Market Newsdesk

May 10, 2023 7:33 pm

Nephros Announces Results for Quarter Ended March 31, 2023

First-Quarter
Net Revenue of $
3.7
Millio
n;

Achieves Positive Cash Flow
Months Earlier than Forecast

SOUTH ORANGE, NJ, May 10, 2023 (GLOBE NEWSWIRE) — via NewMediaWire –Nephros , Inc. (Nasdaq: NEPH), a leading water technology company providing filtration solutions to the medical and commercial markets, today announced financial results for the first quarter ended March 31, 2023.

Financial Highlights
*

Net revenue from continuing operations of $3.7 million, an increase of 71%
Net loss from continuing operations of $0.3 million, compared to $1.6 million.
Adjusted EBITDA from continuing operations of $0.1 million, compared to ($1.2 million)

*Stated performance is relative to same period prior year (first quarter of 2022)

“We are very pleased to report record net quarterly revenue and positive cash flow, both significant milestones for Nephros,” said Andy Astor, retiring President and Chief Executive Officer. “We are particularly pleased that cash flow turned positive several months earlier than our forecast for mid-2023. This was driven by multiple factors reflecting our past year’s efforts, including reduced expenses, normalized gross margins, and strong revenue growth in both our core and emergency response businesses.”

“It is my pleasure to join the Nephros team at this auspicious time,” said Robert Banks, incoming President and Chief Executive Officer. “I am excited for the opportunity to build on the company’s recent achievements, particularly with respect to consistently high growth rates and long-term profitability.”

Fin
anci
al Performance
for the Quarter Ended
March 31, 2023

Net revenue from continuing operations for the quarter ended March 31, 2023, was $3.7 million, compared to $2.2 million in the corresponding period in 2022, an increase of 71%.

Net loss from continuing operations for the quarter ended March 31, 2023, was $0.3 million, compared to $1.6 million during the same period in 2022. The decrease in net loss from continuing operations was driven by increased revenue and gross margins and decreased research and development costs.

Adjusted EBITDA from continuing operations for the quarter ended March 31, 2023, was $0.1 million, compared to ($1.2 million) during the same period in 2022.

Cost of goods sold for the quarter ended March 31, 2023 was $1.6 million, compared with $1.1 million for the quarter ended March 31, 2022, an increase of 43%. Gross margins for the quarter ended March 31, 2023 were 57%, compared with 49% during the same period in 2022. The increase of approximately 8%, reflecting a return to target gross margins of 55-60%, was driven by price increases implemented in 2022, reductions in shipping expenses, and improved management of inventory reserves.

Research and development expenses for the quarter ended March 31, 2023, were $0.2 million, compared with $0.4 million during the quarter ended March 31, 2022.

Depreciation and amortization expenses for the quarter ended March 31, 2023 were approximately $54,000, compared with approximately $51,000 for the corresponding period in 2022.

Selling, general and administrative expenses for the quarter ended March 31, 2023, were approximately $2.1 million compared with approximately $2.2 million for the corresponding period in 2022.

As of March 31, 2023, Nephros had cash and cash equivalents of $3.8 million, compared to $3.6 million as of December 31, 2022.

Adjusted EBITDA Definition and Reconciliation to GAAP Financial Measures

Adjusted EBITDA from continuing operations is calculated by taking net loss from continuing operations calculated in accordance with generally accepted accounting principles (“GAAP”) and excluding all interest-related expenses and income, tax-related expenses and income, non-recurring expenses and income, and non-cash items, including depreciation, amortization, non-cash compensation, and inventory reserve. The following table presents a reconciliation of Adjusted EBITDA from continuing operations to net loss from continuing operations, the most directly comparable GAAP financial measure, for the first quarter of the 2023 and 2022 fiscal years:

Nephros believes that Adjusted EBITDA from continuing operations provides useful information to management and investors regarding certain financial and business trends relating to Nephros’ financial condition and results of operations. Management does not consider Adjusted EBITDA from continuing operations in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of Adjusted EBITDA from continuing operations is that it excludes significant expenses and income that are required by GAAP to be recognized in Nephros’ financial statements. In addition, Adjusted EBITDA from continuing operations is subject to inherent limitations as it reflects the exercise of judgments by management about which expenses and income are excluded or included in determining Adjusted EBITDA from continuing operations. To compensate for these limitations, management presents Adjusted EBITDA from continuing operations in connection with net income loss from continuing operations, the most directly comparable GAAP financial measure. Nephros urges investors to review the reconciliation of Adjusted EBITDA from continuing operations to net income loss from continuing operations and not to rely on any single financial measure to evaluate the business.

Conference Call Today
at 4:30pm ET

Nephros will host a conference call today at 4:30pm ET, during which management will discuss Nephros’ financial results and provide a general business overview.

Participants may dial into the call as follows:
Domestic access: 1 (844) 808-7106
International access: 1 (412) 317-5285

Upon joining, please ask to be joined into the Nephros conference call.

An audio archive of the call will be available shortly after the call on the Nephros Investor Relations page.

Alternatively, a replay of the call may be accessed until May 17, 2023 at 1 (877) 344-7529 or
1 (412) 317-0088 for international callers and entering replay access code: 5851475.

About
Nephros

Nephros is committed to improving the human relationship with water through leading, accessible technology. We provide innovative water filtration products and services, along with water-quality education, as part of an integrated approach to water safety. Nephros goods serve the needs of customers within the healthcare and commercial markets, offering both proactive and emergency solutions for water management.

For more information about Nephros, please visit www.nephros.com.

Forward-Looking Statements

This release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding Nephros’ expected future revenue, gross margins, cash flows and expectations on achieving and maintaining positive cash flow and the timing thereof and other future financial performance, and other statements that are not historical facts, including statements that may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including the impact of the ongoing COVID-19 pandemic, inflationary factors and general economic conditions, changes in business and competitive conditions, the availability of capital when needed, dependence on third-party manufacturers and researchers, and regulatory reforms. These and other risks and uncertainties are detailed in Nephros’ reports filed with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2022, which it may update in Part II, Item 1A – Risk Factors in its Quarterly Reports on Form 10-Q that it has filed or will file hereafter. Nephros does not undertake any responsibility to update the forward-looking statements in this release.

Investor Relations Contacts:

Kirin Smith, President

PCG Advisory, Inc.

(646) 823-8656

[email protected]

Andy Astor, CEO

Nephros, Inc.

(201) 343-5202 x120

[email protected]

May 10, 2023 7:32 pm

DoubleVerify Reports First Quarter 2023 Financial Results

DoubleVerify Reports First Quarter 2023 Financial Results

Increased Revenue by 27% Year-over-Year to $122.6 Million Driven by Global Growth in Social and CTV Measurement and Programmatic Activation

Achieved Net Income of $12.2 Million and Adjusted EBITDA of $35.9 Million, representing a 29% Adjusted EBITDA margin

Exceeded First Quarter Expectations and Raised Full Year 2023 Guidance to 24% Total Revenue Growth and 31% Adjusted EBITDA Margins at the Midpoints of New Guidance Ranges

NEW YORK–(BUSINESS WIRE)–
DoubleVerify (“DV”) (NYSE: DV), a leading software platform for digital media measurement, data and analytics, today announced financial results for the first quarter ended March 31, 2023.

“DV has once again delivered a powerful combination of strong revenue growth and profitability that has exceeded expectations,” said Mark Zagorski, CEO of DoubleVerify. “Our growth continues to significantly outpace our competitors and the broader industry. We grew revenue 27% year over year in Q1, fueled by market share gains across our three business lines, each of which delivered double-digit growth. The first quarter’s exceptional performance was driven by existing customers meaningfully expanding their use of DV’s programmatic, Social, and CTV products as well as recently won international customers ramping business on our platform. Both are a testament to the unique utility and value our solutions deliver in reducing media waste and maximizing campaign effectiveness. Today, we are raising our full-year 2023 revenue and adjusted EBITDA guidance based on strong first-quarter results and our improved outlook for the rest of this year.”

First Quarter 2023 Financial Highlights:

(All comparisons are to the first quarter of 2022)

Total revenue of $122.6 million, an increase of 27%.
Activation revenue of $69.9 million, an increase of 32%.
Measurement revenue of $41.4 million, an increase of 22%.
- Media Transactions Measured (“MTM”) for CTV and Social increased by 39% and 33% respectively.
- International measurement revenue increased by 26% with EMEA growth of 23% and APAC growth of 31%.
Supply-Side revenue of $11.3 million, an increase of 15%.
Net income of $12.2 million and adjusted EBITDA of $35.9 million, which represented a 29% adjusted EBITDA margin.

First Quarter and Recent Business Highlights:

Grew Total Advertiser revenue by 28% year-over-year in the first quarter primarily due to a 25% increase in Media Transactions Measured (“MTM”) and a 3% increase in Measured Transaction Fee (“MTF”), and continued to achieve a Gross Revenue Retention rate of over 95% in the first quarter.

Grew premium-priced Authentic Brand Suitability (ABS) revenues by 56% year-over-year in the first quarter driven by large existing global advertisers as well as by new customer activations.

Drove global market share growth through product upsells, international expansion, and new enterprise logo wins. Notable first-quarter new business wins include:
- Expansions: Merck, Amazon, and Airbnb
- New enterprise customer wins: Swarovski, Daikin, Mattress Firm, Evoke Health, and NY Presbyterian

Launched new product and platform offerings including:
- DV Universal Attention Segments — a programmatic activation solution that helps brands identify low-attention placements and improve performance by optimizing toward high-attention inventory. With this release, DV Authentic Attention® is the only MRC-accredited attention solution spanning programmatic activation through measurement.
- DV Media Quality Authentication on Netflix — verification and fraud protection coverage on Netflix’sad-supported tier with verification on Netflix now available in 12 markets globally.

