (rq) to the 18S housekeeping gene

“We believe this publication provides important validation of the RCSI delivery method, which is a key differentiator of our REN-001 program,” said Marc Semigran, M.D., Chief Medical Officer of Renovacor and a co-author of the paper. “By delivering vector directly to the heart via the coronary venous circulation using a percutaneously placed catheter, we observed what we believe to be clinically therapeutic levels of cardiomyocyte transduction by our viral vector at lower doses than those used for systemic delivery of AAV gene therapies for other genetic diseases. We believe that RCSI delivery of our gene therapy candidate has the potential to provide safety and manufacturing advantages compared to systemic approaches, which may require higher vector doses to attain similar levels of cardiac transduction as those seen in this animal study. We look forward to advancing REN-001 by using the learnings from the newly published pilot study and are working expeditiously towards a planned IND application submission in the second half of the year.”

Arthur M. Feldman, M.D., Ph.D., Renovacor’s founder, Laura H. Carnell Professor of Medicine at the Lewis Katz School of Medicine at Temple University, and the paper’s senior author added, “The transduction levels achieved with low-dose RCSI in this pre-clinical study are promising and we believe strongly support the advancement of REN-001 into the clinic. Over 80% of BAG3-DCM patients have truncating variants of the BAG3 gene, which reduce levels of functional BAG3 protein in the heart. We believe the data showing successful cardiac delivery and transcription of BAG3 in Yucatan pigs provide strong evidence of REN-001’s ability to potentially correct this genetic abnormality. Given BAG3-DCM’s devastating nature and the lack of effective therapies, this represents an important step toward addressing an urgent unmet medical need.”

This paper was published, in its entirety, in the June 2022 issue of JACC: BTS. The paper will also be published, in its entirety, in the September 2022 issue of JACC: BTS that is dedicated to DNA and RNA cardiovascular therapeutics.

About Renovacor

Renovacor is a biotechnology company focused on delivering innovative precision therapies to improve the lives of patients and families battling genetically-driven cardiovascular and mechanistically-related diseases. The company’s lead program in BAG3-associated dilated cardiomyopathy (DCM) uses gene transfer technology to address the monogenic cause of this severe form of heart failure. Renovacor’s vision is to bring life-changing therapies to patients living with serious genetic cardiovascular and related diseases, by developing medicines that target the underlying cause of disease and provide a transformative benefit and significant improvement to quality of life.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, as amended, including statements regarding the anticipated development of Renovacor’s product candidates and clinical development timelines. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. These forward-looking statements are based upon current estimates and assumptions of the Company and its management and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: competition, the ability of the company to grow and manage growth, maintain relationships with customers and suppliers and retain its management and key employees; the Company’s ability to successfully advance its current and future product candidates through development activities, preclinical studies and clinical trials and costs related thereto; the timing, scope and likelihood of regulatory filings and approvals, including final regulatory approval of our product candidates; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business or competitive factors; the Company’s estimates of expenses and profitability; the evolution of the markets in which the Company competes; the ability of the Company to implement its strategic initiatives and continue to innovate its existing products; the ability of the Company to defend its intellectual property; the impact of the COVID-19 pandemic on the Company’s business, supply chain and labor force; and the risks and uncertainties described in the “Risk Factors” section of the Company’s annual and quarterly and reports filed the Securities Exchange Commission. These filings identify and address important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Renovacor assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Renovacor gives no assurance that it will achieve its expectations.

Investors:

Brooks Rahmer

Renovacor, Inc.

610-424-2627

[email protected]

Media:

Patrick Bursey

LifeSci Communications

646-970-4688

[email protected]

KEYWORDS: Massachusetts United States North America

INDUSTRY KEYWORDS: Health Genetics Clinical Trials Pharmaceutical Cardiology Biotechnology

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U.S. CDC Endorses the Use of Digital PCR Technology for Wastewater Surveillance of Infectious Diseases – Including COVID-19 Outbreaks

U.S. CDC Endorses the Use of Digital PCR Technology for Wastewater Surveillance of Infectious Diseases – Including COVID-19 Outbreaks

  • U.S. public health agency validated digital PCR technologies – including QIAcuity – as the way to reliably detect multiple disease targets in wastewater samples
  • QIAcuity previously awarded U.S. contract for public health labs utilization in 70% of all U.S. states
  • QIAGEN offers broad portfolio to address demands for testing beyond pandemic

HILDEN, Germany & GERMANTOWN, Md.–(BUSINESS WIRE)–
QIAGEN N.V. (NYSE: QGEN; Frankfurt Prime Standard: QIA) today announced that it welcomed an endorsement from the National Wastewater Surveillance System (NWSS) of the U.S. Centers for Disease Control and Prevention (CDC) and their validation and approval for the use of two digital PCR systems – including the QIAcuity digital PCR system – for wastewater surveillance of 30 pathogens, including the SARS-CoV-2 virus.

The decision of the U.S. national public health agency marks a step away from the traditional quantitative PCR (qPCR) approach to the novel digital PCR technology as a more reliable detection method. Digital PCR (dPCR) can quantify the tiniest traces of DNA and RNA – and recently also the proteins encoded by these genetic materials – to test for infectious diseases caused by viruses and bacteria, and other disorders like cancer mutations. The CDC will now develop the wastewater pathogen assays and provide them to public health labs to run on either system, thereby converting their current qPCR assays to dPCR testing.

The decision by the NWSS also means that the CDC will only accept wastewater surveillance data collected with QIAcuity or the other approved digital PCR instrument, and that related public funding through the CDC’s Epidemiology and Laboratory Capacity for Prevention and Control of Emerging Infectious Diseases (ELC) Cooperative Agreement will be limited to the use of one of these two platforms. The ELC supports state, local, and regional health departments in the detection, prevention, and response to emerging infectious diseases.

The approval comes after QIAGEN previously completed a U.S. government contract to equip public health laboratories across the country with QIAcuity dPCR devices, initially to monitor the spread of COVID-19 by testing wastewater. More than 70% of U.S. states now have at least one public or privately-owned laboratory that can monitor wastewater with QIAcuity, a system that has set new standards by delivering results in two hours.

Wastewater surveillance has a broad range of applications beyond COVID-19 testing and can be used to protect communities from a variety of infectious diseases, such as the detection of antimicrobial resistant “superbugs” and food-borne diseases such as E. coli or Listeria.

“The CDC’s decision is a testament to the quality and robustness of our QIAcuity dPCR system and is further proof of the reputation it is gaining among public health experts in- and outside the United States,” said Thomas Schweins, Ph.D., Senior Vice President, Life Science Business Area at QIAGEN. “The CDC protocol covers a multitude of targets beyond COVID-19, which shows that our portfolio – including QIAcuity as one of our five growth pillars – has a huge relevance for many other infectious diseases.”

QIAGEN is currently expanding the QIAcuity menu into new research applications, such as proteomics, and also expansion into clinical healthcare. The analysis of the interactions between different proteins and between proteins and genetic material is meant to complement genomic analysis and give more comprehensive pictures of diseases.

Digital PCR is more accurate and sensitive than traditional qPCR as it more precisely quantifies nucleic acids and target sequences of DNA and RNA. The technology’s success in wastewater testing shows its potential in disease surveillance more generally. Surveillance allows public authorities to collect data from broad sweeps of the population and give early warnings about outbreaks of infectious diseases.

More information about QIAGEN solutions for wastewater testing can be found here.

About QIAGEN

QIAGEN N.V., a Netherlands-based holding company, is the leading global provider of Sample to Insight solutions that enable customers to gain valuable molecular insights from samples containing the building blocks of life. Our sample technologies isolate and process DNA, RNA and proteins from blood, tissue and other materials. Assay technologies make these biomolecules visible and ready for analysis. Bioinformatics software and knowledge bases interpret data to report relevant, actionable insights. Automation solutions tie these together in seamless and cost-effective workflows. QIAGEN provides solutions to more than 500,000 customers around the world in Molecular Diagnostics (human healthcare), Applied Testing (primarily forensics), Pharma (pharma and biotech companies) and Academia (life sciences research). As of March 31, 2022, QIAGEN employed more than 6,000 people in over 35 locations worldwide. Further information can be found at http://www.qiagen.com.

Forward-Looking Statement

Certain statements contained in this press release may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. To the extent that any of the statements contained herein relating to QIAGEN’s products, collaborations markets, strategy or operating results, including without limitation its expected adjusted net sales and adjusted diluted earnings results, are forward-looking, such statements are based on current expectations and assumptions that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations, regulatory processes and dependence on logistics), variability of operating results and allocations between customer classes, the commercial development of markets for our products to customers in academia, pharma, applied testing and molecular diagnostics; changing relationships with customers, suppliers and strategic partners; competition; rapid or unexpected changes in technologies; fluctuations in demand for QIAGEN’s products (including fluctuations due to general economic conditions, the level and timing of customers’ funding, budgets and other factors); our ability to obtain regulatory approval of our products; difficulties in successfully adapting QIAGEN’s products to integrated solutions and producing such products; the ability of QIAGEN to identify and develop new products and to differentiate and protect our products from competitors’ products; market acceptance of QIAGEN’s new products and the integration of acquired technologies and businesses. For further information, please refer to the discussions in reports that QIAGEN has filed with, or furnished to, the U.S. Securities and Exchange Commission (SEC).

Source: QIAGEN N.V.

Category: Corporate

QIAGEN:

Investor Relations

John Gilardi +49 2103 29 11711

Phoebe Loh +49 2103 29 11457

e-mail: [email protected]

Public Relations

Thomas Theuringer +49 2103 29 11826

e-mail: [email protected]

KEYWORDS: Maryland Germany Europe United States North America

INDUSTRY KEYWORDS: Biotechnology Natural Resources Environment Health Medical Devices Infectious Diseases Genetics Other Natural Resources

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Inter Parfums, Inc. Announces Retirement of Russell Greenberg to Be Succeeded by Michel Atwood as Chief Financial Officer

Inter Parfums, Inc. Announces Retirement of Russell Greenberg to Be Succeeded by Michel Atwood as Chief Financial Officer

NEW YORK–(BUSINESS WIRE)–
Inter Parfums, Inc. (NASDAQ GS: IPAR) today announced that Russell Greenberg, Executive Vice President and Chief Financial Officer, will retire on September 6, 2022, and will be succeeded by Michel Atwood, a seasoned fragrance and finance executive, as Chief Financial Officer. Mr. Greenberg will stay with the company full time until September 30, 2022 to assist with the transition.

Jean Madar, Chairman and Chief Executive Officer, commented, “Russ has played an integral role in the growth and evolution of our company for 30 years. He has been by my side for all the significant initiatives we have undertaken, through the best of times and the most challenging. He has earned, and well deserves, to devote more time to family, friends, and the activities he most enjoys. On behalf of the Board of Directors, I want to thank him for his service, commitment and friendship.”

Mr. Greenberg noted, “I have been privileged to have spent most of my career at Inter Parfums where I have had the professional satisfaction of being at the starting gate of what has become a rapidly growing, highly respected, global fragrance enterprise. Throughout my three decades, I have worked with some of the best people in the industry and I feel confident that Inter Parfums will continue to thrive with Michel taking over my executive duties.”

Mr. Madar continued, “We are extremely fortunate that Michel Atwood will officially take over the CFO reins on September 6th. In the past, we have interacted with him in various capacities while at different companies. Michel knows the fragrance industry inside and out, and was most recently at Estée Lauder as Vice President Finance and Strategy, providing, among other things, strategic oversight for the fragrance category across the company and leading a large team of finance professionals across the globe as a key member of ELC’s Senior Finance Leadership team. Michel has also been asked to fill the Board seat Russ is vacating effective September 9, 2022, the date of our Annual Meeting of Shareholders.”

About Michel Atwood

While at Estée Lauder, Michel had strategic oversight for the fragrance category across that company and operational accountability for several of its fragrance brands. He also had senior level M&A duties, including acquisition integration and brand divestitures/discontinuations. Over his nearly four years at Estée Lauder, he also drove cross-brand synergies across R&D and supply chain for the fragrance category.

