Posts

Posted on

LifeStance Reports First Quarter 2023 Results

SCOTTSDALE, Ariz., May 10, 2023 (GLOBE NEWSWIRE) — LifeStance Health Group, Inc. (Nasdaq: LFST), one of the nation’s largest providers of outpatient mental healthcare, today announced financial results for the first quarter ended March 31, 2023.

(All results compared to prior-year comparative period, unless otherwise noted)

Q1 2023 Highlights and FY 2023 Outlook

  • Total revenue of $252.6 million increased $49.5 million or 24% compared to revenue of $203.1 million
  • Total clinicians of 5,961 up 19%, a sequential net increase of 330 in the first quarter
  • Net loss of $34.2 million compared to net loss of $62.3 million, primarily driven by stock-based compensation
  • Adjusted EBITDA of $10.1 million compared to Adjusted EBITDA of $12.5 million
  • Raising revenue and Center Margin guidance: Now expecting full year 2023 revenue of $990 million to $1.02 billion and Center Margin of $274 to $290 million; reaffirming full year 2023 Adjusted EBITDA guidance of $50 to $62 million

“We kicked off the year with positive momentum, thanks to the commitment and dedication of our employees, including nearly 6,000 clinicians,” said Ken Burdick, Chairman and CEO of LifeStance. “The team remains focused on execution of our priorities of simplifying administrative complexity and gaining operating leverage. At the same time, we are making progress against our strategic initiatives to improve operational performance, lay the foundation for profitable and sustainable growth, and deliver on our mission of expanding access to high-quality, affordable mental healthcare.”

Financial Highlights                  
    Q1 2023     Q1 2022     Y/Y  
(in millions)                  
Total revenue   $ 252.6     $ 203.1       24 %
Loss from operations     (34.1 )     (64.9 )     (47 %)
Center Margin     69.6       54.2       28 %
Net loss     (34.2 )     (62.3 )     (45 %)
Adjusted EBITDA     10.1       12.5       (19 %)
As % of Total revenue:                  
Loss from operations     (13.5 %)     (32.0 %)      
Center Margin     27.6 %     26.7 %      
Net loss     (13.5 %)     (30.7 %)      
Adjusted EBITDA     4.0 %     6.2 %      

(All results compared to prior-year period, unless otherwise noted)

  • Total revenue grew 24% to $252.6 million. Strong revenue growth in the first quarter was driven primarily by net clinician growth and increased visit volumes.
  • Loss from operations was $34.1 million, primarily driven by stock-based compensation expense of $23.9 million. Net loss was $34.2 million.
  • Center Margin grew 28% to $69.6 million, or 27.6% of total revenue.
  • Adjusted EBITDA declined 19% to $10.1 million, or 4.0% of total revenue. Adjusted EBITDA as a percentage of revenue decreased as a result of higher G&A expenses from investments in the business.

Balance Sheet, Cash Flow and Capital Allocation

LifeStance used $7.9 million cash flow from operations during the first quarter of 2023. The Company ended the first quarter with cash of $68.3 million and net long-term debt of $224.8 million.

2023 Guidance

LifeStance is raising full year revenue and Center Margin guidance, with the following outlook for 2023:

  • The Company expects full year revenue of $990 million to $1.02 billion, Center Margin of $274 to $290 million, and Adjusted EBITDA of $50 to $62 million.
  • For the second quarter of 2023, the Company expects total revenue of $250 to $260 million, Center Margin of $69 to $76 million, and Adjusted EBITDA of $10 to $16 million.

Conference Call, Webcast Information, and Presentations

LifeStance will hold a conference call today, May 10, 2023, at 8:30 a.m. Eastern Time to discuss the first quarter 2023 results. Investors who wish to participate in the call should dial 1-800-715-9871, domestically, or 1-646-307-1963, internationally, approximately 10 minutes before the call begins and provide conference ID number 1854301 or ask to be joined into the LifeStance call. A real-time audio webcast can be accessed via the Events and Presentations section of the LifeStance Investor Relations website (https://investor.lifestance.com), where related materials will be posted prior to the conference call.

About LifeStance Health Group, Inc.

Founded in 2017, LifeStance (Nasdaq: LFST) is reimagining mental health. We are one of the nation’s largest providers of virtual and in-person outpatient mental health care for children, adolescents and adults experiencing a variety of mental health conditions. Our mission is to help people lead healthier, more fulfilling lives by improving access to trusted, affordable, and personalized mental healthcare. LifeStance employs approximately 6,000 psychiatrists, advanced practice nurses, psychologists and therapists and operates across 34 states and approximately 600 centers. To learn more, please visit www.LifeStance.com.

We routinely post information that may be important to investors on the “Investor Relations” section of our website at investor.lifestance.com. We encourage investors and potential investors to consult our website regularly for important information about us.

Forward-Looking Statements

Statements in this press release and on the related teleconference that express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements. These statements include, but are not limited to full year and second quarter guidance and management’s related assumptions, statements about the Company’s financial position; business plans and objectives; general economic and industry trends; operating results; and working capital and liquidity and other statements contained in this presentation that are not historical facts. When used in this press release and on the related teleconference, words such as “may,” “will,” “should,” “could,” “intend,” “potential,” “continue,” “anticipate,” “believe,” “estimate,” “expect,” “plan,” “target,” “predict,” “project,” “seek” and similar expressions as they relate to us are intended to identify forward-looking statements. They involve a number of risks and uncertainties that may cause actual events and results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to: we may not grow at the rates we historically have achieved or at all, even if our key metrics may imply future growth, including if we are unable to successfully execute on our growth initiatives and business strategies; if we fail to manage our growth effectively, our expenses could increase more than expected, our revenue may not increase proportionally or at all, and we may be unable to execute on our business strategy; our ability to recruit new clinicians and retain existing clinicians; if reimbursement rates paid by third-party payors are reduced or if third-party payors otherwise restrain our ability to obtain or deliver care to patients, our business could be harmed; we conduct business in a heavily regulated industry and if we fail to comply with these laws and government regulations, we could incur penalties or be required to make significant changes to our operations or experience adverse publicity, which could have a material adverse effect on our business, results of operations and financial condition; we are dependent on our relationships with affiliated practices, which we do not own, to provide health care services, and our business would be harmed if those relationships were disrupted or if our arrangements with these entities became subject to legal challenges; we operate in a competitive industry, and if we are not able to compete effectively, our business, results of operations and financial condition would be harmed; the impact of health care reform legislation and other changes in the healthcare industry and in health care spending on us is currently unknown, but may harm our business; if our or our vendors’ security measures fail or are breached and unauthorized access to our employees’, patients’ or partners’ data is obtained, our systems may be perceived as insecure, we may incur significant liabilities, including through private litigation or regulatory action, our reputation may be harmed, and we could lose patients and partners; our business depends on our ability to effectively invest in, implement improvements to and properly maintain the uninterrupted operation and data integrity of our information technology and other business systems; actual or anticipated changes or fluctuations in our results of operations; our existing indebtedness could adversely affect our business and growth prospects; and other risks and uncertainties set forth under “Risk Factors” included in the reports we have filed or will file with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2022 and subsequent filings made with the Securities and Exchange Commission. LifeStance does not undertake to update any forward-looking statements made in this press release to reflect any change in management’s expectations or any change in the assumptions or circumstances on which such statements are based, except as otherwise required by law.

Non-GAAP Financial Information

This press release contains certain non-GAAP financial measures, including Center Margin, Adjusted EBITDA, and Adjusted EBITDA margin. Tables showing the reconciliation of these non-GAAP financial measures to the comparable GAAP measures are included at the end of this release. Management believes these non-GAAP financial measures are useful in evaluating the Company’s operating performance, and may be helpful to securities analysts, institutional investors and other interested parties in understanding the Company’s operating performance and prospects. These non-GAAP financial measures, as calculated, may not be comparable to companies in other industries or within the same industry with similarly titled measures of performance. Therefore, the Company’s non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP, such as net loss or loss from operations.

Center Margin and Adjusted EBITDA anticipated for the second quarter of 2023 and full year 2023 are calculated in a manner consistent with the historical presentation of these measures at the end of this release. Reconciliation for the forward-looking second quarter of 2023 and full year 2023 Center Margin and Adjusted EBITDA guidance is not being provided, as LifeStance does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliation. As such, LifeStance management cannot estimate on a forward-looking basis without unreasonable effort the impact these variables and individual adjustments will have on its reported results.

Management acknowledges that there are many items that impact a company’s reported results and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results.

Consolidated Financial Information and Reconciliations

CONSOLIDATED BALANCE SHEETS

(unaudited)

(In thousands, except for par value) 		 
   
    March 31, 2023     December 31, 2022  
CURRENT ASSETS            
Cash and cash equivalents   $ 68,294     $ 108,621  
Patient accounts receivable, net     118,382       100,868  
Prepaid expenses and other current assets     25,833       23,734  
Total current assets     212,509       233,223  
NONCURRENT ASSETS            
Property and equipment, net     193,511       194,189  
Right-of-use assets     196,193       199,431  
Intangible assets, net     253,964       263,294  
Goodwill     1,293,613       1,272,939  
Other noncurrent assets     8,772       10,795  
Total noncurrent assets     1,946,053       1,940,648  
Total assets   $ 2,158,562     $ 2,173,871  
LIABILITIES AND STOCKHOLDERS’ EQUITY            
CURRENT LIABILITIES            
Accounts payable   $ 7,709     $ 12,285  
Accrued payroll expenses     83,673       75,650  
Other accrued expenses     32,022       30,428  
Current portion of contingent consideration     13,257       15,876  
Operating lease liabilities, current     41,647       38,824  
Other current liabilities     2,833       2,936  
Total current liabilities     181,141       175,999  
NONCURRENT LIABILITIES            
Long-term debt, net     224,761       225,079  
Operating lease liabilities, noncurrent     207,903       212,586  
Deferred tax liability, net     37,569       38,701  
Other noncurrent liabilities     2,059       2,783  
Total noncurrent liabilities     472,292       479,149  
Total liabilities   $ 653,433     $ 655,148  
COMMITMENTS AND CONTINGENCIES            
STOCKHOLDERS’ EQUITY            
Preferred stock – par value $0.01 per share; 25,000 shares authorized as of
March 31, 2023 and December 31, 2022; 0 shares issued and outstanding as
of March 31, 2023 and December 31, 2022		     —       —  
Common stock – par value $0.01 per share; 800,000 shares authorized as of
March 31, 2023 and December 31, 2022; 376,537 and 375,964 shares
issued and outstanding as of March 31, 2023 and December 31, 2022,
respectively		     3,767       3,761  
Additional paid-in capital     2,108,184       2,084,324  
Accumulated other comprehensive income     2,004       3,274  
Accumulated deficit     (608,826 )     (572,636 )
Total stockholders’ equity     1,505,129       1,518,723  
Total liabilities and stockholders’ equity   $ 2,158,562     $ 2,173,871  

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(unaudited)

(In thousands, except for Net Loss per Share) 		 
   
    Three Months Ended March 31,  
    2023     2022  
TOTAL REVENUE   $ 252,589     $ 203,095  
OPERATING EXPENSES            
Center costs, excluding depreciation and amortization shown separately below     182,987       148,893  
General and administrative expenses     84,626       103,369  
Depreciation and amortization     19,069       15,684  
Total operating expenses   $ 286,682     $ 267,946  
LOSS FROM OPERATIONS   $ (34,093 )   $ (64,851 )
OTHER INCOME (EXPENSE)            
Gain (loss) on remeasurement of contingent consideration     1,037       (434 )
Transaction costs     (86 )     (278 )
Interest expense, net     (5,092 )     (3,441 )
Other expense     (45 )     —  
Total other expense   $ (4,186 )   $ (4,153 )
LOSS BEFORE INCOME TAXES     (38,279 )     (69,004 )
INCOME TAX BENEFIT     4,037       6,676  
NET LOSS   $ (34,242 )   $ (62,328 )
NET LOSS PER SHARE, BASIC AND DILUTED     (0.09 )     (0.18 )
Weighted-average shares used to compute basic and diluted net loss per share     360,902       350,849  
             
NET LOSS   $ (34,242 )   $ (62,328 )
OTHER COMPREHENSIVE LOSS            
Unrealized losses on cash flow hedge, net of tax     (1,270 )     —  
COMPREHENSIVE LOSS   $ (35,512 )   $ (62,328 )

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(In thousands) 		 
   
    Three Months Ended March 31,  
    2023     2022  
CASH FLOWS FROM OPERATING ACTIVITIES            
Net loss   $ (34,242 )   $ (62,328 )
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:            
Depreciation and amortization     19,069       15,684  
Non-cash operating lease costs     10,113       —  
Stock-based compensation     23,866       59,855  
Amortization of discount and debt issue costs     549       295  
(Gain) loss on remeasurement of contingent consideration     (1,037 )     434  
Loss on disposal of assets     45       —  
Change in operating assets and liabilities, net of businesses acquired:            
Patient accounts receivable, net     (17,138 )     (18,121 )
Prepaid expenses and other current assets     (4,543 )     (12,065 )
Accounts payable     (5,466 )     1,852  
Accrued payroll expenses     7,663       12,759  
Operating lease liabilities     (8,736 )     —  
Other accrued expenses     1,967       4,943  
Net cash (used in) provided by operating activities   $ (7,890 )   $ 3,308  
CASH FLOWS FROM INVESTING ACTIVITIES            
Purchases of property and equipment     (7,729 )     (27,910 )
Acquisitions of businesses, net of cash acquired     (19,820 )     (22,945 )
Net cash used in investing activities   $ (27,549 )   $ (50,855 )
CASH FLOWS FROM FINANCING ACTIVITIES            
Proceeds from long-term debt     —       20,000  
Payments of long-term debt     (586 )     (331 )
Payments of contingent consideration     (4,302 )     (5,720 )
Taxes related to net share settlement of equity awards     —       (441 )
Net cash (used in) provided by financing activities   $ (4,888 )   $ 13,508  
NET DECREASE IN CASH AND CASH EQUIVALENTS     (40,327 )     (34,039 )
Cash and Cash Equivalents – Beginning of period     108,621       148,029  
CASH AND CASH EQUIVALENTS – END OF PERIOD   $ 68,294     $ 113,990  
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION            
Cash paid for interest   $ 5,059     $ 3,091  
Cash paid for taxes, net of refunds   $ (13 )   $ (60 )
SUPPLEMENTAL DISCLOSURES OF NON CASH INVESTING AND FINANCING ACTIVITIES            
Equipment financed through finance leases   $ —     $ 57  
Contingent consideration incurred in acquisitions of businesses   $ 1,985     $ 2,470  
Acquisition of property and equipment included in liabilities   $ 8,297     $ 12,320  

RECONCILIATION OF
LOSS
FROM OPERATIONS TO CENTER MARGIN

(unaudited) 		 
   
    Three Months Ended March 31,  
    2023     2022  
(in thousands)            
Loss from operations   $ (34,093 )   $ (64,851 )
Adjusted for:            
Depreciation and amortization     19,069       15,684  
General and administrative expenses(1)     84,626       103,369  
Center Margin   $ 69,602     $ 54,202  

(1)    Represents salaries, wages and employee benefits for our executive leadership, finance, human resources, marketing, billing and credentialing support and technology infrastructure and stock-based compensation for all employees.

   
RECONCILIATION OF NET
LOSS
TO ADJUSTED EBITDA

(unaudited) 		 
   
    Three Months Ended March 31,  
    2023     2022  
(in thousands)            
Net loss   $ (34,242 )   $ (62,328 )
Adjusted for:            
Interest expense, net     5,092       3,441  
Depreciation and amortization     19,069       15,684  
Income tax benefit     (4,037 )     (6,676 )
(Gain) loss on remeasurement of contingent consideration     (1,037 )     434  
Stock-based compensation expense     23,866       59,855  
Loss on disposal of assets     45       —  
Transaction costs(1)     86       278  
Executive transition costs     160       —  
Litigation costs(2)     403       —  
Strategic initiatives(3)     407       —  
Other expenses(4)     292       1,794  
Adjusted EBITDA   $ 10,104     $ 12,482  

(1)    Primarily includes capital markets advisory, consulting, accounting and legal expenses related to our acquisitions.
(2)    Litigation costs include only those costs which are considered non-recurring and outside of the ordinary course of business based on the following considerations, which we assess regularly: (i) the frequency of similar cases that have been brought to date, or are expected to be brought within two years, (ii) the complexity of the case, (iii) the nature of the remedy(ies) sought, including the size of any monetary damages sought, (iv) the counterparty involved, and (v) our overall litigation strategy.
(3)    Represents costs, such as third-party consulting costs and one-time costs, that are not part of our ongoing operations related to our systems strategic initiatives.
(4)    Primarily includes costs incurred to consummate or integrate acquired centers, certain of which are wholly-owned and certain of which are affiliated practices, in addition to the compensation paid to former owners of acquired centers and related expenses that are not reflective of the ongoing operating expenses of our centers. Acquired center integration and other are components of general and administrative expenses included in our unaudited consolidated statements of operations and comprehensive loss. Former owner fees is a component of center costs, excluding depreciation and amortization included in our unaudited consolidated statements of operations and comprehensive loss. 



Investor Relations Contact

Monica Prokocki
VP of Investor Relations
602-767-2100
[email protected]

Posted on

CURO Group Holdings Corp. Reports First Quarter 2023 Financial Results

CURO Group Holdings Corp. Reports First Quarter 2023 Financial Results

CHICAGO–(BUSINESS WIRE)–
CURO Group Holdings Corp. (NYSE: CURO) (“CURO” or the “Company”), a tech-enabled, omni-channel consumer finance company serving consumers in the U.S. and Canada, today announced financial results for its first quarter ended March 31, 2023.

