Market Newsdesk

August 4, 2023 6:08 am

Willdan Group Reports Second Quarter 2023 Results

Willdan Group Reports Second Quarter 2023 Results

ANAHEIM, Calif.–(BUSINESS WIRE)–
Willdan Group, Inc. (“Willdan”) (Nasdaq: WLDN) today reported financial results for its second quarter ended June 30, 2023.

“Our second-quarter performance was strong, continuing the momentum that we started last year,” said Tom Brisbin, Willdan’s Chairman and Chief Executive Officer. “This strength came from all areas of our business resulting in improved profitability. Consolidated contract revenue grew 16% while net revenue grew 17%. Cash generated from operations in the first half of this year has positioned the Company to restart our acquisition program. Today we are raising our full-year guidance for all financial targets.”

Second Quarter 2023 Highlights*

Consolidated contract revenue of $119.1 million, up 16.0%.
Net revenue** of $61.9 million, up 17.1%.
Net income of $0.4 million, a 109.2% improvement.
Adjusted EBITDA** of $8.2 million, up 603.3%.
GAAP EPS of $0.03, a 109.1% improvement.
Adjusted Diluted EPS** of $0.26, up from $(0.06).

Six Months Year to Date 2023 Highlights*

Consolidated contract revenue of $221.7 million, up 14.0%.
Net revenue** of $123.6 million, up 20.0%.
Net income of $1.3 million, a 116.4% improvement.
Adjusted EBITDA** of $18.1 million, up 414.8%.
GAAP EPS of $0.10, a 115.9% improvement.
Adjusted Diluted EPS** of $0.58, up from $0.02.

Fiscal Year 2023 Financial Targets^¥

Net revenue** growth between 9% and 10%.
Adjusted Diluted EPS** between $1.30 per share and $1.35 per share.
Adjusted EBITDA** between $38 million and $40 million.

*As compared to the same period of fiscal 2022.

**See “Use of Non-GAAP Financial Measures” below.

^¥ These updated financial targets supersede any previously disclosed financial targets and investors should not rely on any previously disclosed financial targets, and do not include any uncompleted or future acquisitions.

Second Quarter 2023 Conference Call

Willdan will be hosting a conference call to discuss its second quarter financial results today, at 5:30 p.m. Eastern/2:30 p.m. Pacific. To access the call, listeners should dial 866-682-6100 (or 862-298-0702) approximately five minutes prior to the scheduled start time. The conference call will be webcast simultaneously on Willdan’s website at https://edge.media-server.com/mmc/p/f7fqt2c5.

A replay of the conference call will be available through Willdan’s website at https://ir.willdangroup.com/events-presentations and selecting “Events & Presentations”.

An Investor Report containing supplemental financial information can also be accessed through Willdan’s website at https://ir.willdangroup.com and selecting “Stock Information”.

About Willdan Group, Inc.

Willdan is a nationwide provider of professional, technical and consulting services to utilities, government agencies, and private industry. Willdan’s service offerings span a broad set of complementary disciplines that include electric grid solutions, energy efficiency and sustainability, engineering and planning, and municipal financial consulting. For additional information, visit Willdan’s website at www.willdan.com.

Use of Non-GAAP Financial Measures

“Net Revenue,” defined as contract revenue as reported in accordance with GAAP minus subcontractor services and other direct costs, is a non-GAAP financial measure. Net Revenue is a supplemental measure that Willdan believes enhances investors’ ability to analyze Willdan’s business trends and performance because it substantially measures the work performed by Willdan’s employees. In the course of providing services, Willdan routinely subcontracts various services. Generally, these subcontractor services and other direct costs are passed through to Willdan’s clients and, in accordance with U.S. generally accepted accounting principles (“GAAP”) and industry practice, are included in Willdan’s revenue when it is Willdan’s contractual responsibility to procure or manage such subcontracted activities. Because subcontractor services and other direct costs can vary significantly from project to project and period to period, changes in revenue may not necessarily be indicative of Willdan’s business trends. Accordingly, Willdan segregates subcontractor services and other direct costs from revenue to promote a better understanding of Willdan’s business by evaluating revenue exclusive of subcontract services and other direct costs associated with external service providers. A reconciliation of Willdan’s contract revenue as reported in accordance with GAAP to Net Revenue is provided at the end of this press release. A reconciliation of targeted contract revenue for the full fiscal year 2023 as reported in accordance with GAAP to targeted Net Revenues for fiscal year 2023, which is a forward-looking non-GAAP financial measure, is not provided because Willdan is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty of predicting the subcontractor services and other director costs that are subtracted from contract revenues in order to derive Net Revenues. While subcontractor costs have increased recently, subcontractor costs can vary significantly from period to period. Subcontractor costs and other direct costs were 48.0% and 47.2% of contract revenue for the quarter ended June 30, 2023 and fiscal year 2022, respectively, and 48.5% and 43.0% for the quarter ended July 1, 2022 and fiscal year 2021, respectively.

“Adjusted EBITDA,” defined as net income plus interest expense, income tax expense, stock-based compensation, interest accretion, depreciation and amortization, and gain on sale of equipment, is a non-GAAP financial measure. Adjusted EBITDA is a supplemental measure used by Willdan’s management to measure Willdan’s operating performance. Willdan believes Adjusted EBITDA is useful because it allows Willdan’s management to evaluate its operating performance and compare the results of its operations from period to period and against its peers without regard to its financing methods, capital structure and non-operating expenses. Willdan uses Adjusted EBITDA to evaluate its performance for, among other things, budgeting, forecasting and incentive compensation purposes.

Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s costs of capital and stock-based compensation, as well as the historical costs of depreciable assets. A reconciliation of net income as reported in accordance with GAAP to Adjusted EBITDA is provided at the end of this press release. A reconciliation of targeted net income for the full fiscal year 2023 as reported in accordance with GAAP to Adjusted EBITDA for fiscal year 2023, which is a forward-looking non-GAAP financial measure, is not provided because Willdan is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty of predicting the interest expense, income tax expense, stock-based compensation, interest accretion, depreciation and amortization, and gain on sale of equipment that are subtracted from net income in order to derive Adjusted EBITDA.

“Adjusted Net Income,” defined as net income plus stock-based compensation, intangible amortization, and interest accretion, each net of tax, is a non-GAAP financial measure.

“Adjusted Diluted EPS,” defined as net income plus stock-based compensation, intangible amortization, and interest accretion, each net of tax, all divided by the diluted weighted-average shares outstanding, is a non-GAAP financial measure. Adjusted Net Income and Adjusted Diluted EPS are supplemental measures used by Willdan’s management to measure its operating performance. Willdan believes Adjusted Net Income and Adjusted Diluted EPS are useful because they allow Willdan’s management to more closely evaluate and explain the operating results of Willdan’s business by removing certain non-operating expenses. Reconciliations of net income as reported in accordance with GAAP to Adjusted Net Income and diluted EPS as reported in accordance with GAAP to Adjusted Diluted EPS are provided at the end of this press release. Reconciliations of targeted net income as reported in accordance with GAAP to targeted Adjusted Net Income for the full fiscal year 2023, which is a forward-looking non-GAAP financial measure, and targeted diluted EPS as reported in accordance with GAAP to targeted Adjusted Diluted EPS for the full fiscal year 2023, which is a forward-looking non-GAAP financial measure, are not provided because Willdan is unable to provide such reconciliations without unreasonable effort. The inability to provide such reconciliations is due to the uncertainty and inherent difficulty of predicting the stock-based compensation, intangible amortization, and interest accretion, each net of tax, that are subtracted from net income and diluted EPS in order to derive Adjusted Net Income and Adjusted Diluted EPS, respectively.

Willdan’s definitions of Net Revenue, Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted EPS have limitations as analytical tools and may differ from other companies reporting similarly named measures or from similarly named measures Willdan has reported in prior periods. These measures should be considered in addition to, and not as a substitute for, or superior to, other measures of financial performance prepared in accordance with GAAP, such as contract revenue, net income and diluted EPS.

Forward Looking Statements

Statements in this press release that are not purely historical, including statements regarding Willdan’s intentions, hopes, beliefs, expectations, representations, projections, estimates, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding Willdan’s ability to capitalize on increased energy efficiency spending in large markets and expected benefits from its acquisitions and the impact of Covid-19 on Willdan’s business. All statements other than statements of historical fact included in this press release are forward-looking statements. It is important to note that Willdan’s actual results could differ materially from those in any such forward-looking statements. Important factors that could cause actual results to differ materially from its expectations include, but are not limited to, Willdan’s ability to adequately complete projects in a timely manner, Willdan’s ability to compete successfully in the highly competitive energy services market, Willdan’s reliance on work from its top ten clients; changes in state, local and regional economies and government budgets; Willdan’s ability to win new contracts, to renew existing contracts and to compete effectively for contracts awarded through bidding processes; Willdan’s ability to make principal and interest payments on its outstanding debt as they come due and to comply with financial covenants contained in its debt agreements; Willdan’s ability to manage supply chain constraints, labor shortages, rising interest rates, and rising inflation; Willdan’s ability to obtain financing and to refinance its outstanding debt as it matures; Willdan’s ability to successfully integrate its acquisitions and execute on its growth strategy; Willdan’s ability to attract and retain managerial, technical, and administrative talent and the extent to which the Covid-19 pandemic and measures taken to contain its spread ultimately impact Willdan’s business, results of operation and financial condition.

All written and oral forward-looking statements attributable to Willdan, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements and risk factors disclosed from time to time in Willdan’s reports filed with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K filed for the year ended December 30, 2022, as such disclosures may be amended, supplemented or superseded from time to time by other reports Willdan files with the Securities and Exchange Commission, including subsequent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. Willdan cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Willdan disclaims any obligation to, and does not undertake to, update or revise any forward-looking statements in this press release unless required by law.


WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value)

	June 30,		December 30,
	2023		2022
Assets
Current assets:
Cash and cash equivalents	$	13,649	$	8,806
Restricted cash		—		10,679
Accounts receivable, net of allowance for doubtful accounts of $373 and $640 at June 30, 2023 and December 30, 2022, respectively		54,572		60,202
Contract assets		79,300		83,060
Other receivables		2,852		4,773
Prepaid expenses and other current assets		5,399		6,454
Total current assets		155,772		173,974
Equipment and leasehold improvements, net		25,494		22,537
Goodwill		130,124		130,124
Right-of-use assets		13,894		12,390
Other intangible assets, net		36,237		41,486
Other assets		15,607		10,620
Deferred income taxes, net		17,692		18,543
Total assets	$	394,820	$	409,674
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	35,155	$	28,833
Accrued liabilities		36,954		59,110
Contingent consideration payable		—		4,000
Contract liabilities		14,950		12,585
Notes payable		102,619		16,903
Finance lease obligations		1,143		1,113
Lease liability		4,877		4,625
Total current liabilities		195,698		127,169
Notes payable		19		90,544
Finance lease obligations, less current portion		1,251		1,601
Lease liability, less current portion		10,731		8,599
Other noncurrent liabilities		259		259
Total liabilities		207,958		228,172

Commitments and contingencies

Stockholders’ equity:
Preferred stock, $0.01 par value, 10,000 shares authorized, no shares issued and outstanding		—		—
Common stock, $0.01 par value, 40,000 shares authorized; 13,504 and 13,296 shares issued and outstanding at June 30, 2023 and December 30, 2022, respectively		135		133
Additional paid-in capital		181,747		177,718
Accumulated other comprehensive loss		—		—
Retained earnings		4,980		3,651
Total stockholders’ equity		186,862		181,502
Total liabilities and stockholders’ equity	$	394,820	$	409,674

WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except per share amounts)

	Three Months Ended						Six Months Ended
	June 30,			July 1,			June 30,			July 1,
	2023			2022			2023			2022

Contract revenue	$	119,077		$	102,645		$	221,680		$	194,483

Direct costs of contract revenue (inclusive of directly related depreciation and amortization):
Salaries and wages		21,302			21,284			41,712			40,094
Subcontractor services and other direct costs		57,142			49,771			98,054			91,439
Total direct costs of contract revenue		78,444			71,055			139,766			131,533

General and administrative expenses:
Salaries and wages, payroll taxes and employee benefits		22,416			20,439			44,801			39,796
Facilities and facility related		2,619			2,373			4,897			4,771
Stock-based compensation		1,287			1,714			2,820			5,019
Depreciation and amortization		4,128			4,426			8,328			8,835
Other		7,709			7,936			14,580			15,435
Total general and administrative expenses		38,159			36,888			75,426			73,856
Income (Loss) from operations		2,474			(5,298	)		6,488			(10,906	)

Other income (expense):
Interest expense, net		(2,207	)		(1,030	)		(4,673	)		(1,781	)
Other, net		373			329			513			526
Total other expense, net		(1,834	)		(701	)		(4,160	)		(1,255	)
Income (Loss) before income taxes		640			(5,999	)		2,328			(12,161	)

Income tax (benefit) expense		243			(1,673	)		999			(4,062	)
Net income (loss)		397			(4,326	)		1,329			(8,099	)

Other comprehensive income (loss):
Unrealized gain (loss) on derivative contracts, net of tax		—			—			—			38
Comprehensive income (loss)	$	397		$	(4,326	)	$	1,329		$	(8,061	)

Earnings (Loss) per share:
Basic	$	0.03		$	(0.33	)	$	0.10		$	(0.63	)
Diluted	$	0.03		$	(0.33	)	$	0.10		$	(0.63	)

Weighted-average shares outstanding:
Basic		13,344			13,016			13,305			12,901
Diluted		13,487			13,016			13,481			12,901

WILLDAN GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)

	Six Months Ended
	June 30,			July 1,
	2023			2022
Cash flows from operating activities:
Net income (loss)	$	1,329		$	(8,099	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		8,328			8,835
Deferred income taxes, net		851			(2,842	)
(Gain) loss on sale/disposal of equipment		(50	)		(69	)
Provision for doubtful accounts		146			107
Stock-based compensation		2,820			5,019
Accretion and fair value adjustments of contingent consideration		—			111
Changes in operating assets and liabilities, net of effects from business acquisitions:
Accounts receivable		5,484			6,803
Contract assets		3,760			(1,889	)
Other receivables		1,921			36
Prepaid expenses and other current assets		1,217			225
Other assets		(4,987	)		(48	)
Accounts payable		6,322			(8,859	)
Accrued liabilities		(11,477	)		(648	)
Contract liabilities		2,365			(2,089	)
Right-of-use assets		880			(162	)
Net cash (used in) provided by operating activities		18,909			(3,569	)
Cash flows from investing activities:
Purchase of equipment, software, and leasehold improvements		(5,762	)		(4,344	)
Proceeds from sale of equipment		55			73
Net cash (used in) provided by investing activities		(5,707	)		(4,271	)
Cash flows from financing activities:
Payments on contingent consideration		(4,000	)		(10,206	)
Payment on restricted cash		(10,679	)		—
Payments on notes payable		(971	)		(1,051	)
Borrowings under term loan facility and line of credit		5,000			20,000
Repayments under term loan facility and line of credit		(9,000	)		(6,500	)
Principal payments on finance leases		(599	)		(444	)
Proceeds from stock option exercise		7			23
Proceeds from sales of common stock under employee stock purchase plan		1,392			1,561
Cash used to pay taxes on stock grants		(188	)		(953	)
Net cash (used in) provided by financing activities		(19,038	)		2,430
Net increase (decrease) in cash, cash equivalents and restricted cash		(5,836	)		(5,410	)
Cash, cash equivalents and restricted cash at beginning of period		19,485			11,221
Cash, cash equivalents and restricted cash at end of period	$	13,649		$	5,811
Supplemental disclosures of cash flow information:
Cash paid (received) during the period for:
Interest	$	4,464		$	1,584
Income taxes		(1,696	)		474
Supplemental disclosures of noncash investing and financing activities:
Equipment acquired under finance leases		278			1,431

Willdan Group, Inc. and Subsidiaries Reconciliation of GAAP Revenue to Net Revenue (in thousands) (Non-GAAP Measure)

	Three Months Ended				Six Months Ended
	June 30,		July 1,		June 30,		July 1,
	2023		2022		2023		2022
Consolidated
Contract revenue	$	119,077	$	102,645	$	221,680	$	194,483
Subcontractor services and other direct costs		57,142		49,771		98,054		91,439
Net Revenue	$	61,935	$	52,874	$	123,626	$	103,044

Energy segment
Contract revenue	$	98,015	$	84,675	$	181,300	$	159,561
Subcontractor services and other direct costs		56,102		49,040		96,180		89,888
Net Revenue	$	41,913	$	35,635	$	85,120	$	69,673

Engineering and Consulting segment
Contract revenue	$	21,062	$	17,970	$	40,380	$	34,922
Subcontractor services and other direct costs		1,040		731		1,874		1,551
Net Revenue	$	20,022	$	17,239	$	38,506	$	33,371

Willdan Group, Inc. and Subsidiaries Reconciliation of GAAP Net Income to Adjusted EBITDA (in thousands) (Non-GAAP Measure)

	Three Months Ended						Six Months Ended
	June 30,			July 1,			June 30,			July 1,
	2023			2022			2023			2022
Net income (loss)	$	397		$	(4,326	)	$	1,329		$	(8,099	)
Interest expense		2,207			1,030			4,673			1,781
Income tax expense (benefit)		243			(1,673	)		999			(4,062	)
Stock-based compensation		1,287			1,714			2,820			5,019
Interest accretion⁽¹⁾		—			31			—			111
Depreciation and amortization		4,128			4,426			8,328			8,835
(Gain) Loss on sale of equipment		(40	)		(33	)		(50	)		(69	)
Adjusted EBITDA	$	8,222		$	1,169		$	18,099		$	3,516
______________________ (1) Interest accretion represents the imputed interest and fair value adjustments to estimated contingent consideration.