From 1995 to 2017, Michel held several executive positions with growing responsibilities at Procter & Gamble in France, Switzerland, Italy and Germany. His final title at P&G was Divisional CFO of Global Prestige Fragrances, leading a 90 member team, and ultimately spearheading the divestiture of that division to Coty. Earlier he was CFO Global Markets – Prestige Fragrances, a business generating over $2 billion in sales, where he headed a globally dispersed team of 60 people supporting the go-to-market organization (affiliates, Travel Retail and distributors) of the Prestige Division. Before that, he was Global Prestige Director of Strategic Planning, Licensing and Acquisition shaping and executing the overall business direction and licensing and acquisition strategy of P&G’s Global Fragrance and Premium skin and cosmetics businesses.

Born in Turkey, Michel Atwood holds a Master’s degree in Software Engineering from the Institut National des Sciences Appliquées of Lyon, and a Master’s in International Finance from HEC Paris, the prestigious French business school. He also earned the designation of Certified Management Accountant from the Institute of Management Accountants. He has a truly international background, working/living in France, Switzerland, the U.S., Canada, Turkey and Italy.

Founded in 1982, Inter Parfums, Inc. develops, manufactures and distributes prestige perfumes and cosmetics as the exclusive worldwide licensee for Abercrombie & Fitch, Anna Sui, Boucheron, Coach, Ferragamo, Graff, GUESS, Hollister, Jimmy Choo, Karl Lagerfeld, Kate Spade, MCM, Moncler, Montblanc, Oscar de la Renta, S.T. Dupont, Ungaro and Van Cleef & Arpels. Inter Parfums is also the owner of Lanvin fragrances and the Rochas brand. Through its global distribution network, the Company’s products are sold in over 120 countries.

Statements in this release which are not historical in nature are forward-looking statements. Although we believe that our plans, intentions and expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such plans, intentions or expectations will be achieved. In some cases you can identify forward-looking statements by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” and “would,” or similar words. You should not rely on forward-looking statements, because actual events or results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, the risks and uncertainties discussed under the headings “Forward Looking Statements” and “Risk Factors” in Inter Parfums’ annual report on Form 10-K for the fiscal year ended December 31, 2021 and the reports Inter Parfums files from time to time with the Securities and Exchange Commission. Inter Parfums does not intend to and undertakes no duty to update the information contained in this press release.

Contact at Inter Parfums, Inc.

Russell Greenberg, Exec. VP & CFO

(212) 983-2640

[email protected]

www.interparfumsinc.com

-or-

Investor Relations Counsel

The Equity Group Inc.

Devin Sullivan (212) 836-9608/[email protected]

Linda Latman (212) 836-9609/[email protected]

www.theequitygroup.com

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Department Stores Finance Other Retail Specialty Professional Services Fashion Cosmetics Retail Online Retail

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Hewlett Packard Enterprise Reports Fiscal 2022 Second Quarter Results

Hewlett Packard Enterprise Reports Fiscal 2022 Second Quarter Results

Persistent demand drives orders and sustained margins

Q2 2022 Financial Highlights:

  • Orders: Strong customer demand drives order growth up 20% from the prior-year period, the fourth consecutive quarter of 20% or better order growth

    • As-a-Service orders(1) increased 107% from the prior-year period, the 3rd consecutive quarter of doubling
  • Revenue: $6.7 billion, up 0.2% and 1.5% adjusted for currency(2) from the prior-year period and in line with Q2 outlook
  • Gross margins remain strong despite ongoing supply chain constraints and inflationary environment

    • GAAP of 32.4%, down 170 basis points from the prior-year period primarily due to $105 million of Russia-related charges
    • Non-GAAP of 34.2%, down 10 basis points from the prior-year period
  • Diluted net earnings per share (“EPS”):

    • GAAP of $0.19, flat from the prior-year period primarily due to $126 million of Russia-related charges
    • Non-GAAP of $0.44, down 4% from the prior-year period due to impact from Russia-related operations and currency
  • Cash flow from operations of $379 million and free cash flow of ($211) million, in line with normal seasonality

Capital Returns:

  • Returned $214 million to shareholders in the form of dividends and share repurchases
  • Declared a regular cash dividend of $0.12 per share, payable on July 8, 2022

Outlook:

  • Reiterates fiscal 2022 revenue growth of 3%-4% adjusted for currency
  • Third quarter fiscal 2022: Estimates GAAP diluted net EPS to be in the range of $0.22 to $0.32 and non-GAAP diluted net EPS to be in the range of $0.44 to $0.54
  • Fiscal 2022: Updates GAAP diluted net EPS to be in the range of $1.17 to $1.31 and non-GAAP diluted net EPS back to the original outlook of $1.96 to $2.10 provided at the HPE October 2021 Securities Analyst Meeting reflecting unfavorable currency movements and Russia exit
  • Fiscal 2022 free cash flow(3): Reiterates free cash flow guidance to be in the range of $1.8 to $2.0 billion

HOUSTON–(BUSINESS WIRE)–
Hewlett Packard Enterprise (NYSE: HPE) today announced financial results for the second quarter, ended April 30, 2022.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220601005601/en/

HPE reports second quarter fiscal year 2022 results that show persistent demand leading to more orders, steady revenue and sustained margins. (Graphic: Business Wire)

HPE reports second quarter fiscal year 2022 results that show persistent demand leading to more orders, steady revenue and sustained margins. (Graphic: Business Wire)

“Persistent demand led to another quarter of significant order growth and higher revenue for HPE, underscoring the accelerating interest customers have in our unique edge-to-cloud portfolio and our HPE GreenLake platform,” said Antonio Neri, president, and CEO of Hewlett Packard Enterprise. “I am optimistic that demand will continue to be strong, given our customers’ needs to accelerate their business resilience and competitiveness. We remain focused on innovating for our customers and on executing with discipline so that we translate that demand into profitable growth for HPE.”

“We are particularly pleased with the resiliency of our gross margins despite the inflationary environment and ongoing supply chain disruptions,” said Tarek Robbiati, EVP and CFO of Hewlett Packard Enterprise. “With record levels of high-quality backlog, we are well positioned for growth in FY22 and beyond, and confident in realizing the financial commitments we set at our Securities Analyst Meeting last October.”

Second Quarter Fiscal Year 2022 Results

Net revenue of $6.7 billion, up 0.2% and 1.5% adjusted for currency(2) from the prior-year period and in line with outlook.

Annualized revenue run-rate (“ARR”)(4) of $829 million, up 25%(2) from the prior-year period and total as-a-Service orders(1) were up 107% from the prior-year period, marking the third consecutive quarter of orders doubling. We remain confident in delivering our 2021 Securities Analyst Meeting ARR guidance of 35%-45% Compounded Annual Growth Rate from fiscal year 2021 to fiscal year 2024.

GAAP gross margin of 32.4%, down 170 basis points from the prior-year period, primarily due to $105 million of Russia-related charges, and non-GAAP gross margin of 34.2%, down 10 basis points from the prior-year period, driven by disciplined execution and pricing actions.

GAAP diluted net EPS was $0.19, flat from the prior-year period and in line with our previously provided outlook of $0.18 to $0.26 per share.

HPE announced in February that we stopped all shipments to and sales in Russia and Belarus. During the second quarter of 2022, we recorded total charges of $126 million related to the Russia conflict’s impact on our business. Based on further assessment of business risks and needs, we have determined that it is no longer tenable to maintain operations in Russia and Belarus and are proceeding with an orderly, managed exit of our remaining business in these countries. We expect to record additional charges in the third quarter of fiscal 2022 related to our decision to exit Russia and Belarus, but do not expect these charges to be material.

Non-GAAP diluted net EPS was $0.44, compared to $0.46 in the prior-year period and near the midpoint of our outlook range of $0.41 to $0.49 per share. Second quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $333 million and $0.25 per diluted share, respectively, primarily for Russia-related disaster charges, stock-based compensation expense, transformation costs, and the amortization of intangible assets.

Cash flow from operationsof $379 million, down $443 million from the prior-year period.

Free cash flow of ($211) million, down $579 million from the prior-year period reflecting normal seasonality and strategic working capital actions due to strong customer demand.

Capital returns to shareholders of $214 million in the form of share repurchases and dividends.

Segment Results

  • Intelligent Edge revenue was $867 million, up 8% from the prior-year period in actual dollars and 9% when adjusted for currency, with 12.6% operating profit margin, compared to 15.7% in the prior-year period. Aruba Services revenue was up double-digits from the prior-year period and Intelligent Edge as-a-Service ARR4 was up 50%+ from the prior-year period.
  • High Performance Computing & Artificial Intelligence (“HPC & AI”) revenue was $710 million, up 4% from the prior-year period in actual dollars and 5% when adjusted for currency, with (5.6%) operating profit margin, compared to 2.6% from the prior-year period. The operating loss was driven by supply constraints and delayed customer acceptances. We remain on track to exceed the expected 11% market CAGR from FY21-24.
  • Compute revenue was $3.0 billion, flat from the prior-year period in actual dollars and up 1% when adjusted for currency, with 13.9% operating profit margin, compared to 11.2% from the prior-year period. Margin expansion was driven by strategic pricing actions more than offsetting input cost increases.
  • Storage revenue was $1.1 billion, down 3% from the prior-year period in actual dollars and 2% when adjusted for currency, with 12.6% operating profit margin, compared to 16.8% from the prior-year period reflecting higher supply chain costs and unfavorable mix shift.
  • Financial Services revenue was $823 million, down 2% from the prior-year period in actual dollars and flat when adjusted for currency, with 12.6% operating profit margin, compared to 10.8% from the prior-year period. Net portfolio assets of approximately $12.6 billion, down 4% from the prior-year period or up 1% when adjusted for currency. The business delivered return on equity of 20.4%, up 2.1 points from the prior-year period, well above pre-pandemic levels.

Dividend

Board of Directors has declared a regular cash dividend of $0.12 per share on the company’s common stock, payable on July 8, 2022, to stockholders of record as of the close of business on June 13, 2022.

Fiscal 2022 third quarter outlook:

Hewlett Packard Enterprise estimates GAAP diluted net EPS to be in the range of $0.22 to $0.32 and non-GAAP diluted net EPS to be in the range of $0.44 to $0.54. Fiscal 2022 third quarter non-GAAP diluted net EPS estimates exclude after-tax adjustments of approximately $0.22 per diluted share, primarily related to, transformation costs, stock-based compensation expense and the amortization of intangible assets.

Fiscal 2022 outlook:

Hewlett Packard Enterprise updates GAAP diluted net EPS outlook of $1.17 – $1.31 and full-year FY22 non-GAAP diluted net EPS outlook to the original outlook provided at our 2021 Securities Analyst Meeting of $1.96 to $2.10. Fiscal 2022 non-GAAP diluted net EPS estimates exclude after-tax adjustments of approximately $0.79 per diluted share, reflecting a charge related to Russia and Belarus, transformation costs, stock-based compensation expense and the amortization of intangible assets.

Reiterates free cash flow(3) guidance of $1.8 to $2.0 billion.

1 As-a-Service (“AAS”) orders are an overlay across all business segments contributing to HPE’s consumption-based services (both recurring and non-recurring), and includes hardware, as well as GreenLake as-a-Service, Aruba SaaS, CMS SaaS, and other Software assets.

2 Adjusted to eliminate the effects of currency. A description of HPE’s use of non-GAAP financial information is provided below under “Use of non-GAAP financial information”.

3 Hewlett Packard Enterprise provides certain guidance on a non-GAAP basis, as the Company cannot predict some elements that are included in reported GAAP results. Refer to the discussion of non-GAAP financial measures below for more information.