Highlights

  • Net revenue increased 19.8% sequentially to $146.5 million

  • Operating expenses declined 6.2% sequentially to $118.2 million, and $35.5 million and 23.1% year over year

  • Gross loans receivables of $2.1 billion were slightly lower by 1.2% sequentially

  • Net charge-off rate improved 326 bps sequentially to 11.5%, and 30 bps sequentially to 14.5% excluding the changes in the Direct Lending brands in Canada charge-off policies

  • On May 9, 2023, finalized a $150.0 million term loan and a C$110.0 million non-recourse revolving warehouse facility

“Our first quarter results highlight the emerging benefits of our business transformation and differentiated operating model,” said Doug Clark, Chief Executive Officer of CURO. “Subsequent to the quarter, we successfully raised over $230 million in gross capital, a key step to executing our plan to profitability and demonstrates continued access to capital markets and supportive lending partners. We also delivered results that were favorable relative to our guidance expectations, including solid revenue, well-managed operating expenses and stable credit quality. With a close eye on the various challenges presented by the macro environment, we will continue to execute on our business plan, support our customers and remain focused on generating long-term sustainable returns for our investors.”

Consolidated Summary Results

For the three months ended March 31, 2023, the Company had total revenue of $209.5 million compared with total revenue of $217.2 million sequentially, primarily driven by product mix shift. Net revenue was $146.5 million, an increase of $24.2 million, or 19.8% sequentially, primarily driven by a lower provision for loan loss expense related to the decrease in the net charge-off rate.

For the three months ended March 31, 2023, the Company had total operating expenses of $118.2 million, a decrease of $7.8 million, or 6.2%, sequentially. The decline reflected lower restructuring charges and operating expenses, in both cases related to store closures and headcount reductions in the U.S. and Canada. One-time restructuring charges recognized in the first quarter of 2023 and the fourth quarter of 2022 were $10.0 million and $13.1 million, respectively, representing $3.1 million of the sequential decrease.

Net loss of $59.5 million ($1.46 per share) for the three months ended March 31, 2023, compared with Net loss of $186.4 million ($4.60 per share) for the three months ended December 31, 2022. The $126.9 million improvement in Net loss in the first quarter of 2023 compared to the prior quarter was driven by a $24.2 million increase in net revenue quarter over quarter due to product mix shift, the decline in Provision for loan loss, a $7.8 million decrease in total Operating expenses related to store closures and restructuring activities completed in the fourth quarter of 2022 and the $145.2 million Goodwill impairment charge in the fourth quarter of 2022, with no such charge in the first quarter of 2023, partially offset by a $29.0 million Provision for income taxes to create a valuation allowance on U.S. deferred tax assets, and a $4.0 million increase in Interest expense.

Gross loans receivable of $2.1 billion at March 31, 2023 were slightly lower by 1.2% sequentially, primarily driven by a decrease of $55.2 million, or 6.9%, in Direct Lending Installment Loans, partially offset by an increase of $19.8 million, or 2.4%, in Canada POS Lending.

As of January 1, 2023, the Company adopted Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“CECL”). This adoption resulted in a onetime pre-tax increase to our Allowance for loan losses of $135.2 million, which was recorded to opening Accumulated deficit and did not impact the Statement of Operations.

The Company’s Net charge-off rate in the first quarter improved 326 bps, sequentially, to 11.5%, primarily driven by a change in our Direct Lending brands in Canada charge-off policies during the quarter, as part of the alignment of charge-off policies across the Company, as well as improved recoveries as a result of improvements to our credit collection processes. The Company’s 91+ days delinquency ratio increased by 60 bps, sequentially, to 3.2% primarily driven by these policy changes.

 

As of or for the Quarter Ended

 

Mar 31,

 

Dec 31,

 

Sep 30,

 

Jun 30,

 

Mar 31,

Delinquency and Loss Ratios

2023

 

2022

 

2022

 

2022

 

2022

31-60 days delinquency ratio

1.8

%

1.9

%

2.5

%

2.4

%

2.1

%

61-90 days delinquency ratio

1.5

%

1.3

%

1.5

%

1.8

%

1.9

%

91+ days delinquency ratio

3.2

%

2.6

%

2.6

%

2.0

%

2.2

%

Net charge-offs

11.5

%

14.8

%

13.2

%

24.0

%

23.2

%

Funding and Liquidity

As of March 31, 2023, principal debt balances outstanding of $2.7 billion, which consisted of 65.5% of fixed rate or hedged variable rate debt and 34.5% of variable rate debt. We had $54.9 million of Cash and cash equivalents on the Consolidated Balance Sheet and available for general corporate purposes.

As of March 31, 2023, unrestricted cash and cash equivalents, together with $109.9 million in unused borrowing capacity and $140.1 million of unencumbered Gross loans receivable, provided approximately $303.6 million in available capital resources.

About CURO

CURO Group Holdings Corp. (NYSE: CURO) is a leading consumer credit lender serving U.S. and Canadian customers for over 25 years. Our roots in the consumer finance market run deep. We’ve worked diligently to provide customers a variety of convenient, easily accessible financial services. Our decades of diversified data power a hard-to-replicate underwriting and scoring engine, mitigating risk across the full spectrum of credit products. We operate a number of brands including Cash Money®, LendDirect®, Flexiti®, Heights Finance, Southern Finance, Covington Credit, Quick Credit and First Heritage Credit.

Conference Call

CURO will host a conference call to discuss these results at 8:30 a.m. Eastern Time on Wednesday, May 10, 2023. The live webcast of the call can be accessed at the CURO Investor Relations website at http://ir.curo.com/.

You may access the call at 1-833-953-2430 (1-412-317-5759 for international callers). Please ask to join the CURO Group Holdings call. A replay of the conference call will be available until May 17, 2023, at 5:00 p.m. Eastern Time. An archived version of the webcast will be available on the CURO Investors website for 90 days. You may access the conference call replay at 1-877-344-7529 (1-412-317-0088 for international callers). The replay access code is 1314764.

Final Results

The financial results presented and discussed herein are on a preliminary and unaudited basis; final unaudited data will be included in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2023.

Table 1 – Consolidated Statements of Operations
 

 

Three Months Ended,

 

Mar 31,

 

Dec 31,

 

Sept 30,

 

Jun 30,

 

Mar 31,
(in thousands, unaudited)

 

2023

 

2022

 

2022

 

2022

 

2022

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

Interest and fees revenue

 

$

179,437

 

$

181,605

 

$

180,515

 

$

278,331

 

$

264,956

 

Insurance and other income

 

 

30,036

 

 

35,593

 

 

33,605

 

 

26,073

 

 

25,240

 

Total revenue

 

 

209,473

 

 

217,198

 

 

214,120

 

 

304,404

 

 

290,196

 

Provision for losses

 

 

62,932

 

 

94,849

 

 

78,399

 

 

129,546

 

 

97,531

 

Net revenue

 

 

146,541

 

 

122,349

 

 

135,721

 

 

174,858

 

 

192,665

 

Operating Expenses

 

 

 

 

 

 

Salaries and benefits

 

 

64,805

 

 

66,067

 

 

53,413

 

 

82,427

 

 

79,729

 

Occupancy

 

 

11,672

 

 

12,114

 

 

12,827

 

 

17,507

 

 

17,037

 

Advertising

 

 

2,175

 

 

3,692

 

 

5,244

 

 

12,707

 

 

10,500

 

Direct operations

 

 

13,092

 

 

11,832

 

 

11,729

 

 

20,293

 

 

20,274

 

Depreciation and amortization

 

 

9,021

 

 

8,337

 

 

9,499

 

 

8,672

 

 

9,814

 

Other operating expense

 

 

17,433

 

 

24,002

 

 

23,645

 

 

18,787

 

 

16,377

 

Total operating expenses

 

 

118,198

 

 

126,044

 

 

116,357

 

 

160,393

 

 

153,731

 

Other expense (income)

 

 

 

 

 

 

Interest expense

 

 

58,943

 

 

54,978

 

 

50,149

 

 

42,193

 

 

38,341

 

Loss (income) from equity method investment

 

 

3,413

 

 

1,932

 

 

2,309

 

 

1,328

 

 

(1,584

)

Goodwill impairment

 

 

—

 

 

145,241

 

 

—

 

 

—

 

 

—

 

Loss on extinguishment of debt

 

 

—

 

 

689

 

 

3,702

 

 

—

 

 

—

 

Loss (gain) on change in fair value of contingent consideration

 

 

2,728

 

 

—

 

 

(11,354

)

 

4,014

 

 

(265

)

Gain on sale of business

 

 

2,027

 

 

—

 

 

(68,443

)

 

—

 

 

—

 

Total other expense

 

 

67,111

 

 

202,840

 

 

(23,637

)

 

47,535

 

 

36,492

 

(Loss) income before income taxes

 

 

(38,768

)

 

(206,535

)

 

43,001

 

 

(33,070

)

 

2,442

 

Provision (benefit) for income taxes

 

 

20,703

 

 

(20,142

)

 

17,348

 

 

(6,990

)

 

1,106

 

Net (loss) income

 

$

(59,471

)

$

(186,393

)

$

25,653

 

$

(26,080

)

$

1,336

 

 

 

 

 

 

 

 

Basic (loss) earnings per share

 

$

(1.46

)

$

(4.60

)

$

0.63

 

$

(0.65

)

$

0.03

 

Diluted (loss) earnings per share

 

$

(1.46

)

$

(4.60

)

$

0.63

 

$

(0.65

)

$

0.03

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

Basic

 

 

40,783

 

 

40,488

 

 

40,479

 

 

40,376

 

 

40,368

 

Diluted

 

 

40,783

 

 

40,488

 

 

40,835

 

 

40,376

 

 

41,308

 

Table 2 – Consolidated Balance Sheets
 

 

As of

 

Mar 31,

 

Dec 31,

 

Sep 30,

 

Jun 30,

 

Mar 31,

(in thousands, unaudited)

2023

 

2022

 

2022

 

2022

 

2022

ASSETS

Cash and cash equivalents

$

54,935

 

$

73,932

 

$

45,683

 

$

37,394

 

$

60,209

 

Restricted cash

 

123,282

 

 

91,745

 

 

144,020

 

 

97,465

 

 

110,118

 

Gross loans receivable

 

2,062,829

 

 

2,087,833

 

 

1,894,427

 

 

1,592,815

 

 

1,628,568

 

Less: Allowance for loan losses

 

(259,959

)

 

(122,028

)

 

(102,743

)

 

(90,286

)

 

(98,168

)

Loans receivable, net

 

1,802,870

 

 

1,965,805

 

 

1,791,684

 

 

1,502,529

 

 

1,530,400

 

Income taxes receivable

 

20,100

 

 

21,918

 

 

13,469

 

 

46,450

 

 

28,664

 

Prepaid expenses and other

 

47,295

 

 

53,057

 

 

65,167

 

 

25,370

 

 

40,112

 

Property and equipment, net

 

29,867

 

 

31,957

 

 

37,402

 

 

38,752

 

 

54,865

 

Investment in Katapult

 

20,502

 

 

23,915

 

 

25,848

 

 

28,157

 

 

29,484

 

Right of use asset – operating leases

 

54,597

 

 

61,197

 

 

64,683

 

 

64,602

 

 

114,305

 

Deferred tax assets

 

53,474

 

 

49,893

 

 

31,986

 

 

23,993

 

 

20,066

 

Goodwill

 

276,487

 

 

276,269

 

 

424,292

 

 

352,990

 

 

430,967

 

Intangibles, net

 

127,387

 

 

123,677

 

 

120,345

 

 

113,130

 

 

113,640

 

Other assets

 

10,991

 

 

15,828

 

 

12,774

 

 

8,558

 

 

9,535

 

Assets held for sale (1)

 

—

 

 

—

 

 

—

 

 

338,779

 

 

—

 

Total Assets

$

2,621,787

 

$

2,789,193

 

$

2,777,353

 

$

2,678,169

 

$

2,542,365

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Liabilities

 

 

 

 

 

Accounts payable and accrued liabilities

$

85,875

 

$

73,827

 

$

66,723

 

$

81,423

 

$

84,783

 

Deferred revenue

 

33,227

 

 

32,259

 

 

25,111

 

 

23,425

 

 

24,265

 

Lease liability – operating leases

 

55,468

 

 

62,847

 

 

66,370

 

 

67,339

 

 

120,593

 

Contingent consideration related to acquisition

 

18,128

 

 

16,884

 

 

15,770

 

 

30,354

 

 

26,687

 

Income taxes payable

 

—

 

 

—

 

 

—

 

 

4

 

 

—

 

Accrued interest

 

20,090

 

 

38,460

 

 

18,048

 

 

34,970

 

 

16,481

 

Liability for losses on CSO lender-owned consumer loans

 

—

 

 

—

 

 

—

 

 

—

 

 

7,166

 

Debt

 

2,627,263

 

 

2,607,314

 

 

2,449,316

 

 

2,189,431

 

 

2,090,085

 

Other long-term liabilities

 

10,552

 

 

11,736

 

 

11,563

 

 

12,146

 

 

13,679

 

Deferred tax liabilities

 

—

 

 

—

 

 

—

 

 

12,360

 

 

5,839

 

Liabilities held for sale (1)

 

—

 

 

—

 

 

—

 

 

111,137

 

 

—

 

Total Liabilities

$

2,850,603

 

$

2,843,327

 

$

2,652,901

 

$

2,562,589

 

$

2,389,578

 

Total Stockholders’ (Deficit) Equity

 

(228,816

)

 

(54,134

)

 

124,452

 

 

115,580

 

 

152,787

 

Total Liabilities and Stockholders’ (Deficit) Equity

$

2,621,787

 

$

2,789,193

 

$

2,777,353

 

$

2,678,169

 

$

2,542,365

 

 

 

 

 

 

 

(1) Assets held for sale and Liabilities held for sale represent the balance, as of June 30, 2022, for assets and liabilities, respectively, associated with the sale of the Legacy U.S. Direct Lending Business. The sale of the Legacy U.S. Direct Lending business closed in July 2022.

Table 3 – Consolidated Portfolio Performance
 

(in thousands, except percentages, unaudited)

 

Q1 2023

Q4 2022

Q3 2022

Q2 2022(1)

Q1 2022

Gross loans receivable(5)

 

 

 

 

 

 

Revolving LOC

 

$

1,314,695

 

$

1,284,515

 

$

1,129,387

 

$

1,128,372

 

$

1,015,338

 

Installment loans

 

 

748,134

 

 

803,318

 

 

765,040

 

 

652,468

 

 

613,230

 

Total gross loans receivable

 

$

2,062,829

 

$

2,087,833

 

$

1,894,427

 

$

1,780,840

 

$

1,628,568

 

 

 

 

 

 

 

 

Lending Revenue

 

 

 

 

 

 

Revolving LOC

 

$

84,225

 

$

81,170

 

$

77,037

 

$

96,582

 

$

91,023

 

Installment loans

 

 

95,212

 

 

100,435

 

 

103,478

 

 

181,749

 

 

173,933

 

Total lending revenue

 

$

179,437

 

$

181,605

 

$

180,515

 

$

278,331

 

$

264,956

 

 

 

 

 

 

 

 

Lending Provision

 

 

 

 

 

 

Revolving LOC

 

$

30,106

 

$

46,745

 

$

41,787

 

$

40,435

 

$

37,447

 

Installment loans

 

 

31,139

 

 

46,442

 

 

33,510

 

 

86,484

 

 

57,435

 

Total lending provision

 

$

61,245

 

$

93,187

 

$

75,297

 

$

126,919

 

$

94,882

 

 

 

 

 

 

 

 

NCOs(2) (6)

 

 

 

 

 

 

Revolving LOC

 

$

17,953

 

$

35,387

 

$

30,907

 

$

33,945

 

$

34,372

 

Installment loans (5)

 

 

41,078

 

 

38,168

 

 

31,372

 

 

71,056

 

 

60,386

 

Total NCOs

 

$

59,031

 

$

73,555

 

$

62,279

 

$

105,001

 

$

94,758

 

 

 

 

 

 

 

 

NCO rate (annualized)(2) (3) (5)

 

 

 

 

 

 

Revolving LOC

 

 

5.6

%

 

11.6

%

 

10.8

%

 

12.8

%

 

14.4

%

Installment loans

 

 

21.5

%

 

19.6

%

 

17.6

%

 

44.8

%

 

38.8

%

Total NCO rate

 

 

11.5

%

 

14.8

%

 

13.2

%

 

24.0

%

 

23.2

%

 

 

 

 

 

 

 

ACL rate(4) (5) (6)

 

 

 

 

 

 

Revolving LOC

 

 

13.3

%

 

6.1

%

 

6.0

%

 

6.7

%

 

7.0

%

Installment loans

 

 

11.3

%

 

5.4

%

 

4.6

%

 

8.1

%

 

5.5

%

Total ACL rate

 

 

12.6

%

 

5.8

%

 

5.4

%

 

6.7

%

 

6.0

%

 

 

 

 

 

 

 

31+ days past-due rate(4) (5)

 

 

 

 

 

 

Revolving LOC

 

 

5.5

%

 

3.3

%

 

4.1

%

 

4.1

%

 

3.7

%

Installment loans

 

 

8.2

%

 

9.6

%

 

10.2

%

 

9.2

%

 

9.0

%

Total past-due rate

 

 

6.5

%

 

5.8

%

 

6.6

%

 

6.1

%

 

5.8

%

 

 

 

 

 

 

 

(1) Includes loan balances and activity classified as Held for Sale.

(2) NCOs presented above include $0.0 million, $0.0 million, $0.5 million, $10.3 million, and $5.0 million for the three months ended March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, respectively, related to the purchase accounting fair value discount, which are excluded from provision.

(3) We calculate NCO rate as total quarterly NCOs divided by Average gross loans receivable; then we annualize the rate. The amount and timing of recoveries are impacted by our collection strategies, which are based on customer behavior and risk profile and include direct customer communications and the periodic sale of charged off loans.

(4) We calculate (i) Allowance for credit losses (“ACL”) rate and (ii) 31+ days past-due rate as the respective totals divided by gross loans receivable at each respective quarter end.

(5) All balances in connection with the CSO program were disposed of on July 8, 2022 upon the completion of the divestiture of the Legacy U.S. Direct Lending business, as such these balances have been excluded from this amount.

(6) We adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments on January 1, 2023, which requires us to estimate the lifetime expected credit loss on financial instruments. Our previous model required the recognition of credit losses when it was probable that a loss had been incurred.