Willdan Group, Inc. and Subsidiaries Reconciliation of GAAP Net Income to Adjusted Net Income and Adjusted Diluted EPS (in thousands, except per share amounts) (Non-GAAP Measure)

	Three Months Ended						Six Months Ended
	June 30,			July 1,			June 30,			July 1,
	2023			2022			2023			2022
Net income (loss)	$	397		$	(4,326	)	$	1,329		$	(8,099	)
Adjustment for stock-based compensation		1,287			1,714			2,820			5,019
Tax effect of stock-based compensation		(260	)		(393	)		(571	)		(1,150	)
Adjustment for intangible amortization		2,624			2,843			5,248			5,690
Tax effect of intangible amortization		(531	)		(652	)		(1,062	)		(1,304	)
Adjustment for interest accretion		—			31			—			111
Tax effect of interest accretion		—			(7	)		—			(25	)
Adjusted Net Income (Loss)	$	3,517		$	(790	)	$	7,764		$	241

Diluted weighted-average shares outstanding		13,487			13,016			13,481			12,901

Diluted earnings (loss) per share	$	0.03		$	(0.33	)	$	0.10		$	(0.63	)
Impact of adjustment:
Stock-based compensation per share		0.09			0.13			0.21			0.39
Tax effect of stock-based compensation per share		(0.02	)		(0.03	)		(0.04	)		(0.09	)
Intangible amortization per share		0.19			0.22			0.39			0.44
Tax effect of intangible amortization per share		(0.03	)		(0.05	)		(0.08	)		(0.10	)
Interest accretion per share		—			0.00			—			0.01
Tax effect of interest accretion per share		—			(0.00	)		—			(0.00	)
Adjusted Diluted EPS	$	0.26		$	(0.06	)	$	0.58		$	0.02

View source version on businesswire.com: https://www.businesswire.com/news/home/20230803677140/en/

Willdan Group, Inc.

Al Kaschalk

VP Investor Relations

Tel: 310-922-5643

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Professional Services Utilities Environment Sustainability Energy Finance Consulting

MEDIA:

Logo

August 4, 2023 6:07 am

Wish Reports Second Quarter 2023 Financial Results

SAN FRANCISCO, Aug. 03, 2023 (GLOBE NEWSWIRE) — ContextLogic Inc. (d/b/a Wish) (Nasdaq: WISH), one of the largest mobile ecommerce platforms, today reported its financial results for the quarter and six months ended June 30, 2023.

Second Quarter 2023 Financial Highlights

Revenues: Revenues were $78 million, a decrease of 42% YoY
- Core Marketplace revenues were $24 million, down 56% YoY
- Product Boost revenues were $6 million, down 45% YoY
- Logistics revenues were $48 million, down 30% YoY
Net Loss: Net loss was $80 million, compared to a net loss of $90 million in the second quarter of 2022
- Net loss per share was $3.38, compared to a net loss of $4.05 per share in the second quarter of 2022
Adjusted EBITDA: Adjusted EBITDA⁽¹⁾ was a loss of $66 million, compared to a loss of $58 million in the second quarter of 2022
Cash Flow: Cash flows from operating activities were negative $88 million
- Free Cash Flow⁽¹⁾ was negative $91 million, compared to negative $67 million in the second quarter of 2022

“Our second quarter results reflect a continuingly challenging operating environment. While our adjusted EBITDA results were in-line with expectations, we experienced macro and competitive pressure on our top-line performance with total revenues declining 42% year-over-year,” said Joe Yan, Wish CEO. “Looking ahead to the remainder of the year, we recognize that macroeconomic uncertainties and competitive pressures will likely persist. In response to this dynamic environment and to position Wish to thrive over the longer term, we are taking aggressive actions to significantly lower our cost structure and improve our operational efficiencies. To that end, and with the intention of putting us back on the path to sustainable growth, the entire Wish team remains focused on further improving customer experiences and deepening merchant relationships.”

Third Quarter Fiscal 2023 Financial Guidance

Revenue: Revenue is expected to be in the range of $55 million to $65 million.
Adjusted EBITDA: Adjusted EBITDA⁽¹⁾⁽²⁾ is expected to be a loss in the range of $55 million to $65 million.

Second Quarter Consolidated Financials

The following tables include unaudited GAAP and non-GAAP financial highlights for the periods presented:

Revenue

(in millions, except percentages; unaudited)

	Three Months Ended									Six Months Ended
	June 30,									June 30,
	2023		2022		$			YoY%		2023		2022		$			YoY%
Core marketplace revenue	$	24	$	54	$	(30	)	(56	)%	$	52	$	144	$	(92	)	(64	)%
ProductBoost revenue		6		11		(5	)	(45	)%		14		25		(11	)	(44	)%
Marketplace revenue		30		65		(35	)	(54	)%		66		169		(103	)	(61	)%
Logistics revenue		48		69		(21	)	(30	)%		108		154		(46	)	(30	)%
Revenue	$	78	$	134	$	(56	)	(42	)%	$	174	$	323	$	(149	)	(46	)%

Other Financial Data

(in millions, except percentages; unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
Net loss	$	(80	)	$	(90	)	$	(169	)	$	(150	)
% of Revenue		(102	)%		(67	)%		(97	)%		(47	)%
Adjusted EBITDA⁽¹⁾	$	(66	)	$	(58	)	$	(128	)	$	(98	)
% of Revenue		(85	)%		(43	)%		(74	)%		(30	)%

Forward Looking Guidance – Third Quarter 2023

(in millions, except percentages, unaudited)

We expect the following financial results for revenue and Adjusted EBITDA in the period presented below:

	Three Months Ended
	September 30, 2023
Revenue	$	55		to	$	65
% YoY		(56	)%			(48	)%
Adjusted EBITDA ⁽¹⁾⁽²⁾	$	(55	)	to	$	(65	)
% YoY		42	%			32	%

⁽¹⁾ Indicates non-GAAP metric. See below for more information regarding our presentation of non-GAAP metrics in the section titled: “Use of Non-GAAP Financial Measures.”

⁽²⁾ Wish has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) for Adjusted EBITDA within this release because the company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include, but are not limited to stock-based compensation and income taxes which are impacted by unpredictable fluctuations in the market price of the company’s Class A common stock.

Conference Call & Webcast Information

Information about Wish’s financial results, including a link to the live webcast and replay will be made available on the company’s investor relations website at https://ir.wish.com. The live conference call may be accessed by registering using this online form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call.

About Wish

Wish brings an affordable and entertaining shopping experience to millions of consumers around the world. Since our founding in San Francisco in 2010, we have become one of the largest global ecommerce platforms, connecting millions of value-conscious consumers to hundreds of thousands of merchants globally. Wish combines technology and data science capabilities and an innovative discovery-based mobile shopping experience to create a highly-visual, entertaining, and personalized shopping experience for its users. For more information about the company or to download the Wish mobile app, visit www.wish.com or follow @Wish on Facebook, Instagram and TikTok or @WishShopping on Twitter and YouTube.

Use of Non-GAAP Financial Measures

We provide Adjusted EBITDA, a non-GAAP financial measure that represents our loss before interest and other income, net (which includes foreign exchange gain or loss and other non-operating income and expenses), income tax expense, and depreciation and amortization, adjusted to eliminate stock-based compensation expense, lease termination and impairment related expenses, restructuring and other discrete charges, and to add back certain recurring items. Additionally, we provide Adjusted EBITDA Margin, a non-GAAP financial measure that represents Adjusted EBITDA Margin divided by revenue. The reconciliation between historical GAAP and non-GAAP results of operations is provided below. Our management uses Adjusted EBITDA and Adjusted EBITDA Margin in conjunction with GAAP and other operating performance measures as part of its overall assessment of the company’s performance for planning purposes, including the preparation of its annual operating budget, to evaluate the effectiveness of its business strategies and to communicate with its board of directors concerning its financial performance. Adjusted EBITDA and Adjusted EBITDA Margin should not be considered as an alternative financial measure to net loss and net loss as a percentage of revenue, which, respectively, are the most directly comparable financial measures calculated in accordance with GAAP, or any other measure of financial performance calculated in accordance with GAAP. We also provide Free Cash Flow, a non-U.S. GAAP financial measure that represents net cash used in operating activities less purchases of property and equipment. We believe that Free Cash Flow is an important measure since we use third parties to host our services and therefore we do not incur significant capital expenditures to support revenue generating activities. The reconciliation between net cash used in operating activities and Free Cash Flow is provided below. Free Cash Flow has limitations as an analytical measure, and you should not consider it in isolation or as a substitute for analysis of our net cash used in operating activities, which is the most directly comparable financial measure calculated in accordance with GAAP, or any other measure of financial performance calculated in accordance with GAAP.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, statements regarding Wish’s outlook including expectations with respect to revenues, adjusted EBITDA, expectations regarding new business strategies, including cost-savings strategies, and ability to capitalize on opportunities, and other quotes of management. In some cases, forward-looking statements can be identified by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “foresees,” “forecasts,” “guidance,” “intends” “goals,” “may,” “might,” “outlook,” “plans,” “potential,” “predicts,” “projects,” “seeks,” “should,” “targets,” “will,” “would” or similar expressions and the negatives of those terms. These forward-looking statements are subject to risks, uncertainties, and assumptions. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Risks include, but are not limited to: our ability to attract, retain and monetize users; risks associated with software updates to the platform; compliance with Nasdaq continued listing requirements; increasing requirements on collection of sales and value added taxes; the success of our execution on new business strategies; compromises in security; changes by third-parties that restrict our access or ability to identify users; competition; disruption, degradation or interference with the hosting services we use and infrastructure; our financial performance and fluctuations in operating results; pressure and fluctuation in our stock price, including as a result of short selling and short squeezes; challenges in our logistics programs; challenges in growing new initiatives; material weaknesses in our internal control over financial reporting and the effectiveness of our internal controls generally; the continued services and retention of members of our senior management team and key talent; our ability to offer and promote our app on the Apple App Store and the Google Play Store; the risk of merchants on our platform using unethical or illegal business practices or if our policies and practices with respect to such sales are perceived or found to be inadequate; our ability to promote, maintain, and protect our brand and reputation; litigation matters; the ongoing COVID-19 pandemic; supply chain issues; general economic conditions, including the impact of inflation, higher interest rates, potential economic downturns; global conflicts, including the Russian invasion of Ukraine; economic tension between the United States and China; and the risk our cost savings strategies will not yield the savings we expect or otherwise result in material adverse effects on us. New risks emerge from time to time. It is not possible for our management 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 to differ materially from those contained in any forward-looking statements we may make. Further information on these and additional risks that could affect Wish’s results is included in its filings with the Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, and future reports that Wish may file with the SEC from time to time, which could cause actual results to vary from expectations. Any forward-looking statement made by Wish in this news release speaks only as of the day on which Wish makes it. Wish assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.

The unaudited financial results in this news release are estimates based on information currently available to Wish. While Wish believes these estimates are meaningful, they could differ from the actual amounts that the company ultimately reports in its Quarterly Report on Form 10-Q for the three and six months ended June 30, 2023. Wish assumes no obligation and does not intend to update these estimates prior to filing its Quarterly Report on Form 10-Q for the three months and six months ended June 30, 2023.

ContextLogic Inc. Condensed Consolidated Balance Sheets (in millions) (unaudited)

	As of June 30,		As of December 31,
	2023		2022
Assets
Current assets:
Cash and cash equivalents	$	318	$	506
Marketable securities		213		213
Funds receivable		4		14
Prepaid expenses and other current assets		30		44
Total current assets		565		777
Property and equipment, net		9		9
Right-of-use assets		6		9
Other assets		4		4
Total assets	$	584	$	799
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	36	$	53
Merchants payable		87		120
Refunds liability		3		6
Accrued liabilities		110		130
Total current liabilities		236		309
Lease liabilities, non-current		9		13
Other liabilities		2		—
Total liabilities		247		322
Stockholders’ equity		337		477
Total liabilities and stockholders’ equity	$	584	$	799

ContextLogic Inc. Condensed Consolidated Statements of Operations ($ in millions, shares in thousands, except per share data) (unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
Revenue	$	78		$	134		$	174		$	323
Cost of revenue⁽¹⁾		62			92			138			217
Gross profit		16			42			36			106
Operating expenses:
Sales and marketing⁽¹⁾		39			56			76			101
Product development⁽¹⁾		38			46			89			112
General and administrative⁽¹⁾		22			31			47			46
Total operating expenses		99			133			212			259
Loss from operations		(83	)		(91	)		(176	)		(153	)
Other income, net:
Interest and other income, net		6			2			10			4
Loss before provision for income taxes		(77	)		(89	)		(166	)		(149	)
Provision for income taxes		3			1			3			1
Net loss		(80	)		(90	)		(169	)		(150	)
Net loss per share, basic and diluted	$	(3.38	)	$	(4.05	)	$	(7.21	)	$	(6.77	)
Weighted-average shares used in computing net loss per share, basic and diluted		23,651			22,241			23,451			22,146

⁽¹⁾ Includes the following stock-based compensation expense:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Cost of revenue	$	1	$	3	$	2	$	2
Sales and marketing		1		2		2		3
Product development		9		14		25		28
General and administrative		4		10		12		(6	)
Total stock-based compensation	$	15	$	29	$	41	$	27