4 Annualized Revenue Run-Rate (“ARR”) is a financial metric used to assess the growth of the Consumption Services (“CS”) offerings. ARR represents the annualized revenue of all net HPE GreenLake services revenue, related financial services revenue (which includes rental income from operating leases and interest income for capital leases), and software-as-a-Service, software consumption revenue, and other as-a-Service offerings recognized during a quarter and multiplied by four. We use ARR as a performance metric. ARR should be viewed independently of net revenue and is not intended to be combined with it.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise (NYSE: HPE) is the global edge-to-cloud company that helps organizations accelerate outcomes by unlocking value from all of their data, everywhere. Built on decades of reimagining the future and innovating to advance the way people live and work, HPE delivers unique, open and intelligent technology solutions as a service. With offerings spanning Cloud Services, Compute, High Performance Computing & AI, Intelligent Edge, Software, and Storage, HPE provides a consistent experience across all clouds and edges, helping customers develop new business models, engage in new ways, and increase operational performance. For more information, visit: www.hpe.com

Use of non-GAAP financial information and key performance metrics

To supplement Hewlett Packard Enterprise’s condensed consolidated financial statement information presented on a generally accepted accounting principles (“GAAP”) basis, Hewlett Packard Enterprise provides financial measures, including revenue on a constant currency basis, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit margin, non-GAAP income tax rate, non-GAAP net earnings, non-GAAP diluted net earnings per share, gross cash, free cash flow, net debt, net cash, operating company net debt and operating company net cash financial measures. Hewlett Packard Enterprise also provides forecasts of non-GAAP diluted net earnings per share and free cash flow. A reconciliation of adjustments to GAAP financial measures for this quarter and prior periods is included in the tables below or elsewhere in the materials accompanying this news release. In addition, an explanation of the ways in which Hewlett Packard Enterprise’s management uses these non-GAAP measures to evaluate its business, the substance behind Hewlett Packard Enterprise’s decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which Hewlett Packard Enterprise’s management compensates for those limitations, and the substantive reasons why Hewlett Packard Enterprise’s management believes that these non-GAAP measures provide useful information to investors is included under “Use of non-GAAP financial measures” further below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for revenue, gross profit, gross profit margin, operating profit (earnings from operations), operating profit margin, net earnings, diluted net earnings per share, cash, cash equivalents and restricted cash, cash flow from operations, investments in property, plant and equipment, or total company debt prepared in accordance with GAAP.

In addition to the supplemental non-GAAP financial information, Hewlett Packard Enterprise also presents annualized revenue run-rate (“ARR”) and as-a-Service (“AAS”) orders as performance metrics. ARR is a financial metric used to assess the growth of the Consumption Services (“CS”) offerings. ARR represents the annualized value of all recurring net HPE GreenLake services revenue, related financial services revenue (which includes rental income for operating leases and interest income for capital leases), and Software-as-a-Service (“SaaS”), software consumption revenue, and other as-a-Service offerings recognized during a quarter and multiplied by four. AAS orders are an overlay across all business segments contributing to HPE’s consumption-based services (both recurring and non-recurring revenues), and includes hardware, as well as HPE GreenLake as-a-Service, Aruba SaaS, CMS SaaS, and other Software assets. ARR & AAS orders should be viewed independently of net revenue and deferred revenue and are not intended to be combined with any of these items.

Forward-looking statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties, and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of Hewlett Packard Enterprise Company and its consolidated subsidiaries (“Hewlett Packard Enterprise”) may differ materially from those expressed or implied by such forward-looking statements and assumptions. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “aim”, “will”, “should” and similar expressions are intended to identify such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to the scope and duration of the novel coronavirus pandemic (“COVID-19”), our actions in response thereto, and its and their impacts on our business, operations, liquidity and capital resources, employees, customers, partners, supply chain, financial results, and the world economy; any projections of revenue, margins, expenses, investments, effective tax rates, interest rates, the impact of tax law changes and related guidance and regulations, net earnings, net earnings per share, cash flows, liquidity and capital resources, inventory, goodwill, impairment charges, hedges and derivatives and related offsets, order backlog, benefit plan funding, deferred tax assets, share repurchases, currency exchange rates, repayments of debts including our asset-backed debt securities, or other financial items; any projections of the amount, execution, timing, and results of any transformation or impact of cost savings, restructuring plans, including estimates and assumptions related to the anticipated benefits, cost savings, or charges of implementing transformation and restructuring plans; any statements of the plans, strategies, and objectives of management for future operations, as well as the execution of corporate transactions or contemplated acquisitions, research and development expenditures, and any resulting benefit, cost savings, charges, or revenue or profitability improvements; any statements concerning the expected development, performance, market share, or competitive performance relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on Hewlett Packard Enterprise and its financial performance; any statements regarding pending investigations, claims, or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing.

Risks, uncertainties and assumptions include the need to address the many challenges facing Hewlett Packard Enterprise’s businesses; the competitive pressures faced by Hewlett Packard Enterprise’s businesses; risks associated with executing Hewlett Packard Enterprise’s strategy; the impact of macroeconomic and geopolitical trends and events, including but not limited to supply chain constraints and the ongoing conflict between Russia and Ukraine; the need to effectively manage third-party suppliers, distribute Hewlett Packard Enterprise’s products, and deliver Hewlett Packard Enterprise’s services; the protection of Hewlett Packard Enterprise’s intellectual property assets, including intellectual property licensed from third parties and intellectual property shared with its former parent; risks associated with Hewlett Packard Enterprise’s international operations (including pandemics and public health problems, such as the outbreak of COVID-19); the development of and transition to new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by Hewlett Packard Enterprise and its suppliers, customers, clients, and partners, including any impact thereon resulting from events such as the COVID-19 pandemic; the hiring and retention of key employees; the execution, integration, and other risks associated with business combination and investment transactions; the impact of changes to environmental, global trade, and other governmental regulations; changes in our product, lease, intellectual property, or real estate portfolio; the payment or non-payment of a dividend for any period; the efficacy of using non-GAAP, rather than GAAP, financial measures in business projections and planning; the judgments required in connection with determining revenue recognition; impact of company policies and related compliance; utility of segment realignments; allowances for recovery of receivables and warranty obligations; provisions for, and resolution of, pending investigations, claims, and disputes; and other risks that are described herein, including but not limited to the risks described in Hewlett Packard Enterprise’s Annual Report on Form 10-K for the fiscal year ended October 31, 2021, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and in other filings made by Hewlett Packard Enterprise from time to time with the Securities and Exchange Commission.

As in prior periods, the financial information set forth in this press release, including tax-related items, reflects estimates based on information available at this time. While Hewlett Packard Enterprise believes these estimates to be reasonable, these amounts could differ materially from reported amounts in the Hewlett Packard Enterprise Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2022. Hewlett Packard Enterprise assumes no obligation and does not intend to update these forward-looking statements, except as required by applicable law.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(Unaudited)

 

 

 

 

For the three months ended

 

April 30, 2022

 

January 31, 2022

 

April 30, 2021

 

In millions, except per share amounts

Net revenue

$

6,713

 

 

$

6,961

 

 

$

6,700

 

Costs and expenses:

 

 

 

 

 

Cost of sales(1)

 

4,540

 

 

 

4,617

 

 

 

4,413

 

Research and development

 

517

 

 

 

504

 

 

 

503

 

Selling, general and administrative

 

1,249

 

 

 

1,201

 

 

 

1,199

 

Amortization of intangible assets

 

74

 

 

 

73

 

 

 

84

 

Transformation costs

 

98

 

 

 

111

 

 

 

209

 

Disaster charges

 

20

 

 

 

 

 

 

1

 

Acquisition, disposition and other related charges

 

8

 

 

 

7

 

 

 

13

 

Total costs and expenses

 

6,506

 

 

 

6,513

 

 

 

6,422

 

Earnings from operations

 

207

 

 

 

448

 

 

 

278

 

Interest and other, net

 

 

 

 

(5

)

 

 

(11

)

Tax indemnification and related adjustments

 

 

 

 

(17

)

 

 

 

Non-service net periodic benefit credit

 

36

 

 

 

36

 

 

 

17

 

Earnings from equity interests

 

33

 

 

 

31

 

 

 

4

 

Earnings before (provision) benefit for taxes

 

276

 

 

 

493

 

 

 

288

 

(Provision) benefit for taxes

 

(26

)

 

 

20

 

 

 

(29

)

Net earnings

$

250

 

 

$

513

 

 

$

259

 

Net earnings per share:

 

 

 

 

 

Basic

$

0.19

 

 

$

0.39

 

 

$

0.20

 

Diluted

$

0.19

 

 

$

0.39

 

 

$

0.19

 

Cash dividends declared per share

$

0.12

 

 

$

0.12

 

 

$

0.12

 

Weighted-average shares used to compute net earnings per share:

 

 

 

 

 

Basic

 

1,307

 

 

 

1,304

 

 

 

1,309

 

Diluted

 

1,329

 

 

 

1,325

 

 

 

1,331

 

______________________

(1) The three and six months ended April 30, 2022 include pre-tax charges of $105 million, primarily related to expected financing receivable credit losses.

 

 

 

 

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(Unaudited)

 

 

 

For the six months ended

 

April 30, 2022

 

April 30, 2021

 

In millions, except per share amounts

Net revenue

$

13,674

 

 

$

13,533

 

Costs and expenses:

 

 

 

Cost of sales(1)

 

9,157

 

 

 

8,958

 

Research and development

 

1,021

 

 

 

971

 

Selling, general and administrative

 

2,450

 

 

 

2,358

 

Amortization of intangible assets

 

147

 

 

 

194

 

Transformation costs

 

209

 

 

 

520

 

Disaster charges

 

19

 

 

 

1

 

Acquisition, disposition and other related charges

 

16

 

 

 

31

 

Total costs and expenses

 

13,019

 

 

 

13,033

 

Earnings from operations

 

655

 

 

 

500

 

Interest and other, net

 

(5

)

 

 

(55

)

Tax indemnification and related adjustments

 

(17

)

 

 

(16

)

Non-service net periodic benefit credit

 

72

 

 

 

34

 

Earnings from equity interests

 

64

 

 

 

30

 

Earnings before provision for taxes

 

769

 

 

 

493

 

Provision for taxes

 

(6

)

 

 

(11

)

Net earnings

$

763

 

 

$

482

 

Net earnings per share:

 

 

 

Basic

$

0.58

 

 

$

0.37

 

Diluted

$

0.57

 

 

$

0.36

 

Cash dividends declared per share

$

0.24

 

 

$

0.24

 

Weighted-average shares used to compute net earnings per share:

 

 

 

Basic

 

1,306

 

 

 

1,304

 

Diluted

 

1,327

 

 

 

1,323

 

_______________________

(1) The three and six months ended April 30, 2022 include pre-tax charges of $105 million, primarily related to expected financing receivable credit losses.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP measures

(Unaudited)

 

 

 

 

 

 

 

 

For the three months ended

 

April 30, 2022

 

January 31, 2022

 

April 30, 2021

 

Dollars in millions

GAAP net revenue

$

6,713

 

 

$

6,961

 

 

$

6,700

 

GAAP cost of sales

 

4,540

 

 

 

4,617

 

 

 

4,413

 

GAAP gross profit

$

2,173

 

 

$

2,344

 

 

$

2,287

 

Non-GAAP adjustments

 

 

 

 

 

Amortization of initial direct costs

$

1

 

 

$

1

 

 

$

2

 

Stock-based compensation expense

 

14

 

 

 

15

 

 

 

11

 

Disaster charges(a)

 

105

 

 

 

 

 

 

 

Non-GAAP gross profit

$

2,293

 

 

$

2,360

 

 

$

2,300

 

 

 

 

 

 

 

GAAP gross profit margin

 

32.4

%

 

 

33.7

%

 

 

34.1

%

Non-GAAP adjustments

 

1.8

%

 

 

0.2

%

 

 

0.2

%

Non-GAAP gross profit margin

 

34.2

%

 

 

33.9

%

 

 

34.3

%

 

 

 

 

 

For the six months ended

 

April 30, 2022

 

April 30, 2021

 

Dollars in millions

GAAP net revenue

$

13,674

 

 

$

13,533

 

GAAP cost of sales

 

9,157

 

 

 

8,958

 

GAAP gross profit

$

4,517

 

 

$

4,575

 

Non-GAAP adjustments

 

 

 

Amortization of initial direct costs

$

2

 

 

$

4

 

Stock-based compensation expense

 

29

 

 

 

24

 

Disaster charges(a)

 

105

 

 

 

 

Non-GAAP gross profit

$

4,653

 

 

$

4,603

 

 

 

 

 

GAAP gross profit margin

 

33.0

%

 

 

33.8

%

Non-GAAP adjustments

 

1.0

%

 

 

0.2

%

Non-GAAP gross profit margin

 

34.0

%

 

 

34.0

%

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP measures

(Unaudited)

 

 

 

 

 

 

 

For the three months ended

 

April 30, 2022

 

January 31, 2022

 

April 30, 2021

 

Dollars in millions

GAAP earnings from operations

$

207

 

 

$

448

 

 

$

278

 

Non-GAAP adjustments

 

 

 

 

 

Amortization of initial direct costs

 

1

 

 

 

1

 

 

 

2

 

Amortization of intangible assets

 

74

 

 

 

73

 

 

 

84

 

Transformation costs

 

98

 

 

 

111

 

 

 

209

 

Disaster charges(a)

 

125

 

 

 

 

 

 

1

 

Stock-based compensation expense

 

114

 