Became a badged Measurement Partner with a specialty in Brand Safety & Suitability in the TikTok Marketing Partner Program. TikTok awards this badge to companies that have met their stringent partner qualification standards.

Partnered with Roku to expand Roku’s Watermark 2.0 technology to cover more fraud use cases including user spoofing that creates fake impressions.

Partnered with Publicis Media and leading brands such as Kraft Heinz, Reckitt, and Comcast to conduct first-of-its-kind research detailing factors influencing brand safety and suitability.

Ranked in the top 1% of all data providers scored by Neutronian in their transparency ratings and renewed its “Cookieless Certification” badge, an independent verification that as a data provider, DV is future-proofed for the depreciation of third-party cookies.

“Following a strong 2022, we continued to outpace the digital advertising industry with 27% revenue growth and delivered 29% adjusted EBITDA margins in the first quarter,” said Nicola Allais, CFO of DoubleVerify. “Our outperformance was powered by our global teams whose excellent execution has consistently generated strong results. We continue to invest in our people and build our capabilities and technology and are focused on growing our engineering and data science talent while expanding our global footprint. We’re excited about our solid pipeline of new and expansionary business opportunities and with nearly $286 million dollars of cash and zero debt on our balance sheet, we are well-positioned to drive further business expansion and accelerate our long-term growth.”

Second Quarter and Full-Year 2023 Guidance:

DoubleVerify anticipates Revenue and Adjusted EBITDA to be in the following ranges:

Second Quarter 2023:

Revenue of $131 to $135 million, a year-over-year increase of 21% at the midpoint.

Adjusted EBITDA in the range of $37 to $39 million, representing a 29% margin at the midpoint.

Full Year 2023:

Revenue of $557 to $569 million, a year-over-year increase of 24% at the midpoint.

Adjusted EBITDA in the range of $171 to $179 million, representing a 31% margin at the midpoint.

With respect to the Company’s expectations under “Second Quarter and Full Year 2023 Guidance” above, the Company has not reconciled the non-GAAP measure Adjusted EBITDA to the GAAP measure net income in this press release because the Company does not provide guidance for stock-based compensation expense, depreciation and amortization expense, acquisition-related costs, interest income, and income taxes on a consistent basis as the Company is unable to quantify these amounts without unreasonable efforts, which would be required to include a reconciliation of Adjusted EBITDA to GAAP net income. In addition, the Company believes such a reconciliation would imply a degree of precision that could be confusing or misleading to investors.

Conference Call, Webcast and Other Information

DoubleVerify will host a conference call and live webcast to discuss its first quarter 2023 financial results at 5:30 p.m. Eastern Time today, May 10, 2023. To access the conference call, dial (877) 841-2987 for the U.S. or Canada, or (215) 268-9878 for international callers. The webcast will be available live on the Investors section of the Company’s website at https://ir.doubleverify.com/. An archived webcast will be available approximately two hours after the conclusion of the live event.

In addition, DoubleVerify plans to post certain additional historical quarterly financial information on the investor relations portion of its website for easy access to investors.

Key Business Terms

Activation revenue is generated from the evaluation, verification and measurement of advertising impressions purchased through programmatic demand-side and social media platforms.

Measurement revenue is generated from the verification and measurement of advertising impressions that are directly purchased on digital media properties, including publishers and social media platforms.

Supply-Side revenue is generated from platforms and publisher partners who use DoubleVerify’s data analytics to evaluate, verify and measure their advertising inventory.

Gross Revenue Retention Rate is the total prior period revenue earned from advertiser customers, less the portion of prior period revenue attributable to lost advertiser customers, divided by the total prior period revenue from advertiser customers.

Media Transactions Measured (MTM) is the volume of media transactions that DoubleVerify’s software platform measures.

Measured Transaction Fee (MTF) is the fixed fee DoubleVerify charges per thousand Media Transactions Measured.

International Revenue Growth Rates are inclusive of foreign currency fluctuations.

DoubleVerify Holdings, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of

As of

(in thousands, except per share data)

March 31, 2023

December 31, 2022

Assets:

Current assets

Cash and cash equivalents

$

285,738

$

267,813

Trade receivables, net of allowances for doubtful accounts of $9,883 and $8,893 as of March 31, 2023 and December 31, 2022, respectively

174,262

167,122

Prepaid expenses and other current assets

16,695

10,161

Total current assets

476,695

445,096

Property, plant and equipment, net

48,842

47,034

Operating lease right-of-use assets, net

64,381

64,692

Goodwill

343,859

343,011

Intangible assets, net

129,352

135,429

Deferred tax assets

35

35

Other non-current assets

1,701

1,731

Total assets

$

1,064,865

$

1,037,028

Liabilities and Stockholders’ Equity:

Current liabilities

Trade payables

$

10,672

$

6,675

Accrued expenses

25,485

33,085

Operating lease liabilities, current

7,852

7,041

Income tax liabilities

22,801

11,953

Current portion of finance lease obligations

1,615

1,846

Other current liabilities

7,585

8,310

Total current liabilities

76,010

68,910

Operating lease liabilities, non-current

74,218

74,086

Finance lease obligations

497

779

Deferred tax liabilities

7,527

12,890

Other non-current liabilities

3,415

3,504

Total liabilities

161,667

160,169

Commitments and contingencies (Note 13)

Stockholders’ equity

Common stock, $0.001 par value, 1,000,000 shares authorized, 166,157 shares issued and 166,131 outstanding as of March 31, 2023; 1,000,000 shares authorized, 165,448 shares issued and 165,417 outstanding as of December 31, 2022

166

165

Additional paid-in capital

769,142

756,299

Treasury stock, at cost, 26 shares and 31 shares as of March 31, 2023 and December 31, 2022, respectively

(669)

(796)

Retained earnings

139,692

127,517

Accumulated other comprehensive loss, net of income taxes

(5,133)

(6,326)

Total stockholders’ equity

903,198

876,859

Total liabilities and stockholders’ equity

$

1,064,865

$

1,037,028

DoubleVerify Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(UNAUDITED)

Three Months Ended March 31,

(in thousands, except per share data)

2023

2022

Revenue

$

122,594

$

96,723

Cost of revenue (exclusive of depreciation and amortization shown separately below)

23,952

16,877

Product development

28,555

21,588

Sales, marketing and customer support

25,712

26,684

General and administrative

20,188

19,675

Depreciation and amortization

8,983

9,040

Income from operations

15,204

2,859

Interest expense

256

232

Other (income) expense, net

(2,734)

46

Income before income taxes

17,682

2,581

Income tax expense (benefit)

5,507

(1,998)

Net income

$

12,175

$

4,579

Earnings per share:

Basic

$

0.07

$

0.03

Diluted

$

0.07

$

0.03

Weighted-average common stock outstanding:

Basic

165,631

162,612

Diluted

171,657

170,439

Comprehensive income:

Net income

$

12,175

$

4,579

Other comprehensive income:

Foreign currency cumulative translation adjustment

1,193

(1,570)

Total comprehensive income

$

13,368

$

3,009

DoubleVerify Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

Accumulated

Other

Comprehensive

Additional

Income (Loss)

Total

Common Stock

Treasury Stock

Paid-in

Retained

Net of

Stockholders’

(in thousands)

Shares

Amount

Shares

Amount

Capital

Earnings

Income Taxes

Equity

Balance as of January 1, 2023

165,448

$

165

31

$

(796)

$

756,299

$

127,517

$

(6,326)

$

876,859

Foreign currency translation adjustment

—

—

—

—

—

—

1,193

1,193

Shares repurchased for settlement of employee tax withholdings

—

—

30

(787)

—

—

—

(787)

Stock-based compensation expense

—

—

—

—

11,992

—

—

11,992

Common stock issued upon exercise of stock options

527

1

—

—

1,765

—

—

1,766

Common stock issued upon vesting of restricted stock units

182

—

—

—

—

—

—

—

Treasury stock reissued upon settlement of equity awards

—

—

(35)

914

(914)

—

—

—

Net income

—

—

—

—

—

12,175

—

12,175

Balance as of March 31, 2023

166,157

$

166

26

$

(669)

$

769,142

$

139,692

$

(5,133)

$

903,198

Balance as of January 1, 2022

162,347

$

162

50

$

(1,802)

$

717,228

$

84,249

$

(771)

$

799,066

Foreign currency translation adjustment

—

—

—

—

—

—

(1,570)

(1,570)

Shares repurchased for settlement of employee tax withholdings

—

—

41

(1,058)

—

—

—

(1,058)

Stock-based compensation expense

—

—

—

—

10,994

—

—

10,994

Common stock issued to non-employees

4

—

—

—

—

—

—

—

Common stock issued upon exercise of stock options

572

1

—

—

1,677

—

—

1,678

Common stock issued upon vesting of restricted stock units

195

—

—

—

—

—

—

—

Net income

—

—

—

—

—

4,579

—

4,579

Balance as of March 31, 2022

163,118

$

163

91

$

(2,860)

$

729,899

$

88,828

$

(2,341)

$

813,689

DoubleVerify Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended

March 31,

(in thousands)

2023

2022

Operating activities:

Net income

$

12,175

$

4,579

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

Bad debt expense

1,285

1,079

Depreciation and amortization expense

8,983

9,040

Amortization of debt issuance costs

74

74

Non-cash lease expense

1,658

2,002

Deferred taxes

(5,382)

(2,016)

Stock-based compensation expense

11,813

10,994

Interest income

—

(14)

Loss on disposal of fixed assets

—

471

Other

(2)

(150)

Changes in operating assets and liabilities

Trade receivables

(8,052)

(12,224)

Prepaid expenses and other assets

(6,874)

(2,332)

Trade payables

3,700

2

Accrued expenses and other liabilities

2,048

(13,754)

Net cash provided by (used in) operating activities

21,426

(2,249)