Table 4 – Direct Lending Segment – Operating (Loss)/Income
 

 

Three Months Ended,

 

Mar 31,

 

Dec 31,

 

Sep 30,

 

Jun 30,

 

Mar 31,
(in thousands, unaudited)

 

2023

 

2022

 

2022

 

2022

 

2022

 

 

 

 

 

 

 

Total revenue

 

$

169,368

$

181,925

 

$

186,409

$

281,251

$

269,887

Provision for losses

 

 

48,364

 

 

77,724

 

 

65,020

 

 

123,584

 

 

88,817

 

Net revenue

 

 

121,004

 

 

104,201

 

 

121,389

 

 

157,667

 

 

181,070

 

Total operating expenses

 

 

103,151

 

 

111,632

 

 

102,840

 

 

143,965

 

 

137,963

 

Segment operating (loss) income

 

$

17,853

 

$

(7,431

)

$

18,549

 

$

13,702

 

$

43,107

 

 

 

 

 

 

 

 

Table 5 – Direct Lending Segment – Portfolio Performance
 

(in thousands, except percentages, unaudited)

 

Q1 2023

Q4 2022

Q3 2022

Q2 2022(1)

Q1 2022

Gross loans receivable(5)

 

 

 

 

 

 

Revolving LOC

 

$

461,443

 

$

451,077

 

$

439,117

 

$

501,209

 

$

473,562

 

Installment loans

 

 

748,133

 

 

803,318

 

 

765,041

 

 

652,467

 

 

613,231

 

Total gross loans receivable

 

$

1,209,576

 

$

1,254,395

 

$

1,204,158

 

$

1,153,676

 

$

1,086,793

 

 

 

 

 

 

 

 

Lending Revenue

 

 

 

 

 

 

Revolving LOC

 

$

49,092

 

$

49,915

 

$

52,461

 

$

75,736

 

$

72,368

 

Installment loans

 

 

95,212

 

 

100,435

 

 

103,478

 

 

181,747

 

 

173,934

 

Total lending revenue

 

$

144,304

 

$

150,350

 

$

155,939

 

$

257,483

 

$

246,302

 

 

 

 

 

 

 

 

Lending Provision

 

 

 

 

 

 

Revolving LOC

 

$

15,539

 

$

29,620

 

$

28,408

 

$

34,472

 

$

28,734

 

Installment loans

 

 

31,139

 

 

46,442

 

 

33,511

 

 

86,485

 

 

57,435

 

Total lending provision

 

$

46,678

 

$

76,062

 

$

61,919

 

$

120,957

 

$

86,169

 

 

 

 

 

 

 

 

NCOs(2) (5)

 

 

 

 

 

 

Revolving LOC

 

$

6,234

 

$

26,715

 

$

24,793

 

$

30,408

 

$

31,645

 

Installment loans

 

 

41,078

 

 

38,168

 

 

29,783

 

 

43,661

 

 

38,894

 

Total NCOs

 

$

47,312

 

$

64,883

 

$

54,576

 

$

74,069

 

$

70,539

 

 

 

 

 

 

 

 

NCO rate (annualized) (2) (3) (5)

 

 

 

 

 

 

Revolving LOC

 

 

5.5

%

 

23.8

%

 

20.9

%

 

25.0

%

 

27.6

%

Installment loans

 

 

21.5

%

 

19.3

%

 

16.7

%

 

27.7

%

 

25.3

%

Total NCO rate

 

 

15.6

%

 

20.9

%

 

18.4

%

 

26.5

%

 

26.3

%

 

 

 

 

 

 

 

ACL rate (4) (5)(6)

 

 

 

 

 

 

Revolving LOC

 

 

25.6

%

 

8.4

%

 

7.9

%

 

9.3

%

 

9.2

%

Installment loans

 

 

11.3

%

 

5.4

%

 

4.6

%

 

6.9

%

 

4.4

%

Total ACL rate

 

 

16.8

%

 

6.5

%

 

5.8

%

 

7.9

%

 

6.5

%

 

 

 

 

 

 

 

31+ days past-due rate(4)(5)

 

 

 

 

 

 

Revolving LOC

 

 

8.4

%

 

4.1

%

 

5.1

%

 

5.8

%

 

5.8

%

Installment loans

 

 

8.2

%

 

9.6

%

 

10.2

%

 

9.7

%

 

9.3

%

Total past-due rate

 

 

8.3

%

 

7.6

%

 

8.3

%

 

8.0

%

 

7.8

%

 

 

 

 

 

 

 

(1) Includes loan balances and activity classified as Held for Sale.

(2) NCOs presented above include $0.0 million, $0.0 million, $0.5 million, $10.3 million and $5.0 million for the three months ended March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022, respectively, related to the purchase accounting fair value discount, which are excluded from provision.

(3) We calculate NCO rate as total quarterly NCOs divided by Average gross loans receivable, then we annualize the rate. The amount and timing of recoveries are impacted by our collection strategies, which are based on customer behavior and risk profile and include direct customer communications and the periodic sale of charged off loans.

(4) We calculate (i) ACL rate and (ii) 31+ days past-due rate as the respective totals divided by gross loans receivable at each respective quarter end.

(5) All balances in connection with the CSO program were disposed of on July 8, 2022 upon the completion of the divestiture of the Legacy U.S. Direct Lending Business, as such these balances have been excluded from this amount.

(6) We adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments on January 1, 2023, which requires us to estimate the lifetime expected credit loss on financial instruments. Our previous model required the recognition of credit losses when it was probable that a loss had been incurred.

Table 6 – Canada POS Lending Segment – Operating Income/(Loss)
 

 

Three Months Ended,

 

Mar 31,

 

Dec 31,

 

Sept 30,

 

Jun 30,

 

Mar 31,
(in thousands, unaudited)

 

2023

 

2022

 

2022

 

2022

 

2022

 

 

 

 

 

 

 

Total revenue

 

$

40,105

$

35,273

$

27,710

$

23,154

$

20,309

 

Provision for losses

 

 

14,568

 

 

17,125

 

 

13,378

 

 

5,963

 

 

8,714

 

Net revenue

 

 

25,537

 

 

18,148

 

 

14,332

 

 

17,191

 

 

11,595

 

Total operating expenses

 

 

15,047

 

 

14,412

 

 

13,519

 

 

16,427

 

 

15,768

 

Segment operating income (loss)

 

$

10,490

 

$

3,736

 

$

813

 

$

764

 

$

(4,173

)

 

 

 

 

 

 

 

Table 7 – Canada POS Lending Segment – Portfolio Performance
 

(in thousands, except percentages, unaudited)

 

Q1 2023

Q4 2022

Q3 2022

Q2 2022

Q1 2022

Revolving LOC

 

 

 

 

 

 

Gross loans receivable

 

$

853,253

 

$

833,438

 

$

690,270

 

$

627,163

 

$

541,776

 

Lending revenue

 

$

35,133

 

$

31,255

 

$

24,575

 

$

20,846

 

$

18,655

 

Lending provision

 

$

14,568

 

$

17,125

 

$

13,379

 

$

5,963

 

$

8,714

 

NCOs

 

$

11,719

 

$

8,672

 

$

6,114

 

$

3,537

 

$

2,727

 

NCO rate (annualized) (1)

 

 

5.6

%

 

4.4

%

 

3.6

%

 

2.4

%

 

2.0

%

ACL rate (2) (3)

 

 

6.7

%

 

4.9

%

 

4.8

%

 

4.5

%

 

5.1

%

31+ days past-due rate (2)

 

 

3.9

%

 

2.9

%

 

3.6

%

 

2.8

%

 

1.8

%

(1) We calculate NCO rate as total quarterly NCOs divided by Average gross loans receivable then we annualized the rate. The amount and timing of recoveries are impacted by our collection strategies, which are based on customer behavior and risk profile and include direct customer communications and the periodic sale of charged off loans.

(2) We calculate (i) ACL rate and (ii) 31+ days past-due rate as the respective totals divided by gross loans receivable at each respective quarter end.

(3) We adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments on January 1, 2023, which requires us to estimate the lifetime expected credit loss on financial instruments. Our previous model required the recognition of credit losses when it was probable that a loss had been incurred.

Forward-Looking Statements

This press release contains forward-looking statements. These forward-looking statements include projections, estimates and assumptions about various matters, such as future financial and operational performance, including our belief in the benefits of our business transformation and differentiated operating model, our ability to execute on our plan to profitability and demonstrate continued access to capital markets and our ability to execute on our business plan, support our customers and remain focused on generating long-term sustainable returns for our investors. In addition, words such as “guidance,” “estimate,” “anticipate,” “believe,” “forecast,” “step,” “plan,” “predict,” “focused,” “project,” “is likely,” “expect,” “anticipate,” “intend,” “should,” “will,” “confident,” variations of such words and similar expressions are intended to identify forward-looking statements. Our ability to achieve these forward-looking statements is based on certain assumptions, judgments and other factors, both within and outside of our control, that could cause actual results to differ materially from those in the forward-looking statements, including: risks relating to the uncertainty of projected financial and operational information and forecasts, including errors in our internal forecasts; our ability to manage growth; our dependence on third-party lenders to provide the cash we need to fund our loans and our ability to affordably access third-party financing; our level of indebtedness; the effects of competition on our business; our ability to attract and retain customers; global economic, market, financial, political or health conditions or events; actions of regulators and the impact of those actions on our business; our ability to successfully integrate acquired businesses; our ability to protect our proprietary technology and analytics and keep up with that of our competitors; disruption of our information technology systems that adversely affect our business operations; ineffective pricing of the credit risk of our prospective or existing customers; inaccurate information supplied by customers or third parties that could lead to errors in judging customers’ qualifications to receive loans; improper disclosure of customer personal data; failure of third parties who provide products, services or support to us; disruption to our relationships with banks and other third-party electronic payment solutions providers as well as other factors discussed in our filings with the Securities and Exchange Commission. These projections, estimates and assumptions may prove to be inaccurate in the future. These forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. There may be additional risks that we presently do not know or that we currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual future results. We undertake no obligation to update, amend or clarify any forward-looking statement for any reason.

(CURO-NWS)

Investor Relations:

Phone: 844-200-0342

Email: [email protected]

KEYWORDS: Illinois United States North America

INDUSTRY KEYWORDS: Banking Fintech Professional Services Finance

MEDIA:

Logo
Logo
Posted on

Babylon Secures Financing and Plans to Implement a Take Private Transaction with Support from AlbaCore Capital

Babylon Secures Financing and Plans to Implement a Take Private Transaction with Support from AlbaCore Capital

AUSTIN, Texas & LONDON–(BUSINESS WIRE)–
Babylon Holdings Limited (NYSE: BBLN) (including its subsidiaries, “Babylon”)is pleased to announce that it has entered into an amendment and restatement of its senior secured term loan facility with AlbaCore Capital LLP and certain of its affiliates (“AlbaCore”), dated March 9, 2023 (the “Bridge Facility Agreement”), for up to an additional $34.5 million in funding (the “Interim Funding”). This investment demonstrates AlbaCore’s ongoing support to Babylon. The Interim Funding will be provided on similar pricing terms to the original Bridge Facility Agreement.

The Interim Funding will provide liquidity to support Babylon’s operations and enable Babylon to proceed with a proposed longer-term funding and take-private solution under a framework implementation agreement (the “Framework Agreement”) entered into between Babylon and AlbaCore. Under the Framework Agreement, Babylon and AlbaCore expect to proceed with a restructuring and recapitalization that will strengthen Babylon’s balance sheet and provide additional liquidity to deliver on Babylon’s strategic plan. The Framework Agreement contemplates that core operating subsidiaries of Babylon Holdings Limited (the “Go-Forward Business”) will return to private ownership (the “Take Private Proposal”) and is expected to provide, subject to specified terms and conditions and definitive documentation, for: (i) additional funding for the Go-Forward Business; (ii) an amendment of the existing aggregate debt under the original $300 million principal amount of AlbaCore notes due 2026, the notes issued under the Bridge Facility Agreement, and the Interim Funding (collectively, the “Debt”), including an extension of the maturity of the Debt; and (iii) a new long-term employee incentive plan.

Babylon’s Board of Directors has approved the Interim Funding and the Take Private Proposal as a constructive step to deliver a longer-term solution to support the Go-Forward Business’s continued path toward profitability, upon consideration of the results of Babylon’s previously announced efforts to explore strategic alternatives, including additional financing and a possible sale of the Meritage Medical Network/Independent Physician Association business (the “IPA Business”).

The Interim Funding will be made available to Babylon in May and early June 2023, subject to the satisfaction of certain conditions precedent. Babylon and AlbaCore plan to implement the Take Private Proposal during June in the absence of other acceptable transaction proposals from third parties in the interim period. It is expected that as part of the implementation of the Take Private Proposal, Babylon Holdings Limited will sell Babylon Group Holdings Limited, which owns Babylon’s core operating subsidiaries that will comprise the Go-Forward Business, to a newly formed entity capitalized by AlbaCore and other investors. This sale will occur without the approval of or any payment to Babylon Holdings Limited’s Class A ordinary shareholders or other equity instrument holders, as AlbaCore will be exercising rights under its debt agreements with Babylon.

Babylon remains focused on its day-to-day operations and patient care, as well as its ongoing and future commercial relationships, and on ensuring stability for Babylon’s key stakeholders. Babylon remains entirely committed to its employees, customers and patients alike, and will proactively seek to maintain and strengthen its partnerships while continuing to provide high-quality, accessible and affordable healthcare through its innovative digital-first platform as Babylon positions itself for its future.

About Babylon

At Babylon, our mission is to make quality healthcare accessible and affordable for every person on Earth. To this end, we are building an integrated digital first primary care service that can manage population health at scale.

Founded in 2013, we are reengineering how people engage with their care at every step of the healthcare continuum. By flipping the model from reactive sick care to proactive healthcare through the devices people already own, we offer millions of people globally, ongoing, always-on care. And, we have already shown that in environments as diverse as the developed UK or developing Rwanda, urban New York or rural Missouri, for people of all ages, it is possible to achieve our mission by leveraging our highly scalable, digital-first platform combined with high quality, virtual clinical operations to provide integrated, personalized healthcare.

Today, we support a global patient network across 15 countries, and operate in 16 languages. In 2021 alone, Babylon helped a patient every 6 seconds, with approximately 5.2 million consultations and AI interactions. Importantly, this was achieved with a 93% user retention rate in our NHS GP at Hand service and 4 or 5-star ratings from more than 90% of our users across all of our geographies. We are working to demonstrate how our model of digital first integrated primary care can be applied to manage the health of the population in different settings across Medicare, Medicaid, and commercial value-based care contracts in the US and our primary care services in the UK.

Babylon is also working with governments, health providers, employers and insurers across the globe to provide them with a new digital-first platform that any partner can use to deliver high-quality healthcare with lower costs and better outcomes. For more information, please visit www.babylonhealth.com.

Forward-Looking Statements

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or our future financial or operating performance. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements include, without limitation, information concerning Babylon’s ability to receive available funding from the Interim Funding in full and its ability to successfully implement the Framework Agreement, possible or assumed future results of operations, business strategies, debt levels, competitive position, industry environment and potential growth opportunities.

These forward-looking statements are not guarantees of future performance, conditions, or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of Babylon’s management’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. These risks, uncertainties, assumptions and other important factors include, but are not limited to: our ability to continue as a going concern over the next twelve months; risks associated with our debt financing agreements with AlbaCore, including our ability to receive available funding from the Interim Funding in full and the impact of the restrictive covenants on our operations; risks associated with the implementation of the Take Private Proposal pursuant to the Framework Agreement; that we may require additional financing and our ability to obtain additional financing on favorable terms; our ability to timely identify and execute strategic alternatives on favorable terms, including restructuring, refinancing, an asset sale such as the proposed sale of the IPA Business, a take private transaction, and/or putting Babylon Holdings Limited into administration under UK law or obtaining relief under the U.S. Bankruptcy Code; risks and uncertainties associated with such administration or bankruptcy proceedings; the diversion of our senior management team’s attention from our business to pursuing strategic alternatives; the impact on our share price as a result of announcements related to a potential take private transaction; turnover in our senior management team and other key talent; our future financial and operating results, ability to generate profits in the future, and timeline to profitability for Babylon as a whole and in our lines of business; the impact of our recently completed reverse share split on the price and trading market for our Class A ordinary shares; if we fail to comply with the NYSE’s continued listing standards and rules, the NYSE may delist our Class A ordinary shares; uncertainties related to our ability to continue as a going concern; our ability to successfully execute our planned cost reduction actions and realize the expected cost savings; the growth of our business and organization; risks associated with impairment of goodwill and other intangible assets; our failure to compete successfully; our ability to renew contracts with existing customers, and risks of contract renewals at lower fee levels, or significant reductions in members, pricing or premiums under our contracts due to factors outside our control; our dependence on our relationships with physician-owned entities; our ability to maintain and expand a network of qualified providers; our ability to increase engagement of individual members or realize the member healthcare cost savings that we expect; a significant portion of our revenue comes from a limited number of customers; the uncertainty and potential inadequacy of our claims liability estimates for medical costs and expenses; risks associated with estimating the amount and timing of revenue recognized under our licensing agreements and value-based care agreements with health plans; risks associated with our physician partners’ failure to accurately, timely and sufficiently document their services; risks associated with inaccurate or unsupportable information regarding risk adjustment scores of members in records and submissions to health plans; risks associated with reduction of reimbursement rates paid by third-party payers or federal or state healthcare programs; risks associated with regulatory proposals directed at containing or lowering the cost of healthcare, including the ACO REACH model; immaturity and volatility of the market for telemedicine and our unproven digital-first approach; our ability to develop and release new solutions and services; difficulty in hiring and retaining talent to operate our business; risks associated with our international operations, economic uncertainty, or downturns; the impact of COVID-19 or any other pandemic, epidemic or outbreak of an infectious disease in the United States or worldwide on our business; risks associated with foreign currency exchange rate fluctuations and restrictions; and the other risks and uncertainties identified in Babylon’s Form 10-K filed with the SEC on March 16, 2023 and Form 10-Q to be filed with the SEC on May 10, 2023, and in other documents filed or to be filed by Babylon with the SEC and available at the SEC’s website at www.sec.gov.