 

 

128

 

 

 

98

 

Acquisition, disposition and other related charges

 

8

 

 

 

7

 

 

 

13

 

Non-GAAP earnings from operations

$

627

 

 

$

768

 

 

$

685

 

 

 

 

 

 

 

GAAP operating profit margin

 

3.1

%

 

 

6.4

%

 

 

4.1

%

Non-GAAP adjustments

 

6.2

%

 

 

4.6

%

 

 

6.1

%

Non-GAAP operating profit margin

 

9.3

%

 

 

11.0

%

 

 

10.2

%

 

For the six months ended

 

April 30, 2022

 

April 30, 2021

 

Dollars in millions

GAAP earnings from operations

$

655

 

 

$

500

 

Non-GAAP adjustments

 

 

 

Amortization of initial direct costs

 

2

 

 

 

4

 

Amortization of intangible assets

 

147

 

 

 

194

 

Transformation costs

 

209

 

 

 

520

 

Disaster charges(a)

 

124

 

 

 

1

 

Stock-based compensation expense

 

242

 

 

 

208

 

Acquisition, disposition and other related charges

 

16

 

 

 

31

 

Non-GAAP earnings from operations

$

1,395

 

 

$

1,458

 

 

 

 

 

GAAP operating profit margin

 

4.8

%

 

 

3.7

%

Non-GAAP adjustments

 

5.4

%

 

 

7.1

%

Non-GAAP operating profit margin

 

10.2

%

 

 

10.8

%

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP measures

(Unaudited)

 

 

For the three months ended

 

April 30, 2022

 

Diluted net

earnings per

share

 

January 31, 2022

 

Diluted net

earnings per

share

 

April 30, 2021

 

Diluted net

earnings per

share

 

Dollars in millions, except per share amounts

GAAP net earnings

$

250

 

 

$

0.19

 

 

$

513

 

 

$

0.39

 

 

$

259

 

 

$

0.19

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

 

 

 

Amortization of initial direct costs

 

1

 

 

 

 

 

 

1

 

 

 

 

 

 

2

 

 

 

 

Amortization of intangible assets

 

74

 

 

 

0.06

 

 

 

73

 

 

 

0.06

 

 

 

84

 

 

 

0.06

 

Transformation costs

 

98

 

 

 

0.07

 

 

 

111

 

 

 

0.08

 

 

 

209

 

 

 

0.15

 

Disaster charges(a)

 

125

 

 

 

0.09

 

 

 

 

 

 

 

 

 

1

 

 

 

 

Stock-based compensation expense

 

114

 

 

 

0.09

 

 

 

128

 

 

 

0.10

 

 

 

98

 

 

 

0.08

 

Acquisition, disposition and other related charges

 

8

 

 

 

0.01

 

 

 

7

 

 

 

0.01

 

 

 

13

 

 

 

0.01

 

Tax indemnification and related adjustments

 

 

 

 

 

 

 

17

 

 

 

0.01

 

 

 

 

 

 

 

Non-service net periodic benefit credit

 

(36

)

 

 

(0.03

)

 

 

(36

)

 

 

(0.03

)

 

 

(17

)

 

 

(0.01

)

Earnings from equity interests(b)

 

17

 

 

 

0.01

 

 

 

17

 

 

 

0.01

 

 

 

34

 

 

 

0.03

 

Adjustments for taxes

 

(68

)

 

 

(0.05

)

 

 

(134

)

 

 

(0.10

)

 

 

(71

)

 

 

(0.05

)

Non-GAAP net earnings

$

583

 

 

$

0.44

 

 

$

697

 

 

$

0.53

 

 

$

612

 

 

$

0.46

 

 

For the six months ended

 

April 30,

2022

 

Diluted net

earnings per

share

 

April 30,

2021

 

Diluted net

earnings per

share

 

Dollars in millions, except per share amounts

GAAP net earnings

$

763

 

 

$

0.57

 

 

$

482

 

 

$

0.36

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

Amortization of initial direct costs

 

2

 

 

 

 

 

 

4

 

 

 

 

Amortization of intangible assets

 

147

 

 

 

0.11

 

 

 

194

 

 

 

0.15

 

Transformation costs

 

209

 

 

 

0.16

 

 

 

520

 

 

 

0.40

 

Disaster charges(a)

 

124

 

 

 

0.09

 

 

 

1

 

 

 

 

Stock-based compensation expense

 

242

 

 

 

0.18

 

 

 

208

 

 

 

0.16

 

Acquisition, disposition and other related charges

 

16

 

 

 

0.01

 

 

 

31

 

 

 

0.02

 

Tax indemnification and related adjustments

 

17

 

 

 

0.01

 

 

 

16

 

 

 

0.01

 

Non-service net periodic benefit credit

 

(72

)

 

 

(0.05

)

 

 

(34

)

 

 

(0.03

)

Earnings from equity interests(b)

 

34

 

 

 

0.03

 

 

 

68

 

 

 

0.05

 

Adjustments for taxes

 

(202

)

 

 

(0.15

)

 

 

(199

)

 

 

(0.14

)

Non-GAAP net earnings

$

1,280

 

 

$

0.96

 

 

$

1,291

 

 

$

0.98

 

(a) In the second quarter of fiscal 2022, the Company recorded total pre-tax charges of $126 million primarily related to expected financing and trade receivables credit losses, $99 million of which was included in Financing cost, $6 million in Cost of services and $21 million in Disaster charges in the Condensed Consolidated Statements of Earnings. During the three and six months ended April 30, 2022, Disaster charges also included a recovery of $1 million and $2 million, respectively, related to COVID-19.

(b) Represents the amortization of basis difference adjustments related to the H3C divestiture.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP measures

(Unaudited)

 

 

 

 

 

 

 

 

For the three months ended

 

April 30, 2022

 

January 31, 2022

 

April 30, 2021

 

In millions

Net cash provided by (used in) operating activities

$

379

 

 

$

(76

)

 

$

822

 

Investment in property, plant and equipment

 

(725

)

 

 

(624

)

 

 

(535

)

Proceeds from sale of property, plant and equipment

 

135

 

 

 

123

 

 

 

81

 

Free cash flow

$

(211

)

 

$

(577

)

 

$

368

 

 

For the six months ended

 

April 30, 2022

 

April 30, 2021

 

In millions

Net cash provided by operating activities

$

303

 

 

$

1,785

 

Investment in property, plant and equipment

 

(1,349

)

 

 

(1,048

)

Proceeds from sale of property, plant and equipment

 

258

 

 

 

194

 

Free cash flow

$

(788

)

 

$

931

 

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

 

 

 

 

 

As of

 

April 30, 2022

 

October 31, 2021

 

(Unaudited)

 

(Audited)

 

In millions, except par value

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

3,027

 

 

$

3,996

 

Accounts receivable, net of allowances

 

3,122

 

 

 

3,979

 

Financing receivables, net of allowances

 

3,655

 

 

 

3,932

 

Inventory

 

5,322

 

 

 

4,511

 

Other current assets

 

3,046

 

 

 

2,460

 

Total current assets

 

18,172

 

 

 

18,878

 

Property, plant and equipment

 

5,508

 

 

 

5,613

 

Long-term financing receivables and other assets

 

11,198

 

 

 

11,670

 

Investments in equity interests

 

2,262

 

 

 

2,210

 

Goodwill and intangible assets

 

19,184

 

 

 

19,328

 

Total assets

$

56,324

 

 

$

57,699

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Notes payable and short-term borrowings

$

4,596

 

 

$

3,552

 

Accounts payable

 

5,671

 

 

 

7,004

 

Employee compensation and benefits

 

1,198

 

 

 

1,778

 

Taxes on earnings

 

153

 

 

 

169

 

Deferred revenue

 

3,448

 

 

 

3,408

 

Accrued restructuring

 

183

 

 

 

290

 

Other accrued liabilities

 

4,941

 

 

 

4,486

 

Total current liabilities

 

20,190

 

 

 

20,687

 

Long-term debt

 

8,905

 

 

 

9,896

 

Other non-current liabilities

 

6,647

 

 

 

7,099

 

Stockholders’ equity

 

 

 

HPE stockholders’ equity:

 

 

 

Common stock, $0.01 par value (9,600 shares authorized; 1,299 and 1,295 shares issued and outstanding at April 30, 2022 and October 31, 2021, respectively)

 

13

 

 

 

13

 

Additional paid-in capital

 

28,473

 

 

 

28,470

 

Accumulated deficit

 

(5,145

)

 

 

(5,597

)

Accumulated other comprehensive loss

 

(2,809

)

 

 

(2,915

)

Total HPE stockholders’ equity

 

20,532

 

 

 

19,971

 

Non-controlling interests

 

50

 

 

 

46

 

Total stockholders’ equity

 

20,582

 

 

 

20,017

 

Total liabilities and stockholders’ equity

$

56,324

 

 

$

57,699

 

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

 

For the six months ended April 30,

 

 

2022

 

 

 

2021

 

 

In millions

Cash flows from operating activities:

 

 

 

Net earnings

$

763

 

 

$

482

 

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

1,242

 

 

 

1,313

 

Stock-based compensation expense

 

242

 

 

 

218

 

Provision for doubtful accounts and inventory

 

213

 

 

 

98

 

Restructuring charges

 

68

 

 

 

366

 

Deferred taxes on earnings

 

(54

)

 

 

(95

)

Earnings from equity interests

 

(64

)

 

 

(30

)

Other, net

 

(46

)

 

 

62

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

Accounts receivable

 

817

 

 

 

432

 

Financing receivables

 

470

 

 

 

(104

)

Inventory

 

(861

)

 

 

(497

)

Accounts payable

 

(1,323

)

 

 

164

 

Taxes on earnings

 

35

 

 

 

(30

)

Restructuring

 

(197

)

 

 

(324

)

Other assets and liabilities

 

(1,002

)

 

 

(270

)

Net cash provided by operating activities

 

303

 

 

 

1,785

 

Cash flows from investing activities:

 

 

 

Investment in property, plant and equipment

 

(1,349

)

 

 

(1,048

)

Proceeds from sale of property, plant and equipment

 

258

 

 

 

194

 

Purchases of investments

 

(40

)

 

 

(19

)

Proceeds from maturities and sales of investments

 

72

 

 

 

10

 

Financial collateral posted

 

(40

)

 

 

(631

)

Financial collateral received

 

272

 

 

 

297

 

Payments made in connection with business acquisitions, net of cash acquired

 

 

 

 

(34

)

Net cash used in investing activities

 

(827

)

 

 

(1,231

)

Cash flows from financing activities:

 

 

 

Short-term borrowings with original maturities less than 90 days, net

 

56

 

 

 

39

 

Proceeds from debt, net of issuance costs

 

1,582

 

 

 

1,632

 

Payment of debt

 

(1,340

)

 

 

(1,744

)

Net payments related to stock-based award activities

 

(60

)

 

 

(27

)

Repurchase of common stock

 

(187

)

 

 

 

Cash dividends paid to non-controlling interests

 

 

 

 

(8

)

Cash dividends paid to shareholders

 

(311

)

 

 

(311

)

Net cash used in financing activities

 

(260

)

 

 

(419

)

(Decrease) increase in cash, cash equivalents and restricted cash

 

(784

)

 

 

135

 

Cash, cash equivalents and restricted cash at beginning of period

 

4,332

 

 

 

4,621

 

Cash, cash equivalents and restricted cash at end of period

$

3,548

 

 

$

4,756

 

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Segment Information

(Unaudited)

 

 

 

 

 

For the three months ended

 

 

April 30, 2022

 

January 31, 2022

 

April 30, 2021

 

 

In millions

Net revenue:

 

 

 

 

 

 

Compute

 

$

2,985

 

 

$

3,016

 

 

$

2,974

 

High Performance Computing & Artificial Intelligence

 

 

710

 

 

 

790

 

 

 

684

 

Storage

 

 

1,098

 

 

 

1,156

 

 

 

1,136

 

Intelligent Edge

 

 

867

 

 

 

901

 

 

 

803

 

Financial Services

 

 

823

 

 

 

842

 

 

 

839

 

Corporate Investments and Other

 

 

327

 

 

 

325

 

 

 

350

 

Total segment net revenue

 

 

6,810

 

 

 

7,030

 

 

 

6,786

 

Elimination of intersegment net revenue

 

 

(97

)

 

 

(69

)

 

 

(86

)

Total consolidated net revenue

 

$

6,713

 