ContextLogic Inc. Condensed Consolidated Statements of Cash Flows (in millions) (unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
Cash flows from operating activities:
Net loss	$	(80	)	$	(90	)	$	(169	)	$	(150	)
Adjustments to reconcile net loss to net cash used in operating activities:
Noncash inventory write downs		—			—			—			3
Depreciation and amortization		1			2			2			4
Noncash lease expense		1			1			2			3
Impairment of lease assets and property and equipment		1			2			1			6
Stock-based compensation expense		15			29			41			27
Net (accretion) amortization of discounts and premiums on marketable securities		(2	)		1			(4	)		1
Other		(3	)		(4	)		(5	)		(2	)
Changes in operating assets and liabilities:
Funds receivable		1			2			10			5
Prepaid expenses, other current and noncurrent assets		9			3			14			2
Accounts payable		(3	)		15			(16	)		(12	)
Merchants payable		(23	)		(17	)		(33	)		(52	)
Accrued and refund liabilities		(3	)		(9	)		(18	)		(42	)
Lease liabilities		(2	)		(2	)		(4	)		(4	)
Other current and noncurrent liabilities		—			—			(1	)		(2	)
Net cash used in operating activities		(88	)		(67	)		(180	)		(213	)
Cash flows from investing activities:
Purchases of property and equipment and development of internal-use software		(3	)		—			(3	)		(2	)
Purchases of marketable securities		(45	)		(73	)		(170	)		(226	)
Maturities of marketable securities		91			87			176			137
Net cash provided by (used) in investing activities		43			14			3			(91	)
Cash flows from financing activities:
Proceeds from issuance of common stock through employee equity incentive plans		—			1			—			1
Payments of taxes related to RSU settlement		(1	)		(5	)		(4	)		(5	)
Net cash used in financing activities		(1	)		(4	)		(4	)		(4	)
Foreign currency effects on cash, cash equivalents and restricted cash		(8	)		(9	)		(7	)		(9	)
Net decrease in cash, cash equivalents and restricted cash		(54	)		(66	)		(188	)		(317	)
Cash, cash equivalents and restricted cash at beginning of period		379			767			513			1,018
Cash, cash equivalents and restricted cash at end of period	$	325		$	701		$	325		$	701
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets:
Cash and cash equivalents	$	318		$	693		$	318		$	693
Restricted cash included in prepaid and other current assets in the condensed consolidated balance sheets		7			8			7			8
Total cash, cash equivalents and restricted cash	$	325		$	701		$	325		$	701
Supplemental cash flow disclosures:
Cash paid for income taxes, net of refunds	$	—		$	3		$	—		$	6

ContextLogic Inc. Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA ($ in millions, except percentages) (unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
Revenue	$	78		$	134		$	174		$	323
Net loss		(80	)		(90	)		(169	)		(150	)
Net loss as a percentage of revenue		(102	)%		(67	)%		(97	)%		(47	)%
Excluding:
Interest and other income, net		(6	)		(2	)		(10	)		(4	)
Provision for income taxes		3			1			3			1
Depreciation and amortization		1			2			2			4
Stock-based compensation expense and related employer payroll taxes^(1)(2)(3)		15			30			42			28
Restructuring and other discrete items⁽⁴⁾		—			2			3			24
Lease termination and impairment related expenses⁽⁵⁾		1			—			1			—
Others		—			(1	)		—			(1	)
Adjusted EBITDA		(66	)		(58	)		(128	)		(98	)
Adjusted EBITDA margin		(85	)%		(43	)%		(74	)%		(30	)%

⁽¹⁾ Total amount for the three months ended June 30, 2023 consists of $15 million of stock-based compensation expense. Total amount for the three months ended June 30, 2022 consists of $29 million of stock-based compensation expense and $1 million of related employer payroll taxes. Total amount for the six months ended June 30, 2023 consists of $41 million of stock-based compensation expense and $1 million of related employer payroll taxes. Total amount for six months ended June 30, 2022 consists of $27 million of stock-based compensation expense and $1 million of related employer payroll taxes.

⁽²⁾ Total stock-based compensation for the three months June 30, 2023 decreased by $14 million compared to the three months ended June 30, 2022. This decrease was primarily due to (i) stock-based compensation of outstanding equity awards during the second quarter of 2023 was based off a lower weighted average grant date fair value compared to that of outstanding equity awards from the same period in 2022 and (ii) the departures of the Company’s former Chief Product Officer (“CPO”) and Chief Administrative Officer (“CAO”) during the first quarter of 2023.

⁽³⁾ Total stock-based compensation for the six months ended June 30, 2023 increased by $14 million compared to the six months ended June 30, 2022 primarily due to (i) accelerated vesting of the Company’s former CPO and CAO’s RSUs upon their departures in accordance to their separation agreements during the first quarter of 2023, and (ii) forfeitures originating from the resignation of the Company’s former CEO, and modifications to the Company’s former Executive Chair’s equity awards, both during the first quarter of 2022. These contributing factors were partially offset by stock-based compensation of outstanding equity awards during the six months ended June 2023 was based off a lower weighted average grant date fair value compared to that of outstanding equity awards from the same period in 2022.

⁽⁴⁾ Total amount for the six months ended June 30, 2023 consisted of $3 million of employee severance and other personnel reduction costs. Total amount for the three months ended June 30, 2022 includes restructuring charges consisting of $2 million in impairment of lease assets and property and equipment. Total amount for the six months ended June 30, 2022 includes a $15 million one-time discretionary cash bonus paid to select employees to cover their respective tax obligations triggered by the settlement of their RSUs that vested upon the Company’s IPO as well as restructuring charges consisting of $3 million of employee severance and $6 million in impairment of lease assets and property and equipment.

⁽⁵⁾ Impairment of lease assets and property and equipment unrelated to restructuring activities.

ContextLogic Inc. Reconciliation of GAAP Net Cash Used in Operating Activities to Non-GAAP Free Cash Flow (in millions) (unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
Net cash used operating activities	$	(88	)	$	(67	)	$	(180	)	$	(213	)
Less:
Purchases of property and equipment and development of internal-use software		3			—			3			2
Free Cash Flow	$	(91	)	$	(67	)	$	(183	)	$	(215	)

Contacts

Investor Relations:

Ralph Fong, Wish
[email protected]

Media contacts:

Carys Comerford-Green, Wish
[email protected]

August 4, 2023 6:05 am

One Liberty Properties Reports Second Quarter 2023 Results

— Rental Income Grew 4.2% Year-over-Year —

— Company Repurchases $1.5 Million of Shares —

GREAT NECK, N.Y., Aug. 03, 2023 (GLOBE NEWSWIRE) — One Liberty Properties, Inc. (NYSE: OLP), a real estate investment trust focused on net leased properties, today announced operating results for the quarter ended June 30, 2023.

Patrick J. Callan, Jr., President and Chief Executive Officer of One Liberty commented “We are pleased that our efforts resulted in 4.2% growth in rental income for the second quarter over the corresponding prior year quarter. Despite the challenging macro-economic backdrop, we continue to make progress in growing revenue and enhancing our portfolio. Our efforts, including the evolution toward an industrial focused portfolio, should contribute to our performance as we move forward.”

Operating Results:

Rental income was $22.4 million in the second quarter of 2023 compared to $21.5 million in the second quarter of 2022. The 4.2% growth is due primarily to an additional $567,000 from the net impact of acquisitions and dispositions and a net $368,000 increase in same-store rental income. The Company benefited during the quarter from favorable lease amendments and extensions, and from adding tenants at vacant properties.

Total operating expenses in the second quarter of 2023 were $14.3 million compared to $13.5 million for the second quarter of 2022. The change is due primarily to increases in real estate expenses, depreciation and amortization, and general and administrative expenses.

Net income attributable to One Liberty in the second quarter of 2023 was $6.5 million, or $0.30 per diluted share, compared to $16.8 million, or $0.79 per diluted share, in the second quarter of 2022. Net income for the 2023 quarter includes $3.2 million, or $0.15 per diluted share, from the gain on the sale of the Havertys retail location in Duluth, Georgia. Net income for the 2022 quarter includes $8.1 million, or $0.38 per diluted share, of gains from property sales and $5.4 million, or $0.25 per diluted share, from the settlement of litigation.

Funds from Operations, or FFO¹, was $9.6 million, or $0.45 per diluted share, for the second quarter of 2023, compared to $14.7 million, or $0.69 per diluted share, in the second quarter of 2022. The change is due primarily to the inclusion, in the 2022 period, of the $5.4 million litigation settlement offset by a $935,000 net increase in rental income.

Adjusted Funds from Operations, or AFFO, was $10.8 million, or $0.50 per diluted share, for the quarter ended June 30, 2023, compared to $10.4 million, or $0.49 per diluted share, for the corresponding quarter in the prior year. Contributing to the improvement in the current quarter was growth in rental income offset by increases in real estate expenses, interest expense and general administrative expenses.

Gains on property sales are excluded from the calculation of FFO and AFFO.

Diluted per share net income, FFO and AFFO were impacted negatively in the quarter ended June 30, 2023 compared to the corresponding quarter in the prior year by an average increase of approximately 175,000 in the weighted average number of shares of common stock outstanding as a result of stock issuances in connection with the equity incentive, dividend reinvestment and at-the-market equity offering programs, offset by the Company’s repurchase of approximately 73,000 shares in the current quarter.

_______________
¹^{A reconciliation of GAAP amounts to non-GAAP amounts (}^i.e^{., FFO and AFFO) is presented with the financial information included in this release.}

Dispositions:

On May 31, 2023, the Company sold the Havertys furniture retail location located in Duluth, Georgia, for a gross sales price of $6.0 million and realized a gain of $3.2 million. In the six months ended June 30, 2023 and 2022, this property contributed nominal rental income and total operating expense, respectively.

Acquisition Subsequent to the Quarter Ended June 30, 2023:

As previously reported, on July 13, 2023 One Liberty purchased an industrial distribution center located in a suburb of Columbia, South Carolina, for $13.4 million, including the assumption of $4.3 million of mortgage debt. One Liberty anticipates that this property will contribute, in the six months ending December 31, 2023, approximately $367,000 of base rent and $91,000 of mortgage interest expense.

Balance Sheet:

At June 30, 2023, the Company had $8.1 million of cash and cash equivalents, total assets of $769.4 million, total debt of $417.6 million, and total stockholders’ equity of $312.0 million.

At August 1, 2023, One Liberty’s available liquidity was approximately $90.8 million, including $7.3 million of cash and cash equivalents (including the credit facility’s required $3.0 million average deposit maintenance balance) and $83.5 million available under its credit facility.

Share Buyback:

During the quarter ended June 30, 2023, the Company repurchased 72,971 shares, or approximately $1.5 million of shares, at a weighted average price per share of $19.88. At June 30, 2023, the Company is authorized to repurchase approximately $6.0 million of its common stock.

Non-GAAP Financial Measures:

One Liberty computes FFO in accordance with the “White Paper on Funds from Operations” issued by the National Association of Real Estate Investment Trusts (“NAREIT”) and NAREIT’s related guidance. FFO is defined in the White Paper as net income (calculated in accordance with generally accepted accounting principles), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, impairment write-downs of certain real estate assets and investments in entities where the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis.

One Liberty computes adjusted funds from operations, or AFFO, by adjusting from FFO for its straight-line rent accruals and amortization of lease intangibles, deducting from income additional rent from ground lease tenant, income on settlement of litigation, income on insurance recoveries from casualties, lease termination and assignment fees, and adding back amortization of restricted stock and restricted stock unit compensation expense, amortization of costs in connection with our financing activities (including our share of our unconsolidated joint ventures), debt prepayment costs and amortization of lease incentives and mortgage intangible assets. Since the NAREIT White Paper does not provide guidelines for computing AFFO, the computation of AFFO may vary from one REIT to another.

One Liberty believes that FFO and AFFO are useful and standard supplemental measures of the operating performance for equity REITs and are used frequently by securities analysts, investors and other interested parties in evaluating equity REITs, many of which present FFO and AFFO when reporting their operating results. FFO and AFFO are intended to exclude GAAP historical cost depreciation and amortization of real estate assets, which assumes that the value of real estate assets diminish predictability over time. In fact, real estate values have historically risen and fallen with market conditions. As a result, management believes that FFO and AFFO provide a performance measure that when compared year over year, should reflect the impact to operations from trends in occupancy rates, rental rates, operating costs, interest costs and other matters without the inclusion of depreciation and amortization, providing a perspective that may not be necessarily apparent from net income. Management also considers FFO and AFFO to be useful in evaluating potential property acquisitions.

FFO and AFFO do not represent net income or cash flows from operating, investing or financing activities as defined by GAAP. FFO and AFFO should not be an alternative to net income as a reliable measure of our operating performance nor as an alternative to cash flows as measures of liquidity. FFO and AFFO do not measure whether cash flow is sufficient to fund all of the Company’s cash needs.

Forward Looking Statement:

Certain information contained in this press release, together with other statements and information publicly disseminated by One Liberty Properties, Inc. is forward looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. We intend such forward looking statements to be covered by the safe harbor provision for forward looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for the purpose of complying with these safe harbor provisions. Forward looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words “may,” “will,” “could,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions or variations thereof. Information regarding important factors that could cause actual outcomes or other events to differ materially from any such forward looking statements appear in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and the reports filed with the Securities and Exchange Commission thereafter; in particular, the sections of such reports entitled “Cautionary Note Regarding Forward Looking Statements”, “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, included therein. In addition, estimates of rental income for 2023 exclude any related variable rent, anticipated property purchases and/or sales may not be completed during the period indicated or at all, and estimates of gains from property sales are subject to adjustment, among other things, because actual closing costs may differ from the estimated costs. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and which could materially affect the Company’s results of operations, financial condition, cash flows, performance or future achievements or events.

About One Liberty Properties:

One Liberty is a self-administered and self-managed real estate investment trust incorporated in Maryland in 1982. The Company acquires, owns and manages a geographically diversified portfolio consisting primarily of industrial and retail properties. Many of these properties are subject to long-term net leases under which the tenant is typically responsible for the property’s real estate taxes, insurance and ordinary maintenance and repairs.