Babylon cautions that the foregoing list of factors is not exclusive and cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, Babylon does not undertake any obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this press release.

Media

[email protected]

Investors

[email protected]

KEYWORDS: Texas North America United States Ireland United Kingdom Europe

INDUSTRY KEYWORDS: Mobile/Wireless Technology Finance Health Technology Telemedicine/Virtual Medicine Professional Services Software Other Health Health Artificial Intelligence

MEDIA:

Logo
Logo
Posted on

Q3 FY23 Results: Mytheresa reports 18% GMV growth in Q3 FY23 and continued Adjusted EBITDA profitability

Q3 FY23 Results: Mytheresa reports 18% GMV growth in Q3 FY23 and continued Adjusted EBITDA profitability

  • Gross Merchandise Value (GMV) growth of 17.8% to €219.8 million in Q3 FY23 as compared to €186.6 million in the prior year period
  • Number of top customer growth of 28.1% in Q3 of FY23 and increase in GMV per top customer of 6.7%
  • Gross Profit margin of 45.6% in Q3 FY23 as compared to 48.8% in the prior year period due to significant increase in promotional intensity by competitors
  • Continued profitability with adjusted EBITDA of €3.2 million in Q3 FY23, representing an Adjusted EBITDA margin of 1.6%
  • Adjusted EBITDA for the FYTD 23 of €33.6 million, representing an Adjusted EBITDA margin of 6.0%
  • Full FY23 guidance of 13% to 15% GMV growth and 4.5% to 5.5% Adjusted EBITDA margin

MUNICH–(BUSINESS WIRE)–
MYT Netherlands Parent B.V. (NYSE: MYTE) (“Mytheresa” or the “Company”), the parent company of Mytheresa Group GmbH, today announced financial results for its third quarter of fiscal year 2023 ended March 31, 2023. The luxury multi-brand digital platform delivered another quarter of growth with continued Adjusted EBITDA profitability, despite significant macro headwinds.

Michael Kliger, Chief Executive Officer of Mytheresa, said, “We are very satisfied with the global growth in our business producing industry-leading 18% top-line expansion. Our margin has been impacted by strong promotional intensity of many competitors in Q3 but we deliver profitable growth. We remain very much focused on our strategy of best customer experience and high full-price share yielding 36.8% top customer GMV growth in Q3.”

Kliger continued, “Beyond our solid financial performance in Q3, we are very pleased to announce key strategic initiatives that will further strengthen our industry leadership. For example, we recently celebrated the launch of four capsule collections by Chinese designers as part of our China Designer Program with a major event in Shanghai. We now offer our customers certified pre-owned watches by major luxury brands on our platform through our partnership with Bucherer, the world’s largest retailer of fine watches and jewelry. Finally, we have successfully completed last month the transition to a completely new tech platform powering all our user interfaces and e-commerce processes.”

FINANCIAL HIGHLIGHTS FOR THE THIRD QUARTER ENDED MARCH 31, 2023

  • GMV growth of 17.8% to €219.8 million in Q3 FY23 as compared to €186.6 million in the prior year period
  • Net sales increase of 17.3% year-over-year to €198.9 million
  • Gross Profit margin of 45.6% compared to 48.8% in the prior year period due to significant increase in promotional intensity by competitors
  • Continued profitability with Adjusted EBITDA of €3.2 million in Q3 FY23, representing an Adjusted EBITDA margin of 1.6%
  • Adjusted EBITDA for the FYTD 23 of €33.6 million, representing an Adjusted EBITDA margin of 6.0%
  • Positive Adjusted operating income of €0.1 million and Adjusted net income of €1.4 million

RECENT BUSINESS HIGHLIGHTS

Strong Global Expansion:

  • Global GMV growth with +17.8% vs. Q3 FY22 and +33.4% vs. Q3 FY21

  • Strongest GMV growth again in the United States with +27.4% vs. Q3 FY22 and increased total GMV share of the US of 17.7%

  • Many high-impact top customer and brand activations held in Europe, the Middle East and the United States, with truly ‘money can’t buy’ experiences

  • Launch of The China Designer Program in Shanghai with four exclusive capsule collections by Chinese fashion designers generating significant press coverage for Mytheresa in China

Continued Brand Support:

  • Launch of exclusive capsule collections and pre-launches in collaboration with Bottega Veneta, Loro Piana, Dolce&Gabbana, Christian Louboutin, Moncler, Givenchy, Jimmy Choo, Versace and many more

  • Launch of certified pre-owned watches from over 25 luxury brands such as Audemars Piguet, Cartier, IWC Schaffhausen, Jaeger-LeCoultre and others in collaboration with world’s largest luxury watches and jewelry retailer Bucherer

  • Successful completion of transition of 7 major brands to the Curated Platform Model (CPM)

High-quality Customer Growth:

  • LTM growth of active customers of 11.0% reaching 838,000 customers

  • Solid number of first-time buyers in Q3 FY23 with over 124,000 customers

  • Strong repurchase rates in Q3 FY23 of customer cohorts acquired in Q1 FY23 compared to Q1 FY22 cohorts

  • Excellent growth of number of top customers with 28.1% in Q3 FY23 vs. Q3 FY22 as well as a strong increase in average GMV per all customers of 4.3% in Q3 FY23 vs. Q3 FY22

  • GMV generated by Top Customers increased by 36.8% during Q3 FY23, accounting for a 36% share of total GMV

Consistent Strong Operational Performance:

  • Good customer satisfaction with Net Promoter Score of 72.1% in Q3 FY23

  • Gross Profit Margin with 45.6% in Q3 FY23 below Q3 FY22 by 320 basis points due to aggressive competitor promotions

  • Operational indicators in Q3 FY23 underlining resilience and adaptability of the Mytheresa business model with increased AOV, decreased CAC and stable operational cost ratios despite macro headwinds

  • Successful global roll out of new Mytheresa technology stack powering all user interfaces and providing state-of-the-art e-commerce capabilities

BUSINESS OUTLOOK

For the full fiscal year ending June 30, 2023, we expect:

  • GMV in the range of €845 million to 860 million, representing 13% to 15% growth

  • Net Sales in the range of €750 million to €765 million, representing 9% to 11% growth

  • Gross Profit in the range of €380 million to 386 million, representing 7% to 9% growth

  • And Adjusted EBITDA in the range of €34 to 43 million and an Adjusted EBITDA margin between 4.5% and 5.5%

The foregoing forward-looking statements reflect Mytheresa’s expectations as of today’s date. Given the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially. Mytheresa does not intend to update its forward-looking statements until its next quarterly results announcement, other than in publicly available statements.

CONFERENCE CALL AND WEBCAST INFORMATION

Mytheresa will host a conference call to discuss its third quarter of fiscal year 2023 financial results on May 10, 2023 at 8:00am Eastern Time. Those wishing to participate via webcast should access the call through Mytheresa’s Investor Relations website at https://investors.mytheresa.com. Those wishing to participate via the telephone may dial in at +1 (888) 550-5658 (USA). The participant access code will be 4922601. The conference call replay will be available via webcast through Mytheresa’s Investor Relations website. The telephone replay will be available from 11:00am Eastern Time on May 10, 2023, through May 17, 2023, by dialing +1 (800) 770-2030 (USA). The replay passcode will be 4922601. For specific international dial-ins please see here.

FORWARD LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to the impact of the COVID-19 global pandemic; the impact of restrictions on use of identifiers for advertisers (IDFA); future sales, expenses, and profitability; future development and expected growth of our business and industry; our ability to execute our business model and our business strategy; having available sufficient cash and borrowing capacity to meet working capital, debt service and capital expenditure requirements for the next twelve months; and projected capital spending. In some cases, you can identify forward-looking statements by the following words: “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements are only predictions. Actual events or results may differ materially from those stated or implied by these forward-looking statements. In evaluating these statements and our prospects, you should carefully consider the factors set forth below.

We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

The achievement or success of the matters covered by such forward-looking statements involves known and unknown risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.

You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management’s beliefs and assumptions only as of the date such statements are made.

Further information on these and other factors that could affect our financial results is included in filings we make with the U.S. Securities and Exchange Commission (“SEC”) from time to time, including the section titled “Risk Factors” included in the form 20-F filed on September 14, 2022 under Rule 424(b)(4) of the Securities Act. These documents are available on the SEC’s website at www.sec.gov and on the SEC Filings section of the Investor Relations section of our website at: https://investors.mytheresa.com.

ABOUT NON-IFRS FINANCIAL MEASURES AND OPERATING METRICS

Our non-IFRS financial measures include:

  • Adjusted EBITDA is a non-IFRS financial measure that we calculate as net income before finance expense (net), taxes, and depreciation and amortization, adjusted to exclude Other transaction-related, certain legal and other expenses and Share-based compensation expense. Adjusted EBITDA Margin is a non-IFRS financial measure which is calculated in relation to net sales.
  • Adjusted Operating Income is a non-IFRS financial measure that we calculate as operating income, adjusted to exclude Other transaction-related, certain legal and other expenses and Share-based compensation expense. Adjusted Operating Income Margin is a non-IFRS financial measure which is calculated in relation to net sales.
  • Adjusted Net Income is a non-IFRS financial measure that we calculate as net income, adjusted to exclude Other transaction-related, certain legal and other expenses and Share-based compensation expense. Adjusted Net Income Margin is a non-IFRS financial measure which is calculated in relation to net sales.

We are not able to forecast net income (loss) on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect net income (loss), including, but not limited to, Income taxes and Interest expense and, as a result, are unable to provide a reconciliation to forecasted Adjusted EBITDA.

Gross Merchandise Value (GMV) is an operative measure and means the total Euro value of orders processed. GMV is inclusive of merchandise value, shipping and duty. It is net of returns, value added taxes and cancellations. GMV does not represent revenue earned by us. We use GMV as an indicator for the usage of our platform that is not influenced by the mix of direct sales and commission sales. The indicators we use to monitor usage of our platform include, among others, active customers, total orders shipped and GMV.

ABOUT MYTHERESA

Mytheresa is one of the leading global luxury e-commerce platforms shipping to over 130 countries. Founded as a boutique in 1987, Mytheresa launched online in 2006 and offers ready-to-wear, shoes, bags and accessories for womenswear, menswear and kidswear. In 2022, Mytheresa expanded its luxury offering to home décor and lifestyle products with the launch of the category “LIFE”. The highly curated edit of over 200 brands focuses on true luxury brands such as Bottega Veneta, Burberry, Dolce&Gabbana, Gucci, Loewe, Loro Piana, Moncler, Prada, Saint Laurent, Valentino, and many more. Mytheresa’s unique digital experience is based on a sharp focus on high-end luxury shoppers, exclusive product and content offerings, leading technology and analytical platforms as well as high quality service operations. The NYSE listed company reported €747.3 million GMV in fiscal year 2022 (+21.3% vs. FY21).

For more information and updated Mytheresa campaign imagery, please visit https://investors.mytheresa.com.

MYT Netherlands Parent B.V.

 

Financial Results and Key Operating Metrics

(Amounts in € millions)
 

 

Three Months Ended

 

Nine months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

2022

 

March 31,

2023

 

Change

in % / BPs

 

March 31,

2022

 

March 31,

2023

 

Change

in % / BPs

 

 

 

 

 

 

 

 

 

 

 

 

(in millions) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

Gross Merchandise Value (GMV) (1)

€186.6

 

€219.8

 

17.8%

 

€550.6

 

€633.6

 

15.1%

Active customer (LTM in thousands) (1), (2)

755

 

838

 

11.0%

 

755

 

838

 

11.0%

Total orders shipped (LTM in thousands) (1), (2)

1,703

 

1,970

 

15.7%

 

1,703

 

1,970

 

15.7%

Net sales

€169.5

 

€198.9

 

17.3%

 

€514.9

 

€564.9

 

9.7%

Gross profit

€82.8

 

€90.7

 

9.6%

 

€260.2

 

€282.7

 

8.7%

Gross profit margin(3)

48.8%

 

45.6%

 

(320 BPs)

 

50.5%

 

50.0%

 

(50 BPs)

Operating Income

€(2.0)

 

€(6.4)

 

225.0%

 

€3.6

 

€(3.8)

 

(205.7%)

Operating Income margin(3)

(1.2%)

 

(3.2%)

 

(200 BPs)

 

0.7%

 

(0.7%)

 

(140 BPs)

Net Income (loss)

€(4.3)

 

€(5.3)

 

23.2%

 

€(9.5)

 

€(9.6)

 

0.4%

Net Income (loss) margin(3)

(2.5%)

 

(2.7%)

 

(20 BPs)

 

(1.9%)

 

(1.7%)

 

20 BPs

Adjusted EBITDA(4)

€10.8

 

€3.2

 

(70.0%)

 

€54.3

 

€33.7

 

(38.0%)

Adjusted EBITDA margin(3)

6.4%

 

1.6%

 

(480 BPs)

 

10.6%

 

6.0%

 

(460 BPs)

Adjusted Operating Income(4)

€8.5

 

€0.1

 

(98.7%)

 

€47.6

 

€25.2

 

(47.1%)

Adjusted Operating Income margin(3)

5.0%

 

0.1%

 

(490 BPs)

 

9.2%

 

4.5%

 

(470 BPs)

Adjusted Net Income(4)

€6.2

 

€1.4

 

(77.5%)

 

€34.5

 

€19.6

 

(43.2%)

Adjusted Net Income margin(3)

3.7%

 

0.7%

 

(300 BPs)

 

6.7%

 

3.5%

 

(320 BPs)

(1)

Definition of GMV, Active customer and Total orders shipped can be found on page 28 in our Q3 FY23 quarterly report.

(2)

Active customers and total orders shipped are calculated based on orders shipped from our sites during the last twelve months (LTM) ended on the last day of the period presented.

(3)

As a percentage of net sales.

(4)

EBITDA, adjusted EBITDA, adjusted Operating Income, adjusted net income are measures not defined under IFRS. For further information about how we calculate these measures and limitations of its use, see page 29 of our Q3 FY23 quarterly report.

MYT Netherlands Parent B.V.

 

Financial Results and Key Operating Metrics

(Amounts in € millions)
The following tables set forth the reconciliations of net income (loss) to EBITDA and adjusted EBITDA, operating income (loss) to adjusted operating income and net income (loss) to adjusted net income and their corresponding margins as a percentage of net sales:
 

 

Three Months Ended

 

Nine months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

2022

 

March 31,

2023

 

Change

in %

 

March 31,

2022

 

March 31,

2023

 

Change

in %

 

 

 

 

 

 

 

 

 

 

 

 

(in millions) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

Net loss

€ (4.3)

 

€ (5.1)

 

18.9%

 

€ (9.5)

 

€ (9.4)

 

(1.5%)

Finance expenses, net

€ 0.3

 

€ 0.7

 

125.8%

 

€ 0.7

 

€ 1.5

 

113.9%

Income tax expense (benefit)

€ 2.0

 

€ (2.0)

 

(198.3%)

 

€ 12.4

 

€ 4.1

 

(66.8%)

Depreciation and amortization

€ 2.3

 

€ 3.1

 

37.1%

 

€ 6.7

 

€ 8.5

 

26.0%

thereof depreciation of

right-of use assets

€ 1.4

 

€ 2.3

 

60.4%

 

€ 4.2

 

€ 6.1

 

47.3%

EBITDA

€ 0.3

 

€ (3.3)

 

(1,162.5%)

 

€ 10.3

 

€ 4.7

 

(54.4%)

Other transaction-related,

certain legal and other expenses (1)

€ 0.3

 

€ 0.4

 

59.0%

 

€ 1.3

 

€ 3.7

 

175.3%

Share-based compensation (2)

€ 10.2

 

€ 6.1

 

(40.5%)

 

€ 42.7

 

€ 25.3

 

(40.7%)

Adjusted EBITDA

€ 10.8

 

€ 3.2

 

(70.0%)

 

€ 54.3

 

€ 33.7

 

(38.0%)

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to Adjusted EBITDA Margin

 

 

 

 

 

 

 

 

 

 

 

Net Sales

€ 169.5

 

€ 198.9

 

17.3%

 

€ 514.9

 

€ 564.9

 

9.7%

Adjusted EBITDA margin

6.4%

 

1.6%

 

(480 BPs)

 

10.6%

 

6.0%

 

(460 BPs)

 

Three Months Ended

 

Nine months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

2022

 

March 31,

2023

 

Change

in %

 

March 31,

2022

 

March 31,

2023

 

Change

in %

 

 

 

 

 

 

 

 

 

 

 

 

(in millions) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

Operating Income (loss)

€ (2.0)

 

€ (6.4)

 

225.0%

 

€ 3.6

 

€ (3.8)

 

(207.2%)

Other transaction-related,

certain legal and other expenses (1)

€ 0.3

 

€ 0.4

 

59.0%

 

€ 1.3

 

€ 3.7

 

175.3%

Share-based compensation (2)

€ 10.2

 

€ 6.1

 

(40.5%)

 

€ 42.7

 

€ 25.3

 

(40.8%)

Adjusted Operating Income

€ 8.5

 

€ 0.1

 

(98.7%)

 

€ 47.6

 

€ 25.2

 

(47.1%)

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to Adjusted Operating Income Margin

 

 

 

 

 

 

 

 

 

 

 

Net Sales

€ 169.5

 

€ 198.9

 

17.3%

 

€ 514.9

 

€ 564.9

 

9.7%

Adjusted Operating Income margin

5.0%

 

0.1%

 

(490 BPs)

 

9.2%

 

4.5%

 

(470 BPs)

 

Three Months Ended

 

Nine months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

2022

 

March 31,

2023

 

Change

in %

 

March 31,

2022

 

March 31,

2023

 

Change

in %

 

 

 

 

 

 

 

 

 

 

 

 

(in millions) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

Net loss

€ (2.0)

 

€ (6.4)

 

225.0%

 

€ 3.6

 

€ (3.8)

 

(207.2%)

Other transaction-related,

certain legal and other expenses (1)

€ 0.3

 

€ 0.4

 

59.0%

 

€ 1.3

 

€ 3.7

 

175.3%

Share-based compensation (2)

€ 10.2

 

€ 6.1

 

(40.5%)

 

€ 42.7

 

€ 25.3

 

(40.8%)

Adjusted Net Income

€ 8.5

 

€ 0.1

 

(98.7%)

 

€ 47.6

 

€ 25.2

 

(47.1%)

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to Adjusted Net Income Margin

 

 

 

 

 

 

 

 

 

 

 

Net Sales

€ 169.5

 

€ 198.9

 

17.3%

 

€ 514.9

 

€ 564.9

 

9.7%

Adjusted Net Income margin

3.7%

 

0.7%

 

(300 BPs)

 

6.7%

 

3.5%

 

(320 BPs)

(1)

Other transaction-related, certain legal and other expenses represent (i) professional fees, including advisory and accounting fees, related to potential transactions, (ii) certain legal and other expenses incurred outside the ordinary course of our business and (iii) other non-recurring expenses incurred in connection with the costs of establishing our new central warehouse in Leipzig, Germany.