 

$

6,961

 

 

$

6,700

 

 

 

 

 

 

 

 

Earnings before taxes:

 

 

 

 

 

 

Compute

 

$

415

 

 

$

416

 

 

$

334

 

High Performance Computing & Artificial Intelligence

 

 

(40

)

 

 

(7

)

 

 

18

 

Storage

 

 

138

 

 

 

168

 

 

 

191

 

Intelligent Edge

 

 

109

 

 

 

157

 

 

 

126

 

Financial Services

 

 

104

 

 

 

104

 

 

 

91

 

Corporate Investments and Other

 

 

(24

)

 

 

(11

)

 

 

(25

)

Total segment earnings from operations

 

 

702

 

 

 

827

 

 

 

735

 

 

 

 

 

 

 

 

Unallocated corporate costs and eliminations

 

 

(75

)

 

 

(59

)

 

 

(50

)

Stock-based compensation expense

 

 

(114

)

 

 

(128

)

 

 

(98

)

Amortization of initial direct costs

 

 

(1

)

 

 

(1

)

 

 

(2

)

Amortization of intangible assets

 

 

(74

)

 

 

(73

)

 

 

(84

)

Transformation costs

 

 

(98

)

 

 

(111

)

 

 

(209

)

Disaster charges

 

 

(125

)

 

 

 

 

 

(1

)

Acquisition, disposition and other related charges

 

 

(8

)

 

 

(7

)

 

 

(13

)

Interest and other, net

 

 

 

 

 

(5

)

 

 

(11

)

Tax indemnification and related adjustments

 

 

 

 

 

(17

)

 

 

 

Non-service net periodic benefit credit

 

 

36

 

 

 

36

 

 

 

17

 

Earnings from equity interests

 

 

33

 

 

 

31

 

 

 

4

 

Total consolidated earnings before taxes

 

$

276

 

 

$

493

 

 

$

288

 

 

 

 

 

 

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Segment Information

(Unaudited)

 

 

 

 

 

For the six months ended

 

 

April 30, 2022

 

April 30, 2021

 

 

In millions

Net revenue:

 

 

 

 

Compute

 

$

6,001

 

 

$

5,958

 

High Performance Computing & Artificial Intelligence

 

 

1,500

 

 

 

1,445

 

Storage

 

 

2,254

 

 

 

2,328

 

Intelligent Edge

 

 

1,768

 

 

 

1,613

 

Financial Services

 

 

1,665

 

 

 

1,699

 

Corporate Investments and Other

 

 

652

 

 

 

671

 

Total segment net revenue

 

 

13,840

 

 

 

13,714

 

Elimination of intersegment net revenue

 

 

(166

)

 

 

(181

)

Total consolidated net revenue

 

$

13,674

 

 

$

13,533

 

 

 

 

 

 

Earnings before taxes:

 

 

 

 

Compute

 

$

831

 

 

$

675

 

High Performance Computing & Artificial Intelligence

 

 

(47

)

 

 

61

 

Storage

 

 

306

 

 

 

425

 

Intelligent Edge

 

 

266

 

 

 

280

 

Financial Services

 

 

208

 

 

 

175

 

Corporate Investments and Other

 

 

(35

)

 

 

(56

)

Total segment earnings from operations

 

 

1,529

 

 

 

1,560

 

 

 

 

 

 

Unallocated corporate costs and eliminations

 

 

(134

)

 

 

(102

)

Stock-based compensation expense

 

 

(242

)

 

 

(208

)

Amortization of initial direct costs

 

 

(2

)

 

 

(4

)

Amortization of intangible assets

 

 

(147

)

 

 

(194

)

Transformation costs

 

 

(209

)

 

 

(520

)

Disaster charges

 

 

(124

)

 

 

(1

)

Acquisition, disposition and other related charges

 

 

(16

)

 

 

(31

)

Interest and other, net

 

 

(5

)

 

 

(55

)

Tax indemnification and related adjustments

 

 

(17

)

 

 

(16

)

Non-service net periodic benefit credit

 

 

72

 

 

 

34

 

Earnings from equity interests

 

 

64

 

 

 

30

 

Total consolidated earnings before taxes

 

$

769

 

 

$

493

 

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Segment Information

(Unaudited)

 

 

 

 

 

For the three months ended

 

Change (%)

 

April 30,

2022

 

January 31,

2022

 

April 30,

2021

 

Q/Q

 

Y/Y

 

Dollars in millions

Net revenue:

 

 

 

 

 

 

 

 

 

Compute

$

2,985

 

 

$

3,016

 

 

$

2,974

 

 

(1

%)

 

%

High Performance Computing & Artificial Intelligence

 

710

 

 

 

790

 

 

 

684

 

 

(10

%)

 

4

%

Storage

 

1,098

 

 

 

1,156

 

 

 

1,136

 

 

(5

%)

 

(3

%)

Intelligent Edge

 

867

 

 

 

901

 

 

 

803

 

 

(4

%)

 

8

%

Financial Services

 

823

 

 

 

842

 

 

 

839

 

 

(2

%)

 

(2

%)

Corporate Investments and Other

 

327

 

 

 

325

 

 

 

350

 

 

1

%

 

(7

%)

Total segment net revenue

 

6,810

 

 

 

7,030

 

 

 

6,786

 

 

(3

%)

 

%

Elimination of intersegment net revenue

 

(97

)

 

 

(69

)

 

 

(86

)

 

41

%

 

13

%

Total consolidated net revenue

$

6,713

 

 

$

6,961

 

 

$

6,700

 

 

(4

%)

 

%

 

 

 

 

 

 

 

 

 

For the six months ended

 

Change (%)

 

April 30, 2022

 

April 30, 2021

 

Y/Y

 

Dollars in millions

Net revenue:

 

 

 

 

 

Compute

$

6,001

 

 

$

5,958

 

 

1

%

High Performance Computing & Artificial Intelligence

 

1,500

 

 

 

1,445

 

 

4

%

Storage

 

2,254

 

 

 

2,328

 

 

(3

%)

Intelligent Edge

 

1,768

 

 

 

1,613

 

 

10

%

Financial Services

 

1,665

 

 

 

1,699

 

 

(2

%)

Corporate Investments

 

652

 

 

 

671

 

 

(3

%)

Total segment net revenue

 

13,840

 

 

 

13,714

 

 

1

%

Elimination of intersegment net revenue

 

(166

)

 

 

(181

)

 

(8

%)

Total consolidated net revenue

$

13,674

 

 

$

13,533

 

 

1

%

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Segment Operating Margin Summary Data

(Unaudited)

 

 

 

 

 

 

 

For the three months

ended

 

Change in Operating Profit

Margin (pts)

 

 

April 30, 2022

 

Q/Q

 

Y/Y

Segment operating profit margin:

 

 

 

 

 

 

Compute

 

13.9

%

 

0.1

 

 

2.7

 

High Performance Computing & Artificial Intelligence

 

(5.6

) %

 

(4.7

)

 

(8.2

)

Storage

 

12.6

%

 

(1.9

)

 

(4.2

)

Intelligent Edge

 

12.6

%

 

(4.8

)

 

(3.1

)

Financial Services

 

12.6

%

 

0.2

 

 

1.8

 

Corporate Investments and Other

 

(7.3

%)

 

(3.9

)

 

(0.2

)

Total segment operating profit margin

 

10.3

%

 

(1.5

)

 

(0.5

)

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Calculation of Diluted Net Earnings Per Share

(Unaudited)

 

 

 

 

For the three months ended

 

April 30, 2022

 

January 31, 2022

 

April 30, 2021

 

In millions, except per share amounts

Numerator:

 

 

 

 

 

GAAP net earnings

$

250

 

$

513

 

$

259

Non-GAAP net earnings

$

583

 

$

697

 

$

612

 

 

 

 

 

 

Denominator:

 

 

 

 

 

Weighted-average shares used to compute basic net earnings per share

 

1,307

 

 

1,304

 

 

1,309

Dilutive effect of employee stock plans

 

22

 

 

21

 

 

22

Weighted-average shares used to compute diluted net earnings per share

 

1,329

 

 

1,325

 

 

1,331

 

 

 

 

 

 

GAAP net earnings per share

 

 

 

 

 

Basic

$

0.19

 

$

0.39

 

$

0.20

Diluted

$

0.19

 

$

0.39

 

$

0.19

 

 

 

 

 

 

Non-GAAP net earnings per share

 

 

 

 

 

Basic

$

0.45

 

$

0.53

 

$

0.47

Diluted

$

0.44

 

$

0.53

 

$

0.46

 

For the six months ended

 

April 30, 2022

 

April 30, 2021

 

In millions, except per share amounts

Numerator:

 

 

 

GAAP net earnings

$

763

 

$

482

Non-GAAP net earnings

$

1,280

 

$

1,291

 

 

 

 

Denominator:

 

 

 

Weighted-average shares used to compute basic net earnings per share

 

1,306

 

 

1,304

Dilutive effect of employee stock plans

 

21

 

 

19

Weighted-average shares used to compute diluted net earnings per share

 

1,327

 

 

1,323

 

 

 

 

GAAP net earnings per share

 

 

 

Basic

$

0.58

 

$

0.37

Diluted

$

0.57

 

$

0.36

 

 

 

 

Non-GAAP net earnings per share

 

 

 

Basic

$

0.98

 

$

0.99

Diluted

$

0.96

 

$

0.98

Use of non-GAAP financial measures

To supplement Hewlett Packard Enterprise’s condensed consolidated financial statement information presented on a GAAP basis, Hewlett Packard Enterprise provides financial measures including revenue on a constant currency basis, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit margin, non-GAAP income tax rate, non-GAAP net earnings, non-GAAP diluted net earnings per share, gross cash, free cash flow, net debt, net cash, operating company net debt and operating company net cash financial measures. Hewlett Packard Enterprise also provides forecasts of non-GAAP diluted net earnings per share and free cash flow.

These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP in the United States. The GAAP measure most directly comparable to revenue on a constant currency basis is revenue. The GAAP measure most directly comparable to non-GAAP gross profit is gross profit. The GAAP measure most directly comparable to non-GAAP gross profit margin is gross profit margin. The GAAP measure most directly comparable to non-GAAP operating profit (non-GAAP earnings from operations) is operating profit (earnings from operations). The GAAP measure most directly comparable to non-GAAP operating profit margin is operating profit margin. The GAAP measure most directly comparable to non-GAAP income tax rate is income tax rate. The GAAP measure most directly comparable to non-GAAP net earnings is net earnings. The GAAP measure most directly comparable to non-GAAP diluted net earnings per share is diluted net earnings per share. The GAAP measure most directly comparable to gross cash is cash and cash equivalents. The GAAP measure most directly comparable to free cash flow is cash flow from operations. The GAAP measure most directly comparable to net debt and operating company net debt is total company debt. The GAAP measure most directly comparable to each of net cash and operating company net cash is cash and cash equivalents. Reconciliations of each of these non-GAAP financial measures to GAAP information are included in the tables above or elsewhere in the materials accompanying this news release.

Use and economic substance of non-GAAP financial measures used by Hewlett Packard Enterprise

Net revenue on a constant currency basis assumes no change in the foreign exchange rate from the prior-year period. Non-GAAP gross profit and non-GAAP gross profit margin are defined to exclude charges relating to the amortization of initial direct costs, stock-based compensation expense and disaster charges. Non-GAAP operating profit (non-GAAP earnings from operations) and non-GAAP operating profit margin are defined to exclude any charges relating to the amortization of initial direct costs, amortization of intangible assets, transformation costs, disaster charges, stock-based compensation expense and acquisition, disposition and other related charges. Non-GAAP net earnings and non-GAAP diluted net earnings per share consist of net earnings or diluted net earnings per share excluding those same charges, as well as an adjustment to tax indemnification and related adjustments, non-service net periodic benefit credit, earnings from equity interests, certain income tax valuation allowances and separation taxes, the impact of U.S. tax reform, structural rate adjustment and excess tax benefit from stock-based compensation. In addition, non-GAAP net earnings and non-GAAP diluted net earnings per share are adjusted by the amount of additional taxes or tax benefits associated with each non-GAAP item.