Investing activities:

Purchase of property, plant and equipment

(4,099)

(4,759)

Net cash (used in) investing activities

(4,099)

(4,759)

Financing activities:

Proceeds from revolving credit facility

50,000

—

Payments to revolving credit facility

(50,000)

—

Payment of contingent consideration related to Zentrick acquisition

—

(3,247)

Proceeds from common stock issued upon exercise of stock options

1,766

1,678

Payments related to offering costs

—

(6)

Finance lease payments

(513)

(480)

Shares repurchased for settlement of employee tax withholdings

(787)

(1,058)

Net cash provided by (used in) financing activities

466

(3,113)

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

131

131

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

17,924

(9,990)

Cash, cash equivalents, and restricted cash – Beginning of period

267,938

221,725

Cash, cash equivalents, and restricted cash – End of period

$

285,862

$

211,735

Cash and cash equivalents

$

285,738

$

211,600

Restricted cash (included in prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets)

124

135

Total cash and cash equivalents and restricted cash

$

285,862

$

211,735

Supplemental cash flow information:

Cash paid for taxes

$

1,708

$

948

Cash paid for interest

$

266

$

244

Non-cash investing and financing activities:

Right-of-use assets obtained in exchange for new operating lease liabilities, net of impairments and tenant improvement allowances

$

1,415

$

79,563

Capital assets financed by accounts payable and accrued expenses

$

378

$

—

Stock-based compensation included in capitalized software development costs

$

179

$

—

Comparison of the Three Months Ended March 31, 2023 and March 31, 2022

Revenue

Three Months Ended March 31,

Change

Change

2023

2022

$

%

(In Thousands)

Revenue by customer type:

Activation

$

69,892

$

53,031

$

16,861

32

%

Measurement

41,385

33,834

7,551

22

Supply-side customer

11,317

9,858

1,459

15

Total revenue

$

122,594

$

96,723

$

25,871

27

%

Adjusted EBITDA

In addition to results determined in accordance with GAAP, Management believes that certain non-GAAP financial measures, including Adjusted EBITDA and Adjusted EBITDA Margin, are useful in evaluating our business. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by total revenue. The following table presents a reconciliation of Adjusted EBITDA, a non-GAAP financial measure, to the most directly comparable financial measure prepared in accordance with GAAP.

Three Months Ended March 31,

2023

2022

(In Thousands)

Net income

$

12,175

$

4,579

Net income margin

10%

5%

Depreciation and amortization

8,983

9,040

Stock-based compensation

11,813

10,994

Interest expense

256

232

Income tax expense (benefit)

5,507

(1,998)

M&A and restructuring costs (a)

—

653

Offering, IPO readiness and secondary offering costs (b)

187

—

Other (recoveries) costs (c)

(267)

1,197

Other (income) expense (d)

(2,734)

46

Adjusted EBITDA

$

35,920

$

24,743

Adjusted EBITDA margin

29%

26%

_________________________

(a)
M&A and restructuring costs for the three months ended March 31, 2022 consist of transaction costs, integration and restructuring costs related to the acquisition of OpenSlate.

(b)

Offering, IPO readiness and secondary offering costs for the three months ended March 31, 2023 consist of third-party costs incurred for an underwritten secondary public offering by certain stockholders of the Company.

(c)

Other (recoveries) costs for the three months ended March 31, 2023 consist of sublease income for leased office space. For the three months ended March 31, 2022, other costs consist of costs related to the departures of the Company’s former Chief Operating Officer and Chief Customer Officer, and of costs related to the disposal of furniture for an unoccupied leased office space.

(d)

Other (income) expense for the three months ended March 31, 2023 and March 31, 2022 consist of interest income earned on interest-bearing monetary assets, and of the impact of changes in foreign currency exchange rates.

We use Adjusted EBITDA and Adjusted EBITDA Margin as measures of operational efficiency to understand and evaluate our core business operations. We believe that these non-GAAP financial measures are useful to investors for period to period comparisons of the core business and for understanding and evaluating trends in operating results on a consistent basis by excluding items that we do not believe are indicative of our core operating performance.

These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under GAAP. Some of the limitations of these measures are:

they do not reflect changes in, or cash requirements for, working capital needs;

Adjusted EBITDA does not reflect capital expenditures or future requirements for capital expenditures or contractual commitments;

they do not reflect income tax expense or the cash requirements to pay income taxes;

they do not reflect interest expense or the cash requirements necessary to service interest or principal debt payments; and

although depreciation and amortization are non-cash charges related mainly to intangible assets, certain assets being depreciated and amortized will have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements.

In addition, other companies in the industry may calculate these non-GAAP financial measures differently, therefore limiting their usefulness as a comparative measure. You should compensate for these limitations by relying primarily on our GAAP results and using the non-GAAP financial measures only supplementally.

Total stock-based compensation expense recorded in the Condensed Consolidated Statements of Operations and Comprehensive Income is as follows:

Three Months Ended

March 31,

(in thousands)

2023

2022

Product development

$

4,379

$

3,366

Sales, marketing and customer support

3,507

3,829

General and administrative

3,927

3,799

Total stock-based compensation

$

11,813

$

10,994

Forward-Looking Statements

This press release includes “forward-looking statements”. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Any statements in this press release regarding future revenues, earnings, margins, financial performance or results of operations (including the guidance provided under “Second Quarter and Full-Year 2023 Guidance”), and any other statements that are not historical facts are forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. These risks, uncertainties, assumptions and other factors include, but are not limited to, the competitiveness of our solutions amid technological developments or evolving industry standards, the competitiveness of our market, system failures, security breaches, cyberattacks or natural disasters, economic downturns and unstable market conditions, our ability to collect payments, data privacy legislation and regulation, public criticism of digital advertising technology, our international operations, our use of “open source” software, our limited operating history and the potential for our revenues and results of operations to fluctuate in the future. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make.

Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this press release are included under the caption “Risk Factors” under our Annual Report on Form 10-K filed with the SEC on March 1, 2023 and other filings and reports we make with the SEC from time to time.

We have based our forward-looking statements on our management’s beliefs and assumptions based on information available to our management at the time the statements are made. Any forward-looking information presented herein is made only as of the date of this press release, and, except as required by law, we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

About DoubleVerify

DoubleVerify is a leading software platform for digital media measurement and analytics. Our mission is to make the digital advertising ecosystem stronger, safer and more secure, thereby preserving the fair value exchange between buyers and sellers of digital media. Hundreds of Fortune 500 advertisers employ our unbiased data and analytics to drive campaign quality and effectiveness, and to maximize return on their digital advertising investments – globally.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230510005902/en/

Investor Relations

Tejal Engman

DoubleVerify

[email protected]

Media Contact

Chris Harihar

Crenshaw Communications

646‑535‑9475

[email protected]

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: Software Networks Internet Professional Services Data Management Technology Publishing Data Analytics Public Relations/Investor Relations Marketing Advertising Communications

MEDIA:

Posted on May 10, 2023 7:30 pm
Alta Equipment Group Announces strong First Quarter 2023 Financial Results and Increases Adjusted EBITDA Guidance for 2023

First Quarter Financial Highlights: (comparisons are year over year)

Total revenues increased 26.8% year over year to $420.7 million

Construction and Material Handling revenue of $233.1 million and $164.8 million, respectively

Introduced separate reporting segment, Master Distribution, with revenue of $26.7 million

New and Used Equipment sales grew 44.9% to $219.6 million

Product Support revenue increased 26.6% year over year with Parts Sales increasing to $68.4 million and Service Revenue increasing to $60.2 million

Net income of $0.2 million available to common stockholders compared to a loss of $(2.0) million in 2022

Basic and diluted net income per share of $0.01 for 2023 compared to $(0.06) loss in 2022

Adjusted basic and diluted net income per share* of $0.04 for 2023 compared to a loss of $(0.02) in 2022

Adjusted EBITDA* grew 36.0% to $40.8 million, compared to $30.0 million in 2022

Increase full year 2023 Adjusted EBITDA guidance to $180 million to $188 million from the previously announced $177 million to $185 million

LIVONIA, Mich., May 10, 2023 (GLOBE NEWSWIRE) — Alta Equipment Group Inc. (NYSE: ALTG) (“Alta”), a leading provider of premium material handling, construction and environmental processing equipment and related services, today announced financial results for the first quarter ended March 31, 2023.

CEO Comment:

Ryan Greenawalt, Chief Executive Officer of Alta, said “Our business is off to a solid start this year, with revenues increasing $89.0 million, or 26.8%, to $420.7 million, which included strong organic growth as well as contributions from our recent acquisitions. All our lines of business performed well and the trends for this year are encouraging. New and used equipment sales increased 44.9%, or $68.0 million, to $219.6 million. Continued strong labor utilization drove product support revenue growth of 26.6%, or $27.0 million, to $128.6 million versus a year ago. Our product support revenue will continue to be a growing recurring revenue stream for our business.”

Mr. Greenawalt continued, “Supply chain headwinds continued to abate during the first quarter as our product inventory increased to a more normalized level, and we were able to deliver more machines to customers as evidenced by the increase in new equipment sales. We are encouraged by the increase in product availability from our manufacturing partners. Backlogs remain high, and we are not experiencing order cancellations from our customers. As it relates to our Construction segment, market fundamentals remain favorable. As we have pointed out previously, we have benefitted from our presence in Florida and demand there remains strong as state DOT funding is forecast to increase nearly 20.0% in fiscal year 2024. As projected, a significant amount of federal and state funding across our footprint will be allocated for major infrastructure projects, aligning well with our product portfolio. Our Material Handling segment, in particular our warehouse systems integration business, also continues to see strong demand as customers seek to automate processes and leverage robotics in their operations.”

In conclusion, Mr. Greenawalt commented, “We are truly excited about our opportunities this year. In 2008, our total revenues were just $61.0 million. When we went public in 2020, total revenues were $874.0 million. Total revenues are now $1.7 billion on a trailing twelve-month basis. We have now completed 14 acquisitions since going public with a total revenue value of $446 million and $53.3 million in adjusted EBITDA. The macro trends in our end user markets support continued growth with the continued investment in infrastructure projects, demand for automated material handling solutions, the increase in nearshoring and the trend towards electrification of commercial equipment.”

Increased Full Year 2023 Financial Guidance:

The Company increased full year 2023 Adjusted EBITDA guidance to $180 million to $188 million from the previously announced $177 million to $185 million.

CONSOLIDATED RESULTS OF OPERATIONS (amounts in millions unless otherwise noted)

Three Months Ended March 31, Increase (Decrease)

2023 2022 2023 versus 2022

Revenues:

New and used equipment sales $ 219.6 $ 151.6 $ 68.0 44.9 %

Parts sales 68.4 53.4 15.0 28.1 %

Service revenue 60.2 48.2 12.0 24.9 %

Rental revenue 43.5 37.7 5.8 15.4 %

Rental equipment sales 29.0 40.8 (11.8 ) (28.9 )%

Total revenues 420.7 331.7 89.0 26.8 %

Cost of revenues:

New and used equipment sales 179.0 123.9 55.1 44.5 %

Parts sales 45.4 36.7 8.7 23.7 %

Service revenue 25.1 20.1 5.0 24.9 %

Rental revenue 6.1 5.4 0.7 13.0 %

Rental depreciation 22.9 20.3 2.6 12.8 %

Rental equipment sales 20.9 33.9 (13.0 ) (38.3 )%

Cost of revenues 299.4 240.3 59.1 24.6 %

Gross profit 121.3 91.4 29.9 32.7 %

General and administrative expenses 104.0 82.9 21.1 25.5 %

Depreciation and amortization expense 5.2 3.9 1.3 33.3 %

Total general and administrative expenses 109.2 86.8 22.4 25.8 %

Income from operations 12.1 4.6 7.5 163.0 %

Other (expense) income:

Interest expense, floor plan payable – new equipment (1.5 ) (0.3 ) (1.2 ) 400.0 %

Interest expense – other (10.5 ) (5.8 ) (4.7 ) 81.0 %

Other income 1.0 0.3 0.7 233.3 %

Total other expense, net (11.0 ) (5.8 ) (5.2 ) 89.7 %

Income (loss) before taxes 1.1 (1.2 ) 2.3 (191.7 )%

Income tax provision 0.1 — 0.1 100.0 %

Net income (loss) 1.0 (1.2 ) 2.2 (183.3 )%

Preferred stock dividends (0.8 ) (0.8 ) — —

Net income (loss) available to common stockholders $ 0.2 $ (2.0 ) $ 2.2 (110.0 )%

Recent Business Highlights:

The Company’s Board of Directors approved its regular quarterly cash dividend for each of the Company’s issued and outstanding shares of common stock. The common stock dividend was $0.057 per share, or approximately $0.23 per share on an annualized basis. The common stock dividend was paid on February 28, 2023 to shareholders of record as of February 15, 2023.

Conference Call Information:

Alta management will host a conference call and webcast today at 5:00 p.m. Eastern Time today to discuss and answer questions about the Company’s financial results for the first quarter ended March 31, 2023. Additionally, supplementary presentation slides will be accessible on the “Investor Relations” section of the Company’s website at https://investors.altaequipment.com.

Conference Call Details:

What: Alta Equipment Group First Quarter 2023 Earnings Call and Webcast

Date: Wednesday, May 10, 2023

Time: 5:00 p.m. Eastern Time

Live call: (833) 470-1428

International:
https://www.netroadshow.com/events/global-numbers?confId=49807

Live call access code: 996453

Audio replay: (808) 304-5227

Replay access code: 890173

Webcast:
https://events.q4inc.com/attendee/265621650

The audio replay will be archived through May 24, 2023.

About Alta Equipment Group Inc.

Alta owns and operates one of the largest integrated equipment dealership platforms in the U.S. and has a presence in Canada. Through its branch network, the Company sells, rents, and provides parts and service support for several categories of specialized equipment, including lift trucks and aerial work platforms, heavy and compact earthmoving equipment, environmental processing equipment, cranes, paving and asphalt equipment and other material handling and construction equipment. Alta has operated as an equipment dealership for 38 years and has developed a branch network that includes over 70 total locations across Michigan, Illinois, Indiana, New England, New York, Virginia, Ohio, Nevada and Florida as well as the Canadian provinces of Ontario and Quebec. Alta offers its customers a one-stop-shop for their equipment needs through its broad, industry-leading product portfolio. More information can be found at www.altaequipment.com.

Forward Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Alta’s actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside Alta’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: supply chain disruptions, inflationary pressures resulting from supply chain disruptions or a tightening labor market; negative impacts on customer payment policies and adverse banking and governmental regulations, resulting in a potential reduction to the fair value of our assets; the performance and financial viability of key suppliers, contractors, customers, and financing sources; economic, industry, business and political conditions including their effects on governmental policy and government actions that disrupt our supply chain or sales channels; our success in identifying acquisition targets and integrating acquisitions; our success in expanding into and doing business in additional markets; our ability to raise capital at favorable terms; the competitive environment for our products and services; our ability to continue to innovate and develop new business lines; our ability to attract and retain key personnel, including, but not limited to, skilled technicians; our ability to maintain our listing on The New York Stock Exchange; the impact of cyber or other security threats or other disruptions to our businesses; our ability to realize the anticipated benefits of acquisitions or divestitures, rental fleet investments or internal reorganizations; federal, state, and local government budget uncertainty, especially as it relates to infrastructure projects and taxation; currency risks and other risks associated with international operations; and other risks and uncertainties identified in this presentation or indicated from time to time in the section entitled “Risk Factors” in Alta’s annual report on Form 10-K and other filings with the U.S. Securities and Exchange Commission (the “SEC”). Alta cautions that the foregoing list of factors is not exclusive, and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date made. Alta does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.

*Use of Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), we disclose non-GAAP financial measures, including Adjusted EBITDA, Adjusted total net debt and floor plan payables, Adjusted net income (loss), and Adjusted basic and diluted net income (loss) per share, in this press release because we believe they are useful performance measures that assist in an effective evaluation of our operating performance when compared to our peers, without regard to financing methods or capital structure. We believe such measures are useful for investors and others in understanding and evaluating our operating results in the same manner as our management. However, such measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for, or in isolation from, net income (loss), revenue, operating profit, debt, or any other operating performance measures calculated in accordance with GAAP.

We define Adjusted EBITDA as net income (loss) before interest expense (not including floorplan interest paid on new equipment), income taxes, depreciation and amortization, adjustments for certain one-time or non-recurring items and other adjustments. We exclude these items from net income (loss) in arriving at Adjusted EBITDA because these amounts are either non-recurring or can vary substantially within the industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Management uses Adjusted total net debt and floor plan payables to reflect the Company’s estimated financial obligations less cash and floor plan payables on new equipment (“FPNP”). The FPNP is used to finance the Company’s new inventory, with its principal balance changing daily as equipment is purchased and sold and the sale proceeds are used to repay the notes. Consequently, in managing the business, management views the FPNP as interest bearing accounts payable, representing the cost of acquiring the equipment that is then repaid when the equipment is sold, as the Company’s floor plan credit agreements require repayment when such pieces of equipment are sold. The Company believes excluding the FPNP from the Company’s total debt for this purpose provides management with supplemental information regarding the Company’s capital structure and leverage profile and assists investors in performing analysis that is consistent with financial models developed by Company management and research analysts. Adjusted total net debt and floor plan payables should be considered in addition to, and not as a substitute for, the Company’s debt obligations, as reported in the Company’s consolidated balance sheets in accordance with U.S. GAAP. Adjusted net income (loss) is defined as net income (loss) adjusted to reflect certain one-time or non-recurring items and other adjustments. Adjusted basic and diluted earnings (loss) per share is defined as adjusted net income (loss) divided by the weighted average number of basic and diluted shares, respectively, outstanding during the period. Certain items excluded from Adjusted EBITDA, Adjusted total net debt and floor plan payables, Adjusted net income (loss), Adjusted basic and diluted net income (loss) per share are significant components in understanding and assessing a company’s financial performance. For example, items such as a company’s cost of capital and tax structure, certain one-time or non-recurring items as well as the historic costs of depreciable assets, are not reflected in Adjusted EBITDA or Adjusted net income (loss). Our presentation of Adjusted EBITDA, Adjusted total net debt and floor plan payables, Adjusted net income (loss), Adjusted basic and diluted net income (loss) per share should not be construed as an indication that results will be unaffected by the items excluded from these metrics. Our computation of Adjusted EBITDA, Adjusted total net debt and floor plan payables, Adjusted net income (loss), Adjusted basic and diluted net income (loss) per share may not be identical to other similarly titled measures of other companies. For a reconciliation of non-GAAP measures to their most comparable measures under GAAP, please see the table entitled “Reconciliation of Non-GAAP Financial Measures” at the end of this press release.

Contacts

Investors:

Kevin Inda
SCR Partners, LLC
[email protected]
(225) 772-0254

Media:

Glenn Moore
Alta Equipment Group, LLC
[email protected]
(248) 305-2134

CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share amounts)
March 31,

2023 December 31,

2022

ASSETS

CURRENT ASSETS

Cash $ 1.7 $ 2.7

Accounts receivable, net of allowances of $14.3 and $13.0 as of March 31, 2023 and December 31, 2022, respectively 228.3 232.8

Inventories, net 469.1 399.7

Prepaid expenses and other current assets 30.4 28.1

Total current assets 729.5 663.3

Property and equipment, net 398.9 377.8

Operating lease right-of-use assets, net 111.4 113.6

Goodwill 70.5 69.2

Other intangible assets, net 58.5 60.7

Other assets 8.0 6.0

Total other assets 137.0 135.9

TOTAL ASSETS $ 1,376.8 $ 1,290.6

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES

Floor plan payable – new equipment $ 252.5 $ 211.5

Floor plan payable – used and rental equipment 62.3 45.3

Current portion of long-term debt 4.7 4.2

Accounts payable 88.1 90.8

Customer deposits 24.1 27.9

Accrued expenses 56.7 55.1

Current operating lease liabilities 15.2 14.8

Current deferred revenue 12.6 14.1

Other current liabilities 9.6 7.5

Total current liabilities 525.8 471.2

LONG-TERM LIABILITIES

Line of credit, net 256.0 217.5

Long-term debt, net of current portion 311.3 311.2

Finance lease obligations, net of current portion 17.7 15.4

Deferred revenue, net of current portion 4.9 4.9

Guaranteed purchase obligations, net of current portion 4.0 4.7

Long-term operating lease liabilities, net of current portion 100.0 101.9

Deferred tax liability 6.3 6.4

Other liabilities 12.7 17.6

TOTAL LIABILITIES 1,238.7 1,150.8

STOCKHOLDERS’ EQUITY

Preferred stock, $0.0001 par value per share, 1,000,000 shares authorized, 1,200,000 Depositary Shares representing a 1/1000th fractional interest in a share of 10% Series A Cumulative Perpetual Preferred Stock, $0.0001 par value per share, issued and outstanding at both March 31, 2023 and December 31, 2022 — —

Common stock, $0.0001 par value per share, 200,000,000 shares authorized; 32,368,112 and 32,194,243 issued and outstanding at March 31, 2023 and December 31, 2022, respectively — —

Additional paid-in capital 223.6 222.8

Treasury stock at cost, 862,182 shares of common stock held at both March 31, 2023 and December 31, 2022 (5.9 ) (5.9 )

Accumulated deficit (76.4 ) (74.2 )

Accumulated other comprehensive income (loss) (3.2 ) (2.9 )

TOTAL STOCKHOLDERS’ EQUITY 138.1 139.8

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,376.8 $ 1,290.6

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended March 31,

(in millions, except share and per share amounts)
2023 2022

Revenues:

New and used equipment sales $ 219.6 $ 151.6

Parts sales 68.4 53.4

Service revenue 60.2 48.2

Rental revenue 43.5 37.7

Rental equipment sales 29.0 40.8

Total revenues 420.7 331.7

Cost of revenues:

New and used equipment sales 179.0 123.9

Parts sales 45.4 36.7

Service revenue 25.1 20.1

Rental revenue 6.1 5.4

Rental depreciation 22.9 20.3

Rental equipment sales 20.9 33.9

Cost of revenues 299.4 240.3

Gross profit 121.3 91.4

General and administrative expenses 104.0 82.9

Depreciation and amortization expense 5.2 3.9

Total general and administrative expenses 109.2 86.8

Income from operations 12.1 4.6

Other (expense) income:

Interest expense, floor plan payable – new equipment (1.5 ) (0.3 )

Interest expense – other (10.5 ) (5.8 )

Other income 1.0 0.3

Total other expense, net (11.0 ) (5.8 )

Income (loss) before taxes 1.1 (1.2 )

Income tax provision 0.1 —

Net income (loss) 1.0 (1.2 )

Preferred stock dividends (0.8 ) (0.8 )

Net income (loss) available to common stockholders $ 0.2 $ (2.0 )

Basic income (loss) per share $ 0.01 $ (0.06 )

Diluted income (loss) per share $ 0.01 $ (0.06 )

Basic weighted average common shares outstanding 32,223,221 32,363,376

Diluted weighted average common shares outstanding 32,430,715 32,363,376

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,

(in millions)
2023 2022

OPERATING ACTIVITIES

Net income (loss) $ 1.0 $ (1.2 )

Adjustments to reconcile net income (loss) to net cash flows used in operating activities:

Depreciation and amortization 28.1 24.2

Amortization of debt discount and debt issuance costs 0.3 0.3

Imputed interest 0.3 0.1

Gain on sale of rental equipment (8.1 ) (6.8 )

Provision for inventory obsolescence 0.1 1.1

Provision for losses on accounts receivable 1.5 1.2

Stock-based compensation expense 0.8 0.3

Changes in deferred income taxes (0.1 ) —

Changes in assets and liabilities, net of acquisitions:

Accounts receivable 1.3 (7.8 )

Inventories (114.3 ) (82.6 )

Proceeds from sale of rental equipment 29.0 40.8

Prepaid expenses and other assets (5.2 ) 1.7

Manufacturers floor plans payable 57.0 21.7

Accounts payable, accrued expenses, customer deposits, and other current liabilities (6.5 ) 0.2

Leases, deferred revenue, and other liabilities (5.3 ) 0.1

Net cash used in operating activities (20.1 ) (6.7 )

INVESTING ACTIVITIES

Expenditures for rental equipment (14.6 ) (15.1 )

Expenditures for property and equipment (3.1 ) (1.8 )

Proceeds from sale of property and equipment — 0.1

Expenditures for guaranteed purchase obligations 0.5 (0.6 )

Expenditures for acquisitions, net of cash acquired (1.7 ) (1.2 )

Net cash used in investing activities (18.9 ) (18.6 )

FINANCING ACTIVITIES

Proceeds from line of credit and long-term borrowings 97.0 86.3

Principal payments on line of credit, long-term debt, and finance lease obligations (59.8 ) (71.6 )

Proceeds from floor plan payable with unaffiliated source 50.7 30.2

Payments on floor plan payable with unaffiliated source (49.7 ) (19.5 )

Preferred stock dividends paid (0.8 ) (0.8 )

Common stock dividends paid and declared (1.9 ) —

Other financing activities 2.4 —

Net cash provided by financing activities 37.9 24.6

Effect of exchange rate changes on cash 0.1 —

NET CHANGE IN CASH (1.0 ) (0.7 )

Cash, Beginning of year 2.7 2.3

Cash, End of period $ 1.7 $ 1.6

Supplemental schedule of noncash investing and financing activities:

Noncash asset purchases:

Net transfer of assets from inventory to rental fleet within property and equipment $ 42.7 $ 29.5

Supplemental disclosures of cash flow information

Cash paid for interest $ 6.8 $ 1.3

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

March 31, December 31,

Debt and Floor Plan Payables Analysis (in millions)
2023 2022

Senior secured second lien notes $ 315.0 $ 315.0

Line of credit 257.8 219.5

Floor plan payable – new equipment 252.5 211.5

Floor plan payable – used and rental equipment 62.3 45.3

Finance lease obligations 22.4 19.6

Total debt 910.0 810.9

Adjustments:

Floor plan payable – new equipment (252.5 ) (211.5 )

Cash (1.7 ) (2.7 )

Adjusted total net debt and floor plan payables (1) $ 655.8 $ 596.7

Three Months Ended March 31,

(amounts in millions)
2023 2022

Net income (loss) available to common stockholders $ 0.2 $ (2.0 )

Depreciation and amortization 28.1 24.2

Interest expense 12.0 6.1

Income tax provision 0.1 —

EBITDA (1) 40.4 28.3

Transaction costs (2) 0.1 —

Stock-based incentives (3) 0.8 0.3

Other expenses (4) 0.2 0.9

Preferred stock dividend (5) 0.8 0.8

Showroom-ready equipment interest expense (6) (1.5 ) (0.3 )

Adjusted EBITDA (1) $ 40.8 $ 30.0

Three Months Ended March 31,

(in millions, except share and per share amounts)
2023 2022

Net income (loss) available to common stockholders $ 0.2 $ (2.0 )

Transaction costs (2) 0.1 —

Stock-based incentives (3) 0.8 0.3

Other expenses (4) 0.2 0.9

Adjusted net income (loss) available to common stockholders (1) $ 1.3 $ (0.8 )

Basic income (loss) per share $ 0.01 $ (0.06 )

Diluted income (loss) per share $ 0.01 $ (0.06 )

Adjusted basic net income (loss) per share (1) $ 0.04 $ (0.02 )

Adjusted diluted net income (loss) per share (1) $ 0.04 $ (0.02 )

Basic weighted average common shares outstanding 32,223,221 32,363,376

Diluted weighted average common shares outstanding 32,430,715 32,363,376

(1) Represents Non-GAAP measure
(2) Expenses related to acquisition activities
(3) Reflects non-cash equity-based compensation expenses
(4) Other non-recurring expenses inclusive of severance payments, greenfield startup, legal, and consulting costs
(5) Expenses related to preferred stock dividend payments
(6) Represents interest expense associated with showroom-ready new equipment interest included in total interest expense above

Posted on May 10, 2023 7:28 pm
Shoe Carnival to Report First Quarter Financial Results on May 24, 2023

Shoe Carnival to Report First Quarter Financial Results on May 24, 2023

EVANSVILLE, Ind.–(BUSINESS WIRE)–
Shoe Carnival, Inc. (Nasdaq: SCVL) (the “Company”), a leading retailer of footwear and accessories for the family, today announced first quarter 2023 earnings results will be released on Wednesday, May 24, 2023, before the market open. The Company will host its quarterly conference call to discuss first quarter 2023 results at 8:30 a.m. Eastern Time.

The earnings call will be webcast and can be accessed at the Investors section of Shoe Carnival’s website at www.shoecarnival.com. The online replay of the conference call will be available shortly after the call and will be available for one year.

About Shoe Carnival

Shoe Carnival, Inc. is one of the nation’s largest family footwear retailers, offering a broad assortment of dress, casual and athletic footwear for men, women and children with emphasis on national name brands. As of May 10, 2023, the Company operates 398 stores in 35 states and Puerto Rico under its Shoe Carnival and Shoe Station banners and offers shopping at www.shoecarnival.com and www.shoestation.com. Headquartered in Evansville, IN, Shoe Carnival, Inc. trades on The Nasdaq Stock Market LLC under the symbol SCVL. Press releases and annual report are available on the Company’s website at www.shoecarnival.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230510005986/en/

Erik D. Gast

Shoe Carnival Investor Relations

(812) 867-4034

KEYWORDS: Indiana United States North America

INDUSTRY KEYWORDS: Men Online Retail Family Discount/Variety Consumer Catalog Fashion Teens Retail Children Women Footwear

MEDIA:

Posted on May 10, 2023 7:27 pm
Independence Realty Trust Increases Quarterly Dividend By 14%

Independence Realty Trust Increases Quarterly Dividend By 14%

Scheduled to Host Investor Meetings at BMO’s 2023 Real Estate Summit

PHILADELPHIA–(BUSINESS WIRE)–
Independence Realty Trust, Inc. (NYSE: IRT) (“IRT”) announced today that IRT’s board of directors approved a quarterly dividend of $0.16 per share of IRT common stock, which represents a 14% increase in the dividend over the prior quarterly rate of $0.14 per share. The second quarter dividend is payable on July 21, 2023 to stockholders of record at the close of business on June 30, 2023.

IRT also announced that it is scheduled to host meetings with investors at BMO’s 2023 Real Estate Summit in New York City on May 11. The company has posted its May Investor Presentation on its website at www.irtliving.com in the Investor Relations section under Presentations, highlighting a continued improvement in operating trends, with occupancy gains and rental rate growth.

About Independence Realty Trust, Inc.

Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily communities, across non-gateway U.S. markets including Atlanta, GA, Dallas, TX, Denver, CO, Columbus, OH, Indianapolis, IN, Raleigh-Durham, NC, Oklahoma City, OK, Nashville, TN, Houston, TX, and Tampa, FL. IRT’s investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation. More information may be found on the Company’s website www.irtliving.com.

Forward-Looking Statements

This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “will,” “strategy,” “expects,” “seeks,” “believes,” “potential,” or other similar words that predict or indicate future events and trends and that do not report historical matters.

These forward-looking statements involve estimates, projections, forecasts and assumptions and are subject to risks and uncertainties including, without limitation, risks and uncertainties related to changes in market demand for rental apartment homes and pricing pressures, including from competitors, that could lead to declines in occupancy and rent levels, uncertainty and volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital, unexpected changes in our intention or ability to repay certain debt prior to maturity, increased costs on account of inflation, increased competition in the labor market, increased regulations generally and specifically on the rental housing market including legislation that may regulate rents or delay or limit our ability to evict non-paying residents, risks endemic to real estate and the real estate industry generally, the impact of COVID-19 and other potential outbreaks of infectious diseases and measures intended to prevent the spread or address the effects thereof, the effects of natural and other disasters, delays in completing, and cost overruns incurred in connection with, our value add initiatives and failure to achieve projected rent increases and occupancy levels on account of the initiatives, unknown or unexpected liabilities including the cost of legal proceedings, inability to sell certain assets within the time frames or at the pricing levels expected, costs and disruptions as the result of a cybersecurity incident or other technology disruption, unexpected capital needs, inability to obtain appropriate insurance coverages at reasonable rates, or at all, or losses from catastrophes in excess of our insurance coverages, and share price fluctuations. Please refer to the documents filed by us with the SEC, including specifically the “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2022, and our other filings with the SEC, which identify additional factors that could cause actual results to differ from those contained in forward-looking statements.

These forward-looking statements are based upon the beliefs and expectations of our management at the time of this release and our actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law. In addition, the declaration of dividends on our common stock is subject to the discretion of our Board of Directors and depends upon a broad range of factors, including our results of operations, financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986, as amended, applicable legal requirements and such other factors as our Board of Directors may from time to time deem relevant. For these reasons, as well as others, there can be no assurance that dividends in the future will be equal or similar to the amount of the dividend described in this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230510005965/en/

Independence Realty Trust, Inc.

Edelman Smithfield

Lauren Torres

917-365-7979

[email protected]

KEYWORDS: Pennsylvania United States North America

INDUSTRY KEYWORDS: Other Construction & Property Residential Building & Real Estate Construction & Property REIT

MEDIA:

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Posted on May 10, 2023 7:25 pm
April AMK Report

CONCORD, Calif., May 10, 2023 (GLOBE NEWSWIRE) — AssetMark Financial Holdings, Inc. (NYSE: AMK) released its “AssetMark Monthly Knowledge” Report today.

Company results for the month of April 2023 include:

Platform assets of $96.9 billion at the end of April, up 12.7% year-over-year.

Net flows were $433 million in the month of April, up 15.2% year-over-year.

AssetMark Trust Company client cash was $2.87 billion, down 1.7% year-over-year.

Number of households increased 12.8% year-over-year to 246,570 at the end of April.

Change

Mo. Yr.

Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23

PLATFORM METRICS

Platform Assets (in $B) 86.0 86.9 82.1 86.3 84.4 79.4 82.8 87.1 91.5 95.8 94.3 96.2 96.9 0.7 % 12.7 %

Net Flows (in $M) 376 605 383 374 605 228 283 280 345 347 540 744 433 -41.8 % 15.2 %

CASH METRIC

Ending ATC Client Cash (in $B) 2.92 3.60 3.70 3.60 4.48 3.51 3.49 3.27 3.54 3.32 3.32 3.19 2.87 -10.0 % -1.7 %

OTHER

Number of Households 218,508 219,160 220,172 221,104 222,110 223,098 225,103 224,983 241,053 242,572 242,826 243,775 246,570 1.1 % 12.8 %

This monthly data is being provided on a supplemental basis and should not be taken as a substitute for the Company’s financial statements filed with the Securities and Exchange Commission as part of the Company’s Annual Report on Form 10-Q for the quarter ended March 31, 2023. This monthly data is preliminary and subject to revision and should not be taken as an indication of the financial performance of AssetMark for the quarter ending June 30, 2023, or any future period. AssetMark undertakes no obligation to publicly update or review previously reported monthly data. Any updates to previously reported monthly data will be reflected in the historical data that can be found on the Investor Relations page of the Company’s corporate website at ir.assetmark.com. AssetMark reserves the right to discontinue the availability of the data in this monthly report. By filing this press release, AssetMark makes no admission as to the materiality of any information contained herein.

About AssetMark Financial Holdings, Inc.

AssetMark is a wealth management platform that powers independent financial advisors and their clients. Together with our affiliates Voyant and Adhesion Wealth, we serve advisors of all models at every stage of their journey with flexible, purpose-built solutions that champion client engagement and drive efficiency. Our ecosystem of solutions equips advisors with services and capabilities that would otherwise require significant investments of time and money, ultimately enabling them to deliver better investor outcomes and enhance their productivity, profitability and client satisfaction.

Founded in 1996 and based in Concord, California, the company has approximately 1,000 employees. As of March 31, 2023, the company had $96.2 billion in platform assets.

Contacts

Investors:
Taylor J. Hamilton, CFA
Head of Investor Relations
[email protected]

Media:
Alaina Kleinman
Head of PR & Communications
[email protected]

SOURCE: AssetMark Financial Holdings, Inc.

Posted on May 10, 2023 7:23 pm
Phillips 66 Announces Quarterly Dividend

Phillips 66 Announces Quarterly Dividend

HOUSTON–(BUSINESS WIRE)–
The board of directors of Phillips 66 (NYSE: PSX) has declared a quarterly dividend of $1.05 per share on Phillips 66 common stock. The dividend is payable on June 1, 2023, to shareholders of record as of the close of business on May 22, 2023.

About Phillips 66

Phillips 66 (NYSE: PSX) manufactures, transports and markets products that drive the global economy. The diversified energy company’s portfolio includes Midstream, Chemicals, Refining, and Marketing and Specialties businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn or Twitter.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230510005943/en/

Jeff Dietert (investors)

832-765-2297

[email protected]

Owen Simpson (investors)

832-765-2297

[email protected]

Thaddeus Herrick (media)

855-841-2368

[email protected]

KEYWORDS: Texas United States North America

INDUSTRY KEYWORDS: Professional Services Chemicals/Plastics Oil/Gas Manufacturing Energy Finance

MEDIA:

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Posted on May 10, 2023 7:22 pm
Kohl’s Corporation Holds Annual Shareholders Meeting

Kohl’s Corporation Holds Annual Shareholders Meeting

MENOMONEE FALLS, Wis.–(BUSINESS WIRE)–
Kohl’s Corporation (NYSE:KSS) (“Kohl’s” or the “Company”) today held its annual shareholders meeting. Following are the preliminary results for the four proposals voted upon by shareholders:

Kohl’s shareholders elected Michael J. Bender, Peter Boneparth, Yael Cosset, Christine Day, H. Charles Floyd, Margaret L. Jenkins, Thomas A. Kingsbury, Robbin Mitchell, Jonas Prising, John E. Schlifske, and Adrianne Shapira to the board of directors for one-year terms, with an average vote in favor of more than 94 percent of the votes cast.

An advisory vote to approve the compensation of Kohl’s named executive officers received more than 93 percent of the votes cast.

With respect to an advisory vote on the frequency of future advisory votes on the compensation of Kohl’s named executive officers, a frequency of one year received the highest number of votes, with a vote in favor of more than 95 percent of the votes cast; and

A proposal to ratify the appointment of Ernst & Young LLP as Kohl’s independent registered public accounting firm for fiscal year 2023 received more than 94 percent of the votes cast.

Kohl’s 10-K, proxy and information about the company’s 2022 financial performance are available at Corporate.Kohls.com.

Cautionary Statement Regarding Forward-Looking Information

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believes,” “anticipates,” “plans,” “may,” “intends,” “will,” “should,” “expects” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on management’s then current views and assumptions and, as a result, are subject to certain risks and uncertainties, which could cause the Company’s actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, risks described more fully in Item 1A in the Company’s Annual Report on Form 10-K, which are expressly incorporated herein by reference, and other factors as may periodically be described in the Company’s filings with the SEC. Forward-looking statements relate to the date initially made, and Kohl’s undertakes no obligation to update them.

About Kohl’s

Kohl’s (NYSE: KSS) is a leading omnichannel retailer. With more than 1,100 stores in 49 states and the online convenience of Kohls.com and the Kohl’s App, Kohl’s offers amazing national and private brands at incredible savings for families nationwide. Kohl’s is committed to progress in its diversity, equity and inclusion strategy, and the company’s environmental, social and corporate governance (ESG) stewardship. For a list of store locations or to shop online, visit Kohls.com. For more information about Kohl’s impact in the community or how to join our winning team, visit Corporate.Kohls.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230510005793/en/

Investor Relations:

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

Media;

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

KEYWORDS: Wisconsin United States North America

INDUSTRY KEYWORDS: Home Goods Online Retail Fashion Retail Department Stores

MEDIA:

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Posted on May 10, 2023 7:20 pm
HF Foods Reports First Quarter 2023 Financial Results

First Quarter Net Revenue up
6%
to
$293.9
Million

Plan in Place to Reduce Cost Structure and Continue Focus on Improving Operations

LAS VEGAS, May 10, 2023 (GLOBE NEWSWIRE) — HF Foods Group Inc. (NASDAQ: HFFG), a leading food distributor to Asian restaurants across the United States (“HF Foods”, “HF Group” or the “Company”), reported financial results for the first quarter ended March 31, 2023.

First Quarter 2023 Financial Results

Net revenue increased 6% to $293.9 million compared to $278.2 million in the prior year.

Gross profit decreased 1% to $50.2 million, or 17.1% gross profit margin compared to $50.7 million, or 18.2% gross profit margin in the prior year.

Net (loss) income decreased 285% to a net loss of $5.8 million compared to net income of $3.1 million in the prior year.

Adjusted EBITDA decreased 71% to $5.3 million compared to $17.9 million in the prior year.

Management Commentary

“While I am pleased with our sales increase in the first quarter, it was a challenging quarter for costs,” said Peter Zhang, Chief Executive Officer of HF Foods. “Distribution, selling, and administrative costs grew, while gross profit declined slightly. First quarter margins were incrementally impacted as higher priced inventory was sold at lower competitive prices as product cost inflation began to subside. We expect this impact to diminish as the Company consumes and replaces higher cost commodity inventories. We have developed a plan to reduce our cost structure to address these issues in the near term, while continuing to focus on improving operations, supply chain and distribution channels, and driving efficiencies across the Company,” continued Mr. Zhang.

“HF Foods liquidity position remains strong, with operating cash flows, cash on hand and availability under our line of credit,” said Carlos Rodriguez, Chief Financial Officer of HF Foods. “In addition, we are now fully compliant with NASDAQ financial statement filing requirements, and when we hold our combined 2022 and 2023 annual meeting next month, we will have resolved all outstanding issues with NASDAQ. The resolution of these legacy issues has also enabled the Company to reduce related professional fees and expenses,” said Mr. Rodriguez.

First Quarter 2023 Results

Net revenue was $293.9 million for the first quarter of 2023 compared to $278.2 million in the prior year, an increase of $15.6 million, or 6%. This increase was attributable to the additional Seafood revenue generated due to the Sealand Food, Inc. acquisition (the “Sealand Acquisition”) and product cost inflation, partially offset by a decrease in Meat and Poultry revenue compared to the first quarter of 2022.

Gross profit was $50.2 million for the first quarter of 2023 compared to $50.7 million in the prior year, a decrease of $0.6 million, or 1%. The decrease was primarily attributable to a decrease in Meat and Poultry revenue, partially offset by the additional Seafood revenue generated due to the Sealand Acquisition. Gross profit margin for the first quarter of 2023 decreased from 18.2% in the first quarter of 2022 to 17.1% in the first quarter of 2023. The decrease was primarily attributable to the shift in product mix to higher Seafood sales, timing of inventory purchases, higher fluctuations in key commodity pricing and a higher than normal gross profit margin in the prior year due to our sales recovery to above pre-COVID-19 pandemic levels in the first quarter of 2022.

Distribution, selling and administrative expenses increased by $12.5 million, or 31%, primarily due to an increase of $2.8 million in payroll and related labor costs, inclusive of the additional costs due to the Sealand Acquisition, and higher professional fees due to legal costs and increased compliance costs as a result of the SEC and Special Investigation Committee investigations. Professional fees increased $4.2 million, from $2.9 million in the first quarter of 2022 to $7.1 million in the first quarter of 2023, and we expect to incur additional legal and compliance costs in the second quarter of 2023. Distribution, selling and administrative expenses as a percentage of net revenue increased to 18.0% in 2022 from 14.5% in 2021 primarily due to higher professional fees and increased headcount.

Net (loss) income decreased to a net loss of $5.8 million for the first quarter of 2023 compared to net income of $3.1 million in the first quarter of 2022. The decrease was primarily attributable to the increased costs described above as well as an increase of $3.1 million related to the change in fair value of interest rate swaps and a $1.6 million increase in interest expense.

Adjusted EBITDA was $5.3 million for the first quarter of 2023, a decrease of $12.7 million, or 71%, compared to $17.9 million for 2022, primarily attributable to the decreased gross profit and increased distribution, selling and administrative costs described above.

Cash Flow

Cash flow from operating activities increased to $12.6 million in the first quarter of 2023, compared to $10.1 million in the prior year. The increase in cash flow from operating activities was largely driven by improvements in working capital. As of March 31, 2023, we had a cash balance of $17.5 million.

About HF Foods Group Inc.

HF Foods Group Inc. is a leading marketer and distributor of fresh produce, frozen and dry food, and non-food products to primarily Asian/Chinese restaurants and other foodservice customers throughout the United States. HF Foods aims to supply the increasing demand for Asian American restaurant cuisine, leveraging its nationwide network of distribution centers and its strong relations with growers and suppliers of fresh, high-quality specialty restaurant food products and supplies in the US, South America, and China. Headquartered in Las Vegas, Nevada, HF Foods trades on Nasdaq under the symbol “HFFG”. For more information, please visit www.hffoodsgroup.com.

Investor Relations Contact:

HFFG Investor Relations

(404) 836-0852

[email protected]

Forward-Looking Statements

All statements in this news release other than statements of historical facts are forward-looking statements which contain our current expectations about our future results. We have attempted to identify any forward-looking statements by using words such as “believes,” “intends,” and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause the Company’s actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements. Such factors include, but are not limited to, risks that the Company may not regain compliance with Nasdaq continued listing requirements relating to the Company’s annual meeting of stockholders within any applicable grace period, statements of assumption underlying any of the foregoing, and other factors disclosed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022 and other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking statements.

Non-GAAP Financial Measures

Discussion of our results includes certain non-GAAP financial measures, including EBITDA, adjusted EBITDA and non-GAAP net income (loss), that we believe provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial performance with other companies in the same industry, many of which present similar non-GAAP financial measures to investors. The definitions of EBITDA, adjusted EBITDA and non-GAAP net income (loss) may not be the same as similarly titled measures used by other companies in the industry. EBITDA, adjusted EBITDA and non-GAAP net income (loss) are not defined under GAAP and are subject to important limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of our financial results as reported under GAAP.

We use non-GAAP financial measures to supplement our GAAP financial results. Management uses EBITDA, defined as net income (loss) before interest expense, interest income, income taxes, and depreciation and amortization to measure operating performance. In addition, management uses Adjusted EBITDA, defined as net income (loss) before interest expense, interest income, income taxes, and depreciation and amortization, further adjusted to exclude certain unusual, non-cash, or non-recurring expenses. We believe that Adjusted EBITDA is less susceptible to variances in actual performance resulting from non-recurring expenses, and other non-cash charges, provides useful information for our investors and is more reflective of other factors that affect our operating performance.

We believe non-GAAP net income (loss) is a useful measure of operating performance because it excludes certain items not reflective of our core operating performance. Non-GAAP net income (loss) is defined as net income (loss) adjusted for amortization of intangibles, change in fair value of interest rate swaps, stock based compensation, transaction related costs and certain unusual, non-cash, or non-recurring expenses. We believe that non-GAAP net income (loss) facilitates period-over-period comparisons and provides additional clarity for investors to better evaluate our operating results. We present EBITDA, adjusted EBITDA, non-GAAP net income (loss) in order to provide supplemental information that we consider relevant for the readers of our consolidated financial statements included elsewhere in its reports filed with the SEC, including its current Quarterly Report on Form 10Q, and such information is not meant to replace or supersede U.S. GAAP measures. Reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures are included in the schedules attached to this press release.

HF FOODS GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

March 31, 2023 December 31, 2022

ASSETS

CURRENT ASSETS:

Cash $ 17,477 $ 24,289

Accounts receivable, net 43,724 44,399

Inventories 110,469 120,291

Other current assets 7,699 8,937

TOTAL CURRENT ASSETS 179,369 197,916

Property and equipment, net 138,984 140,330

Operating lease right-of-use assets 13,278 14,164

Long-term investments 2,666 2,679

Customer relationships, net 155,106 157,748

Trademarks and other intangibles, net 34,914 36,343

Goodwill 85,118 85,118

Other long-term assets 3,944 3,231

TOTAL ASSETS $ 613,379 $ 637,529

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:

Checks issued not presented for payment $ 14,094 $ 21,946

Line of credit 44,456 53,056

Accounts payable 58,595 57,044

Current portion of long-term debt, net 6,031 6,266

Current portion of obligations under finance leases 2,116 2,254

Current portion of obligations under operating leases 3,592 3,676

Accrued expenses and other liabilities 16,408 19,648

TOTAL CURRENT LIABILITIES 145,292 163,890

Long-term debt, net of current portion 114,047 115,443

Obligations under finance leases, non-current 11,576 11,441

Obligations under operating leases, non-current 9,793 10,591

Deferred tax liabilities 33,119 34,443

Other long-term liabilities 8,038 5,472

TOTAL LIABILITIES 321,865 341,280

Commitments and contingencies

SHAREHOLDERS’ EQUITY:

Preferred Stock — —

Common Stock 5 5

Additional paid-in capital 599,384 598,322

Accumulated deficit (312,447 ) (306,514 )

TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO HF FOODS GROUP INC. 286,942 291,813

Noncontrolling interests 4,572 4,436

TOTAL SHAREHOLDERS’ EQUITY 291,514 296,249

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 613,379 $ 637,529

HF FOODS GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)

Three Months Ended March 31,

2023 2022

Net revenue $ 293,855 $ 278,215

Cost of revenue 243,683 227,488

Gross profit 50,172 50,727

Distribution, selling and administrative expenses 52,929 40,408

(Loss) income from operations (2,757 ) 10,319

Other (income) expenses:

Interest expense 2,868 1,278

Other income (228 ) (776 )

Change in fair value of interest rate swap contracts 2,746 (358 )

Lease guarantee expense (120 ) 5,931

Total Other expenses, net 5,266 6,075

(Loss) income before income taxes (8,023 ) 4,244

Income tax (benefit) provision (2,226 ) 1,104

Net (loss) income (5,797 ) 3,140

Less: net (loss) income attributable to noncontrolling interests 136 26

Net (loss) income attributable to HF Foods Group Inc. $ (5,933 ) $ 3,114

(Loss) earnings per common share – basic $ (0.11 ) $ 0.06

(Loss) earnings per common share – diluted $ (0.11 ) $ 0.06

Weighted average shares – basic 53,822,794 53,706,392

Weighted average shares – diluted 53,822,794 53,884,510

HF FOODS GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Three Months Ended March 31,

2023 2022

Cash flows from operating activities:

Net (loss) income $ (5,797 ) $ 3,140

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

Depreciation and amortization expense 6,689 5,779

Gain from disposal of property and equipment — (65 )

Provision for credit losses 57 (12 )

Deferred tax benefit (1,324 ) (2,154 )

Change in fair value of interest rate swap contracts 2,746 (358 )

Stock-based compensation 1,096 290

Non-cash lease expense 965 737

Lease guarantee expense (120 ) 5,931

Other expense (income) 93 —

Changes in operating assets and liabilities (excluding effects of acquisitions):

Accounts receivable 1,034 (7,026 )

Accounts receivable – related parties (416 ) (669 )

Inventories 9,822 (12,070 )

Prepaid expenses and other current assets 1,238 (2,758 )

Other long-term assets (829 ) 268

Accounts payable 2,327 16,805

Accounts payable – related parties (776 ) (309 )

Operating lease liabilities (961 ) (715 )

Accrued expenses and other liabilities (3,274 ) 3,299

Net cash provided by operating activities 12,570 10,113

Cash flows from investing activities:

Purchase of property and equipment (629 ) (2,672 )

Proceeds from sale of property and equipment — 79

Payment made for acquisition of Great Wall Group — (17,339 )

Net cash used in investing activities (629 ) (19,932 )

Cash flows from financing activities:

Checks issued not presented for payment (7,852 ) 679

Proceeds from line of credit 298,195 281,616

Repayment of line of credit (306,808 ) (268,298 )

Repayment of long-term debt (1,642 ) (1,475 )

Payment of debt financing costs — (604 )

Repayment of obligations under finance leases (646 ) (616 )

Proceeds from noncontrolling interests shareholders — 240

Cash distribution to shareholders — (89 )

Net cash (used in) provided by financing activities (18,753 ) 11,453

Net (decrease) increase in cash (6,812 ) 1,634

Cash at beginning of the period 24,289 14,792

Cash at end of the period $ 17,477 $ 16,426

HF FOODS GROUP INC. AND SUBSIDIARIES

RECONCILIATION OF NET (LOSS) INCOME TO EBITDA AND ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended March 31, Change

2023 2022 Amount %

Net (loss) income $         (5,797 ) $         3,140 $         (8,937 ) (284.6 )%

Interest expense         2,868         1,278         1,590 124.4 %

Income tax (benefit) provision         (2,226 )         1,104         (3,330 ) (301.6 )%

Depreciation and amortization         6,689         5,779         910 15.7 %

EBITDA         1,534         11,301         (9,767 ) (86.4 )%

Lease guarantee expense         (120 )         5,931         (6,051 ) (102.0 )%

Change in fair value of interest rate swaps         2,746         (358 )         3,104 NM

Stock-based compensation expense         1,096         290         806 277.9 %

Acquisition and integration costs         —         749         (749 ) NM

Adjusted EBITDA $         5,256 $         17,913 $         (12,657 ) (70.7 )%

____________

NM – Not meaningful

HF FOODS GROUP INC. AND SUBSIDIARIES

RECONCILIATION OF NET (LOSS) INCOME ATTRIBUTABLE TO HF FOODS GROUP INC.

TO NON-GAAP NET INCOME ATTRIBUTABLE TO HF FOODS GROUP INC.

(In thousands)

(Unaudited)

Three Months Ended March 31, Change

2023 2022 Amount %

Net (loss) income attributable to HF Foods Group Inc. $         (5,933 ) $         3,114 $         (9,047 ) (290.5 )%

Amortization of intangibles         4,071         3,643         428 11.7 %

Lease guarantee (income) expense         (120 )         5,931         (6,051 ) (102.0 )%

Change in fair value of interest rate swaps         2,746         (358 )         3,104 NM

Stock-based compensation expense         1,096         290         806 277.9 %

Acquisition and integration costs         —         749         (749 ) NM

Aggregate adjustment for income taxes         (2,175 )         (2,666 )         491 (18.4 )%

Non-GAAP net (loss) income attributable to HF Foods Group Inc. $         (315 ) $         10,703 $         (11,018 ) (102.9 )%

____________

NM – Not meaningful

Posted on May 10, 2023 7:18 pm
Curtiss-Wright Announces 5% Dividend Increase to $0.20 Per Share for Common Stock

Curtiss-Wright Announces 5% Dividend Increase to $0.20 Per Share for Common Stock

DAVIDSON, N.C.–(BUSINESS WIRE)–
Curtiss-Wright Corporation (NYSE: CW) today announced that the Board of Directors declared a 5% increase in the quarterly dividend to twenty cents ($0.20) per share, payable July 5, 2023 to stockholders of record as of June 16, 2023.

“We believe in steadily increasing our dividend in alignment with our long-term sales growth, and this recent increase reflects our Board of Directors’ confidence in the Company’s strong financial position and continued ability to deliver solid free cash flow,” said Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation. “Overall, we remain committed to a disciplined and balanced capital allocation strategy that consists of pursuing strategic acquisitions, reinvesting in our business to drive organic growth, and consistently returning capital to our shareholders through share repurchase and dividend distributions to drive long-term shareholder value.”

About Curtiss-Wright Corporation

Curtiss-Wright Corporation (NYSE:CW) is a global integrated business that provides highly engineered products, solutions and services mainly to Aerospace & Defense markets, as well as critical technologies in demanding Commercial Power, Process and Industrial markets. We leverage a workforce of approximately 8,100 highly skilled employees who develop, design and build what we believe are the best engineered solutions to the markets we serve. Building on the heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright, headquartered in Davidson, North Carolina, has a long tradition of providing innovative solutions through trusted customer relationships. For more information, visit www.curtisswright.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230510005915/en/

Jim Ryan

(704) 869-4621

[email protected]

KEYWORDS: North Carolina United States North America

INDUSTRY KEYWORDS: Engineering Defense Aerospace Manufacturing Military Contracts

MEDIA:

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$HAREHOLDER ALERT: The M&A Class Action Firm Is Investigating The Merger—MCFT, STKL, MPX, and SKYT February 10, 2026 10:51 am

$HAREHOLDER ALERT: The M&A Class Action Firm Is Investigating The Merger—DVN, CLBK, NFBK, and SLAB February 10, 2026 10:44 am

Nebius announces agreement to acquire Tavily to add agentic search to its AI cloud platform February 10, 2026 10:43 am

VEON’s Kyivstar Expands Digital Healthcare Services in Ukraine with Tabletki.ua Acquisition February 10, 2026 10:34 am

Kyivstar to Expand Digital Healthcare Offering in Ukraine with Tabletki.ua Acquisition February 10, 2026 10:33 am

Interactive Brokers Expands Crypto Futures Offering with Coinbase Derivatives February 10, 2026 10:18 am

New Sensodyne Clinical Repair Toothpaste Launches with Breakthrough Formula for Rapid, Clinically Proven Sensitivity Relief February 10, 2026 10:04 am

Belden Taps Industry 4.0’s Leading Voice, Jeff Winter, to Shape Commercial Strategy February 10, 2026 10:03 am

Zebra Technologies to Present at the Citi Global Industrial Tech & Mobility Conference February 10, 2026 10:03 am

Important Notice to Long-Term Shareholders of Integer Holdings Corp. (NYSE: ITGR); Molina Healthcare, Inc. (NYSE: MOH); Varonis Systems, Inc. (NASDAQ: VRNS); and WEBTOON Entertainment Inc. (NASDAQ: WBTN): Grabar Law Office Investigates Claims on Your Behalf February 10, 2026 10:02 am