(2)

Certain members of management and supervisory board members have been granted share-based compensation for which the share-based compensation expense will be recognized upon defined vesting schedules in the future periods. Our methodology to adjust for share-based compensation and subsequently calculate Adjusted EBITDA, Adjusted operating income and Adjusted net income includes both share-based compensation expenses connected to the IPO and share-based compensation expenses recognized in connection with grants under the Long-Term Incentive Plan (LTI) for the Mytheresa Group key management members and share-based compensation expenses due to Supervisory Board Members Plans. We do not consider share-based compensation expenses to be indicative of our core operating performance. For further information about how we calculate these measures and limitations of its use including a reconciliation of amounts under our former methodology to our current methodology, see page 28 of our Q2 FY23 quarterly report.

MYT Netherlands Parent B.V.

 

Unaudited Condensed Consolidated Statements of Profit and Comprehensive Income

(Amounts in € thousands, except share and per share data)
 

 

 

Three Months Ended

 

Nine months Ended

 

 

 

 

 

 

 

(in € thousands)

 

March 31, 2022

 

March 31, 2023

 

March 31, 2022

 

March 31, 2023

 

 

 

 

 

 

 

 

 

Net sales

 

169,512

 

 

198,883

 

 

514,914

 

 

564,866

 

Cost of sales, exclusive of depreciation and amortization

 

(86,747

)

 

(108,137

)

 

(254,716

)

 

(282,157

)

Gross profit

 

82,765

 

 

90,746

 

 

260,199

 

 

282,708

 

Shipping and payment cost

 

(25,146

)

 

(31,497

)

 

(70,622

)

 

(83,810

)

Marketing expenses

 

(23,280

)

 

(25,729

)

 

(69,536

)

 

(79,885

)

Selling, general and administrative expenses

 

(34,214

)

 

(36,189

)

 

(111,352

)

 

(112,922

)

Depreciation and amortization

 

(2,284

)

 

(3,132

)

 

(6,728

)

 

(8,480

)

Other income (expense) , net

 

184

 

 

(618

)

 

1,612

 

 

(1,390

)

Operating income (loss)

 

(1,975

)

 

(6,419

)

 

3,574

 

 

(3,779

)

Finance income

 

0

 

 

98

 

 

0

 

 

345

 

Finance costs

 

(314

)

 

(807

)

 

(702

)

 

(1,846

)

Finance costs, net

 

(314

)

 

(709

)

 

(702

)

 

(1,501

)

Income (loss) before income taxes

 

(2,289

)

 

(7,128

)

 

2,872

 

 

(5,280

)

Income tax (expense) benefit

 

(2,028

)

 

1,994

 

 

(12,418

)

 

(4,122

)

Net loss

 

(4,317

)

 

(5,134

)

 

(9,546

)

 

(9,402

)

Cash Flow Hedge

 

448

 

 

(650

)

 

(1,721

)

 

1,051

 

Income Taxes related to Cash Flow Hedge

 

(125

)

 

181

 

 

479

 

 

(293

)

Foreign currency translation

 

14

 

 

(11

)

 

(39

)

 

16

 

Other comprehensive income (loss)

 

337

 

 

(480

)

 

(1,281

)

 

774

 

Comprehensive loss

 

(3,979

)

 

(5,614

)

 

(10,827

)

 

(8,628

)

 

 

 

 

 

 

 

 

 

Basic & diluted earnings per share

€

(0.05

)

€

(0.06

)

€

(0.11

)

€

(0.11

)

Weighted average ordinary shares outstanding (basic & diluted) – in millions (1)

(basic and diluted) – in millions

 

86.4

 

 

86.6

 

 

86.3

 

 

86.6

 

(1)

In accordance with IAS 33, includes contingently issuable shares that are fully vested and can be converted at any time for no consideration. For further details, refer to note 14 in our quarterly report.

MYT Netherlands Parent B.V.

 

Unaudited Condensed Consolidated Statements of Financial Position

(Amounts in € thousands)
 

(in € thousands)

June 30, 2022

March 31, 2023

Assets

 

Non-current assets

 

 

 

 

Non-current financial assets

 

 

294

 

 

7,471

 

Intangible assets and goodwill

 

155,223

 

 

155,398

 

Property and equipment

 

 

17,691

 

 

34,053

 

Right-of-use assets

 

21,677

 

 

55,860

 

Deferred tax assets

 

 

6,090

 

 

6,090

 

Total non-current assets

 

200,975

 

 

258,872

 

Current assets

 

 

 

 

Inventories

 

 

230,144

 

 

325,870

 

Trade and other receivables

 

8,276

 

 

6,019

 

Other assets

 

 

61,874

 

 

42,963

 

Cash and cash equivalents

 

113,507

 

 

12,940

 

Total current assets

 

 

413,801

 

 

387,792

 

Total assets

 

614,776

 

 

646,664

 

 

 

 

 

Shareholders’ equity and liabilities

 

 

 

 

Subscribed capital

 

1

 

 

1

 

Capital reserve

 

 

498,872

 

 

525,199

 

Accumulated Deficit

 

(68,734

)

 

(78,136

)

Accumulated other comprehensive income

 

 

1,528

 

 

2,302

 

Total shareholders’ equity

 

431,667

 

 

449,366

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

Provisions

 

 

758

 

 

2,526

 

Lease liabilities

 

16,817

 

 

50,755

 

Deferred tax liabilities

 

 

3,661

 

 

7,473

 

Total non-current liabilities

 

21,237

 

 

60,754

 

Current liabilities

 

 

 

 

 

Borrowings

 

 

–

 

 

4,899

 

Tax liabilities

 

 

25,892

 

 

21,729

 

Lease liabilities

 

 

5,189

 

 

6,762

 

Contract liabilities

 

10,746

 

 

7,940

 

Trade and other payables

 

 

45,156

 

 

36,534

 

Other liabilities

 

74,889

 

 

58,679

 

Total current liabilities

 

 

161,872

 

 

136,544

 

Total liabilities

 

183,109

 

 

197,298

 

Total shareholders’ equity and liabilities

 

 

614,776

 

 

646,664

 

MYT Netherlands Parent B.V.

 

Unaudited Condensed Consolidated Statements of Changes in Equity

(Amounts in € thousands)
 

(in € thousands)

 

Subscribed

capital

 

Capital

reserve

 

Accumulated

deficit

 

Hedging

reserve

 

Foreign

currency

translation

reserve

 

Total

shareholders’

equity

Balance as of July 1, 2021

 

1

 

444,951

 

 

(60,837

)

 

–

 

 

1,602

 

 

385,718

 

Net loss

 

–

 

–

 

 

(9,546

)

 

–

 

 

–

 

 

(9,546

)

Other comprehensive loss

 

–

 

–

 

 

–

 

 

(1,242

)

 

(39

)

 

(1,281

)

Comprehensive loss

 

–

 

–

 

 

(9,546

)

 

(1,242

)

 

(39

)

 

(10,827

)

Share options exercised

 

–

 

369

 

 

–

 

 

–

 

 

–

 

 

369

 

Share-based compensation

 

–

 

42,701

 

 

–

 

 

–

 

 

–

 

 

42,701

 

Balance as of March 31, 2022

 

1

 

488,022

 

 

(70,383

)

 

(1,242

)

 

1,563

 

 

417,960

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of July 1, 2022

 

1

 

498,872

 

 

(68,734

)

 

–

 

 

1,528

 

 

431,667

 

Net loss

 

–

 

–

 

 

(9,402

)

 

–

 

 

–

 

 

(9,402

)

Other comprehensive income

 

–

 

–

 

 

–

 

 

758

 

 

16

 

 

774

 

Comprehensive loss

 

–

 

–

 

 

(9,402

)

 

758

 

 

16

 

 

(8,628

)

Share options exercised

 

–

 

1,077

 

 

–

 

 

–

 

 

–

 

 

1,077

 

Share-based compensation

 

–

 

25,307

 

 

–

 

 

–

 

 

–

 

 

25,307

 

Reclassification due to cash-settlement of Share-based compensation (1)

 

–

 

(57

)

 

–

 

 

–

 

 

–

 

 

(57

)

Balance as of March 31, 2023

 

1

 

525,199

 

 

(78,136

)

 

758

 

 

1,544

 

 

449,366

 

(1)

For further details, refer to note 14 in our quarterly report.

MYT Netherlands Parent B.V.

 

Unaudited Condensed Consolidated Statements of Cash Flows

(Amounts in € thousands)
 

Nine months ended March 31,

(in € thousands)

2022

2023
 

Net loss

 

(9,546

)

 

(9,402

)

Adjustments for

 

 

 

 

Depreciation and amortization

 

6,728

 

 

8,480

 

Finance costs, net

 

702

 

 

1,501

 

Share-based compensation

 

42,701

 

 

25,250

 

Income tax expense

 

12,418

 

 

4,122

 

Change in operating assets and liabilities

 

 

 

 

(Increase) decrease in inventories

 

20,937

 

 

(95,726

)

(Increase) decrease in trade and other receivables

 

(902

)

 

2,257

 

Decrease (increase) in other assets

 

(43,949

)

 

19,991

 

Decrease in other liabilities

 

(509

)

 

(16,023

)

Decrease in contract liabilities

 

(2,239

)

 

(2,806

)

Decrease in trade and other payables

 

(761

)

 

(8,665

)

Increase in non-current financial assets

 

(86

)

 

(7,207

)

Income taxes paid

 

(2,620

)

 

(4,772

)

Net cash from (used in) operating activities

 

22,875

 

 

(83,000

)

Expenditure for property and equipment and intangible assets

 

(1,702

)

 

(18,897

)

Proceeds from sale of property and equipment and intangible assets

 

–

 

 

2

 

Net cash used in investing activities

 

(1,702

)

 

(18,895

)

Interest paid

 

(702

)

 

(1,501

)

Proceeds from borrowings

 

–

 

 

4,899

 

Proceeds from exercise of option awards

 

369

 

 

1,077

 

Payment of lease liabilities

 

(4,034

)

 

(3,026

)

Net cash used in financing activities

 

(4,367

)

 

1,449

 

Net increase (decrease) in cash and cash equivalents

 

16,806

 

 

(100,446

)

Cash and cash equivalents at the beginning of the period

 

76,760

 

 

113,507

 

Effects of exchange rate changes on cash and cash equivalents

 

(39

)

 

(120

)

Cash and cash equivalents at end of the period

 

93,526

 

 

12,940

 

 

Investor Relations Contacts

Mytheresa.com GmbH

Stefanie Muenz

phone: +49 89 127695-1919

email: [email protected]

Solebury Strategic Communications

Deena Friedman / Maria Lycouris

phone: +1 800 929 7167

email: [email protected]

Media Contacts for public relations

Mytheresa.com GmbH

Sandra Romano

mobile: +49 152 54725178

phone: +49 89 127695-236

email: [email protected]

Media Contacts for business press

Mytheresa.com GmbH

Alberto Fragoso

mobile: +49 152 38297355

phone: +49 89 127695-1358

email: [email protected]

KEYWORDS: Netherlands North America United States Europe Germany

INDUSTRY KEYWORDS: Jewelry Generation Z Women Fashion Influencer Cosmetics Retail Teens Men Online Retail Consumer Luxury Department Stores Social Media Digital Marketing Marketing Advertising Communications Supermarket

MEDIA:

Logo
Logo
Posted on

SINOVAC’s CoronaVac® Answers Hong Kong’s Need for Self-Pay COVID-19 Vaccines

SINOVAC’s CoronaVac® Answers Hong Kong’s Need for Self-Pay COVID-19 Vaccines

HONG KONG–(BUSINESS WIRE)–
Sinovac Biotech Ltd. (“SINOVAC” or the “Company”) (NASDAQ: SVA), a leading provider of biopharmaceutical products in China, today announced it will provide its inactivated COVID-19 vaccine, CoronaVac® (original strains), to self-paying groups in Hong Kong. Additionally, the company will collaborate with local charity groups to provide donations, giving more children in Hong Kong access to free vaccines to protect against COVID-19.

On Mar 31, 2023, the Government of the Hong Kong Special Administrative Region announced that from April 20 onwards, high risk groups shall be able to receive free doses of the COVID-19 vaccines whereas the low risk groups, including children, are only able to receive their vaccines via the private market through self-pay method.. SINOVAC’s provision of CoronaVac® shall fulfill the needs of this low-risk groups, while helping to address future potential COVID-19 outbreaks. Immunisation appointments can be made directly with private medical institutions and clinics.

“SINOVAC’s ongoing fight against COVID-19 is based on our mission to ‘supply vaccines to eliminate human diseases,’” said Yin Weidong, Chairman, President, and CEO of SINOVAC. “From developing the COVID-19 vaccine, to obtaining market approvals, from the first CoronaVac® shipment landing in Hong Kong 800 days ago, to the rollout of a massive public vaccination program, SINOVAC and Hong Kong have taken steps together to emerge from the shadows of the pandemic. Looking forward, SINOVAC remains committed to meeting public health needs.”

CoronaVac® is the first COVID-19 vaccine to be used in children from as young as three years old, under the World Health Organization’s Emergency Use List. As of March 2023, CoronaVac® has been authorized for use in more than 60 countries, regions, and international organizations. The cumulative global supply exceeds 2.9 billion doses.

Several published studies have shown that CoronaVac® has a good safety profile for healthy people, as well as for people with special health conditions, effectively reducing severe illness and deaths related to COVID-19. During the outbreak of the omicron variant in Hong Kong, adults who had been vaccinated with three doses showed more than 90% protection against serious or fatal illness. The vaccine’s effectiveness against moderate to severe disease has been shown to be as high as 95.8% in children aged 3 to 18, who were given two doses.

Hospitalization and the long-term effects of COVID-19 can be serious, particularly among children, underscoring the need for accessible and affordable vaccinations and boosters.

During the fifth wave of the pandemic in Hong Kong in 2022, researchers at the University of Hong Kong analyzed 1,144 cases of children aged 11 or younger who were hospitalized due to COVID-191. The analysis found that two deaths (0.2%) out of 1,144 cases during the initial omicron wave were recorded; twenty-one (1.8%) required pediatric ICU admission, and the relative risk was higher for omicron than the influenza virus. The number of neurological complications was 15% for omicron, which was higher than the influenza and parainfluenza viruses.

The enduring consequences of post-COVID conditions, including multisystem inflammatory syndrome (MIS-C) and long COVID, can result in persistent health issues for children such as central nervous system damage, impaired memory, and insomnia, even if they recover from the initial infection. It is crucial to acknowledge that the impact on children’s health should not be underestimated.

“In order to reduce the risk of infection among children and to keep in consideration that the majority of children do not belong to the priority group for free booster shots, SINOVAC has come up with a vaccine donation plan,” said Helen Yang, Chief Business Officer of SINOVAC. “In its early stage, we plan to provide thousands of free doses of CoronaVac® for children aged 3 to 12 in Hong Kong, including local and non-local residents. SINOVAC is actively seeking opportunities for collaboration and has been in discussions with organizations in Hong Kong to explore the feasibility of free vaccination. We hope to bring this benefit to the local community as soon as possible.”

Some regions, including most markets in Europe and America, currently do not have the supply of inactivated COVID-19 vaccines for children., which leaves parents who prefer the safety and effectiveness of inactivated vaccines with limited options. SINOVAC is addressing these concerns by supplying the private market in Hong Kong with their inactivated COVID-19 vaccine, thus offering a viable solution for these patients.

Date

Event

January 28, 2020

SINOVAC established and launched a new COVID-19 vaccine research and development project

June 13, 2020

SINOVAC announced a Phase I/II clinical study of its new COVID-19 vaccine, showing the vaccine was safe and effective in producing neutralizing antibodies

February 16, 2021

Professor Lau Chak-sing, Convener of the Hong Kong Vaccine Advisory Expert Committee, announced the committee’s review of data for CoronaVac®. Results showed CoronaVac® benefits outweigh the risks. The committee recommended the vaccine to the government

February 19, 2021

Within 72 hours after the advisory committee’s recommendation, the first batch of one million doses of CoronaVac® arrived in Hong Kong from Beijing. Hong Kong subsequently launched a large-scale COVID-19 vaccination program

June 2, 2022

CoronaVac® was validated by the World Health Organization’s Emergency Use List Procedure

February 20, 2022

SINOVAC Foundation donations to Hong Kong helped local communities in the fight against the COVID-19 pandemic

April 14, 2022

In cooperation with HKU and Gleneagles Hospital, SINOVAC’s inactivated COVID-19 vaccine (omicron variant) was approved for clinical trials in Hong Kong

August 4, 2022

Children between the ages of 6 months and 3 years old were eligible for receiving CoronaVac®. To help the public complete their vaccinations as soon as possible, Hong Kong had opened up multiple new vaccination centers.