Hewlett Packard Enterprise’s management uses these non-GAAP financial measures for purposes of evaluating Hewlett Packard Enterprise’s historical and prospective financial performance, as well as Hewlett Packard Enterprise’s performance relative to its competitors. Hewlett Packard Enterprise’s management also uses these non-GAAP measures to further its own understanding of Hewlett Packard Enterprise’s segment operating performance. Hewlett Packard Enterprise believes that excluding the items mentioned above from these non-GAAP financial measures allows Hewlett Packard Enterprise’s management to better understand Hewlett Packard Enterprise’s consolidated financial performance in relation to the operating results of Hewlett Packard Enterprise’s segments, as Hewlett Packard Enterprise’s management does not believe that the excluded items are reflective of ongoing operating results. More specifically, Hewlett Packard Enterprise’s management excludes each of those items mentioned above for the following reasons:

  • Amortization of initial direct costs represents the portion of lease origination costs incurred in prior fiscal years that do not qualify for capitalization under the new leasing standard. Hewlett Packard Enterprise excludes these costs as the Company elected the practical expedient under the new leasing standard. As a result, the Company did not adjust these historical costs to accumulated deficit. The Company believes that most financing companies did not elect this practical expedient and therefore the Company excludes these costs to facilitate a more meaningful evaluation of its current operating performance and comparisons to its peers.
  • Hewlett Packard Enterprise incurs charges relating to the amortization of intangible assets and excludes these charges for purposes of calculating these non-GAAP measures. Such charges are significantly impacted by the timing and magnitude of Hewlett Packard Enterprise’s acquisitions and any related impairment charges. Consequently, Hewlett Packard Enterprise excludes these charges for purposes of calculating these non-GAAP measures to facilitate a more meaningful evaluation of Hewlett Packard Enterprise’s current operating performance and comparisons to Hewlett Packard Enterprise’s operating performance in other periods.
  • Transformation costs represent net costs related to the Cost Optimization and Prioritization Plan and HPE Next initiative and include restructuring charges, program design and execution costs, costs incurred to transform Hewlett Packard Enterprise’s IT infrastructure and net gains from the sale of real-estate and any impairment charges on real-estate assets identified as part of the initiative. Hewlett Packard Enterprise believes that eliminating such expenses and gains for purposes of calculating these non-GAAP measures facilitates a more meaningful evaluation of Hewlett Packard Enterprise’s current operating performance and comparisons to Hewlett Packard Enterprise’s past operating performance.
  • Disaster charges primarily represent credit losses of financing receivables and trade receivables that may not be recoverable due to the Russia/Ukraine conflict. Disaster charges also include direct costs or recovery related to COVID-19 as a result of Hewlett Packard Enterprise-hosted, co-hosted, or sponsored event cancellations and shift to a virtual format. Hewlett Packard Enterprise believes that eliminating these amounts for purposes of calculating non-GAAP measures facilitates a more meaningful evaluation of Hewlett Packard Enterprise’s current operating performance and comparisons to Hewlett Packard Enterprise’s operating performance in other periods.
  • Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date. Although stock-based compensation is a key incentive offered to our employees, Hewlett Packard Enterprise excludes these charges for the purpose of calculating these non-GAAP measures, primarily because they are non-cash expenses, and such an exclusion facilitates a more meaningful evaluation of Hewlett Packard Enterprise’s current operating performance and comparisons to Hewlett Packard Enterprise’s operating performance in other periods.
  • Hewlett Packard Enterprise incurs costs related to its acquisition, disposition and other related charges, most of which are treated as non-cash or non-capitalized expenses. The charges are direct expenses such as professional fees and retention costs. Charges may also include expenses associated with disposal activities including legal and arbitration settlements in connection with certain dispositions. Because non-cash or non-capitalized acquisition-related expenses are inconsistent in amount and frequency and are significantly impacted by the timing and nature of Hewlett Packard Enterprise’s acquisitions and divestitures, Hewlett Packard Enterprise believes that eliminating such expenses for purposes of calculating these non-GAAP measures facilitates a more meaningful evaluation of Hewlett Packard Enterprise’s current operating performance and comparisons to Hewlett Packard Enterprise’s past operating performance.
  • Tax indemnification and related adjustments are primarily related to changes in certain pre-separation tax liabilities for which Hewlett Packard Enterprise shared joint and several liability with HP Inc. and for which Hewlett Packard Enterprise was indemnified under the Termination and Mutual Release Agreement. These adjustments also include changes to certain pre-separation and pre-divestiture tax liabilities and tax receivables for which Hewlett Packard Enterprise remains liable on behalf of the separated or divested business, but which may not be subject to indemnification. Hewlett Packard Enterprise excludes these income or charges and the associated tax impact for the purpose of calculating non-GAAP measures to facilitate a more meaningful evaluation of Hewlett Packard Enterprise’s current operating performance and comparisons to Hewlett Packard Enterprise’s operating performance in other periods.
  • Non-service net periodic benefit credit includes certain market-related factors such as (i) interest cost, (ii) expected return on plan assets, (iii) amortization of prior plan amendments, (iv) amortized actuarial gains or losses, (v) the impacts of any plan settlements/curtailments and (vi) impacts from other market-related factors associated with Hewlett Packard Enterprise’s defined benefit pension and post-retirement benefit plans. These market-driven retirement-related adjustments are primarily due to the change in pension plan assets and liabilities which are tied to financial market performance. Hewlett Packard Enterprise excludes these adjustments for purposes of calculating non-GAAP measures and considers them to be outside the operational performance of the business.
  • Adjustment to earnings from equity interests includes the amortization of the basis difference in relation to the H3C divestiture and the resulting equity method investment in H3C. Hewlett Packard Enterprise believes that eliminating this amount for purposes of calculating non-GAAP measures facilitates a more meaningful evaluation of Hewlett Packard Enterprise’s current operating performance and comparisons to Hewlett Packard Enterprise’s operating performance in other periods.
  • Hewlett Packard Enterprise utilizes a structural long-term projected non-GAAP income tax rate in order to provide better consistency across the interim reporting periods and to eliminate the effects of items not directly related to the Company’s operating structure that can vary in size and frequency. When projecting this long-term rate, Hewlett Packard Enterprise evaluated a three-year financial projection. The projected rate assumes no incremental acquisitions in the three-year projection period and considers other factors including Hewlett Packard Enterprise’s expected tax structure, its tax positions in various jurisdictions and current impacts from key legislation implemented in major jurisdictions where Hewlett Packard Enterprise operates. For fiscal 2022, the Company will use a projected non-GAAP income tax rate of 14%, which reflects currently available information as well as other factors and assumptions. The non-GAAP income tax rate could be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in Hewlett Packard Enterprise’s geographic earnings mix including due to acquisition activity, or other changes to the Company’s strategy or business operations. The Company will re-evaluate its long-term rate as appropriate. For fiscal 2021, the Company had a non-GAAP income tax rate of 14%. Hewlett Packard Enterprise believes that making these adjustments for purposes of calculating non-GAAP measures, facilitates a better evaluation of our current operating performance and comparisons to past operating results.

Material limitations associated with use of non-GAAP financial measures

These non-GAAP financial measures have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of Hewlett Packard Enterprise’s results as reported under GAAP. Some of the limitations in relying on these non-GAAP financial measures are:

  • Amortization of initial direct cost and disaster charges are excluded from non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit margin, non-GAAP net earnings, and non-GAAP diluted net earnings per share, which can have an impact on the equivalent GAAP earnings measure and HPE Financial Services segment results.
  • Items such as stock-based compensation expense that is excluded from non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating expenses, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit margin, non-GAAP net earnings, and non-GAAP diluted net earnings per share can have a material impact on the equivalent GAAP earnings measure.
  • Amortization of intangible assets, though not directly affecting Hewlett Packard Enterprise’s cash position, represents the loss in value of intangible assets over time. The expense associated with this loss in value is excluded from non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit margin, non-GAAP net earnings, and non-GAAP diluted net earnings per share and can have a material impact on the equivalent GAAP earnings measure.
  • Items such as transformation costs, and acquisition, and disposition and other related costs that are excluded from non-GAAP operating expenses, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit margin, non-GAAP net earnings, and non-GAAP diluted net earnings per share can have a material impact on the equivalent GAAP earnings measures and cash flow.
  • Items such as adjustment to non-service net periodic benefit credit and earnings from equity interests that are excluded from non-GAAP net earnings and non-GAAP diluted net earnings per share can have a material impact on the equivalent GAAP earnings measure.
  • Items such as tax indemnification and related adjustments, certain income tax valuation allowances and separation taxes, excess tax benefits from stock-based compensation, and the related tax impacts from other non-GAAP measures that are excluded from the non-GAAP income tax rate, non-GAAP net earnings and non-GAAP diluted net earnings per share can also have a material impact on the equivalent GAAP earnings measures.
  • Hewlett Packard Enterprise may not be able to immediately liquidate the short-term and long-term investments included in gross cash, which may limit the usefulness of gross cash as a liquidity measure.
  • Free cash flow does not represent the total increase or decrease in cash for the period.
  • Other companies may calculate revenue on a constant currency basis, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit margin, non-GAAP net earnings, and non-GAAP diluted net earnings per share differently than Hewlett Packard Enterprise does, limiting the usefulness of those measures for comparative purposes.

Compensation for limitations associated with use of non-GAAP financial measures

Hewlett Packard Enterprise compensates for the limitations on its use of non-GAAP financial measures by relying primarily on its GAAP results and using non-GAAP financial measures only as a supplement. Hewlett Packard Enterprise also provides a reconciliation of each non-GAAP financial measure to its most directly comparable GAAP measure within this news release and in other written materials that include these non-GAAP financial measures, and Hewlett Packard Enterprise encourages investors to review those reconciliations carefully.

Usefulness of non-GAAP financial measures to investors

Hewlett Packard Enterprise believes that providing financial measures including revenue on a constant currency basis, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating profit margin, non-GAAP income tax rate, non-GAAP net earnings, non-GAAP diluted net earnings per share, gross cash, free cash flow, net debt, net cash, operating company net debt and operating company net cash financial measures, to investors in addition to the related GAAP measures provides investors with greater transparency to the information used by Hewlett Packard Enterprise’s management in its financial and operational decision making and allows investors to see Hewlett Packard Enterprise’s results “through the eyes” of management. Hewlett Packard Enterprise further believes that providing this information better enables Hewlett Packard Enterprise’s investors to understand Hewlett Packard Enterprise’s operating performance and to evaluate the efficacy of the methodology and information used by Hewlett Packard Enterprise’s management to evaluate and measure such performance. Disclosure of these non-GAAP financial measures also facilitates comparisons of Hewlett Packard Enterprise’s operating performance with the performance of other companies in Hewlett Packard Enterprise’s industry that supplement their GAAP results with non-GAAP financial measures that may be calculated in a similar manner.

Editorial contact

Laura Keller

[email protected]

Investor contact

Andrew Simanek

[email protected]

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Software Networks Internet Hardware Consumer Electronics Technology Semiconductor Mobile/Wireless

MEDIA:

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HPE reports second quarter fiscal year 2022 results that show persistent demand leading to more orders, steady revenue and sustained margins. (Graphic: Business Wire)

GameStop Reports First Quarter Fiscal Year 2022 Results

GameStop Reports First Quarter Fiscal Year 2022 Results

GRAPEVINE, Texas–(BUSINESS WIRE)–
GameStop Corp. (NYSE: GME) (“GameStop” or the “Company”) today released financial results for the first quarter ended April 30, 2022. The Company’s condensed and consolidated financial statements, including GAAP and non-GAAP results, are below. The Company’s Form 10-Q and supplemental information can be found at http://investor.GameStop.com.

FIRST QUARTER OVERVIEW

  • Net sales were $1.378 billion for the quarter, compared to $1.277 billion in the prior year’s first quarter.
  • Sales attributable to new and expanded brand relationships contributed to the Company’s growth in the quarter.
  • Inventory was $917.6 million at the close of the quarter, compared to $570.9 million at the close of the prior year’s first quarter, reflecting a continued focus on improving in-stock levels in merchandise to meet increased customer demand and offset supply chain headwinds.
  • Ended the period with cash and cash equivalents of $1.035 billion as well as no debt other than a low-interest, unsecured term loan associated with the French government’s response to COVID-19.
  • Took steps to support the recent launch of a digital asset wallet to allow gamers and others to store, send, receive and use cryptocurrencies and non-fungible tokens (“NFTs”) across decentralized apps. The wallet extension will enable transactions on GameStop’s NFT marketplace upon its intended launch in the second quarter.
  • Continued hiring individuals with experience in areas such as blockchain gaming, ecommerce and technology, and operations, including a new Chief Operating Officer with a background in retail and stores.