Contact:
One Liberty Properties
Investor Relations
Phone: (516) 466-3100
www.1liberty.com

ONE LIBERTY PROPERTIES, INC.
CONDENSED BALANCE SHEETS
(Amounts in Thousands)
	(Unaudited)
	June 30,			December 31,
		2023			2022

ASSETS
Real estate investments, at cost	$	875,391		$	879,596
Accumulated depreciation		(179,906	)		(173,143	)
Real estate investments, net		695,485			706,453

Investment in unconsolidated joint ventures		10,521			10,400
Cash and cash equivalents		8,079			6,718
Unbilled rent receivable		17,060			16,079
Unamortized intangible lease assets, net		17,298			19,841
Other assets		20,938			23,764
Total assets	$	769,381		$	783,255

LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net	$	415,695		$	405,162
Line of credit-outstanding, net of $640 and $732 of deferred financing costs, respectively		1,860			21,068
Unamortized intangible lease liabilities, net		10,522			11,125
Other liabilities		28,349			28,963
Total liabilities		456,426			466,318

Total One Liberty Properties, Inc. stockholders’ equity		311,958			315,965
Non-controlling interests in consolidated joint ventures		997			972
Total equity		312,955			316,937
Total liabilities and equity	$	769,381		$	783,255

ONE LIBERTY PROPERTIES, INC. (NYSE: OLP)
(Amounts in Thousands, Except Per Share Data)
(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2023			2022			2023			2022
Revenues:
Rental income, net	$	22,407		$	21,472		$	45,359		$	43,003
Lease termination fee		—			—			—			25
Total revenues		22,407			21,472			45,359			43,028

Operating expenses:
Depreciation and amortization		6,114			5,905			12,259			11,748
General and administrative		4,165			3,973			8,204			7,765
Real estate expenses		3,954			3,549			8,078			7,236
State taxes		88			77			156			151
Total operating expenses		14,321			13,504			28,697			26,900

Other operating income
Gain on sale of real estate, net		3,180			8,050			4,714			12,699
Operating income		11,266			16,018			21,376			28,827

Other income and expenses:
Equity in earnings of unconsolidated joint ventures		60			112			145			228
Income on settlement of litigation		—			5,388			—			5,388
Other income		28			54			43			980
Interest:
Expense		(4,610	)		(4,353	)		(9,210	)		(8,659	)
Amortization and write-off of deferred financing costs		(205	)		(434	)		(407	)		(639	)

Net income		6,539			16,785			11,947			26,125
Net income attributable to non-controlling interests		(20	)		(18	)		(42	)		(35	)

Net income attributable to One Liberty Properties, Inc.	$	6,519		$	16,767		$	11,905		$	26,090


Net income per share attributable to common stockholders-diluted	$	0.30		$	0.79		$	0.55		$	1.23


Funds from operations – Note 1	$	9,570		$	14,741		$	19,684		$	25,377
Funds from operations per common share-diluted – Note 2	$	0.45		$	0.69		$	0.92		$	1.19

Adjusted funds from operations – Note 1	$	10,750		$	10,404		$	21,553		$	21,058
Adjusted funds from operations per common share-diluted – Note 2	$	0.50		$	0.49		$	1.01		$	0.99

Weighted average number of common shares outstanding:
Basic		20,571			20,364			20,544			20,372
Diluted		20,642			20,480			20,612			20,485

ONE LIBERTY PROPERTIES, INC. (NYSE: OLP)
(Amounts in Thousands, Except Per Share Data)
(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
Note 1:		2023			2022			2023			2022
NAREIT funds from operations is summarized in the following table:
GAAP net income attributable to One Liberty Properties, Inc.	$	6,519		$	16,767		$	11,905		$	26,090
Add: depreciation and amortization of properties		5,925			5,772			11,894			11,497
Add: our share of depreciation and amortization of unconsolidated joint ventures		130			130			259			259
Add: amortization of deferred leasing costs		189			133			365			251
Add: our share of amortization of deferred leasing costs of unconsolidated joint ventures		5			6			10			11
Deduct: gain on sale of real estate, net		(3,180	)		(8,050	)		(4,714	)		(12,699	)
Adjustments for non-controlling interests		(18	)		(17	)		(35	)		(32	)
NAREIT funds from operations applicable to common stock		9,570			14,741			19,684			25,377
Deduct: straight-line rent accruals and amortization of lease intangibles		(626	)		(917	)		(1,520	)		(1,483	)
Deduct: our share of straight-line rent accruals and amortization of lease intangibles of unconsolidated joint ventures		(4	)		(7	)		(9	)		(16	)
Deduct: income on settlement of litigation		—			(5,388	)		—			(5,388	)
Deduct: additional rent from ground lease tenant		(16	)		—			(16	)		—
Deduct: income on insurance recovery from casualty loss		—			—			—			(918	)
Deduct: lease termination fee income		—			—			—			(25	)
Deduct: our share of unconsolidated joint venture lease termination fee income		—			(25	)		—			(25	)
Add: amortization of restricted stock and RSU compensation		1,564			1,559			2,892			2,884
Add: amortization and write-off of deferred financing costs		205			434			407			639
Add: amortization of lease incentives		30			—			61			—
Add: amortization of mortgage intangible asset		23			—			46			—
Add: our share of amortization of deferred financing costs of unconsolidated joint ventures		4			4			8			8
Adjustments for non-controlling interests		—			3			—			5
Adjusted funds from operations applicable to common stock	$	10,750		$	10,404		$	21,553		$	21,058

Note 2:
NAREIT funds from operations is summarized in the following table:
GAAP net income attributable to One Liberty Properties, Inc.	$	0.30		$	0.79		$	0.55		$	1.23
Add: depreciation and amortization of properties		0.28			0.26			0.56			0.54
Add: our share of depreciation and amortization of unconsolidated joint ventures		0.01			0.01			0.01			0.01
Add: amortization of deferred leasing costs		0.01			0.01			0.02			0.01
Add: our share of amortization of deferred leasing costs of unconsolidated joint ventures		—			—			—			—
Deduct: gain on sale of real estate, net		(0.15	)		(0.38	)		(0.22	)		(0.60	)
Adjustments for non-controlling interests		—			—			—			—
NAREIT funds from operations per share of common stock-diluted (a)		0.45			0.69			0.92			1.19
Deduct: straight-line rent accruals and amortization of lease intangibles		(0.03	)		(0.04	)		(0.06	)		(0.08	)
Deduct: our share of straight-line rent accruals and amortization of lease intangibles of unconsolidated joint ventures		—			—			—			—
Deduct: income on settlement of litigation		—			(0.25	)		—			(0.25	)
Deduct: additional rent from ground lease tenant		—			—			—			—
Deduct: income on insurance recovery from casualty loss		—			—			—			(0.04	)
Deduct: lease termination fee income		—			—			—			—
Deduct: our share of unconsolidated joint venture lease termination fee income		—			—			—			—
Add: amortization of restricted stock and RSU compensation		0.07			0.07			0.13			0.14
Add: amortization and write-off of deferred financing costs		0.01			0.02			0.02			0.03
Add: amortization of lease incentives		—			—			—			—
Add: amortization of mortgage intangible asset		—			—			—			—
Add: our share of amortization of deferred financing costs of unconsolidated joint ventures		—			—			—			—
Adjustments for non-controlling interests		—			—			—			—
Adjusted funds from operations per share of common stock-diluted (a)	$	0.50		$	0.49		$	1.01		$	0.99

(a) The weighted average number of diluted common shares used to compute FFO and AFFO applicable to common stock includes unvested restricted shares that are excluded from the computation of diluted EPS.

August 4, 2023 6:04 am

Viad Corp Reports Results for the 2023 Second Quarter

Viad Corp Reports Results for the 2023 Second Quarter

Strong momentum continues for leisure travel to Pursuit’s markets and GES live event activity
GES second quarter results exceeded prior guidance; raising full year outlook
Second quarter year-over-year results impacted by sale of ON Services and known shifts in timing of events that resumed normal schedules in 2023 at GES

SCOTTSDALE, Ariz.–(BUSINESS WIRE)–
Viad Corp (NYSE: VVI), a leading provider of experiential leisure travel and live events and marketing experiences, today reported results for the 2023 second quarter.

Financial Highlights

	Three months ended June 30,
(in millions)	2023		2022		Change
Revenue	$	320.3	$	319.2	$	1.1
Net Income Attributable to Viad	$	11.0	$	19.8	$	(8.9	)
Net Income Before Other Items*	$	11.8	$	22.2	$	(10.3	)
Consolidated Adjusted EBITDA*	$	42.9	$	47.5	$	(4.6	)

Revenue of $320.3 million increased $1.1 million as higher international tourism in Western Canada and Iceland and stronger demand for exhibitions and events more than offset a revenue decline of approximately $16 million due to the sale of ON Services and anticipated shifts in timing of events at GES.
Net income attributable to Viad of $11.0 million and income before other items of $11.8 million decreased $8.9 million and $10.3 million, respectively, primarily due to anticipated lower GES adjusted EBITDA, higher interest expense, and higher taxes, partially offset by higher Pursuit adjusted EBITDA.
Consolidated adjusted EBITDA* of $42.9 million declined $4.6 million primarily due to lower GES revenue and increased staffing levels at GES as compared to the 2022 second quarter when a faster than expected recovery in event activity significantly outpaced workforce restaffing, partially offset by stronger visitation and margins at Pursuit.

* Refer to Table Two of this press release for a discussion and reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.

Steve Moster, Viad’s president and chief executive officer, commented, “We delivered solid second quarter results and are pleased to once again be raising our full year guidance on stronger than expected GES performance. Pursuit delivered significant year-over-year growth in the quarter, which continues to accelerate as we move through the seasonally strong third quarter.”

Moster continued, “We are very encouraged by the robust demand we’re seeing for Pursuit’s leisure travel markets and the continued growth in GES’ live events, and we remain confident that we will deliver substantial growth this year.”

Pursuit Results

	Three months ended June 30,
(in millions)	2023		2022		Change
Revenue	$	88.5	$	77.6	$	10.9
Adjusted EBITDA*	$	19.5	$	15.6	$	3.9

* Refer to Table Two of this press release for a discussion and reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.

Pursuit revenue of $88.5 million increased $10.9 million (14.0%) from the 2022 second quarter primarily due to stronger international visitation.
Pursuit adjusted EBITDA of $19.5 million improved by $3.9 million from the 2022 second quarter primarily due to higher revenue and improved margin.

Regarding Pursuit’s results, Moster commented, “Pursuit’s revenue and adjusted EBITDA reached a new all-time high for the second quarter reflecting the strength of our Refresh, Build, Buy growth strategy. The new experiences that we’ve acquired or opened from 2019 to present contributed about 30 percent of Pursuit’s second quarter revenue and posted year-over-year growth of 27 percent. Additionally, our same-store experiences posted strong year-over-year revenue growth of 9 percent.”

Moster continued, “Our team did a terrific job maximizing revenue by strategically driving rate while increasing attraction visitation and maintaining strong hotel occupancy during the quarter. Additionally, we continue to benefit from the acceleration of international leisure travel to our markets. Demand for our iconic, unforgettable and inspiring hotels and attractions is strong and with our seasonally robust third quarter ahead, we remain confident in our ability to continue driving significant growth at Pursuit.”

GES Results

	Three months ended June 30,
(in millions)	2023			2022			Change
Revenue
Spiro	$	80.4		$	89.4		$	(9.1	)
GES Exhibitions		154.5			154.6			(0.1	)
Inter-segment Eliminations		(3.1	)		(2.4	)		(0.6	)
Total GES	$	231.8		$	241.6		$	(9.8	)

Adjusted EBITDA*
Spiro	$	8.9		$	15.8		$	(6.8	)
GES Exhibitions		17.9			19.4			(1.5	)
Total GES	$	26.8		$	35.1		$	(8.3	)

* Refer to Table Two of this press release for a discussion and reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.

Total GES revenue of $231.8 million decreased 4.0% from the 2022 second quarter primarily due to the sale of ON Services and 2022 shows that were postponed from the first quarter into the second quarter that returned to their normal first quarter schedules in 2023, partially offset by live event activity strength and major non-annual shows in the 2023 second quarter.
Total GES adjusted EBITDA of $26.8 million decreased by $8.3 million from the 2022 second quarter primarily due to lower revenue and the rebuilding of the workforce from pandemic levels.

Regarding GES’ results, Moster commented, “GES’ results exceeded our expectations for the second quarter with higher than anticipated same-show revenue growth and the benefits of a series of margin enhancing lean activities. Same-show revenues for events produced by our U.S. Exhibitions team grew to 99 percent of 2019 pre-pandemic levels as compared to 87 percent in the 2022 second quarter. At Spiro, spend from existing corporate clients is also near 2019 pre-pandemic levels, and we continue to win new clients in this large, fragmented market.”

Moster continued, “I continue to be impressed with the team’s focus on margin enhancement and the speed and strength of GES’ recovery from the pandemic. We remain committed to driving meaningful free cash flow through ongoing lean initiatives at GES Exhibitions and profitable growth at Spiro.”

Cash Flow and Balance Sheet Highlights

Our 2023 second quarter cash flow from operations was approximately $28.7 million and our capital expenditures totaled approximately $21 million. We paid approximately $2 million in cash dividends on our convertible preferred equity and our net debt payments were approximately $1 million.

We ended the second quarter with total liquidity of $148.2 million, comprising cash and cash equivalents of $53 million and $95 million of capacity available on our revolving credit facility ($100 million total facility size, less $5 million in letters of credit). Our debt totaled $477.9 million, including $393 million outstanding on our Term Loan B, financing lease obligations of approximately $64 million (which primarily comprises real estate leases at Pursuit), and approximately $21 million in other debt.

Moster commented, “We remain committed to maintaining a solid liquidity position by maximizing our cash flows from operations and selectively investing in high-return opportunities to continue scaling Pursuit through our Refresh, Build, Buy growth strategy.”

2023 Outlook

Regarding Viad’s outlook, Moster commented, “We are pleased to be raising our full year guidance based on GES’ second quarter performance and our outlook for continued strong demand for GES’ live events and Pursuit’s leisure travel markets over the balance of the year.”

Moster continued, “For the third quarter, we expect another record-breaking quarter at Pursuit with significant growth in adjusted EBITDA, partially offset by lower GES revenue due to show rotation and the sale of ON Services.”

Our guidance for Viad consolidated is as follows:

(in millions)	Third Quarter	Full Year
Viad Consolidated
Revenue	$340 to $370 vs. $382.7 in 2022	Up mid-single digits vs. $1,127.3 in 2022
Adjusted EBITDA	$77.5 to $89.5 vs. $82.0 in 2022	$126 to $143 vs. $116.1 in 2022
Cash flow from Operations	$55 to $60	$75 to $85
Capital Expenditures	$25 to $30	$70 to $75 (including growth capex of ~$35)

Our guidance for Pursuit is as follows:

(in millions)	Third Quarter	Full Year	Key Assumptions
Pursuit
Revenue	$175 to $190 vs. $163.8 in 2022	Up ~15% vs. $299.3 in 2022	Expect revenue growth in 2023 will be driven by: Lifting of all COVID restrictions at the Canadian border Acceleration of new experiences Ongoing focus on improving the guest experience
Adjusted EBITDA	$87 to $95 vs. $75.1 in 2022	$85 to $95 vs. $67.9 in 2022	Anticipate FY margin expansion as visitation increases, the performance of newer experiences improves, and pandemic-era cost pressures ease

Our guidance for GES is as follows:

(in millions)	Third Quarter	Full Year	Key Assumptions
GES
Revenue	$165 to $180 vs. $218.9 in 2022	Up low single digits vs. $828.0 in 2022	Expect FY revenue growth from stronger demand for exhibition and event services and new Spiro wins will more than offset negative show rotation ($30M for FY; $50M for Q3) and the sale of ON Services ($50M for FY; $14M for Q3) Exhibitions same show revenue expected to approach 2019 levels Spiro clients’ marketing spend expected to be similar to 2022, plus new client wins
Adjusted EBITDA	($6) to ($2) vs. $10.7 in 2022	$54 to $62 vs. $61.3 in 2022	We intend to prudently invest in talent and capabilities at Spiro to fuel growth in 2023 and beyond

Conference Call Details

Management will host a conference call to review second quarter 2023 results on Thursday, August 3, 2023, at 5 p.m. (Eastern Time).

To join the live conference call, please register at least 10 minutes before the start of the call using the following link: https://conferencingportals.com/event/tQSnvHGq. After registering, an email confirmation will be sent that includes dial-in information as well as unique codes for entry into the live call. Registration will be open throughout the call.

A live audio webcast of the call will also be available in listen-only mode through the “Investors” section of our website. A replay of the webcast will be available on our website shortly after the call and, for a limited time, by calling (800) 770-2030 or (647) 362-9199 and entering the conference ID 90039.

Additionally, we will post a supplemental presentation, containing highlights of our results, trends and outlook, on the “Investors” section of our website prior to the conference call. We will refer to this presentation during the call.

About Viad

Viad (NYSE: VVI), is a leading global provider of extraordinary experiences, including hospitality and leisure activities, experiential marketing, and live events through two businesses: Pursuit and GES. Our business strategy focuses on delivering extraordinary experiences for our teams, clients and guests, and significant and sustainable growth and above-market returns for our shareholders. Viad is an S&P SmallCap 600 company.

Pursuit is a collection of inspiring and unforgettable travel experiences in Alaska, Nevada, and Montana in the United States, in and around Banff, Jasper, and Vancouver in Canada, and in Reykjavik, Iceland. Pursuit’s collection includes attractions, lodges and hotels, and sightseeing tours that connect guests with iconic places.

GES is a global, full-service live events company offering a comprehensive range of services to the world’s leading brands and event organizers through two reportable segments, Spiro and GES Exhibitions. Spiro is an experiential marketing agency that partners with leading brands around the world to manage and elevate their global experiential marketing activities. GES Exhibitions is a global exhibition services company that partners with leading exhibition and conference organizers as a full-service provider of strategic and logistics solutions to manage the complexity of their shows with teams throughout North America, Europe, and the Middle East.

For more information, visit www.viad.com.

Forward-Looking Statements

This press release contains a number of forward-looking statements. Words, and variations of words, such as “will,” “may,” “expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,” “estimate,” “anticipate,” “deliver,” “seek,” “aim,” “potential,” “target,” “outlook,” and similar expressions are intended to identify our forward-looking statements. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions, or goals also are forward-looking statements. These forward-looking statements are not historical facts and are subject to a host of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those in the forward-looking statements.

Important factors that could cause actual results to differ materially from those described in our forward-looking statements include, but are not limited to, the following:

general economic uncertainty in key global markets and a worsening of global economic conditions;
travel industry disruptions;
the impact of our overall level of indebtedness, as well as our financial flexibility;
identified material weaknesses in our internal control over financial reporting;
seasonality of our businesses;
the impact of the COVID-19 pandemic on our financial condition, liquidity, and cash flow;
our ability to anticipate and adjust for the impact of the COVID-19 pandemic on our businesses;
unanticipated delays and cost overruns of our capital projects, and our ability to achieve established financial and strategic goals for such projects;
our exposure to labor shortages, turnover, and labor cost increases;
the importance of key members of our account teams to our business relationships;
our ability to manage our business and continue our growth if we lose any of our key personnel;
the competitive nature of the industries in which we operate;
our dependence on large exhibition event clients;
adverse effects of show rotation on our periodic results and operating margins;
transportation disruptions and increases in transportation costs;
natural disasters, weather conditions, accidents, and other catastrophic events;
our exposure to labor cost increases and work stoppages related to unionized employees;
our multi-employer pension plan funding obligations;
our ability to successfully integrate and achieve established financial and strategic goals from acquisitions;
our exposure to cybersecurity attacks and threats;
our exposure to currency exchange rate fluctuations;
liabilities relating to prior and discontinued operations; and
compliance with laws governing the storage, collection, handling, and transfer of personal data and our exposure to legal claims and fines for data breaches or improper handling of such data.

For a more complete discussion of the risks and uncertainties that may affect our business or financial results, please see Item 1A, “Risk Factors,” of our most recent annual report on Form 10-K filed with the SEC and in subsequent filings we make with the SEC. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this press release except as required by applicable law or regulation.

Forward-Looking Non-GAAP Measures

The company has not quantitatively reconciled its guidance for adjusted EBITDA to its respective most comparable GAAP financial measure because certain reconciling items that impact this metric, including provision for income taxes, interest expense, restructuring or impairment charges, acquisition-related costs, and attraction start-up costs have not occurred, are out of the company’s control, or cannot be reasonably predicted. Accordingly, reconciliations to the nearest GAAP financial measure are not available without unreasonable effort. Please note that the unavailable reconciling items could significantly impact the company’s results as reported under GAAP.

VIAD CORP AND SUBSIDIARIES
TABLE ONE – QUARTERLY RESULTS
(UNAUDITED)

	Three months ended June 30,											Six months ended June 30,
(in thousands, except per share data)	2023			2022			$ Change			% Change		2023			2022			$ Change			% Change

Revenue:
Pursuit	$	88,474		$	77,599		$	10,875		14.0	%		121,137			101,383			19,754		19.5	%
GES:
Spiro		80,368			89,425			(9,057	)	-10.1	%	$	140,730		$	132,241		$	8,489		6.4	%
GES Exhibitions		154,534			154,600			(66	)	0.0	%		324,031			266,431			57,600		21.6	%
Inter-segment eliminations		(3,065	)		(2,421	)		(644	)	-26.6	%		(4,796	)		(3,492	)		(1,304	)	-37.3	%
Total GES		231,837			241,604			(9,767	)	-4.0	%	$	459,965		$	395,180		$	64,785		16.4	%
Total revenue	$	320,311		$	319,203		$	1,108		0.3	%	$	581,102		$	496,563		$	84,539		17.0	%

Segment operating income (loss):
Pursuit	$	9,811		$	5,571			4,240		76.1	%		(9,301	)		(15,627	)		6,326		40.5	%
GES:
Spiro		8,279			14,847			(6,568	)	-44.2	%		11,453			14,608		$	(3,155	)	-21.6	%
GES Exhibitions		15,354			16,273			(919	)	-5.6	%		25,764			14,918			10,846		72.7	%
Total GES		23,633			31,120			(7,487	)	-24.1	%		37,217			29,526			7,691		26.0	%
Segment operating income	$	33,444		$	36,691		$	(3,247	)	-8.8	%	$	27,916		$	13,899		$	14,017		**
Corporate eliminations		16			17			(1	)	-5.9	%		32			34			(2	)	-5.9	%
Corporate activities		(3,511	)		(3,440	)		(71	)	-2.1	%		(6,676	)		(6,113	)		(563	)	-9.2	%
ON Services sale purchase price adjustment		(204	)		–			(204	)	**			(204	)		–			(204	)	**
Restructuring charges (Note A)		(192	)		(1,426	)		1,234		86.5	%		(645	)		(2,080	)		1,435		69.0	%
Impairment charges		–			–			–		**			–			(583	)		583		-100.0	%
Other expense, net		(448	)		(612	)		164		26.8	%		(979	)		(1,250	)		271		21.7	%
Net interest expense (Note B)		(12,356	)		(7,761	)		(4,595	)	-59.2	%		(24,605	)		(13,638	)		(10,967	)	-80.4	%
Income (loss) from continuing operations before income taxes		16,749			23,469			(6,720	)	-28.6	%		(5,161	)		(9,731	)		4,570		47.0	%
Income tax expense (Note C)		(5,028	)		(3,359	)		(1,669	)	-49.7	%		(4,450	)		(777	)		(3,673	)	**
Income (loss) from continuing operations		11,721			20,110			(8,389	)	-41.7	%		(9,611	)		(10,508	)		897		8.5	%
Income (loss) from discontinued operations		(143	)		52			(195	)	**			(201	)		327			(528	)	**
Net income (loss)		11,578			20,162			(8,584	)	-42.6	%		(9,812	)		(10,181	)		369		3.6	%
Net (income) loss attributable to noncontrolling interest		(903	)		(451	)		(452	)	**			(505	)		753			(1,258	)	**
Net loss attributable to redeemable noncontrolling interest		286			128			158		**			409			266			143		53.8	%
Net income (loss) attributable to Viad	$	10,961		$	19,839		$	(8,878	)	-44.8	%	$	(9,908	)	$	(9,162	)	$	(746	)	-8.1	%

Amounts Attributable to Viad:
Income (loss) from continuing operations	$	11,104		$	19,787		$	(8,683	)	-43.9	%	$	(9,707	)	$	(9,489	)	$	(218	)	-2.3	%
Income (loss) from discontinued operations		(143	)		52			(195	)	**			(201	)		327			(528	)	**
Net income (loss)	$	10,961		$	19,839		$	(8,878	)	-44.8	%	$	(9,908	)	$	(9,162	)	$	(746	)	-8.1	%

Income (loss) per common share attributable to Viad (Note D):
Basic income (loss) per common share	$	0.33		$	0.64		$	(0.31	)	-48.4	%	$	(0.66	)	$	(0.67	)	$	0.01		1.5	%
Diluted income (loss) per common share	$	0.33		$	0.64		$	(0.31	)	-48.4	%	$	(0.66	)	$	(0.67	)	$	0.01		1.5	%

Weighted-average common shares outstanding:
Basic weighted-average outstanding common shares		20,840			20,571			269		1.3	%		20,796			20,544			252		1.2	%
Additional dilutive shares related to share-based compensation		135			160			(25	)	-15.6	%		–			–			–		**
Diluted weighted-average outstanding common shares		20,975			20,731			244		1.2	%		20,796			20,544			252		1.2	%

*Adjusted EBITDA by Reportable Segment:**
Pursuit	$	19,482		$	15,613		$	3,869		24.8	%	$	9,167		$	4,115		$	5,052		**
GES:
Spiro		8,940			15,750			(6,810	)	-43.2	%		12,677			16,492			(3,815	)	-23.1	%
GES Exhibitions		17,905			19,381			(1,476	)	-7.6	%		30,912			21,359			9,553		44.7	%
Total GES		26,845			35,131			(8,286	)	-23.6	%		43,589			37,851			5,738		15.2	%
Corporate		(3,470	)		(3,268	)		(202	)	-6.2	%		(6,507	)		(5,802	)		(705	)	-12.2	%
Consolidated Adjusted EBITDA		42,857			47,476			(4,619	)	-9.7	%		46,249			36,164			10,085		27.9	%

	As of June 30,
Capitalization Data:		2023			2022		$ Change			% Change
Cash and cash equivalents		53,179			54,516			(1,337	)	-2.5	%
Total debt		477,876			492,297			(14,421	)	-2.9	%
Viad shareholders’ equity		16,487			(7,591	)		24,078		**
Non-controlling interests (redeemable and non-redeemable)		88,216			88,779			(563	)	-0.6	%
Convertible Series A Preferred Stock (Note E):
Convertible preferred stock (including accumulated dividends paid in kind)***		141,827			141,827			–		0.0	%
Equivalent number of common shares		6,674			6,674			–		0.0	%

* Refer to Table Two for a discussion and reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.
** Change is greater than +/- 100 percent
*** Amount shown excludes transaction costs, which are netted against the value of the preferred shares when presented on Viad’s balance sheet.

VIAD CORP AND SUBSIDIARIES
TABLE ONE – NOTES TO QUARTERLY RESULTS
(UNAUDITED)
(A)	Restructuring Charges — The decrease in restructuring charges during the three and six months ended June 30, 2023 was primarily related to our 2022 transformation and streamlining efforts at GES to significantly reduce costs and create a lower and more flexible cost structure focused on servicing our more profitable market segments.

(B)	Net Interest Expense — The increase in interest expense during the three and six months ended June 30, 2023 was primarily due to higher interest rates in 2023, and to a lesser extent to a $1.9 million reduction in capitalized interest recorded during the six months ended June 30, 2023 as compared to the six months ended June 30, 2022.

(C)	Income Tax Expense – The effective tax rate was 30.0% for the three months ended June 30, 2023 and 14.3% for the three months ended June 30, 2022. The effective tax rate was a negative 86.2% for the six months ended June 30, 2023 and negative 8.0% for the six months ended June 30, 2022. The effective rate differed from the 21% federal rate for the three months ended June 30, 2023 and the three months ended June 30, 2022 as a result of excluding the tax benefit on jurisdictions where we have a valuation allowance and the change in income or loss in our jurisdictions. The effective rate differed from the federal rate for the six months ended June 30, 2023 and the six months ended June 30, 2022 also as a result of excluding tax benefits in certain jurisdictions, the mix of income or loss by jurisdiction, and the $2.1 million benefit taken in the first quarter of 2023 on certain separate U.S. state jurisdictions.

(D)	Income (Loss) per Common Share — We apply the two-class method in calculating income (loss) per common share as preferred stock and unvested share-based payment awards that contain nonforteitable rights to dividends are considered participating securities. Accordingly, such securities are included in the earnings allocation in calculating income per share.

	Diluted income (loss) per common share is calculated using the more dilutive of the two-class method or as-converted method. The two-class method uses net income (loss) available to common stockholders and assumes conversion of all potential shares other than participating securities. The as-converted method uses net income (loss) available to common shareholders and assumes conversion of all potential shares including participating securities. Dilutive potential common shares include outstanding stock options, unvested restricted share units and convertible preferred stock.

	Additionally, the adjustment to the carrying value of redeemable non-controlling interests is reflected in income (loss) per common share.

	The components of basic and diluted income (loss) per share are as follows:

		Three months ended June 30,											Six months ended June 30,
	(in thousands)	2023			2022			$ Change			% Change		2023			2022			$ Change			% Change

	Net income (loss) attributable to Viad	$	10,961		$	19,839		$	(8,878	)	-44.8	%	$	(9,908	)	$	(9,162	)	$	(746	)	-8.1	%
	Convertible preferred stock dividends paid in cash		(1,950	)		(1,950	)		–		0.0	%		(3,900	)		(3,900	)		–		0.0	%
	Adjustment to the redemption value of redeemable noncontrolling interest		–			(412	)		412		-100.0	%		–			(763	)		763		-100.0	%
	Undistributed income (loss) attributable to Viad		9,011			17,477			(8,466	)	-48.4	%		(13,808	)		(13,825	)		17		0.1	%
	Less: Allocation to participating securities		(2,186	)		(4,293	)		2,107		49.1	%		–			–			–		**
	Net income (loss) allocated to Viad common shareholders (basic)	$	6,825		$	13,184		$	(6,359	)	-48.2	%	$	(13,808	)	$	(13,825	)	$	17		0.1	%
	Add: Allocation to participating securities		11			25			–		-56.0	%		–			–			–		**
	Net income (loss) allocated to Viad common shareholders (diluted)	$	6,836		$	13,209		$	(6,359	)	-48.2	%	$	(13,808	)	$	(13,825	)	$	17		0.1	%

	Basic weighted-average outstanding common shares		20,840			20,571			269		1.3	%		20,796			20,544			252		1.2	%
	Additional dilutive shares related to share-based compensation		135			160			(25	)	-15.6	%		–			–			–		**
	Diluted weighted-average outstanding common shares		20,975			20,731			244		1.2	%		20,796			20,544			252		1.2	%


(E)	Convertible Series A Preferred Stock — On August 5, 2020, we entered into an Investment Agreement with funds managed by private equity firm Crestview Partners, relating to the issuance of 135,000 shares of newly issued Convertible Series A Preferred Stock, par value $0.01 per share, for an aggregate purchase price of $135 million or $1,000 per share. The Convertible Series A Preferred Stock carries a 5.5% cumulative quarterly dividend, which is payable in cash or in-kind at Viad’s option and is convertible into shares of our common stock at a conversion price of $21.25 per share.

VIAD CORP AND SUBSIDIARIES
TABLE TWO – NON-GAAP FINANCIAL MEASURES
(UNAUDITED)

IMPORTANT DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES

This document includes the presentation of “Income (Loss) Before Other Items”, “Adjusted EBITDA”, “Segment Operating Income (Loss)”, and “Adjusted Segment Operating Income (Loss)”, which are supplemental to results presented under accounting principles generally accepted in the United States of America (“GAAP”) and may not be comparable to similarly titled measures presented by other companies. These non-GAAP measures are utilized by management to facilitate period-to-period comparisons and analysis of Viad’s operating performance and should be considered in addition to, but not as substitutes for, other similar measures reported in accordance with GAAP. The use of these non-GAAP financial measures is limited, compared to the GAAP measure of net income attributable to Viad, because they do not consider a variety of items affecting Viad’s consolidated financial performance as reconciled below. Because these non-GAAP measures do not consider all items affecting Viad’s consolidated financial performance, a user of Viad’s financial information should consider net income attributable to Viad as an important measure of financial performance because it provides a more complete measure of the Company’s performance.

Income (Loss) Before Other Items, Segment Operating Income (Loss), and Adjusted Segment Operating Income (Loss) are considered useful operating metrics, in addition to net income attributable to Viad, as potential variations arising from non-operational expenses/income are eliminated, thus resulting in additional measures considered to be indicative of Viad’s performance. Management believes that the presentation of Adjusted EBITDA provides useful information to investors regarding Viad’s results of operations for trending, analyzing and benchmarking the performance and value of Viad’s business. Management also believes that the presentation of Adjusted EBITDA for acquisitions and other major capital projects enables investors to assess how effectively management is investing capital into major corporate development projects, both from a valuation and return perspective.

		Three months ended June 30,											Six months ended June 30,
(in thousands, except per share data)		2023			2022			$ Change			% Change		2023				2022			$ Change			% Change
Income (loss) before other items:
	Net income (loss) attributable to Viad	$	10,961		$	19,839		$	(8,878	)	-44.8	%	$	(9,908	)		$	(9,162	)	$	(746	)	-8.1	%
	(Income) loss from discontinued operations attributable to Viad		143			(52	)		195		**			201				(327	)		528		**
	Income (loss) from continuing operations attributable to Viad		11,104			19,787			(8,683	)	-43.9	%		(9,707	)			(9,489	)		(218	)	-2.3	%
	ON Services sale purchase price adjustment, pre-tax		204			–			204		**			204				–			204		**
	Restructuring charges, pre-tax		192			1,426			(1,234	)	-86.5	%		645				2,080			(1,435	)	-69.0	%
	Impairment charges, pre-tax		–			–			–		**			–				583			(583	)	-100.0	%
	Acquisition-related costs and other non-recurring expenses, pre-tax (Note A)		465			1,001			(536	)	-53.5	%		1,311				1,858			(547	)	-29.4	%
	Remeasurement of finance lease obligation attributable to Viad, pre-tax (Note B)		(184	)		–			(184	)	**			(823	)			–			(823	)	**
	Tax expense (benefit) on above items		60			(61	)		121		**			309				(138	)		447		**
	Favorable tax matters		–			–			–		**			(2,103	)			–			(2,103	)	**
	Income (loss) before other items	$	11,841		$	22,153		$	(10,312	)	-46.5	%	$	(10,164	)		$	(5,106	)	$	(5,058	)	-99.1	%


The components of income (loss) before other items per share are as follows:

	Income (loss) before other items (as reconciled above)		11,841			22,153			(10,312	)	-46.5	%		(10,164	)			(5,106	)		(5,058	)	-99.1	%
	Convertible preferred stock dividends paid in cash		(1,950	)		(1,950	)		–		0.0	%		(3,900	)			(3,900	)		–		0.0	%
	Undistributed income (loss) before other items attributable to Viad (Note C)		9,891			20,203			(10,312	)	-51.0	%		(14,064	)			(9,006	)		(5,058	)	-56.2	%
	Less: Allocation to participating securities (Note D)		(2,388	)		(4,934	)		2,546		51.6	%		–				–			–		**
	Diluted income (loss) before other items allocated to Viad common shareholders	$	7,503		$	15,269		$	(7,766	)	-50.9	%	$	(14,064	)		$	(9,006	)	$	(5,058	)	-56.2	%

	Diluted weighted-average outstanding common shares		20,975			20,731			244		1.2	%		20,796				20,544			252		1.2	%

	Income (loss) before other items per common share	$	0.36		$	0.74		$	(0.38	)	-51.4	%	$	(0.68	)	`	$	(0.44	)	$	(0.24	)	-54.5	%


(A)	Acquisition-related costs and other non-recurring expenses include:
		Three months ended June 30,											Six months ended June 30,
	(in thousands)	2023			2022								2023				2022
	Acquisition integration costs – Pursuit¹	$	–		$	119							$	30			$	119
	Acquisition transaction-related costs – Pursuit¹		42			93								74				401
	Acquisition transaction-related costs – Corporate²		6			(2	)							3				108
	Attraction start-up costs^{1, 3}		417			648								1,109				1,079
	Other non-recurring expenses^{2, 4}		–			143								95				151
	Acquisition-related and other non-recurring expenses, pre-tax	$	465		$	1,001							$	1,311			$	1,858

	¹ Included in segment operating loss
	² Included in corporate activities
	³ Includes costs related to the development of Pursuit’s new FlyOver attractions in Chicago and Toronto, and Forest Park Hotel in Canada.
	⁴ Includes non-capitalizable fees and expenses related to Viad’s credit facility refinancing efforts.

(B)	Remeasurement of finance lease obligation attributable to Viad represents the non-cash foreign exchange loss/(gain) included within Cost of Services related to the periodic remeasurement of the Sky Lagoon finance lease obligation that is attributed to Viad’s 51% interest in Sky Lagoon.

(C)	We exclude the adjustment to the redemption value of redeemable noncontrolling interest from the calculation of income before other items per share as it is a non-cash adjustment that does not affect net income or loss attributable to Viad.

(D)	Preferred stock and unvested share-based payment awards that contain nonforteitable rights to dividends are considered participating securities. Accordingly, such securities are included in the earnings allocation in calculating income (loss) before other items per common share unless the effect of such inclusion is anti-dilutive. The following table provides the share data used for calculating the allocation to participating securities if applicable:
		Three months ended June 30,											Six months ended June 30,
	(in thousands)	2023			2022								2023				2022
	Weighted-average outstanding common shares		20,975			20,731								20,796				20,544
	Effect of participating convertible preferred shares (if applicable)		6,674			6,674								–				–
	Effect of participating non-vested shares (if applicable)		–			25								–				–
	Weighted-average shares including effect of participating interests (if applicable)		27,649			27,430								20,796				20,544

** Change is greater than +/- 100 percent

VIAD CORP AND SUBSIDIARIES
TABLE TWO – NON-GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

	Three months ended June 30,											Six months ended June 30,
($ in thousands)	2023			2022			$ Change			% Change		2023			2022			$ Change			% Change

Viad Consolidated:
Revenue	$	320,311		$	319,203		$	1,108		0.3	%	$	581,102		$	496,563		$	84,539		17.0	%

Net income (loss) attributable to Viad	$	10,961		$	19,839		$	(8,878	)	-44.8	%	$	(9,908	)	$	(9,162	)	$	(746	)	-8.1	%
Net income (loss) attributable to noncontrolling interest		903			451			452		**			505			(753	)		1,258		**
Net loss attributable to redeemable noncontrolling interest		(286	)		(128	)		(158	)	**			(409	)		(266	)		(143	)	-53.8	%
(Income) loss from discontinued operations		143			(52	)		195		**			201			(327	)		528		**
Net interest expense		12,356			7,761			4,595		59.2	%		24,605			13,638			10,967		80.4	%
Income tax expense		5,028			3,359			1,669		49.7	%		4,450			777			3,673		**
Depreciation and amortization		12,804			13,207			(403	)	-3.1	%		25,279			26,486			(1,207	)	-4.6	%
ON Services sale purchase price adjustment		204			–			204		**			204			–			204		**
Restructuring charges		192			1,426			(1,234	)	-86.5	%		645			2,080			(1,435	)	-69.0	%
Impairment charges		–			–			–		**			–			583			(583	)	-100.0	%
Other expense		448			612			(164	)	-26.8	%		979			1,250			(271	)	-21.7	%
Start-up costs (A)		417			648			(231	)	-35.6	%		1,109			1,079			30		2.8	%
Acquisition transaction-related costs		48			91			(43	)	-47.3	%		77			509			(432	)	-84.9	%
Integration costs		–			119			(119	)	-100.0	%		30			119			(89	)	-74.8	%
Other non-recurring expenses		–			143			(143	)	-100.0	%		95			151			(56	)	-37.1	%
Remeasurement of finance lease obligation (B)		(361	)		–			(361	)	**			(1,613	)		–			(1,613	)	**
Consolidated Adjusted EBITDA	$	42,857		$	47,476		$	(4,619	)	-9.7	%	$	46,249		$	36,164		$	10,085		27.9	%
Adjusted EBITDA attributable to noncontrolling interest		(2,781	)		(2,092	)		(689	)	-32.9	%		(3,426	)		(2,404	)		(1,022	)	-42.5	%
Consolidated Adjusted EBITDA attributable to Viad	$	40,076		$	45,384		$	(5,308	)	-11.7	%	$	42,823		$	33,760		$	9,063		26.8	%

Consolidated Adjusted EBITDA by Business:
Pursuit	$	19,482		$	15,613		$	3,869		24.8	%	$	9,167		$	4,115		$	5,052		**
Total GES		26,845			35,131			(8,286	)	-23.6	%		43,589			37,851			5,738		15.2	%
Total Segment EBITDA		46,327			50,744			(4,417	)	-8.7	%		52,756			41,966			10,790		25.7	%
Corporate EBITDA		(3,470	)		(3,268	)		(202	)	-6.2	%		(6,507	)		(5,802	)		(705	)	-12.2	%
Consolidated Adjusted EBITDA	$	42,857		$	47,476		$	(4,619	)	-9.7	%	$	46,249		$	36,164		$	10,085		27.9	%


Pursuit Adjusted EBITDA:
Revenue	$	88,474		$	77,599		$	10,875		14.0	%	$	121,137		$	101,383		$	19,754		19.5	%
Cost of services and products		(78,663	)		(72,028	)		(6,635	)	-9.2	%		(130,438	)		(117,010	)		(13,428	)	-11.5	%
Segment operating income (loss)		9,811			5,571			4,240		76.1	%		(9,301	)		(15,627	)		6,326		40.5	%
Depreciation		8,279			7,866			413		5.3	%		16,413			15,648			765		4.9	%
Amortization		1,294			1,316			(22	)	-1.7	%		2,455			2,495			(40	)	-1.6	%
Start-up costs (A)		417			648			(231	)	-35.6	%		1,109			1,079			30		2.8	%
Acquisition transaction-related costs		42			93			(51	)	-54.8	%		74			401			(327	)	-81.5	%
Integration costs		–			119			(119	)	-100.0	%		30			119			(89	)	-74.8	%
Remeasurement of finance lease obligation (B)		(361	)		–			(361	)	**			(1,613	)		–			(1,613	)	**
Adjusted EBITDA	$	19,482		$	15,613		$	3,869		24.8	%	$	9,167		$	4,115		$	5,052		**
Adjusted EBITDA attributable to noncontrolling interest		(2,781	)		(2,092	)		(689	)	-32.9	%		(3,426	)		(2,404	)		(1,022	)	-42.5	%
Adjusted EBITDA attributable to Viad	$	16,701		$	13,521		$	3,180		23.5	%	$	5,741		$	1,711		$	4,030		**

Pursuit Operating margin		11.1	%		7.2	%				3.9	%		-7.7	%		-15.4	%				7.7	%
Pursuit Adjusted EBITDA margin		22.0	%		20.1	%				1.9	%		7.6	%		4.1	%				3.5	%


Total GES Adjusted EBITDA:
Revenue	$	231,837		$	241,604		$	(9,767	)	-4.0	%	$	459,965		$	395,180		$	64,785		16.4	%
Cost of services and products		(208,204	)		(210,484	)		2,280		1.1	%		(422,748	)		(365,654	)		(57,094	)	-15.6	%
Segment operating income		23,633			31,120			(7,487	)	-24.1	%		37,217			29,526			7,691		26.0	%
Depreciation		2,240			2,922			(682	)	-23.3	%		4,418			6,142			(1,724	)	-28.1	%
Amortization		972			1,089			(117	)	-10.7	%		1,954			2,183			(229	)	-10.5	%
Total GES Adjusted EBITDA	$	26,845		$	35,131		$	(8,286	)	-23.6	%	$	43,589		$	37,851		$	5,738		15.2	%

Total GES Operating margin		10.2	%		12.9	%				-2.7	%		8.1	%		7.5	%				0.6	%
Total GES Adjusted EBITDA margin		11.6	%		14.5	%				-3.0	%		9.5	%		9.6	%				-0.1	%

GES Adjusted EBITDA by Reportable Segment:
Spiro	$	8,940		$	15,750		$	(6,810	)	-43.2	%	$	12,677		$	16,492		$	(3,815	)	-23.1	%
GES Exhibitions		17,905			19,381			(1,476	)	-7.6	%		30,912			21,359			9,553		44.7	%
Total GES	$	26,845		$	35,131		$	(8,286	)	-23.6	%	$	43,589		$	37,851		$	5,738		15.2	%

Spiro Revenue	$	80,368		$	89,425		$	(9,057	)	-10.1	%	$	140,730		$	132,241		$	8,489		6.4	%

Spiro Adjusted EBITDA Margin		11.1	%		17.6	%				-6.5	%		9.0	%		12.5	%				-3.5	%

GES Exhibitions Revenue	$	154,534		$	154,600		$	(66	)	0.0	%	$	324,031		$	266,431		$	57,600		21.6	%

GES Exhibitions Adjusted EBITDA Margin		11.6	%		12.5	%				-0.9	%		9.5	%		8.0	%				1.5	%



(A) Includes costs related to the development of Pursuit’s new FlyOver attractions in Chicago and Toronto, and Forest Park Hotel in Canada.
(B) Remeasurement of finance lease obligation represents the non-cash foreign exchange loss/(gain) included within Cost of Services related to the periodic remeasurement of the Sky Lagoon finance lease obligation.

VIAD CORP AND SUBSIDIARIES
TABLE TWO – NON-GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

The following table provides 2022 revenue and Adjusted EBITDA, along with reconciliations of Adjusted EBITDA to the nearest GAAP measure, net income attributable to Viad.

	2022
($ in thousands)	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Full Year

Viad Consolidated:
Net income (loss) attributable to Viad	$	(29,001	)	$	19,839		$	38,121		$	(5,739	)	$	23,220
Net income (loss) attributable to noncontrolling interest		(1,204	)		451			3,784			(708	)		2,323
Net loss attributable to redeemable noncontrolling interest		(138	)		(128	)		(88	)		(394	)		(748	)
(Income) loss from discontinued operations		(275	)		(52	)		42			137			(148	)
Net interest expense		5,877			7,761			10,252			11,001			34,891
Income tax expense (benefit)		(2,582	)		3,359			8,810			386			9,973
Depreciation and amortization		13,279			13,207			12,956			13,041			52,483
Gain on sale of ON Services		–			–			–			(19,637	)		(19,637	)
Restructuring charges (recoveries)		654			1,426			1,387			(408	)		3,059
Impairment charges		583			–			–			–			583
Other expense		638			612			280			547			2,077
Start-up costs (A)		431			648			672			418			2,169
Acquisition transaction-related costs		418			91			765			53			1,327
Integration costs		–			119			17			101			237
Remeasurement of finance lease obligation (B)		–			–			4,961			(804	)		4,157
Other non-recurring expenses (C)		8			143			–			–			151
Consolidated Adjusted EBITDA	$	(11,312	)	$	47,476		$	81,959		$	(2,006	)	$	116,117

Consolidated Adjusted EBITDA by Business:
Pursuit	$	(11,498	)	$	15,613		$	75,085		$	(11,251	)	$	67,949
Total GES		2,720			35,131			10,685			12,721			61,257
Total Segment EBITDA		(8,778	)		50,744			85,770			1,470			129,206
Corporate EBITDA		(2,534	)		(3,268	)		(3,811	)		(3,476	)		(13,089	)
Consolidated Adjusted EBITDA	$	(11,312	)	$	47,476		$	81,959		$	(2,006	)	$	116,117


Pursuit Adjusted EBITDA:
Revenue	$	23,784		$	77,599		$	163,796		$	34,148		$	299,327
Cost of services and products		(44,982	)		(72,028	)		(104,047	)		(54,239	)		(275,296	)
Segment operating income (loss)		(21,198	)		5,571			59,749			(20,091	)		24,031
Depreciation		7,782			7,866			7,501			7,926			31,075
Amortization		1,179			1,316			1,351			1,175			5,021
Start-up costs (A)		431			648			672			418			2,169
Acquisition transaction-related costs		308			93			834			24			1,259
Integration costs		–			119			17			101			237
Remeasurement of finance lease obligation (B)		–			–			4,961			(804	)		4,157
Adjusted EBITDA	$	(11,498	)	$	15,613		$	75,085		$	(11,251	)	$	67,949

Pursuit Operating margin		-89.1	%		7.2	%		36.5	%		-58.8	%		8.0	%
Pursuit Adjusted EBITDA margin		-48.3	%		20.1	%		45.8	%		-32.9	%		22.7	%


Total GES Adjusted EBITDA:
Revenue	$	153,576		$	241,604		$	218,925		$	213,879		$	827,984
Cost of services and products		(155,170	)		(210,484	)		(212,335	)		(205,082	)		(783,071	)
Segment operating income (loss)		(1,594	)		31,120			6,590			8,797			44,913
Depreciation		3,220			2,922			2,970			2,802			11,914
Amortization		1,094			1,089			1,125			1,122			4,430
Total GES Adjusted EBITDA	$	2,720		$	35,131		$	10,685		$	12,721		$	61,257

Total GES Operating margin		-1.0	%		12.9	%		3.0	%		4.1	%		5.4	%
Total GES Adjusted EBITDA margin		1.8	%		14.5	%		4.9	%		5.9	%		7.4	%

GES Adjusted EBITDA by Reportable Segment:
Spiro	$	742		$	15,750		$	4,688		$	5,795		$	26,975
GES Exhibitions		1,978			19,381			5,997			6,926			34,282
Total GES	$	2,720		$	35,131		$	10,685		$	12,721		$	61,257

Spiro Revenue	$	42,816		$	89,425		$	73,277		$	72,123		$	277,641

Spiro Adjusted EBITDA Margin		1.7	%		17.6	%		6.4	%		8.0	%		9.7	%

GES Exhibitions Revenue	$	111,831		$	154,600		$	147,872		$	143,577		$	557,880

GES Exhibitions Adjusted EBITDA Margin		1.8	%		12.5	%		4.1	%		4.8	%		6.1	%


(A) Includes costs related to the development of Pursuit’s new FlyOver attractions in Chicago and Toronto, and Forest Park Hotel in Canada.
(B) Remeasurement of finance lease obligation represents the non-cash foreign exchange loss/(gain) included within Cost of Services related to the periodic remeasurement of the Sky Lagoon finance lease obligation.
(C) Includes non-capitalizable fees and expenses related to Viad’s credit facility refinancing efforts.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230803104126/en/

Carrie Long or Michelle Porhola

Investor Relations

(602) 207-2681

[email protected]

KEYWORDS: United States North America Arizona

INDUSTRY KEYWORDS: Marketing Entertainment Communications Vacation Events/Concerts Destinations Travel

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August 4, 2023 6:01 am

Block Announces Second Quarter 2023 Results

Block Announces Second Quarter 2023 Results

DISTRIBUTED-WORK-MODEL/SAN FRANCISCO–(BUSINESS WIRE)–
Block, Inc. (NYSE: SQ) has posted its results for the second quarter of 2023 on the Financials section of its Investor Relations website at investors.block.xyz and filed these results with the Securities and Exchange Commission.

Block will host a conference call and earnings webcast at 2:00 p.m. Pacific time/5:00 p.m. Eastern time today to discuss these financial results. To register to participate in the conference call, please visit the Events & Presentations section of Block’s Investor Relations website at investors.block.xyz.

About Block

Block, Inc. (NYSE: SQ) (formerly, Square, Inc.) is a global technology company with a focus on financial services. Made up of Square, Cash App, TIDAL, and TBD, we build tools to help more people access the economy. Square makes commerce and financial services easy and accessible for sellers with its integrated ecosystem of technology solutions. With Cash App, anyone can easily send, spend, or invest their money in stocks or bitcoin. Afterpay brings Square and Cash App together, connecting consumers and businesses. Artists use TIDAL to help them succeed as entrepreneurs and connect more deeply with fans. TBD is building an open source platform and developer infrastructure that enables everyone to access and participate in the global economy.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230803437241/en/

Media Contact

[email protected]

Investor Relations Contact

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Technology Payments Finance Banking Accounting Professional Services Internet Data Management Retail Online Retail

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August 4, 2023 5:58 am

Hercules Capital Reports Second Quarter 2023 Financial Results

Hercules Capital Reports Second Quarter 2023 Financial Results

Record Q2 2023 Total Investment Income of $116.2 Million, an Increase of 61.2% Year-over-Year

Record Q2 2023 Net Investment Income “NII” of $75.7 Million, or $0.53 per Share, an Increase of 88.6% Year-over-Year

Record 1H 2023 Total Gross Fundings of $834.8 million, an Increase of 5.6% Year-over Year

Increased the Company’s Base Cash Distribution to $0.40 per Share

Q2 2023 NII Provides 132% Coverage of the New Base Cash Distribution

Undistributed Earnings Spillover of $148.1 Million, or $1.02⁽¹⁾ per Ending Shares Outstanding

Approximately $4.0 Billion of Assets Under Management, an Increase of 19.5% Year-over-Year⁽²⁾

PALO ALTO, Calif.–(BUSINESS WIRE)–Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or the “Company”), the largest and leading specialty financing provider to innovative venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, today announced its financial results for the second quarter ended June 30, 2023. The earnings release can be accessed at Hercules’ Investor Relations website at https://investor.htgc.com/financial-information/financial-results.

Footnotes:
(1)	$1.07 per Weighted Average Shares Outstanding
(2)	Assets under management includes assets managed by Hercules Capital and its Adviser Subsidiary

Conference Call

Hercules has scheduled its second quarter 2023 financial results conference call for August 3, 2023 at 2:00 p.m. PT (5:00 p.m. ET). To participate via telephone, please register here. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. While not required, it is recommended you join 10 minutes prior to the event start. A live webcast of the second quarter 2023 financial results conference call will also be available on the investor relations section of the Company’s website at investor.htgc.com. An archived webcast replay will be available on the Company’s website for at least 30 days following the conference call.

About Hercules Capital, Inc.

Hercules Capital, Inc. (NYSE: HTGC) is the leading and largest specialty finance company focused on providing senior secured venture growth loans to high-growth, innovative venture capital-backed companies in a broad variety of technology, life sciences and sustainable and renewable technology industries. Since inception (December 2003), Hercules has committed more than $17 billion to over 600 companies and is the lender of choice for entrepreneurs and venture capital firms seeking growth capital financing. Companies interested in learning more about financing opportunities should contact [email protected], or call 650.289.3060.

Hercules, through its wholly owned subsidiary, Hercules Adviser LLC (“Hercules Adviser”), also maintains an asset management business through which it manages investments for external parties (“Adviser Funds”). Hercules Adviser is registered as an investment adviser under the Investment Advisers Act of 1940.

Hercules’ common stock trades on the New York Stock Exchange (NYSE) under the ticker symbol “HTGC.” In addition, Hercules has one retail bond issuance of 6.25% Notes due 2033 (NYSE: HCXY).

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We may use words such as “anticipates,” “believes,” “expects,” “intends,” “will,” “should,” “may” and similar expressions to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and should not be relied upon in making any investment decision. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations. While we cannot identify all such risks and uncertainties, we urge you to read the risks discussed in our Annual Report on Form 10-K and other materials that we publicly file with the Securities and Exchange Commission. Any forward-looking statements made in this press release are made only as of the date hereof. Hercules assumes no obligation to update any such statements in the future.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230803442878/en/

Michael Hara

Investor Relations and Corporate Communications

Hercules Capital, Inc.

650-433-5578

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Professional Services Finance

MEDIA:

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August 4, 2023 5:55 am

Fuel Tech Awarded Air Pollution Control Orders Totaling $2.2 Million

Fuel Tech Awarded Air Pollution Control Orders Totaling $2.2 Million

WARRENVILLE, Ill.–(BUSINESS WIRE)–Fuel Tech, Inc. (NASDAQ: FTEK), a technology company providing advanced engineering solutions for the optimization of combustion systems, emissions control, and water treatment in utility and industrial applications, today announced the receipt of multiple air pollution control (APC) contracts from new and existing customers in the US and Europe. These awards support projects serving various end markets and have an aggregate value of approximately $2.2 million.

A contract was received from an industrial customer in the Midwest for a NO_xOUT^® Selective Non-Catalytic Reduction (SNCR) system. Fuel Tech’s SNCR technology is a proven solution for utility and industrial combustion unit owners looking to comply with more stringent NO_x control requirements. Equipment delivery is expected in the fourth quarter of 2023. A second US order was received to upgrade an existing SNCR system on a coal-fired unit in the Midwest to comply with current and future NOx reduction requirements driven by the EPA creating a final rule as a next phase of the Cross State Air Pollution Rule to meet the Good Neighbor provision of the Clean Air Act. Delivery of the upgrade will be completed in the third quarter of 2023.

An order was received from an existing US customer for an ULTRA^® system for a gas-fired package boiler which can used at multiple customer locations. Fuel Tech’s ULTRA process provides for the safe and cost-effective on-site conversion of urea to ammonia for use as a reagent where Selective Catalytic Reduction (SCR) is used to reduce NO_x, eliminating the hazards associated with the transport, storage and handling of anhydrous or aqueous ammonia. Deliveries are expected to be completed in the first quarter of 2024.

In addition, change orders were received related to our ULTRA system for previously announced projects on the West Coast and for two current SNCR projects, with work in each case expected to be completed in the third quarter of 2023.

In Europe, an order was received for an SCR system to be used on a process gas application at a chemical plant. A fourth quarter 2023 delivery is expected. Orders were also received for replacement SCR catalyst for three existing Fuel Tech SCR systems, two for solid waste incinerators, and one for a biomass-fired unit. Deliveries are expected to be completed in the fourth quarter of 2023 and the first quarter of 2024. A change order for a current ULTRA project was also received, and work is anticipated to be completed in the first quarter of 2024.

Vincent J. Arnone, President and Chief Executive Officer, commented, “We are pleased to announce these contract awards which represent continued growth of our SNCR, ULTRA and SCR product lines in a variety of market segments. We continue to support our customers’ needs where we have seen increased activity for industrial units burning a variety of fuels.”

About Fuel Tech

Fuel Tech develops and commercializes state-of-the-art proprietary technologies for air pollution control, process optimization, water treatment, and advanced engineering services. These technologies enable customers to operate in a cost-effective and environmentally sustainable manner. Fuel Tech is a leader in nitrogen oxide (NO_x) reduction and particulate control technologies and its solutions have been in installed on over 1,200 utility, industrial and municipal units worldwide. The Company’s FUEL CHEM^® technology improves the efficiency, reliability, fuel flexibility, boiler heat rate, and environmental status of combustion units by controlling slagging, fouling, corrosion and opacity.

Water treatment technologies include DGI™ Dissolved Gas Infusion Systems which utilize a patented channel injector to deliver supersaturated oxygen solutions and other gas-water combinations to target process applications or environmental issues. This infusion process has a variety of applications in the water and wastewater industries, including remediation, aeration, biological treatment and wastewater odor management. Many of Fuel Tech’s products and services rely heavily on the Company’s exceptional Computational Fluid Dynamics modeling capabilities, which are enhanced by internally developed, high-end visualization software. For more information, visit Fuel Tech’s web site at www.ftek.com.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” as defined in Section 21E of the Securities Exchange Act of 1934, as amended, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and reflect Fuel Tech’s current expectations regarding future growth, results of operations, cash flows, performance and business prospects, and opportunities, as well as assumptions made by, and information currently available to, our management. Fuel Tech has tried to identify forward-looking statements by using words such as “anticipate,” “believe,” “plan,” “expect,” “estimate,” “intend,” “will,” and similar expressions, but these words are not the exclusive means of identifying forward-looking statements. These statements are based on information currently available to Fuel Tech and are subject to various risks, uncertainties, and other factors, including, but not limited to, those discussed in Fuel Tech’s Annual Report on Form 10-K in Item 1A under the caption “Risk Factors,” and subsequent filings under the Securities Exchange Act of 1934, as amended, which could cause Fuel Tech’s actual growth, results of operations, financial condition, cash flows, performance and business prospects and opportunities to differ materially from those expressed in, or implied by, these statements. Fuel Tech undertakes no obligation to update such factors or to publicly announce the results of any of the forward-looking statements contained herein to reflect future events, developments, or changed circumstances or for any other reason. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including those detailed in Fuel Tech’s filings with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230803300104/en/

Vince Arnone

President and Chief Executive Officer

(630) 845-4500

Devin Sullivan

Managing Director

The Equity Group Inc.

[email protected]

KEYWORDS: United States North America Illinois

INDUSTRY KEYWORDS: Manufacturing Other Energy Utilities Other Manufacturing Green Technology Alternative Energy Environment Energy Engineering Sustainability Chemicals/Plastics

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August 4, 2023 5:53 am

Nuvation Bio Reports Second Quarter 2023 Financial Results and Provides Business Update

Nuvation Bio Reports Second Quarter 2023 Financial Results and Provides Business Update

Enrollment ongoing in the Phase 1b study of NUV-868 in combination with olaparib or enzalutamide

Enrollment ongoing in the Phase 1 monotherapy study of NUV-868

Expect to submit an IND for first Drug-Drug Conjugate (DDC) clinical candidate by year end 2023

Announced formation of oncology-focused Scientific Advisory Board

Strong balance sheet with cash, cash equivalents and marketable securities of $630.9 million as of June 30, 2023

NEW YORK–(BUSINESS WIRE)–
Nuvation Bio Inc. (NYSE: NUVB), a biopharmaceutical company tackling some of the greatest unmet needs in oncology by developing differentiated and novel therapeutic candidates, today reported its financial results for the second quarter ended June 30, 2023, and provided a business update.

“We continue to enroll patients in the Phase 1 and Phase 1b studies of NUV-868 where dose escalation is ongoing. We also look forward to expanding our pipeline as we progress our first nominated DDC clinical candidate toward an IND filing, which we expect by the end of 2023,” said David Hung, M.D., Founder, President, and Chief Executive Officer of Nuvation Bio. “Lastly, we announced the formation of our Scientific Advisory Board, composed of leading experts in oncology drug and clinical development. We are excited to work alongside them to bring innovative new therapies to cancer patients.”

Recent Business Updates

NUV-868, BD2-Selective BETi: Advanced solid tumors

Dosing underway in both regimens of the Phase 1b combination study. Nuvation Bio continues to enroll the Phase 1b study of NUV-868 in combination with olaparib in patients with ovarian cancer, pancreatic cancer, metastatic castration-resistant prostate cancer (mCRPC), triple negative breast cancer and other solid tumors, and in combination with enzalutamide in patients with mCRPC.
Dosing underway in the Phase 1 monotherapy study. Nuvation Bio continues to enroll the Phase 1 monotherapy study in advanced solid tumors.

Drug-Drug Conjugate Platform:Solid tumors

Nominated first clinical candidate. Nuvation Bio remains on track to submit an Investigational New Drug (IND) application for an undisclosed DDC candidate with the U.S. Food and Drug Administration by year end 2023.

Corporate Updates

Announced formation of oncology-focused Scientific Advisory Board. The Scientific Advisory Board will work alongside the Nuvation Bio management team to advance its pipeline of therapeutic candidates for some of the most difficult-to-treat cancers.

Second Quarter 2023 Financial Results

As of June 30, 2023, Nuvation Bio had cash, cash equivalents and marketable securities of $630.9 million. For the three months ended June 30, 2023, research and development expenses were $18.6 million, compared to $28.9 million for the three months ended June 30, 2022. The decrease was primarily due to a $0.7 million decrease in personnel-related costs driven by a headcount reduction as well as a $9.6 million decrease in third-party costs related to research services and manufacturing primarily due to the termination of the NUV-422 program.

For the three months ended June 30, 2023, general and administrative expenses were $7.5 million, compared to $8.9 million for the three months ended June 30, 2022. The decrease was primarily due to a $0.6 million decrease in insurance, a $0.6 million decrease in recruiting and computer expenses, a $0.6 million decrease in legal fees and a $0.2 million decrease in other professional fees offset by a $0.6 million increase in personnel-related costs driven by stock-based compensation and other benefits.

For the three months ended June 30, 2023, Nuvation Bio reported a net loss of $20.6 million, or $(0.09) per share. This compares to a net loss of $34.9 million, or $(0.16) per share, for the comparable period in 2022.

About Nuvation Bio

Nuvation Bio is a biopharmaceutical company tackling some of the greatest unmet needs in oncology by developing differentiated and novel therapeutic candidates. Nuvation Bio’s proprietary portfolio includes mechanistically distinct oncology therapeutic product candidates, each targeting some of the most difficult-to-treat types of cancer. Nuvation Bio was founded in 2018 by biopharma industry veteran David Hung, M.D., who previously founded Medivation, Inc., which brought to patients one of the world’s leading prostate cancer medicines. Nuvation Bio has offices in New York and San Francisco. For more information, please visit www.nuvationbio.com.

Forward Looking Statements

Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are sometimes accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the potential therapeutic benefit of Nuvation Bio’s product candidates, the expected continued momentum of Nuvation Bio’s clinical trials and the expected timing of an IND filing for Nuvation Bio’s first DDC clinical candidate. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the management team of Nuvation Bio and are not predictions of actual performance. These forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ from those anticipated by the forward-looking statements, including but not limited to the challenges associated with conducting drug discovery and initiating or conducting clinical trials due to, among other things, difficulties or delays in the regulatory process, enrolling subjects or manufacturing or acquiring necessary products; the emergence or worsening of adverse events or other undesirable side effects; risks associated with preliminary and interim data, which may not be representative of more mature data; and competitive developments. Risks and uncertainties facing Nuvation Bio are described more fully in its Form 10-Q to be filed with the SEC on August 3, 2023, under the heading “Risk Factors,” and other documents that Nuvation Bio has filed or will file with the SEC. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this press release. Nuvation Bio disclaims any obligation or undertaking to update, supplement or revise any forward-looking statements contained in this press release.

NUVATION BIO INC. and Subsidiaries
Consolidated Balance Sheets
Unaudited
(In thousands, except share and per share data)	June 30,			December 31,
	2023			2022

Assets
Current assets:
Cash and cash equivalents	$	50,065		$	101,099
Prepaid expenses and other current assets		3,531			3,819
Marketable securities		580,835			559,915
Interest receivable on marketable securities		2,795			2,485
Total current assets		637,226			667,318
Property and equipment, net		804			894
Operating lease right-of-use assets		3,242			3,791
Lease security deposit		138			138
Total assets	$	641,410		$	672,141

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	2,577		$	2,139
Current operating lease liabilities		1,283			1,206
Accrued expenses		9,553			9,816
Total current liabilities		13,413			13,161
Warrant liability		972			850
Non-current operating lease liabilities		2,393			3,054
Total liabilities		16,778			17,065

Stockholders’ equity
Class A and Class B common stock and additional paid in capital, $0.0001 par value per share; 1,060,000,000
(Class A 1,000,000,000, Class B 60,000,000) shares authorized as of June 30, 2023 and December 31, 2022,
218,899,462 (Class A 217,899,462, Class B 1,000,000) and 218,632,699 (Class A 217,632,699, Class B 1,000,000)
shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively		938,395			927,604
Accumulated deficit		(309,368	)		(267,002	)
Accumulated other comprehensive income		(4,395	)		(5,526	)
Total stockholders’ equity		624,632			655,076
Total liabilities and stockholders’ equity	$	641,410		$	672,141

NUVATION BIO INC. and Subsidiaries

Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except per share data)
	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022

Operating expenses:
Research and development	$	18,590		$	28,922		$	37,377		$	49,650
General and administrative		7,541			8,948			15,275			16,411
Total operating expenses		26,131			37,870			52,652			66,061

Loss from operations		(26,131	)		(37,870	)		(52,652	)		(66,061	)

Other income (expense):
Interest income		6,086			841			11,065			1,798
Investment advisory fees		(231	)		(215	)		(461	)		(384	)
Change in fair value of warrant liability		(265	)		3,080			(123	)		9,404
Realized loss on marketable securities		(99	)		(694	)		(195	)		(908	)
Total other income (expense), net		5,491			3,012			10,286			9,910

Loss before income taxes		(20,640	)		(34,858	)		(42,366	)		(56,151	)

Provision for income taxes		–			–			–			–

Net loss	$	(20,640	)	$	(34,858	)	$	(42,366	)	$	(56,151	)
Net loss attributable to common stockholders
Net loss per share attributable to common stockholders, basic and diluted	$	(0.09	)	$	(0.16	)	$	(0.19	)	$	(0.26	)
Weighted average common shares outstanding, basic and diluted		218,848			216,603			218,795			215,016

Comprehensive loss:
Net loss	$	(20,640	)	$	(34,858	)	$	(42,366	)	$	(56,151	)
Other comprehensive loss, net of taxes:
Unrealized (loss) gain on available-for-sale securities		(1,457	)		(761	)		1,131			(5,793	)

Comprehensive loss	$	(22,097	)	$	(35,619	)	$	(41,235	)	$	(61,944	)

View source version on businesswire.com: https://www.businesswire.com/news/home/20230803704262/en/

Nuvation Bio Investors:

[email protected]

Nuvation Bio Media:

[email protected]

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Biotechnology Pharmaceutical Finance Oncology General Health Health Professional Services Clinical Trials

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August 4, 2023 5:51 am

Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Apellis Pharmaceuticals, Inc. (APLS)

NEW YORK, Aug. 03, 2023 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of all persons or entities who purchased the securities of Apellis Pharmaceuticals, Inc. (“Apellis” or the “Company”) (NYSE: APLS) between January 28, 2021 and July 28, 2023, both dates inclusive (the “Class Period”).

One of Apellis’s leading therapeutic treatments, “SYFOVRE,” is an intravitreal pegcetacoplan injection that is the first and only approved therapy for geographic atrophy (“GA”), a leading cause of blindness. SYFOVRE is designed to provide comprehensive control of the complement cascade, part of the body’s immune system. In February 2023, SYFOVRE was approved by the U.S. Food and Drug Administration in the United States for the treatment of GA secondary to age-related macular degeneration.

According to the Complaint, the Company made false and misleading statements to the market. The clinical trials designed by Apellis for its SYFOVRE therapeutic treatment failed to identify cases of retinal vasculitis in patients receiving injections. The Company’s commercialization of SYFOVRE faced unknown risk factors. Based on these facts, the Complaint alleges that the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Apellis, investors suffered damages.

Investors who purchased or otherwise acquired shares of Apellis should contact the Firm prior to the October 2, 2023 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].

Please visit our website at http://www.gme-law.com for more information about the firm.

August 4, 2023 5:46 am

Cidara Therapeutics Provides Corporate Update and Reports Second Quarter 2023 Financial Results

SAN DIEGO, Aug. 03, 2023 (GLOBE NEWSWIRE) — Cidara Therapeutics, Inc. (Nasdaq: CDTX), a biotechnology company developing immunotherapeutics designed to help improve the standard of care for patients facing serious diseases, today reported financial results for the second quarter ended June 30, 2023 and provided an update on its corporate activities and product pipeline.

“This quarter we made important progress in the advancement of our Cloudbreak^® drug-Fc conjugate (DFC) platform,” said Jeffrey Stein, Ph.D., president and chief executive officer of Cidara. “Most recently, we received Fast Track designation for CD388, which is being developed in collaboration with Janssen Pharmaceuticals for the prevention of influenza A and B infection in adults who are at high-risk of severe influenza. Moreover, we continue to generate compelling data from ongoing preclinical studies of CD421, a CD73-targeting DFC, and our first oncology product candidate, which we intend to present at future scientific conferences.”

Dr. Stein continued, “Looking ahead, we anticipate filing an Investigational New Drug Application (IND) in 2024 for CD421, a potential first-in-class inhibitor of CD73. We look forward to providing further data from our promising Cloudbreak programs at our planned R&D Day in the second half of this year.”

Recent Corporate Highlights

REZZAYO™
commercialization in the U.S. by Melinta: On July 31, 2023, Melinta Therapeutics, LLC (Melinta), initiated the commercial launch of REZZAYO in the U.S.
Update on status of ongoing CD388 influenza program: In March 2023, Cidara announced promising interim Phase 2a data assessing the safety and efficacy of a single dose of CD388 evaluating the pre-exposure prophylactic activity of CD388 against the H3N2 influenza A virus strain. The planned interim analysis of the Phase 2a study provided preliminary evidence that CD388 may effectively prevent influenza and supports our belief in the potential of DFCs from our Cloudbreak platform. Final results of the Phase 2a study are expected later in 2023. As part of a recent prioritization of its R&D business, in July 2023 Janssen Pharmaceuticals, Inc. (Janssen), one of the Janssen Pharmaceuticals Companies of Johnson & Johnson, disclosed its intention to discontinue internal development of multiple product candidates in its infectious disease pipeline, including JNJ-0953 (CD388). However, Janssen has not informed Cidara of any intention to terminate the collaboration agreement between the two parties. Cidara continues to work in collaboration with Janssen to complete the Phase 1 and Phase 2a clinical trials and will be reimbursed for all ongoing development activities by Janssen as per the Janssen Collaboration Agreement. Within 90 days after Cidara delivers the complete CD388 Phase 2a data package to Janssen, Janssen is required to notify Cidara whether it will proceed with further clinical development and commercialization of CD388. If Janssen delivers an Election to Proceed, it is obligated at its sole expense to diligently continue development and commercialization either itself or through a third party to whom it sublicenses or assigns the rights. If Janssen sublicenses or assigns the rights to a third party, then all terms under the current Janssen Collaboration Agreement will survive without modification. Should Janssen not provide an Election to Proceed within the 90-day period, Cidara would have the right to terminate the agreement and retain the CD388 program, including all data and materials funded by Janssen’s investment in the program.
U.S. Food and Drug Administration (FDA) granted Fast Track designation to CD388: In June 2023, Cidara received Fast Track designation for CD388, the Company’s novel DFC candidate being developed in collaboration with Janssen for the prevention of influenza A and B infection in adults who are at high-risk of severe influenza, including those for whom vaccines are either ineffective or contraindicated. Companies that are granted this designation are given the opportunity for more frequent interactions with the FDA, and, if relevant criteria are met, eligibility for Priority Review.
Joined the Russell Microcap
^®
Index: In June 2023, Cidara joined the broad market Russell Microcap Index at the conclusion of the Russell U.S. Indexes annual reconstitution. Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. Approximately $12.1 trillion in assets are benchmarked to or invested in products based on the Russell U.S. Indexes.
Presented at the 2nd Annual Adenosine-Pathway Targeted Cancer Immunotherapy Summit: In June 2023, Cidara delivered an oral presentation including highlights from its ongoing preclinical studies of CD421, as well as the utility and flexibility of its novel DFCs from the Company’s Cloudbreak platform, at the 2nd Annual Adenosine-Pathway Targeted Cancer Immunotherapy Summit.

Second
Quarter
2023
Financial Results

Revenue totaled $7.6 million and $33.6 million for the three and six months ended June 30, 2023, respectively, compared to $6.2 million and $13.3 million for the same periods in 2022, respectively. The increase was primarily attributable to the revenue recognized in connection with the Melinta regulatory milestone achieved in March 2023. The remaining revenue for all periods relates to the ongoing research and development and clinical supply services provided to Mundipharma Medical Company, Janssen and Melinta.
Cash and cash equivalents totaled $50.4 million as of June 30, 2023, compared with $32.7 million as of December 31, 2022.
Research and development expenses were $17.1 million and $35.9 million for the three and six months ended June 30, 2023, respectively, compared to $15.3 million and $35.4 million for the same periods in 2022, respectively. The research and development expenses for all periods primarily relate to clinical expenses associated with the rezafungin clinical trials and certain drug manufacturing costs before FDA approval, as well as clinical expenses and drug manufacturing costs associated with the Cloudbreak platform.
General and administrative expenses were $3.3 million and $7.6 million for the three and six months ended June 30, 2023, respectively, compared to $4.1 million and $9.3 million for the same periods in 2022, respectively. The decrease in general and administrative expenses is primarily due to lower consulting, personnel and legal costs, offset by higher amortization of contract costs related to obtaining the Melinta License Agreement.
Net loss for the three months ended June 30, 2023 was $12.4 million, compared to a net loss of $13.1 million for the same period in 2022. For the six months ended June 30, 2023 and 2022, net loss was $9.1 million and $31.4 million, respectively.
During the three months ended June 30, 2023, Cidara sold 60,942 shares of common stock, at a weighted average price of $1.28 per share for gross proceeds of approximately $0.1 million, before deducting placement agent fees pursuant to its at-the-market sales agreement. During the six months ended June 30, 2023, Cidara sold 6,219,741 shares of common stock, at a weighted average price of $1.44 per share for gross proceeds of approximately $9.0 million, before deducting placement agent fees pursuant to its at-the-market sales agreement.
As of June 30, 2023, Cidara had 90,251,746 shares of common stock outstanding and 2,104,472 shares of Series X Convertible Preferred Stock outstanding, which are convertible into 21,044,720 shares of common stock.

About Cidara Therapeutics

Cidara is developing immunotherapeutics designed to help improve the standard of care for patients facing serious diseases. The Company’s portfolio comprises new approaches aimed at transforming existing treatment and prevention paradigms, including DFCs from its proprietary Cloudbreak® platform targeting oncologic, viral and autoimmune diseases. In addition, Cidara recently received FDA approval for REZZAYO™ (rezafungin for injection), which it has licensed to multiple partners to commercialize in the U.S. and ex-U.S. Cidara is headquartered in San Diego, California. For more information, please visit www.cidara.com.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “anticipates,” “expect,” “may,” “plan” or “will”. Forward-looking statements in this release include, but are not limited to, statements related to whether we and Janssen will complete Phase 1 and Phase 2a clinical trials for the CD388 influenza program and whether Janssen will elect to continue clinical development of CD388 following delivery of the Phase 2a data package, whether REZZAYO will be prescribed by physicians or reimbursed by payors following its U.S. launch, and whether we will complete all requirements for submission of an IND for CD421 or submit an IND in 2024. Such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, such as unanticipated delays in or negative results from Cidara’s preclinical or clinical trials, delays in action by regulatory authorities due to limitations on inspections and other COVID-19-related effects, and other obstacles on the enrollment of patients or other aspects of CD388 development. These and other risks are identified under the caption “Risk Factors” in Cidara’s most recent Quarterly Report on Form 10-Q and other filings subsequently made with the Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management’s assumptions and estimates as of such date. Cidara does not undertake any obligation to publicly update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events or otherwise.

INVESTOR CONTACT:

Brian Ritchie
LifeSci Advisors
(212) 915-2578
[email protected]

MEDIA CONTACT:

Veronica Eames
LifeSci Communications
(646) 970-4682
[email protected]

CIDARA THERAPEUTICS, INC.
Condensed Consolidated Statements of Operations (unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands, except share and per share data)		2023			2022			2023			2022
Revenues:
Collaboration revenue	$	7,614		$	6,216		$	33,604		$	13,325
Total revenues		7,614			6,216			33,604			13,325
Operating expenses:
Research and development		17,135			15,255			35,850			35,421
General and administrative		3,310			4,074			7,608			9,278
Total operating expenses		20,445			19,329			43,458			44,699
Loss from operations		(12,831	)		(13,113	)		(9,854	)		(31,374	)
Other income (expense):
Interest income (expense), net		623			(6	)		855			(26	)
Total other income (expense), net		623			(6	)		855			(26	)
Net loss before income tax expense		(12,208	)		(13,119	)		(8,999	)		(31,400	)
Income tax expense		(149	)		—			(149	)		—
Net loss and comprehensive loss	$	(12,357	)	$	(13,119	)	$	(9,148	)	$	(31,400	)
Basic and diluted net loss per common share	$	(0.14	)	$	(0.19	)	$	(0.11	)	$	(0.46	)

Shares used to compute basic and diluted net loss per common share		90,115,859			69,133,700			84,409,667			68,638,651

Condensed Consolidated Balance Sheet Data

	June 30, 2023		December 31, 2022
(In thousands)	(unaudited)
Cash and cash equivalents	$	50,430	$	32,731
Total assets		67,986		47,593
Total liabilities		52,572		50,497
Total stockholders’ equity (deficit)		15,414		(2,904	)