December 16, 2022

CoronaVac® was fully registered in Hong Kong under the Pharmacy and Poisons Ordinance Cap 138. It is one of the first COVID-19 vaccines approved for official registration in Hong Kong

May 10, 2023

SINOVAC announced the supply of the inactivated COVID-19 vaccine CoronaVac® (original strain) to Hong Kong’s private market, with plans to donate free COVID-19 vaccines to children

[1] HKSAR news.gov.hk: Professor Lo Chung Mo’s Chinese article dated 15 Sept 2022. https://www.news.gov.hk/chi/2022/09/20220915/20220915_145920_647.html

About SINOVAC

Sinovac Biotech Ltd. (SINOVAC) is a China-based biopharmaceutical company that focuses on the R&D, manufacturing, and commercialization of vaccines that protect against human infectious diseases.

SINOVAC’s product portfolio includes vaccines against COVID-19, enterovirus 71 (EV71) infected Hand-Foot-Mouth disease (HFMD), hepatitis A, varicella, influenza, poliomyelitis, pneumococcal disease, and mumps.

The COVID-19 vaccine, CoronaVac®, has been approved for use in more than 60 countries and regions worldwide. The hepatitis A vaccine, Healive®, passed WHO prequalification requirements in 2017. The EV71 vaccine, Inlive®, is an innovative vaccine under “Category 1 Preventative Biological Products” and was commercialized in China in 2016. In 2022, SINOVAC’s Sabin-strain inactivated polio vaccine (sIPV) and varicella vaccine were prequalified by the WHO.

SINOVAC was the first company to be granted approval for its H1N1 influenza vaccine Panflu.1®, which has supplied the Chinese government’s vaccination campaign and stockpiling program. The Company is also the only supplier of the H5N1 pandemic influenza vaccine, Panflu®, to the Chinese government stockpiling program.

SINOVAC continually dedicates itself to new vaccine R&D, with more combination vaccine products in its pipeline, and constantly explores global market opportunities. SINOVAC plans to conduct more extensive and in-depth trade and cooperation with additional countries, and business and industry organizations.

For more information, please see the Company’s website at www.sinovac.com.

Sinovac Biotech Ltd.

PR Team

[email protected]

KEYWORDS: Asia Pacific Hong Kong

INDUSTRY KEYWORDS: Health Infectious Diseases COVID-19 General Health Pharmaceutical Biotechnology

MEDIA:

Posted on

IHS Towers’ First Quarter 2023 Earnings Release and Conference Call

IHS Towers’ First Quarter 2023 Earnings Release and Conference Call

LONDON–(BUSINESS WIRE)–
IHS Holding Limited (the “Company”) hereby announces that its financial results for the three month period ended March 31, 2023 (the “1Q23 Earnings Results”) are scheduled to be released to the news services and our website at or around 6am ET (11am UK time) on Tuesday, May 23, 2023.

Additionally, a conference call and webcast to discuss the 1Q23 Earnings Results will take place on Tuesday, May 23, 2023, at 8.30am ET (13.30pm UK time).

The conference call dial-in numbers are +1 646 307 1963 (U.S./Canada) or +44 20 3481 4247 (UK/International). The call ID is 8940410.

To register for the webcast please click here.

For further information, please contact: [email protected]

[email protected]

KEYWORDS: New York Europe United States United Kingdom North America

INDUSTRY KEYWORDS: Networks Data Management Technology Telecommunications Software

MEDIA:

Posted on

MaxLinear Enables MWave’s Ultra-Flexible G.hn Module for Industrial Applications

MaxLinear Enables MWave’s Ultra-Flexible G.hn Module for Industrial Applications

  • Allows Reliable Transport of Multi-gigabit-per-second Data Over Existing Wires

CARLSBAD, Calif.–(BUSINESS WIRE)–
MaxLinear, Inc. (Nasdaq: MXL), a world leader in connectivity technologies, today announced that MWave Consulting, Ltd. (a UK-based RF & Microwave design facility) has selected the MaxLinear G.hn technology for use in its industrial IoT (IIoT) devices. G.hn technology is well suited for a full range of industrial IoT networks and connects any device through Ethernet PHY, MII, SGMII or RGMII interfaces.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230510005305/en/

MaxLinear Enables MWave’s Ultra-Flexible G.hn Module for Industrial Applications (Graphic: Business Wire)

MaxLinear Enables MWave’s Ultra-Flexible G.hn Module for Industrial Applications (Graphic: Business Wire)

According to a 2023 MarketsandMarkets™ research report, the industrial communications market is predicted to grow to US$26.8B by 2027 as companies increasingly turn to technology to deliver significant business improvements. With its products, MWave addresses the expanding demand for machine-to-machine (M2M) connectivity that requires resilience and real-time synchronization – applications for smart buildings, autonomous robots, and factory automation processes such as smart lighting control, smart elevators, smart traffic lights, charging stations, airport navigation systems and fire alarms.

“With G.hn’s capability to handle real-time two-way traffic and high bandwidth, this technology is naturally well-suited as a backhaul for a complete range of smart buildings and automated factory devices,” said Richard Welland, Director, International Sales & Marketing of MWave. “Partnering with MaxLinear provides a modular G.hn solution that we can easily embed into our products that provide superior IIoT solutions, allowing the transport of multi-gigabit-per-second IP data reliably over any existing wire.”

“MaxLinear is committed to bringing our customers a competitive advantage through engineering excellence. Our solutions, such as the high-speed G.hn networking solution, make our customers more competitive by enabling shorter design cycles and significant design flexibility,” said Will Torgerson, Vice President of the Broadband Group at MaxLinear.

“Most new products must be connected to the Internet or a network to boost efficiency and productivity,” said ShengYang Electronics General Manager Robert Xu. “Providing products to meet this global market demand for IIoT offers new growth market opportunities for our organization. We are pleased to have MaxLinear as our partner for G.hn technology.”

About MaxLinear, Inc.

MaxLinear, Inc. (Nasdaq: MXL) is a leading provider of radio frequency (RF), analog, digital and mixed-signal integrated circuits for access and connectivity, wired and wireless infrastructure, and industrial and multimarket applications. MaxLinear is headquartered in Carlsbad, California. For more information, please visit www.maxlinear.com.

MxL and the MaxLinear logo are trademarks of MaxLinear, Inc. Other trademarks appearing herein are the property of their respective owners.

For more information on the MaxLinear Industrial IoT evaluation platform combining G.hn Gigabit capability with common industrial interfaces, click here.

For more information on G.hn and IIoT use cases, download the HomeGrid Forum white paper.

About MWave Consulting Ltd. and Shengyang Electronics:

MWave Consulting Ltd is a world leader in the design of RF & Microwave solutions with its facility based in the UK, spearheading the launch of a range of G.hn products in Europe. Shengyang Electronics (SY-E) is the latest new division of and wholly owned by Zhejiang Shengyang Science & Technology, a publicly-traded company listed on the Shanghai Stock Exchange. Shengyang Electronics manufactures high-quality, cost-effective, advanced electronics solutions for the most demanding customers, including many of the world’s largest satellite broadcast and mobile operators and their associated OEM suppliers. For more information on MWave Consulting and Shengyang Electronics, please visit their websites at https://mwave-ltd.com/index.html and http://www.shengyang.com/.

Cautionary Note About Forward-Looking Statements

This press release contains “forward-looking” statements within the meaning of federal securities laws. Forward-looking statements include, among others, statements concerning or implying future financial performance, anticipated product performance and functionality of our products or products incorporating our products, and industry trends and growth opportunities affecting MaxLinear, in particular statements relating to MaxLinear’s G.hn products, but not limited to, with respect to the anticipated size of the industrial communications markets, and the functionality, performance, integration and benefits of use of such products. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from any future results expressed or implied by these forward-looking statements. We cannot predict whether or to what extent these new and existing products will affect our future revenues or financial performance. Forward-looking statements are based on management’s current, preliminary expectations and are subject to various risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Forward-looking statements may contain words such as “will be,” “will,” “expect,” “anticipate,” “continue,” or similar expressions and include the assumptions that underlie such statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: risks relating to the development, testing, and commercial introduction of new products and product functionalities; risks relating to our proposed merger with Silicon Motion and the risks related to increased indebtedness; the effect of intense and increasing competition; impacts of a global economic downturn and high inflation; the cyclical nature of the semiconductor industry; the political and economic conditions of the countries in which we conduct business and other factors related to our international operations; increased tariffs or imposition of other trade barriers; our ability to obtain or retain government authorization to export certain of our products or technology; risks related to international geopolitical conflicts; risks related to the loss of, or a significant reduction in orders from major customers; a decrease in the average selling prices of our products; failure to penetrate new applications and markets; development delays and consolidation trends in our industry; inability to make substantial research and development investments; a significant variance in our operating results and impact on volatility in our stock price, and our ability to sustain our current level of revenue, including the impact of excess inventory in the channel on our customers’ expected demand for certain of our products, and/or manage future growth effectively; claims of intellectual property infringement; our ability to protect our intellectual property; and a failure to manage our relationships with, or negative impacts from, third parties. In addition to these risks and uncertainties, investors should review the risks and uncertainties contained in MaxLinear’s filings with the United States Securities and Exchange Commission, including risks and uncertainties arising from other factors affecting the business, operating results, and financial condition of MaxLinear, including those set forth in MaxLinear’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, as applicable. All forward-looking statements are qualified in their entirety by this cautionary statement. MaxLinear is providing this information as of the date of this release and does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events, or otherwise.

MaxLinear, Inc. Press Contact:

Matthew Lea

PR & Marketing Communications Manager

Tel: +1 760.415.2529

[email protected]                 

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Semiconductor Technology Telecommunications Mobile/Wireless Networks Internet Hardware

MEDIA:

Logo
Logo
Photo
Photo
MaxLinear Enables MWave’s Ultra-Flexible G.hn Module for Industrial Applications (Graphic: Business Wire)
Posted on

Professor Andrew L. Hopkins elected Fellow of the Royal Society

Professor Andrew L. Hopkins elected Fellow of the Royal Society

Changing the world through exceptional science and technology

OXFORD, England–(BUSINESS WIRE)–
Professor Andrew Hopkins DPhil LLD FRSE, founder and Chief Executive of Exscientia plc (Nasdaq: EXAI), has been elected a Fellow of the Royal Society, the world’s oldest and most influential scientific society. Andrew is one of the UK’s most eminent science and technology business leaders, pairing pharmaceutical research with the benefits of cutting-edge AI technology to design, discover and develop new precision medicines for people in need.

He joins approximately 1,700 Fellows and Foreign Members of the Royal Society comprising the most distinguished scientists, technology and engineering pioneers from the UK, the Commonwealth and beyond including some 85 Nobel Laureates. Royal Society Fellows and Foreign Members are elected for life in recognition of their exceptional contributions to science.

This prestigious recognition reflects Andrew’s life-long passion for harnessing the power of innovative technologies to deliver high-quality drug candidates and making them accessible to patients. In 2006, he published one of the first papers on large scale machine learning on pharmacology data, in Nature Biotechnology. In 2012 he published, in Nature, one of the first papers to show machine learning and generative algorithms could be used to design novel drug leads to target objectives. In the same year, he founded Exscientia, a pioneer in the use of artificial intelligence to design new drug candidates, leading the team who discovered the first AI-designed drugs to enter human clinical trials.

“Passionate scientists have the power to change the world,” says Andrew Hopkins. “Exceptional science married with outstanding technology can achieve this change even faster and make scientific progress accessible for all. I feel privileged to accept this Fellowship on behalf of the wonderful team at Exscientia – outstanding professionals who collaborate every day with a vision of transforming the lives of millions around the world.”

As CEO of Exscientia, one of the UK’s biggest and fastest growing biotech companies today, Professor Hopkins heads a global team of over 400 scientists and technology experts based in the UK, Austria, US and beyond. For its end-to-end AI-driven precision medicine platform, Exscientia won the Prix Galien USA 2022 for Digital Health, frequently regarded as the equivalent of the Nobel Prize in biopharmaceutical research. Prior to Exscientia, Dr Hopkins held the Chairs of Medicinal Informatics and Translational Biology at the University of Dundee and spent a decade at Pfizer leading informatics groups. He received his doctorate in biophysics from Oxford University and holds a Honorary Chair at the University of Dundee.

Sir Adrian Smith, President of the Royal Society said: “I am delighted to welcome our newest cohort of Fellows. These individuals have pushed forward the boundaries of their respective fields and had a beneficial influence on the world beyond. They are pioneering scientists and innovators from around the world who have confounded expectations and transformed our thinking. This year’s intake have already achieved incredible things, and I have no doubt that they will continue to do so. I look forward to meeting them and following their contributions in the future.”

About Exscientia

Exscientia is an AI-driven precision medicine company committed to discovering, designing and developing the best possible drugs in the fastest and most effective manner. Exscientia developed the first-ever functional precision oncology platform to successfully guide treatment selection and improve patient outcomes in a prospective interventional clinical study, as well as to progress AI-designed small molecules into the clinical setting. Our internal pipeline is focused on leveraging our precision medicine platform in oncology, while our partnered pipeline broadens our approach to other therapeutic areas. By pioneering a new approach to medicine creation, we believe the best ideas of science can rapidly become the best medicines for patients.

Visit us at https://www.exscientia.ai or follow us on Twitter @exscientiaAI.

Exscientia Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, including with respect to Exscientia’s research and development and product candidates. Any statement describing Exscientia’s goals, plans, expectations, financial or other projections, intentions or beliefs is a forward-looking statement and should be considered an at-risk statement. Such statements are subject to a number of risks, uncertainties and assumptions, including those related to: initiation, scope and progress of Exscientia’s and its partners’ planned and ongoing pre-clinical studies and clinical trials and ramifications for the cost thereof; clinical, scientific, regulatory and technical developments; the process of discovering, developing and commercialising product candidates that are safe and effective for use as human therapeutics; and other factors. In light of these risks and uncertainties, and other risks and uncertainties that are described in the Risk Factors section and other sections of Exscientia’s Annual Report on Form 20-F, filed with the Securities and Exchange Commission (SEC) on March 23, 2022 (File No. 001-40850), and other filings that Exscientia makes with the SEC from time to time (which are available at https://www.sec.gov/), the events and circumstances discussed in such forward-looking statements may not occur, and Exscientia’s actual results could differ materially and adversely from those anticipated or implied thereby. Although Exscientia’s forward-looking statements reflect the good faith judgement of its management, these statements are based only on facts and factors currently known by the Company at the time of this press release. As a result, you are cautioned not to rely on these forward-looking statements.

Investor relations:

Sara Sherman

[email protected]

Media:

Oliver Stohlmann

[email protected]

KEYWORDS: United Kingdom Europe

INDUSTRY KEYWORDS: Technology Research Clinical Trials Biotechnology Health Pharmaceutical Science Artificial Intelligence Oncology

MEDIA:

Logo
Logo
Posted on

Li Auto Inc. Announces Unaudited First Quarter 2023 Financial Results

Quarterly total revenues reached RMB18.79 billion (US$2.74 billion)1
Quarterly deliveries reached 52,584 vehicles

BEIJING, China, May 10, 2023 (GLOBE NEWSWIRE) — Li Auto Inc. (“Li Auto” or the “Company”) (Nasdaq: LI; HKEX: 2015), a leader in China’s new energy vehicle market, today announced its unaudited financial results for the quarter ended March 31, 2023.


Operating Highlights for the First Quarter of 2023

  • Total vehicle deliveries were 52,584 units in the first quarter of 2023, representing a 65.8% year-over-year increase.
Deliveries   2023 Q1   2022 Q4   2022 Q3   2022 Q2
    52,584   46,319   26,524   28,687
                 
Deliveries   2022 Q1   2021 Q4   2021 Q3   2021 Q2
    31,716   35,221   25,116   17,575
                 
  • As of March 31, 2023, the Company had 299 retail stores covering 123 cities, as well as 318 servicing centers and Li Auto-authorized body and paint shops operating in 223 cities.


Financial Highlights for the First Quarter of 2023

  • Vehicle sales were RMB18.33 billion (US$2.67 billion) in the first quarter of 2023, representing an increase of 96.9% from RMB9.31 billion in the first quarter of 2022 and an increase of 6.1% from RMB17.27 billion in the fourth quarter of 2022.

  • Vehicle margin

    2
     was 19.8% in the first quarter of 2023, compared with 22.4% in the first quarter of 2022 and 20.0% in the fourth quarter of 2022.

  • Total revenues were RMB18.79 billion (US$2.74 billion) in the first quarter of 2023, representing an increase of 96.5% from RMB9.56 billion in the first quarter of 2022 and an increase of 6.4% from RMB17.65 billion in the fourth quarter of 2022.

  • Gross profit was RMB3.83 billion (US$557.7 million) in the first quarter of 2023, representing an increase of 77.0% from RMB2.16 billion in the first quarter of 2022 and an increase of 7.4% from RMB3.57 billion in the fourth quarter of 2022.

  • Gross margin was 20.4% in the first quarter of 2023, compared with 22.6% in the first quarter of 2022 and 20.2% in the fourth quarter of 2022.

  • Income from operations was RMB405.2 million (US$59.0 million) in the first quarter of 2023, compared with RMB413.1 million loss from operations in the first quarter of 2022 and RMB133.6 million loss from operations in the fourth quarter of 2022. Non-GAAP income from operations3 was RMB885.4 million (US$128.9 million) in the first quarter of 2023, compared with RMB74.9 million non-GAAP income from operations in the first quarter of 2022 and representing an increase of 55.7% from RMB568.7 million non-GAAP income from operations in the fourth quarter of 2022.

  • Net income was RMB933.8 million (US$136.0 million) in the first quarter of 2023, compared with RMB10.9 million net loss in the first quarter of 2022 and representing an increase of 252.0% from RMB265.3 million net income in the fourth quarter of 2022. Non-GAAP net income3 was RMB1.41 billion (US$205.9 million) in the first quarter of 2023, representing an increase of 196.4% from RMB477.1 million non-GAAP net income in the first quarter of 2022 and an increase of 46.1% from RMB967.6 million non-GAAP net income in the fourth quarter of 2022.

  • Net cash provided by operating activities was RMB7.78 billion (US$1.13 billion) in the first quarter of 2023, representing an increase of 324.3% from RMB1.83 billion net cash provided by operating activities in the first quarter of 2022 and an increase of 58.0% from RMB4.93 billion net cash provided by operating activities in the fourth quarter of 2022.

  • Free cash flow

    4
     was RMB6.70 billion (US$975.9 million) in the first quarter of 2023, compared with RMB502.0 million free cash flow in the first quarter of 2022, and representing an increase of 105.8% from RMB3.26 billion free cash flow in the fourth quarter of 2022.


Key Financial Results

(in millions, except for percentages)

  For the Three Months Ended
   % Change5
  March 31,

2022 		  December 31,

2022 		  March 31,

2023 		  YoY   QoQ  
  RMB   RMB   RMB          
Vehicle sales 9,308.6   17,268.3   18,327.3   96.9%   6.1%  
Vehicle margin 22.4%   20.0%   19.8%   (2.6)%   (0.2)%  
                     
Total revenues 9,562.0   17,649.9   18,787.1   96.5%   6.4%  
Gross profit 2,163.9   3,566.3   3,830.1   77.0%   7.4%  
Gross margin 22.6%   20.2%   20.4%   (2.2)%   0.2%  
                     
(Loss)/income from operations (413.1)   (133.6)   405.2   N/A   N/A  
Non-GAAP income from operations 74.9   568.7   885.4   N/A   55.7%  
                     
Net (loss)/income (10.9)   265.3   933.8   N/A   252.0%  
Non-GAAP net income 477.1   967.6   1,414.1   196.4%   46.1%  
                     
Operating cash flow 1,833.8   4,925.4   7,780.4   324.3%   58.0%  
Free cash flow (non-GAAP) 502.0   3,257.3   6,702.1   N/A   105.8%  
 


Recent Developments

Delivery Update

  • In April 2023, the Company delivered 25,681 vehicles, representing an increase of 516.3% from April 2022. As of April 30, 2023, the Company had 302 retail stores covering 123 cities, in addition to 318 servicing centers and Li Auto-authorized body and paint shops operating in 222 cities.

Autonomous Driving and BEV Roadmap

  • On April 18, 2023, the Company unveiled its autonomous driving and BEV roadmap at the 20th Shanghai International Automobile Industry Exhibition. In terms of autonomous driving, the Company expects to release its city NOA for beta testing in its full-stack self-developed Li AD Max 3.0 in the second quarter of 2023, and targets to roll out in 100 cities nationwide by the end of 2023. In addition, the Company introduced its 800-volt fast charging solution, which allows its BEVs to achieve a driving range of 400 kilometers with around 10 minutes of charging. It will strive to establish a model portfolio of one super flagship vehicle, five EREVs, and five HPC BEVs by 2025. The Company endeavors to build over 300 charging stations along highways by the end of 2023 and will strive to expand its charging network to 3,000 charging stations by 2025.

Safety Evaluation Results

  • In April 2023, the China Insurance Automotive Safety Index (“C-IASI”) Management Center published the safety evaluation results for Li L8 based on crash tests. Li L8 achieved a G rating, the highest safety rating, in three out of four evaluation categories — occupant safety, pedestrian safety, and assistance safety — and an M rating in the crashworthiness and repair economy category. With respect to occupant safety, Li L8 received G ratings in the crash tests of 25% frontal offset impact on both the driver and passenger sides.

    In April 2023, Li L9 achieved a five-star safety rating in the latest China New Car Assessment Program (“C-NCAP”) tests released by China Automotive Technology and Research Center Co., Ltd. It received currently the highest weighted score of 91.3% among vehicles tested under the C-NCAP management protocol (2021 edition), including 93.37% on occupant protection, 75.87% on pedestrian protection, and 95.55% on active safety.

2022 Environmental, Social and Governance Report

  • On April 21, 2023, the Company published its 2022 Environmental, Social and Governance (ESG) report (https://ir.lixiang.com/esg), detailing its ESG strategies, practices, and performance in 2022.

At-The-Market Offering

  • On June 28, 2022, the Company announced an at-the-market offering program (the “ATM Offering”) to sell up to US$2,000,000,000 of American depositary shares (“ADSs”), each representing two Class A ordinary shares of the Company.

    As of the date of this press release, the Company has sold 9,431,282 ADSs representing 18,862,564 Class A ordinary shares of the Company under the ATM Offering, raising gross proceeds of US$366.5 million before deducting fees and commissions payable to the distribution agents of up to US$4.8 million and certain other offering expenses. These figures remain unchanged compared to the Company’s last update of the ATM Offering in the fourth quarter and full year 2022 earnings release.


CEO and CFO Comments

Mr. Xiang Li, chairman and chief executive officer of Li Auto, commented, “Facing an NEV landscape with intensified competition, we claimed the third place in terms of sales among NEV brands priced over RMB200,000 in China in the first quarter of 2023. This was made possible by the continued user endorsement of our Li L9 and Li L8, and the strong order intake and quick ramp-up of our Li L7, demonstrating once again our ability to design and build blockbuster models, as well as the strength and collaborative efficacy of our supply chain, manufacturing, and sales and servicing network.”

“The autonomous driving and BEV roadmap that we announced on April 18 marked the 3.0 era of autonomous driving for our Company epitomized by city NOA and a new chapter in our paralleled development of EREVs and HPC BEVs. We believe that electrification and autonomy will drive continuous business expansion and greater economies of scale, which, combined with our ever-strengthening operational capability, will enable us to generate profits while creating additional value for users. Our healthy profitability and cash flow, in turn, will allow continued capital deployment to fund research and development and enhance our business capabilities, fueling our flywheel for comprehensive development.”

Mr. Tie Li, chief financial officer of Li Auto, added, “We are pleased to report a strong first quarter marked by high growth and increased profitability. The record-breaking vehicle deliveries drove a 96.5% year-over-year increase in our first quarter revenues to RMB18.79 billion. In addition, thanks to our product strength, and outstanding operating efficiency, we achieved a healthy gross margin of 20.4% and positive results, at record highs, in both our adjusted operating margin and free cash flow in the first quarter. Our strong cashflow and healthy balance sheet have well positioned us to continue investing in our future, empowering research and development across products, platforms, and systems as well as business expansion to create value for both our users and our shareholders.”


Financial Results for the First Quarter of 2023

Revenues

  • Total revenues were RMB18.79 billion (US$2.74 billion) in the first quarter of 2023, representing an increase of 96.5% from RMB9.56 billion in the first quarter of 2022 and an increase of 6.4% from RMB17.65 billion in the fourth quarter of 2022.

  • Vehicle sales were RMB18.33 billion (US$2.67 billion) in the first quarter of 2023, representing an increase of 96.9% from RMB9.31 billion in the first quarter of 2022. The increase in vehicle sales over the first quarter of 2022 was mainly attributable to the increase in vehicle deliveries, as well as the higher average selling price contributed by the Li L series. The increase of 6.1% from RMB17.27 billion in the fourth quarter of 2022 was mainly attributable to the increase in vehicle deliveries, partially offset by the lower average selling price due to different product mix between two quarters.

  • Other sales and services were RMB459.7 million (US$66.9 million) in the first quarter of 2023, representing an increase of 81.4% from RMB253.4 million in the first quarter of 2022 and an increase of 20.5% from RMB381.5 million in the fourth quarter of 2022. The increase in revenue from other sales and services over the first quarter of 2022 and the fourth quarter of 2022 was mainly attributable to increased sales of accessories and services in line with higher accumulated vehicle sales.

Cost of Sales and Gross Margin

  • Cost of sales was RMB14.96 billion (US$2.18 billion) in the first quarter of 2023, representing an increase of 102.2% from RMB7.40 billion in the first quarter of 2022 and an increase of 6.2% from RMB14.08 billion in the fourth quarter of 2022. The increase in cost of sales over the first quarter of 2022 was mainly attributable to the increase in vehicle deliveries as well as higher average vehicle cost due to different product mix between two quarters. The increase in cost of sales over the fourth quarter of 2022 was mainly attributable to the increase in vehicle deliveries, partially offset by lower average vehicle cost due to different product mix between two quarters.

  • Gross profit was RMB3.83 billion (US$557.7 million) in the first quarter of 2023, representing an increase of 77.0% from RMB2.16 billion in the first quarter of 2022 and an increase of 7.4% from RMB3.57 billion in the fourth quarter of 2022.

  • Vehicle margin was 19.8% in the first quarter of 2023, compared with 22.4% in the first quarter of 2022 and 20.0% in the fourth quarter of 2022. The decrease in vehicle margin over the first quarter of 2022 was mainly due to different product mix between two quarters.

  • Gross margin was 20.4% in the first quarter of 2023, compared with 22.6% in the first quarter of 2022 and 20.2% in the fourth quarter of 2022. The decrease in gross margin over the first quarter of 2022 was mainly driven by the decrease of vehicle margin.

Operating Expenses

  • Operating expenses were RMB3.42 billion (US$498.7 million) in the first quarter of 2023, representing an increase of 32.9% from RMB2.58 billion in the first quarter of 2022 and a decrease of 7.4% from RMB3.70 billion in the fourth quarter of 2022.

  • Research and development expenses were RMB1.85 billion (US$269.7 million) in the first quarter of 2023, representing an increase of 34.8% from RMB1.37 billion in the first quarter of 2022 and a decrease of 10.5% from RMB2.07 billion in the fourth quarter of 2022. The increase in research and development expenses over the first quarter of 2022 was primarily driven by increased expenses to support our expanding product portfolios as well as increased employee compensation as a result of our growing number of staff. The decrease in research and development expenses over the fourth quarter of 2022 was mainly in line with timing and progress of new vehicle programs.

  • Selling, general and administrative expenses were RMB1.65 billion (US$239.6 million) in the first quarter of 2023, representing an increase of 36.8% from RMB1.20 billion in the first quarter of 2022 and an increase of 0.9% from RMB1.63 billion in the fourth quarter of 2022. The increase in selling, general and administrative expenses over the first quarter of 2022 was primarily driven by increased employee compensation as a result of our growing number of staff as well as increased rental expenses associated with the expansion of our sales and servicing network.

Income/(Loss) from Operations

  • Income from operations was RMB405.2 million (US$59.0 million) in the first quarter of 2023, compared with RMB413.1 million loss from operations in the first quarter of 2022 and RMB133.6 million loss from operations in the fourth quarter of 2022. Non-GAAP income from operations was RMB885.4 million (US$128.9 million) in the first quarter of 2023, compared with RMB74.9 million non-GAAP income from operations in the first quarter of 2022 and representing an increase of 55.7% from RMB568.7 million non-GAAP income from operations in the fourth quarter of 2022.

Net Income/(Loss) and Net Earnings/(Loss) Per Share

  • Net income was RMB933.8 million (US$136.0 million) in the first quarter of 2023, compared with RMB10.9 million net loss in the first quarter of 2022 and representing an increase of 252.0% from RMB265.3 million net income in the fourth quarter of 2022. Non-GAAP net income was RMB1.41 billion (US$205.9 million) in the first quarter of 2023, representing an increase of 196.4% from RMB477.1 million non-GAAP net income in the first quarter of 2022 and an increase of 46.1% from RMB967.6 million non-GAAP net income in the fourth quarter of 2022.

  • Basic and diluted net earnings per ADS

    6

    attributable to ordinary shareholders were RMB0.95 (US$0.14) and RMB0.89 (US$0.13) in the first quarter of 2023, respectively, compared with RMB0.01 for both basic and diluted net loss per ADS attributable to ordinary shareholders in the first quarter of 2022, and RMB0.26 and RMB0.25 basic and diluted net earnings per ADS attributable to ordinary shareholders in the fourth quarter of 2022, respectively. Non-GAAP basic and diluted net earnings per ADS attributable to ordinary shareholders3 were RMB1.44 (US$0.21) and RMB1.35 (US$0.20) in the first quarter of 2023, respectively, compared with RMB0.49 and RMB0.47 non-GAAP basic and diluted net earnings per ADS attributable to ordinary shareholders in the first quarter of 2022, respectively, and RMB0.98 and RMB0.93 non-GAAP basic and diluted net earnings per ADS attributable to ordinary shareholders in the fourth quarter of 2022, respectively.

Cash Position, Operating Cash Flow and Free Cash Flow

  • Balance of cash and cash equivalents, restricted cash, time deposits and short-term investments was RMB65.00 billion (US$9.46 billion) as of March 31, 2023.

  • Net cash provided by operating activities was RMB7.78 billion (US$1.13 billion) in the first quarter of 2023, representing an increase of 324.3% from RMB1.83 billion net cash provided by operating activities in the first quarter of 2022 and an increase of 58.0% from RMB4.93 billion net cash provided by operating activities in the fourth quarter of 2022. The increase in net cash provided by operating activities over both the first quarter of 2022 and the fourth quarter of 2022 was mainly due to the increase in cash received from customers resulting from the increase in vehicle deliveries.

  • Free cash flow was RMB6.70 billion (US$975.9 million) in the first quarter of 2023, compared with RMB502.0 million free cash flow in the first quarter of 2022, and representing an increase of 105.8% from RMB3.26 billion free cash flow in the fourth quarter of 2022. The increase in free cash flow over both the first quarter of 2022 and the fourth quarter of 2022 was mainly due to the increase of operating cash inflow from vehicle deliveries as well as the decrease in capital expenditures.


Business Outlook

For the second quarter of 2023, the Company expects:

  • Deliveries of vehicles to be between 76,000 and 81,000 vehicles, representing an increase of 164.9% to 182.4% from the second quarter of 2022.

  • Total revenues to be between RMB24.22 billion (US$3.53 billion) and RMB25.86 billion (US$3.77 billion), representing an increase of 177.4% to 196.1% from the second quarter of 2022.

This business outlook reflects the Company’s current and preliminary view on the business situation and market condition, which is subject to change.


Conference Call

Management will hold a conference call at 8:00 a.m. U.S. Eastern Time on Wednesday, May 10, 2023 (8:00 p.m. Beijing/Hong Kong Time on May 10, 2023) to discuss financial results and answer questions from investors and analysts.

For participants who wish to join the call, please complete online registration using the link provided below prior to the scheduled call start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, passcode, and a unique access PIN. To join the conference, please dial the number provided, enter the passcode followed by your PIN, and you will join the conference instantly.

Participant Online Registration: https://s1.c-conf.com/diamondpass/10030396-a6jw52.html

A replay of the conference call will be accessible through May 17, 2023, by dialing the following numbers:

United States: +1-855-883-1031
Mainland China: +86-400-1209-216
Hong Kong, China: +852-800-930-639
International: +61-7-3107-6325
Replay PIN: 10030396
   

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.lixiang.com.


Non-GAAP Financial Measure

The Company uses non-GAAP financial measures, such as non-GAAP cost of sales, non-GAAP research and development expenses, non-GAAP selling, general and administrative expenses, non-GAAP income/loss from operations, non-GAAP net income/loss, non-GAAP net income/loss attributable to ordinary shareholders, non-GAAP basic and diluted net earnings/loss per ADS attributable to ordinary shareholders and free cash flow, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.


About Li Auto Inc.

Li Auto Inc. is a leader in China’s new energy vehicle market. The Company designs, develops, manufactures, and sells premium smart electric vehicles. Its mission is: Create a Mobile Home, Create Happiness (创造移动的家, 创造幸福的家). Through innovations in product, technology, and business model, the Company provides families with safe, convenient, and comfortable products and services. Li Auto is a pioneer to successfully commercialize extended-range electric vehicles in China. The Company started volume production in November 2019. Its model lineup includes Li L9, a six-seat flagship family SUV, Li L8 and Li ONE, both of which are six-seat premium family SUVs, and Li L7, a five-seat flagship family SUV. The Company leverages technology to create value for its users. It concentrates its in-house development efforts on its proprietary range extension system, next-generation electric vehicle technology, and smart vehicle solutions while expanding its product line by developing new BEVs and EREVs to target a broader user base.

For more information, please visit: http://ir.lixiang.com.


Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “strives,” “endeavors,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Li Auto may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) and The Stock Exchange of Hong Kong Limited (the “HKEX”), in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including statements about Li Auto’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Li Auto’s strategies, future business development, and financial condition and results of operations; Li Auto’s limited operating history; risks associated with extended-range electric vehicles, Li Auto’s ability to develop, manufacture, and deliver vehicles of high quality and appeal to customers; Li Auto’s ability to generate positive cash flow and profits; product defects or any other failure of vehicles to perform as expected; Li Auto’s ability to compete successfully; Li Auto’s ability to build its brand and withstand negative publicity; cancellation of orders for Li Auto’s vehicles; Li Auto’s ability to develop new vehicles; and changes in consumer demand and government incentives, subsidies, or other favorable government policies. Further information regarding these and other risks is included in Li Auto’s filings with the SEC and the HKEX. All information provided in this press release is as of the date of this press release, and Li Auto does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

Li Auto Inc.
Investor Relations
Email: [email protected]

The Piacente Group, Inc.
Yang Song
Tel: +86-10-6508-0677
Email: [email protected]

Brandi Piacente
Tel: +1-212-481-2050
Email: [email protected]

Li Auto Inc.

Unaudited Condensed Consolidated Statements of Comprehensive (Loss)/Income
(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)
 
    For the Three Months Ended  
    March 31, 2022   December 31, 2022   March 31, 2023   March 31, 2023  
    RMB   RMB   RMB   US$  
Revenues:                  
Vehicle sales   9,308,609   17,268,330   18,327,316   2,668,664  
Other sales and services   253,427   381,544   459,737   66,943  
Total revenues   9,562,036   17,649,874   18,787,053   2,735,607  
Cost of sales:                  
Vehicle sales   (7,219,912)   (13,818,255)   (14,705,143)   (2,141,235)  
Other sales and services   (178,269)   (265,288)   (251,804)   (36,666)  
Total cost of sales   (7,398,181)   (14,083,543)   (14,956,947)   (2,177,901)  
Gross profit   2,163,855   3,566,331   3,830,106   557,706  
Operating expense:                  
Research and development   (1,373,962)   (2,070,091)   (1,852,297)   (269,715)  
Selling, general and administrative   (1,202,967)   (1,629,859)   (1,645,307)   (239,575)  
Other operating income, net   —   —   72,701   10,586  
Total operating expenses   (2,576,929)   (3,699,950)   (3,424,903)   (498,704)  
(Loss)/Income from operations   (413,074)   (133,619)   405,203   59,002  
Other (expense)/income:                  
Interest expense   (10,138)   (38,393)   (32,438)   (4,723)  
Interest income and investment income, net   162,874   255,772   418,531   60,943  
Others, net   279,703   84,706   181,488   26,427  
Income before income tax expense   19,365   168,466   972,784   141,649  
Income tax (expense)/benefit   (30,231)   96,836   (38,947)   (5,671)  
Net (loss)/income   (10,866)   265,302   933,837   135,978  
Less: Net income attributable to noncontrolling interests   —   8,364   4,169   607  
Net (loss)/income attributable to ordinary shareholders of Li Auto Inc.   (10,866)   256,938   929,668   135,371  
                   
Net (loss)/income   (10,866)   265,302   933,837   135,978  
Other comprehensive (loss)/income                  
Foreign currency translation adjustment, net of tax   (85,116)   42,097   27,607   4,020  
Total other comprehensive (loss)/income   (85,116)   42,097   27,607   4,020  
Total comprehensive (loss)/income   (95,982)   307,399   961,444   139,998  
Less: Net income attributable to noncontrolling interests   —   8,364   4,169   607  
Comprehensive (loss)/income attributable to ordinary shareholders of Li Auto Inc.   (95,982)   299,035   957,275   139,391  
Weighted average number of ADSs                  
Basic   964,870,446   976,970,967   979,166,653   979,166,653  
Diluted   964,870,446   1,045,583,572   1,052,402,047   1,052,402,047  
Net (loss)/earnings per ADS attributable to ordinary shareholders                  
Basic   (0.01)   0.26   0.95   0.14  
Diluted   (0.01)   0.25   0.89   0.13  
Weighted average number of ordinary shares                  
Basic   1,929,740,892   1,953,941,934   1,958,333,306   1,958,333,306  
Diluted   1,929,740,892   2,091,167,144   2,104,804,095   2,104,804,095  
Net (loss)/earnings per share attributable to ordinary shareholders                  
Basic   (0.01)   0.13   0.47   0.07  
Diluted   (0.01)   0.13   0.45   0.06  
                   

Li Auto Inc.

Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands)
 
        As
of 		     
    December 31, 2022   March 31, 2023   March 31, 2023  
    RMB   RMB   US$  
ASSETS              
Current assets:              
Cash and cash equivalents   38,478,016   43,624,822   6,352,266  
Restricted cash   1,940,142   1,659,887   241,698  
Time deposits and short-term investments   18,031,395   19,712,197   2,870,318  
Trade receivable   48,381   54,033   7,868  
Inventories   6,804,693   6,262,437   911,881  
Prepayments and other current assets   1,689,860   1,753,640   255,350  
Total current assets   66,992,487   73,067,016   10,639,381  
Non-current assets:              
Long-term investments   1,484,491   1,478,869   215,340  
Property, plant and equipment, net   11,187,898   12,785,988   1,861,784  
Operating lease right-of-use assets, net   3,538,911   3,618,909   526,954  
Intangible assets, net   832,620   840,674   122,412  
Goodwill   5,484   5,484   799  
Deferred tax assets   74,767   19,704   2,869  
Other non-current assets   2,421,293   2,195,788   319,731  
Total non-current assets   19,545,464   20,945,416   3,049,889  
Total assets   86,537,951   94,012,432   13,689,270  
LIABILITIES AND EQUITY              
Current liabilities:              
Short‑term borrowings   390,750   827,868   120,547  
Trade and notes payable   20,024,329   25,329,361   3,688,241  
Amounts due to related parties   7,190   7,846   1,142  
Deferred revenue, current   569,234   555,910   80,947  
Operating lease liabilities, current   696,454   753,950   109,784  
Accruals and other current liabilities   5,684,644   6,283,057   914,885  
Total current liabilities   27,372,601   33,757,992   4,915,546  
Non-current liabilities:              
Long-term borrowings   9,230,807   8,516,026   1,240,029  
Deferred revenue, non-current   581,598   583,025   84,895  
Operating lease liabilities, non-current   1,946,367   1,987,594   289,416  
Deferred tax liabilities   77,809   61,673   8,980  
Other non-current liabilities   2,142,462   2,474,482   360,312  
Total non-current liabilities   13,979,043   13,622,800   1,983,632  
Total liabilities   41,351,644   47,380,792   6,899,178  
Total Li Auto Inc. shareholders’ equity   44,858,701   46,299,865   6,741,782  
Noncontrolling interests   327,606   331,775   48,310  
Total shareholders’ equity   45,186,307   46,631,640   6,790,092  
Total liabilities and shareholders’ equity   86,537,951   94,012,432   13,689,270  
 

Li Auto Inc.

Unaudited Condensed Consolidated Statements of Cash Flows
(All amounts in thousands)
 
    For the Three Months Ended  
    March 31,

2022 		  December 31,

2022 		  March 31,

2023 		  March 31,

2023 		 
    RMB   RMB   RMB   US$  
Net cash provided by operating activities   1,833,769   4,925,350   7,780,366   1,132,909  
Net cash provided by/(used in) investing activities   1,564,251   (5,308,274)   (2,692,753)   (392,095)  
Net cash provided by/(used in) financing activities   902,991   251,024   (195,821)   (28,514)  
Effect of exchange rate changes   (77,503)   (19,686)   (25,241)   (3,676)  
Net change in cash, cash equivalents and restricted cash   4,223,508   (151,586)   4,866,551 　 708,624  
Cash, cash equivalents and restricted cash at beginning of period   30,493,064   40,569,744   40,418,158   5,885,340  
Cash, cash equivalents and restricted cash at end of period   34,716,572   40,418,158   45,284,709 　 6,593,964  
                   
Net cash provided by operating activities   1,833,769   4,925,350   7,780,366 　 1,132,909  
Capital expenditures   (1,331,814)   (1,668,021)   (1,078,295)   (157,012)  
Free cash flow (non-GAAP)   501,955   3,257,329   6,702,071 　 975,897  
 

Li Auto Inc.

Unaudited Reconciliation of GAAP and Non-GAAP Results
(All amounts in thousands, except for ADS/ordinary share and per ADS/ordinary share data)
 
    For the Three Months Ended  
    March 31,

2022 		  December 31,

2022 		  March 31,

2023 		  March 31,

2023 		 
    RMB   RMB   RMB   US$  
Cost of sales   (7,398,181)   (14,083,543)   (14,956,947)   (2,177,901)  
Share-based compensation expenses   10,665   16,644   11,186   1,629  
Non-GAAP cost of sales   (7,387,516)   (14,066,899)   (14,945,761)   (2,176,272)  
                   
Research and development expenses   (1,373,962)   (2,070,091)   (1,852,297)   (269,715)  
Share-based compensation expenses   324,532   476,522   336,220   48,957  
Non-GAAP research and development expenses   (1,049,430)   (1,593,569)   (1,516,077)   (220,758)  
                   
Selling, general and administrative expenses   (1,202,967)   (1,629,859)   (1,645,307)   (239,575)  
Share-based compensation expenses   152,754   209,135   132,823   19,341  
Non-GAAP selling, general and administrative expenses   (1,050,213)   (1,420,724)   (1,512,484)   (220,234)  
                   
(Loss)/Income from operations   (413,074)   (133,619)   405,203   59,002  
Share-based compensation expenses   487,951   702,301   480,229   69,927  
Non-GAAP income from operations   74,877   568,682   885,432   128,929  
                   
Net (loss)/income   (10,866)   265,302   933,837   135,978  
Share-based compensation expenses   487,951   702,301   480,229   69,927  
Non-GAAP net income   477,085   967,603   1,414,066   205,905  
                   
Net (loss)/income attributable to ordinary shareholders of Li Auto Inc.   (10,866)   256,938   929,668   135,371  
Share-based compensation expenses   487,951   702,301   480,229   69,927  
Non-GAAP net income attributable to ordinary shareholders of Li Auto Inc.   477,085   959,239   1,409,897   205,298  
                   
Weighted average number of ADSs (non-GAAP)                  
Basic   964,870,446   976,970,967   979,166,653   979,166,653  
Diluted   1,035,309,021   1,045,583,572   1,052,402,047   1,052,402,047  
Non-GAAP net earnings per ADS attributable to ordinary shareholders                  
Basic   0.49   0.98   1.44   0.21  
Diluted   0.47   0.93   1.35   0.20  
Weighted average number of ordinary shares (non-GAAP)                  
Basic   1,929,740,892   1,953,941,934   1,958,333,306   1,958,333,306  
Diluted   2,070,618,042   2,091,167,144   2,104,804,095   2,104,804,095  
Non-GAAP net earnings per share attributable to ordinary shareholders

7
 		                 
Basic   0.25   0.49   0.72   0.10  
Diluted   0.23   0.46   0.67   0.10  
                   


1 All translations from Renminbi (“RMB”) to U.S. dollar (“US$”) are made at a rate of RMB6.8676 to US$1.00, the noon buying rate in effect on March 31, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board.


2 
Vehicle margin is the margin of vehicle sales, which is calculated based on revenues and cost of sales derived from vehicle sales only.


3
 The Company’s non-GAAP financial measures exclude share-based compensation expenses. See “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.


4

Free cash flow represents operating cash flow less capital expenditures, which is considered a non-GAAP financial measure.


5
 Except for vehicle margin and gross margin, where absolute changes instead of percentage changes are presented.


6
Each ADS represents two Class A ordinary shares.


7

Non-GAAP basic net earnings/loss per share attributable to ordinary shareholders is calculated by dividing non-GAAP net income/loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the periods. Non-GAAP diluted net earnings/loss per share attributable to ordinary shareholders is calculated by dividing non-GAAP net income/loss attributable to ordinary shareholders by the weighted average number of ordinary shares, dilutive potential ordinary shares outstanding during the periods, including the dilutive effects of convertible senior notes as determined under the if-converted method and the dilutive effect of share-based awards as determined under the treasury stock method.



Posted on

Alvotech enters into commercialization agreement with Polifarma for proposed biosimilar to Eylea® (aflibercept)

  • Polifarma will commercialize AVT06, a proposed biosimilar to Eylea® (aflibercept), in Turkey

REYKJAVIK, Iceland, May 10, 2023 (GLOBE NEWSWIRE) — Alvotech (NASDAQ: ALVO), a global biotech company specializing in the development and manufacture of biosimilar medicines for patients worldwide, today announced that it has entered into an exclusive agreement with Polifarma Ilac San. ve tic. A.S. (“Polifarma”) for the commercialization in Turkey of AVT06, a proposed biosimilar to Eylea® (aflibercept).

“It is a pleasure to join forces with Polifarma in the commercialization of a potential therapy in eye disease,” said Robert Wessman, Chairman and CEO of Alvotech. “We are committed to providing better patient access to affordable biologics, and this agreement will allow us to better serve the growing and important Turkish market.”

“Polifarma has been contributing to public health and the health sector in the world for 37 years with its motto of ‘We stand by life’. This agreement with Alvotech allows us to expand our portfolio and further strengthen our position in the ophthalmology area. We are excited to have the opportunity to commercialize this product in Turkey,” said Mehmet Asri, CEO of Polifarma.

According to the agreement, Alvotech will be responsible for development and manufacture, while Polifarma will handle market registration and commercialization.

AVT06 is a biosimilar candidate currently in clinical development. In July 2022, Alvotech announced the initiation of a patient study to compare AVT06 and Eylea® in terms of efficacy, safety, and immunogenicity in adult patients with neovascular (wet) age-related macular degeneration (AMD).

About AVT06

AVT06 is a recombinant fusion protein and a biosimilar candidate to Eylea® (aflibercept), which binds vascular endothelial growth factors (VEGF), inhibiting the binding and activation of VEGF receptors, neovascularization, and vascular permeability. AVT06 is an investigational product and has not received regulatory approval in any country. Biosimilarity has not been established by regulatory authorities and is not claimed.

About Polifarma

Polifarma is the market leader of hospital products in Turkey and has a 37-year history, with 100% domestic capital. While developing its IV drug portfolio, Polifarma started to grow in the prescribed markets. As a leading brand in the Turkish health sector, Polifarma produces 350 million boxes per year at its 77 thousand square meter facility in Ergene/Tekirdağ. Besides manufacturing ampoules, vials and pre-filled syringes (PFS), Polifarma has 600 licensed products in all forms and 12 certificates in 15 therapeutic areas. Polifarma offers innovative solutions, such as Turkey’s first lipid product and the world’s first three-chamber parenteral nutrition solution and CAPD device. Exporting to 70 countries, Polifarma’s vision is to become a global leader by 2025 and maintain its position with EU-GMP compliance and a commitment to quality and technology.

About Alvotech

Alvotech is a biotech company, founded by Robert Wessman, focused solely on the development and manufacture of biosimilar medicines for patients worldwide. Alvotech seeks to be a global leader in the biosimilar space by delivering high quality, cost-effective products, and services, enabled by a fully integrated approach and broad in-house capabilities. Alvotech’s current pipeline contains eight biosimilar candidates aimed at treating autoimmune disorders, eye disorders, osteoporosis, respiratory disease, and cancer. Alvotech has formed a network of strategic commercial partnerships to provide global reach and leverage local expertise in markets that include the United States, Europe, Japan, China, and other Asian countries and large parts of South America, Africa and the Middle East. Alvotech’s commercial partners include Teva Pharmaceuticals, a US affiliate of Teva Pharmaceutical Industries Ltd. (US), STADA Arzneimittel AG (EU), Fuji Pharma Co., Ltd (Japan), Advanz Pharma (EEA, UK, Switzerland, Canada, Australia and New Zealand), Cipla/Cipla Gulf/Cipla Med Pro (Australia, New Zealand, South Africa/Africa), JAMP Pharma Corporation (Canada), Yangtze River Pharmaceutical (Group) Co., Ltd. (China), DKSH (Taiwan, Hong Kong, Cambodia, Malaysia, Singapore, Indonesia, India, Bangladesh and Pakistan), YAS Holding LLC (Middle East and North Africa), Abdi Ibrahim (Turkey), Kamada Ltd. (Israel), Mega Labs, Stein, Libbs, Tuteur and Saval (Latin America) and Lotus Pharmaceuticals Co., Ltd. (Thailand, Vietnam, Philippines, and South Korea). Each commercial partnership covers a unique set of product(s) and territories. Except as specifically set forth therein, Alvotech disclaims responsibility for the content of periodic filings, disclosures and other reports made available by its partners. For more information, please visit www.alvotech.com. None of the information on the Alvotech website shall be deemed part of this press release.

Forward Looking Statements

Certain statements in this communication may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements generally relate to future events or the future financial operating performance of Alvotech and may include, for example, Alvotech’s expectations regarding competitive advantages, business prospects and opportunities including pipeline product development, future plans and intentions, results, level of activities, performance, goals or achievements or other future events, regulatory review and interactions, the satisfactory responses to the FDA’s inspection findings and resolution of other deficiencies conveyed following the inspection of Alvotech’s manufacturing site, the potential approval and commercial launch of its product candidates, the timing of regulatory approval and market launches, and the estimated size of the total addressable market of Alvotech’s pipeline products. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential”, “aim” or “continue”, or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Alvotech and its management, are inherently uncertain and are inherently subject to risks, variability, and contingencies, many of which are beyond Alvotech’s control. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) the outcome of any legal proceedings that may be instituted against Alvotech or others following the business combination between Alvotech Holdings S.A., Oaktree Acquisition Corp. II and Alvotech; (2) the ability to maintain stock exchange listing standards; (3) changes in applicable laws or regulations; (4) the possibility that Alvotech may be adversely affected by other economic, business, and/or competitive factors; (5) Alvotech’s estimates of expenses and profitability; (6) Alvotech’s ability to develop, manufacture and commercialize the products and product candidates in its pipeline; (7) actions of regulatory authorities, which may affect the initiation, timing and progress of clinical studies or future regulatory approvals or marketing authorizations; (8) the ability of Alvotech or its partners to respond to inspection findings and resolve deficiencies to the satisfaction of the regulators; (9) the ability of Alvotech or its partners to enroll and retain patients in clinical studies; (10) the ability of Alvotech or its partners to gain approval from regulators for planned clinical studies, study plans or sites; (11) the ability of Alvotech’s partners to conduct, supervise and monitor existing and potential future clinical studies, which may impact development timelines and plans; (12) Alvotech’s ability to obtain and maintain regulatory approval or authorizations of its products, including the timing or likelihood of expansion into additional markets or geographies; (13) the success of Alvotech’s current and future collaborations, joint ventures, partnerships or licensing arrangements; (14) Alvotech’s ability, and that of its commercial partners, to execute their commercialization strategy for approved products; (15) Alvotech’s ability to manufacture sufficient commercial supply of its approved products; (16) the outcome of ongoing and future litigation regarding Alvotech’s products and product candidates; (17) the potential impact of the ongoing COVID-19 pandemic on regulatory review timelines, including the ability to complete timely inspection of manufacturing sites; (18) the impact of worsening macroeconomic conditions, including rising inflation and interest rates and general market conditions, war in Ukraine and global geopolitical tension, and the ongoing and evolving COVID-19 pandemic on the Company’s business, financial position, strategy and anticipated milestones; and (19) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in documents that Alvotech may from time to time file or furnish with the SEC. There may be additional risks that Alvotech does not presently know or that Alvotech currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Alvotech does not undertake any duty to update these forward-looking statements or to inform the recipient of any matters of which any of them becomes aware of which may affect any matter referred to in this communication. Alvotech disclaims any and all liability for any loss or damage (whether foreseeable or not) suffered or incurred by any person or entity as a result of anything contained or omitted from this communication and such liability is expressly disclaimed. The recipient agrees that it shall not seek to sue or otherwise hold Alvotech or any of its directors, officers, employees, affiliates, agents, advisors, or representatives liable in any respect for the provision of this communication, the information contained in this communication, or the omission of any information from this communication.

CONTACTS

Alvotech Investor Relations and Global Communications

Benedikt Stefansson
alvotech.ir[at]alvotech.com

Polifarma Corporate Communications and Marketing Manager

Sevda Karasu
[email protected]