CONFERENCE CALL INFORMATION

A webcast with management is scheduled for June 1, 2022, at 5:00 p.m. ET to discuss the Company’s quarter activities and financial results. This call, along with supplemental information, can also be accessed at http://investor.GameStop.com. The phone number for the investor conference call is 877-451-6152 and the confirmation code is 13730321. This webcast will be archived for two months on GameStop’s investor relations website.

NON-GAAP MEASURES AND OTHER METRICS

As a supplement to the Company’s financial results presented in accordance with U.S. generally accepted accounting principles (GAAP), GameStop may use certain non-GAAP measures, such as adjusted SG&A, adjusted operating income (loss), adjusted net income (loss), adjusted diluted earnings (loss) per share, adjusted EBITDA and free cash flow. The Company believes these non-GAAP financial measures provide useful information to investors in evaluating the Company’s core operating performance. Adjusted selling, general and administrative expenses (“Adjusted SG&A”), adjusted operating income (loss), adjusted net income (loss), adjusted diluted earnings (loss) per share and adjusted EBITDA exclude the effect of items such as transformation costs, asset impairments, store closure costs, severance, as well as divestiture costs. Results reported as constant currency exclude the impact of fluctuations in foreign currency exchange rates by converting the Company’s local currency financial results using the prior period exchange rates and comparing these adjusted amounts to the Company’s current period reported results. The Company’s definition and calculation of non-GAAP financial measures may differ from that of other companies. Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the Company’s financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the Company’s financial position, results of operations or cash flows and should therefore be considered in assessing the Company’s actual and future financial condition and performance.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS – SAFE HARBOR

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon management’s current beliefs, views, estimates and expectations, including as to the Company’s industry, business strategy, goals and expectations concerning its market position, strategic and transformation initiatives, future operations, margins, profitability, sales growth, capital expenditures, liquidity, capital resources, expansion of technology expertise, and other financial and operating information, including expectations as to future operating profit improvement. Such statements include without limitation those about the Company’s expectations for fiscal 2022, future financial and operating results, projections and other statements that are not historical facts. Forward-looking statements are subject to significant risks and uncertainties and actual developments, business decisions, outcomes and results may differ materially from those reflected or described in the forward-looking statements. The following factors, among others, could cause actual developments, business decisions, outcomes and results to differ materially from those reflected or described in the forward-looking statements: economic, social, and political conditions in the markets in which we operate; the impact of the COVID-19 pandemic on the Company’s business and financial results; the cyclicality of the video game industry; the Company’s dependence on the timely delivery of new and innovative products from its vendors; the impact of technological advances in the video game industry and related changes in consumer behavior on the Company’s sales; the Company’s ability to keep pace with changing industry technology and consumer preferences; the Company’s ability to obtain favorable terms from its current and future suppliers and service providers; the ability of the Company’s third party delivery services to deliver products to the Company’s retail locations, fulfillment centers and consumers and changes in the terms the Company has with such service providers; the Company’s dependence on sales during the holiday selling season; the decrease in popularity of certain types of video games containing graphic violence; the Company’s ability to renew or enter into new leases on favorable terms; the Company’s ability to maintain strong retail and ecommerce experiences for its customers; the Company’s strategic plans and transformation initiatives and the Company’s ability to achieve the desired results of its transformation initiatives within the anticipated time-frame or at all; enhanced risks as new business initiatives lead the Company to engage in new activities; the competitive nature of the Company’s industry, including competition from multi-channel retailers, ecommerce businesses, and others; disruptions or interruptions to the Company’s logistics capabilities or supply chain or the supply chain of the Company’s suppliers; the Company’s ability to anticipate, identify and react to trends in pop culture with regard to its sales of collectibles; the ability and willingness of the Company’s vendors to provide marketing and merchandising support at historical or anticipated levels; restrictions on the Company’s ability to purchase and sell pre-owned products; changes to tariff and import/export regulations; unfavorable changes in the Company’s global tax rate; legislative actions; the Company’s ability to comply with federal, state, local and international laws and regulations and statutes; the evolution of government regulation related to blockchain, digital assets and Web 3.0 technology; fluctuations in the Company’s results of operations from quarter to quarter; the restrictions contained in the agreement governing the Company’s revolving credit facility; the Company’s ability to generate sufficient cash flow to fund its operations; the Company’s ability to incur additional debt; turnover in senior management or the Company’s ability to attract and retain qualified personnel; turnover in the Company’s Board of Directors; the Company’s ability to maintain the security or privacy of its customer, associate or Company information; potential damage to the Company’s reputation or customers’ perception of the Company; occurrence of weather events, natural disasters, public health crises and other unexpected events; potential failure or inadequacy of the Company’s computerized systems; the Company’s ability to maintain effective control over financial reporting; volatility in the Company’s Class A Common Stock price, including volatility due to potential short squeezes; continued high degrees of media coverage by third parties; the availability and future sales of substantial amounts of the Company’s Class A Common Stock; and potential future litigation and other legal proceedings. Additional factors that could cause results to differ materially from those reflected or described in the forward-looking statements can be found in GameStop’s most recent Annual Report on Form 10-K filed with the SEC on March 17, 2022 and available at http://www.sec.gov or http://investor.GameStop.com. Forward-looking statements contained in this press release speak only as of the date of this press release. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

GameStop Corp.

Consolidated Statements of Operations

(in millions, except per share data)

(unaudited)

 

 

 

13 Weeks Ended

April 30, 2022

 

13 Weeks Ended

May 1, 2021

Net sales

 

$

1,378.4

 

 

$

1,276.8

 

Cost of sales

 

 

1,079.9

 

 

 

946.7

 

Gross profit

 

 

298.5

 

 

 

330.1

 

Selling, general and administrative expenses

 

 

452.2

 

 

 

370.3

 

Asset Impairments

 

 

 

 

 

0.6

 

Operating loss

 

 

(153.7

)

 

 

(40.8

)

Interest expense, net

 

 

0.7

 

 

 

24.7

 

Loss before income taxes

 

 

(154.4

)

 

 

(65.5

)

Income tax expense

 

 

3.5

 

 

 

1.3

 

Net loss

 

$

(157.9

)

 

$

(66.8

)

 

 

 

 

 

Loss per share:

 

 

 

 

Basic loss per share

 

$

(2.08

)

 

$

(1.01

)

Diluted loss per share

 

$

(2.08

)

 

$

(1.01

)

 

 

 

 

 

Weighted-average common shares outstanding:

 

 

 

 

Basic

 

 

75.9

 

 

 

66.0

 

Diluted

 

 

75.9

 

 

 

66.0

 

 

 

 

 

 

Percentage of Net Sales:

 

 

 

 

 

 

 

 

 

Net sales

 

 

100.0

%

 

 

100.0

%

Cost of sales

 

 

78.3

 

 

 

74.1

 

Gross profit

 

 

21.7

 

 

 

25.9

 

Selling, general and administrative expenses

 

 

32.8

 

 

 

29.0

 

Asset Impairments

 

 

 

 

 

 

Operating loss

 

 

(11.1

)

 

 

(3.1

)

Interest expense, net

 

 

0.1

 

 

 

2.0

 

Loss before income taxes

 

 

(11.2

)

 

 

(5.1

)

Income tax expense

 

 

0.3

 

 

 

0.1

 

Net loss

 

 

(11.5

) %

 

 

(5.2

) %

GameStop Corp.

Condensed Consolidated Balance Sheets

(in millions)

(unaudited)

     

 

 

April 30, 2022

 

May 1, 2021

ASSETS:

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,035.0

 

 

$

694.7

 

Restricted cash

 

 

33.3

 

 

 

57.4

 

Receivables, net of allowance of $3.5 and $3.7, respectively

 

 

103.4

 

 

 

102.1

 

Merchandise inventories

 

 

917.6

 

 

 

570.9

 

Prepaid expenses and other current assets

 

 

240.3

 

 

 

232.1

 

Total current assets

 

 

2,329.6

 

 

 

1,657.2

 

Property and equipment, net of accumulated depreciation of $993.6 and $1,109.9, respectively

 

 

157.4

 

 

 

192.6

 

Operating lease right-of-use assets

 

 

568.7

 

 

 

654.2

 

Deferred income taxes

 

 

16.7

 

 

 

 

Long-term restricted cash

 

 

15.3

 

 

 

18.7

 

Other noncurrent assets

 

 

37.8

 

 

 

40.0

 

Total assets

 

$

3,125.5

 

 

$

2,562.7

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY:

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

386.8

 

 

$

388.6

 

Accrued liabilities and other current liabilities

 

 

533.3

 

 

 

561.8

 

Current portion of operating lease liabilities

 

 

200.3

 

 

 

219.4

 

Current portion of long-term debt

 

 

6.5

 

 

 

48.1

 

Total current liabilities

 

 

1,126.9

 

 

 

1,217.9

 

Long-term debt, net

 

 

35.7

 

 

 

 

Operating lease liabilities

 

 

374.5

 

 

 

445.0

 

Other long-term liabilities

 

 

137.7

 

 

 

20.3

 

Total liabilities

 

 

1,674.8

 

 

 

1,683.2

 

Total stockholders’ equity

 

 

1,450.7

 

 

 

879.5

 

Total liabilities and stockholders’ equity

 

$

3,125.5

 

 

$

2,562.7

 

 

 

 

 

 

 

 

GameStop Corp.

Consolidated Statements of Cash Flows

(in millions)

(unaudited)

 

 

 

13 Weeks Ended

April 30, 2022

 

13 Weeks Ended

May 1, 2021

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(157.9

)

 

$

(66.8

)

Adjustments to reconcile net loss to net cash flows from operating activities:

 

 

 

 

Depreciation and amortization

 

 

17.1

 

 

 

18.7

 

Stock-based compensation expense

 

 

11.1

 

 

 

5.7

 

Gain on sale of digital assets

 

 

(6.9

)

 

 

 

Digital asset impairments

 

 

33.7

 

 

 

 

Asset impairments

 

 

 

 

 

0.6

 

Loss on disposal of property and equipment, net

 

 

0.4

 

 

 

0.4

 

Loss on retirement of debt

 

 

 

 

 

18.2

 

Other

 

 

(4.8

)

 

 

(0.5

)

Changes in operating assets and liabilities:

 

 

 

 

Receivables, net

 

 

36.3

 

 

 

3.1

 

Merchandise inventories

 

 

(9.9

)

 

 

32.4

 

Prepaid expenses and other current assets

 

 

(30.3

)

 

 

(2.9

)

Prepaid income taxes and income taxes payable

 

 

3.5

 

 

 

(1.2

)

Accounts payable and accrued liabilities

 

 

(179.8

)

 

 

(11.4

)

Operating lease right-of-use assets and liabilities

 

 

(16.4

)

 

 

(15.0

)

Changes in other long-term liabilities

 

 

 

 

 

(0.1

)

Net cash flows used in operating activities

 

 

(303.9

)

 

 

(18.8

)

Cash flows from investing activities:

 

 

 

 

Proceeds from sale of digital assets

 

 

76.9

 

 

 

 

Capital expenditures

 

 

(10.8

)

 

 

(14.7

)

Net cash flows provided by (used in) investing activities

 

 

66.1

 

 

 

(14.7

)

Cash flows from financing activities:

 

 

 

 

Proceeds from issuance of common stock, net of costs

 

 

 

 

 

551.7

 

Payments of senior notes

 

 

 

 

 

(307.4

)

Repayments of revolver borrowings

 

 

 

 

 

(25.0

)

Settlements of stock-based awards

 

 

(1.1

)

 

 

(49.9

)

Other

 

 

 

 

 

(0.1

)

Net cash flows (used in) provided by financing activities

 

 

(1.1

)

 

 

169.3

 

Exchange rate effect on cash, cash equivalents and restricted cash

 

 

2.6

 

 

 

 

(Decrease) increase in cash, cash equivalents and restricted cash

 

 

(236.3

)

 

 

135.8

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

1,319.9

 

 

 

635.0

 

Cash, cash equivalents and restricted cash at end of period

 

$

1,083.6

 

 

$

770.8

 

 

 

 

 

 

Schedule I

Sales Mix

(in millions)

(unaudited)

 

 

 

13 Weeks Ended April 30, 2022

 

13 Weeks Ended May 1, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales:

 

Sales

 

of Total

 

Sales

 

of Total

 

 

 

 

 

 

 

 

 

 

 

Hardware and accessories (1)

 

$

673.8

 

 

48.9

%

 

$

703.5

 

 

55.1

%

Software (2)

 

 

483.7

 

 

35.1

 

 

 

397.9

 

 

31.2

 

Collectibles

 

 

220.9

 

 

16.0

 

 

 

175.4

 

 

13.7

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,378.4

 

 

100.0

%

 

$

1,276.8

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

(1)

  Includes sales of new and pre-owned hardware, accessories, hardware bundles in which hardware and digital or physical software are sold together in a single SKU, interactive game figures, strategy guides, mobile and consumer electronics.

(2)

  Includes sales of new and pre-owned video game software, digital software and PC entertainment software.

GameStop Corp.

Schedule II

(in millions, except per share data)

(unaudited)

Non-GAAP results

The following tables reconcile the Company’s selling, general and administrative expenses (“SG&A”), operating loss, net loss and loss per share as presented in its unaudited consolidated statements of operations and prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) to its adjusted SG&A, adjusted operating loss, adjusted net loss, adjusted EBITDA and adjusted loss per share. The diluted weighted-average shares outstanding used to calculated adjusted earnings per share may differ from GAAP weighted-average shares outstanding. Under GAAP, basic and diluted weighted-average shares outstanding are the same in periods where there is a net loss. The reconciliations below are from continuing operations only.

 

 

13 Weeks Ended

 

13 Weeks Ended

 

 

April 30, 2022

 

May 1, 2021

Adjusted SG&A

SG&A

 

$

452.2

 

 

$

370.3

 

Transformation costs

 

 

 

 

 

(6.4

)

Significant transactions(1)

 

 

 

 

 

(0.2

)

Divestitures, severance and other(2)

 

 

 

 

 

(12.0

)

Adjusted SG&A

 

$

452.2

 

 

$

351.7

 

 

 

 

 

 

Adjusted Operating Loss

 

 

 

 

Operating loss

 

$

(153.7

)

 

$

(40.8

)

Transformation costs

 

 

 

 

 

6.4

 

Asset impairments

 

 

 

 

 

0.6

 

Significant transactions(1)

 

 

 

 

 

0.2

 

Divestitures, severance and other(3)

 

 

 

 

 

12.0

 

Adjusted operating loss

 

$

(153.7

)

 

$

(21.6

)

 

 

 

 

 

Adjusted Net Loss

 

 

 

 

Net loss

 

$

(157.9

)

 

$

(66.8

)

Transformation costs

 

 

 

 

 

6.4

 

Asset impairments

 

 

 

 

 

0.6

 

Significant transactions(2)

 

 

 

 

 

18.4

 

Divestitures, severance and other(3)

 

 

 

 

 

12.0

 

Adjusted net loss

 

$

(157.9

)

 

$

(29.4

)

 

 

 

 

 

Adjusted loss per share

 

 

 

 

Basic

 

$

(2.08

)

 

$

(0.45

)

Diluted

 

$

(2.08

)

 

$

(0.45

)

 

 

 

 

 

Number of shares used in adjusted calculation

 

 

 

 

Basic

 

 

75.9

 

 

 

66.0

 

Diluted

 

 

75.9

 

 

 

66.0

 

 

 

 

 

 

(1)

  Prior year includes transaction costs associated with our ATM offering and voluntary early redemption of the 2023 Senior Notes.

(2)

  Prior year includes transactions costs associated with the ATM offering and transactions costs, make-whole premium and accelerated amortization with the voluntary early redemption of the 2023 Senior Notes.

(3)

  Prior year severance includes cash and stock based compensation for key personnel that have separated from the Company.

 

13 Weeks Ended

 

13 Weeks Ended

 

 

April 30, 2022

 

May 1, 2021

Reconciliation of Net Loss to Adjusted EBITDA

 

 

 

 

Net loss

 

$

(157.9

)

 

$

(66.8

)

Interest expense, net

 

 

0.7

 

 

 

24.7

 

Depreciation and amortization

 

 

17.1

 

 

 

18.7

 

Income tax expense

 

 

3.5

 

 

 

1.3

 

EBITDA

 

$

(136.6

)

 

$

(22.1

)

Stock-based compensation

 

 

11.1

 

 

 

2.2

 

Transformation costs

 

 

 

 

 

6.4

 

Asset impairments

 

 

 

 

 

0.6

 

Significant transactions(1)

 

 

 

 

 

0.2

 

Divestitures, severance and other(2)

 

 

 

 

 

12.0

 

Adjusted EBITDA

 

$

(125.5

)

 

$

(0.7

)

 

 

 

 

 

(1)

  Prior year includes transaction costs associated with our ATM offering and voluntary redemption of the 2023 Senior Notes.

(2)

  Prior year severance includes cash and stock-based compensation for key personnel that have separated from the Company.

GameStop Corp.

Schedule III

(in millions)

(unaudited)

Non-GAAP results

The following table reconciles the Company’s cash flows provided by operating activities as presented in its unaudited Consolidated Statements of Cash Flows and prepared in accordance with GAAP to its free cash flow. Free cash flow is considered a non-GAAP financial measure. Management believes, however, that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use by investors in evaluating the company’s financial performance.

 

13 Weeks Ended

 

13 Weeks Ended

 

April 30, 2022

 

May 1, 2021

Net cash flows used in operating activities

$

(303.9

)

 

$

(18.8

)

Capital expenditures

 

(10.8

)

 

 

(14.7

)

Free cash flow

$

(314.7

)

 

$

(33.5

)

Non-GAAP Measures and Other Metrics

Adjusted EBITDA is a supplemental financial measure of the Company’s performance that is not required by, or presented in accordance with, GAAP. We believe that the presentation of this non-GAAP financial measure provides useful information to investors in assessing our financial condition and results of operations. We define Adjusted EBITDA as net income (loss) before income taxes, plus interest expense, net and depreciation and amortization, excluding stock-based compensation, transformation costs, business divestitures, asset impairments, severance and other non-cash charges. Net income (loss) is the GAAP financial measure most directly comparable to Adjusted EBITDA. Our non-GAAP financial measures should not be considered as an alternative to the most directly comparable GAAP financial measure. Furthermore, non-GAAP financial measures have limitations as an analytical tool because they exclude some but not all items that affect the most directly comparable GAAP financial measures. Some of these limitations include:

  • certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure;
  • Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
  • Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
  • although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements; and
  • our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.

We compensate for the limitations of Adjusted EBITDA as an analytical tool by reviewing the comparable GAAP financial measure, understanding the differences between the GAAP and non-GAAP financial measures and incorporating these data points into our decision-making process. Adjusted EBITDA is provided in addition to, and not as an alternative to, the Company’s financial results prepared in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Because Adjusted EBITDA may be defined and determined differently by other companies in our industry, our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.

GameStop Investor Relations

817-424-2001

[email protected]

GameStop Public Relations

646-386-0091

[email protected]

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Software Online Entertainment Online Retail Internet Mobile Entertainment Hardware Consumer Electronics Technology Retail Audio/Video Electronic Games

MEDIA:

Boyd Gaming Announces $500 Million Increase to Share Repurchase Authorization

Boyd Gaming Announces $500 Million Increase to Share Repurchase Authorization

Company Declares Quarterly Dividend of $0.15 Per Share

LAS VEGAS–(BUSINESS WIRE)–
Boyd Gaming Corporation (NYSE: BYD) today announced that its Board of Directors has authorized a $500 million increase to the Company’s existing share repurchase program. The authorization will allow the Company to continue share repurchases as the Company concludes its previous repurchase authorizations, totaling $361 million.

Keith Smith, President and Chief Executive Officer of Boyd Gaming, said: “This additional share repurchase authorization further reinforces our commitment to pursuing a balanced, robust capital return program. We intend to maintain repurchase activity of approximately $100 million per quarter, augmented from time to time by opportunistic repurchases.”

Additionally, the Board of Directors has declared a quarterly cash dividend of $0.15 per share, payable July 15, 2022, to shareholders of record on June 30, 2022.

About Boyd Gaming

Founded in 1975, Boyd Gaming Corporation (NYSE: BYD) is a leading geographically diversified operator of 28 gaming entertainment properties in 10 states. The Company is also a strategic partner and 5% equity owner of FanDuel Group, the nation’s leading sports-betting operator. With one of the most experienced leadership teams in the casino industry, Boyd Gaming prides itself on offering its guests an outstanding entertainment experience, delivered with unwavering attention to customer service. Through a long-standing company philosophy called Caring the Boyd Way, Boyd Gaming is committed to advancing Environmental, Social and Corporate Governance (ESG) initiatives that positively impact the Company’s stakeholders and communities. Our commitment to being an employer of choice has been recognized by Forbes magazine, which named Boyd Gaming the highest-ranked gaming company in America’s Best Employers for Diversity in 2021, and Nevada’s Best Employers in 2020 and 2021. For additional Company information and press releases, visit https://investors.boydgaming.com.

Forward-looking Statements and Company Information

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as “may,” “will,” “might,” “expect,” “believe,” “anticipate,” “could,” “would,” “estimate,” “continue,” “pursue,” or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company’s expectations, goals or intentions regarding future performance. In addition, forward-looking statements in this press release, include statements regarding the Company’s plans with respect to share repurchases and returning capital to shareholders. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These risks and uncertainties include but are not limited to: the ongoing uncertainty about COVID-19, its duration and impact, the extent of consumer demand, potential negative effects on the Company’s workforce, suppliers, contractors and other partners, as well as the impact on the customer experience of necessary health and safety measures implemented at the direction of state and local governments and gaming regulators. Risks also include fluctuations in the Company’s operating results; the political climate and its effects on consumer spending and its impact on the travel industry; the state of the economy and its effect on consumer spending; the impact and effects of the local economies in the markets where the Company operates; the receipt of legislative, and other state, federal and local approvals for the Company’s development projects; developments in legalization of online gaming, the Company’s ability to operate online gaming profitably, or otherwise; consumer reaction to fluctuations in the stock market and economic factors; the effects of events adversely impacting the economy or the regions from which the Company draws a significant percentage of its customers; competition; litigation; financial community and rating agency perceptions of the Company; changes in laws and regulations, weather, regulation, economic, credit and capital market conditions; and the effects of war, terrorist or similar activity. Additional factors that could cause actual results to differ are discussed under the heading “Risk Factors” and in other sections of the Company’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and in the Company’s other current and periodic reports filed from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.

Financial Contact:

Josh Hirsberg

(702) 792-7234

[email protected]

Media Contact:

David Strow

(702) 792-7386

[email protected]

KEYWORDS: Nevada United States North America

INDUSTRY KEYWORDS: Online Casino/Gaming Mobile Entertainment General Entertainment Entertainment

MEDIA:

Logo
Logo

Torrid Announces Participation in the Baird 2022 Global Consumer, Technology and Services Conference

Torrid Announces Participation in the Baird 2022 Global Consumer, Technology and Services Conference

CITY OF INDUSTRY, Calif.–(BUSINESS WIRE)–
Torrid Holdings Inc. (“Torrid” or the “Company”) (NYSE: CURV), a direct-to-consumer brand of apparel, intimates and accessories in North America for women sizes 10 to 30, today announced that the Company is scheduled to participate in a fireside chat at the Baird 2022 Global Consumer, Technology and Services Conference, held at the InterContinental New York Barclay in New York City on Wednesday, June 8, 2022, at 2:35 pm Eastern Time. Chief Executive Officer, Lisa Harper, Interim Chief Financial Officer, Tanner MacDiarmid, and SVP of FP&A and Investor Relations, Vince Adams, will participate in the fireside chat.

The fireside chat will be webcast live over the internet and can be accessed at investors.torrid.com. An online archive will be available for a period of 90 days following the fireside chat.

About Torrid

Torrid is a direct-to-consumer brand of apparel, intimates and accessories in North America targeting the 25- to 40-year old woman who is curvy and wears sizes 10 to 30. Torrid is focused on fit and offers high quality products across a broad assortment that includes tops, bottoms, denim, dresses, intimates, activewear, footwear and accessories.

Investors

ICR, Inc.

Jean Fontana

(646) 277-1214

[email protected]

Media

Joele Frank, Wilkinson Brimmer Katcher

Michael Freitag / Arielle Rothstein / Lyle Weston

(212) 355-4449

KEYWORDS: California New York United States North America

INDUSTRY KEYWORDS: Women Online Retail Fashion Consumer Retail

MEDIA: