Market Newsdesk

May 2, 2023 4:43 pm

Camping World Holdings, Inc. Reports First Quarter 2023 Results, Record Used Unit Sales and Used Gross Profit, Plans to Continue Aggressively Acquiring RV Dealerships

Camping World Holdings, Inc. Reports First Quarter 2023 Results, Record Used Unit Sales and Used Gross Profit, Plans to Continue Aggressively Acquiring RV Dealerships

LINCOLNSHIRE, Ill.–(BUSINESS WIRE)–
Camping World Holdings, Inc. (NYSE: CWH) (the “Company” or “CWH”), America’s Recreation Dealer, today reported results for the first quarter ended March 31, 2023.

Marcus Lemonis, Chairman and CEO of Camping World Holdings, Inc. stated, “As we predicted, despite softer new vehicle demand and gross margin in the quarter, we saw record setting gross profit performance in used vehicles and Good Sam Services and Plans. What’s most unusual about this moment is the rapid and recent influx of dealership acquisition opportunities, which we haven’t seen since we went public. Based on our acquisition activity year to date, we anticipate the pipeline will fill up, and we plan to capitalize on it.”

First Quarter-over-Quarter Operating Highlights

Revenue was $1.5 billion for the first quarter, a decrease of $175.5 million, or 10.6%.
Used vehicle revenue was a record $444.7 million for the first quarter, an increase of $41.7 million, or 10.4%, and used vehicle unit sales were a record 12,432 units, an increase of 1,456 units, or 13.3%.
New vehicle revenue was $646.8 million for the first quarter, a decline of $188.2 million, or 22.5%, and new vehicle unit sales were 13,912 units, a decrease of 5,108 units, or 26.9%.
Products, service and other revenue was $207.7 million for the first quarter, a decline of $7.3 million, or 3.4%. Growth in service and parts revenues partly offset larger declines in our direct to manufacturer RV furniture revenues.
Same store used vehicle unit sales increased 7.0% for the first quarter, and same store new vehicle unit sales decreased 30.6%.
Gross profit was $441.0 million, a decrease of $119.2 million, or 21.3%. Total gross margin was 29.7%, a decrease of 404 basis points. The decrease in gross profit and gross margin was driven largely by the decrease in new vehicle revenue and related finance and insurance revenue and an increase in the cost of new vehicles sold.
Floor plan interest expense was $20.8 million, an increase of $14.5 million, or 232.1%, primarily as a result of the rise in interest rates. Other interest expense, net was $31.1 million, an increase of $16.8 million, or 117.6%, primarily as a result of the rise in interest rates and a higher average principal balance.
Net income was $4.9 million, a decrease of $102.4 million, or 95.4%, driven primarily by the pretax $101.4 million decrease in new vehicle gross profit, the $23.6 million decrease in finance and insurance gross profit on fewer vehicles sold, the $16.8 million increase in other interest expense, net, and the $14.5 million increase in floor plan interest, which was partially offset from the $19.6 million decrease in selling, general, and administrative expenses and the benefit to income tax expense from these net reductions of pretax income.
Diluted earnings per share of Class A common stock was $0.05 in 2023 versus diluted earnings per share of Class A common stock of $1.02 in 2022. Adjusted earnings per share – diluted⁽¹⁾ of Class A common stock was $0.14 in 2023 versus adjusted earnings per share – diluted⁽¹⁾of Class A common stock of $1.15 in 2022.
Adjusted EBITDA⁽¹⁾ was $60.8 million, a decrease of $121.3 million, or 66.6%, driven primarily by the $101.4 million decrease in new vehicle gross profit, the $23.6 million decrease in finance and insurance gross profit on fewer vehicles sold, and the $14.5 million increase in floor plan interest, which was partially offset from the $19.6 million decrease in selling, general, and administrative expenses⁽²⁾.

____________________
⁽¹⁾	Adjusted earnings per share – diluted and adjusted EBITDA are non-GAAP measures. For a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures, see the “Non-GAAP Financial Measures” section later in this press release.
⁽²⁾	The $19.6 million decrease in selling, general, and administrative expenses includes a $5.3 million decrease in equity-based compensation. Equity-based compensation is excluded from the calculation of Adjusted EBITDA (see the “Non-GAAP Financial Measures” section later in this press release).

Earnings Conference Call and Webcast Information

A conference call to discuss the Company’s first quarter 2023 financial results is scheduled for May 3, 2023, at 7:30 am Central Time. Investors and analysts can participate on the conference call by dialing 1-877-407-9039 (international callers please dial 1-201-689-8470) and using conference ID# 13737788. Interested parties can also listen to a live webcast or replay of the conference call by logging on to the Investor Relations section on the Company’s website at http://investor.campingworld.com. The replay of the conference call webcast will be available on the investor relations website for approximately 90 days.

Presentation

This press release presents historical results for the periods presented for the Company and its subsidiaries, which are presented in accordance with accounting principles generally accepted in the United States (“GAAP”), unless noted as a non-GAAP financial measure. The Company’s initial public offering (“IPO”) and related reorganization transactions (“Reorganization Transactions”) that occurred on October 6, 2016 resulted in the Company as the sole managing member of CWGS Enterprises, LLC (“CWGS, LLC”), with sole voting power in and control of the management of CWGS, LLC. The Company’s position as sole managing member of CWGS, LLC includes periods where the Company has held a minority economic interest in CWGS, LLC. As of March 31, 2023, the Company owned 52.6% of CWGS, LLC. Accordingly, the Company consolidates the financial results of CWGS, LLC and reports a non-controlling interest in its consolidated financial statements.

About Camping World Holdings, Inc.

Camping World Holdings, Inc., headquartered in Lincolnshire, IL, (together with its subsidiaries) is America’s largest retailer of RVs and related products and services. Our vision is to build a long-term legacy business that makes RVing fun and easy, and our Camping World and Good Sam brands have been serving RV consumers since 1966. We strive to build long-term value for our customers, employees, and shareholders by combining a unique and comprehensive assortment of RV products and services with a national network of RV dealerships, service centers and customer support centers along with the industry’s most extensive online presence and a highly trained and knowledgeable team of associates serving our customers, the RV lifestyle, and the communities in which we operate. We also believe that our Good Sam organization and family of programs and services uniquely enable us to connect with our customers as stewards of the RV enthusiast community and the RV lifestyle. With RV sales and service locations in 42 states, Camping World has grown to become the prime destination for everything RV. For more information, visit www.CampingWorld.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements about macroeconomic and industry trends, expected impact of the subsidiary conversions on our ongoing income tax expense and tax distribution requirements, dividend payments, our business plans and goals, the strength of our business, our long-term plan, the Company’s strategic focuses including growing its used RV business, enhancements of wages and benefits of employees, the Company’s acquisition pipeline and plans, and future financial results. These forward-looking statements are based on management’s current expectations.

These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: general economic conditions, including inflation and interest rates; the availability of financing to us and our customers; fuel shortages or high prices for fuel; the success of our manufacturers; general economic conditions in our markets; changes in consumer preferences; competition in our industry; risks related to acquisitions, new store openings and expansion into new markets; our failure to maintain the strength and value of our brands; our ability to manage our inventory; fluctuations in our same store sales; the cyclical and seasonal nature of our business; risks related to the cybersecurity incident announced in February 2022; our dependence on the availability of adequate capital and risks related to our debt; risks related to the COVID-19 pandemic; our ability to execute and achieve the expected benefits of our cost cutting or restructuring initiatives; our reliance on our fulfillment and distribution centers; natural disasters, including epidemic outbreaks; our dependence on our relationships with third party suppliers and lending institutions; risks associated with selling goods manufactured abroad; our ability to retain senior executives and attract and retain other qualified employees; risks associated with leasing substantial amounts of space; risks associated with our private brand offerings; we may incur asset impairment charges for goodwill, intangible assets or other long-lived assets; tax risks; regulatory risks; data privacy and cybersecurity risks; risks related to our intellectual property; the impact of ongoing or future lawsuits against us and certain of our officers and directors; and risks related to our organizational structure.

These and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10‑K filed for the year ended December 31, 2022 and our other reports filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change, except as required under applicable law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Future declarations of quarterly dividends are subject to the determination and discretion of the Company’s Board of Directors based on its consideration of various factors, including the Company’s results of operations, financial condition, level of indebtedness, anticipated capital requirements, contractual restrictions, restrictions in its debt agreements, restrictions under applicable law, receipt of excess tax distributions from CWGS Enterprises, LLC, its business prospects and other factors that Camping World’s Board of Directors may deem relevant.

We intend to use our official Facebook, Twitter, and Instagram accounts, each at the handle @CampingWorld, as well as the investor page of our website, investor.campingworld.com, as a distribution channel of material information about the Company and for complying with our disclosure obligations under Regulation FD. The information we post through these social media channels and on our investor webpage may be deemed material. Accordingly, investors should subscribe to these accounts and our investor alerts, in addition to following our press releases, SEC filings, public conference calls and webcasts. These social media channels may be updated from time to time.


Camping World Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
(In Thousands Except Per Share Amounts)

	Three Months Ended
	March 31,
	2023			2022
Revenue:
Good Sam Services and Plans	$	46,367		$	44,559
RV and Outdoor Retail
New vehicles		646,752			834,959
Used vehicles		444,746			403,032
Products, service and other		207,661			214,973
Finance and insurance, net		129,772			153,378
Good Sam Club		11,582			11,495
Subtotal		1,440,513			1,617,837
Total revenue		1,486,880			1,662,396
Costs applicable to revenue (exclusive of depreciation and amortization shown separately below):
Good Sam Services and Plans		16,152			16,703
RV and Outdoor Retail
New vehicles		557,542			644,370
Used vehicles		341,947			302,825
Products, service and other		129,018			136,160
Good Sam Club		1,201			2,136
Subtotal		1,029,708			1,085,491
Total costs applicable to revenue		1,045,860			1,102,194

Gross profit (exclusive of depreciation and amortization shown separately below):
Good Sam Services and Plans		30,215			27,856
RV and Outdoor Retail:
New vehicles		89,210			190,589
Used vehicles		102,799			100,207
Products, service and other		78,643			78,813
Finance and insurance, net		129,772			153,378
Good Sam Club		10,381			9,359
Subtotal		410,805			532,346
Total gross profit		441,020			560,202

Operating expenses:
Selling, general, and administrative expenses		365,726			385,315
Depreciation and amortization		14,637			25,535
Long-lived asset impairment		7,045			—
Lease termination		—			178
(Gain) loss on sale or disposal of assets		(4,987	)		49
Total operating expenses		382,421			411,077
Income from operations		58,599			149,125
Other expense:
Floor plan interest expense		(20,810	)		(6,266	)
Other interest expense, net		(31,113	)		(14,301	)
Other expense, net		(1,500	)		(223	)
Total other expense		(53,423	)		(20,790	)
Income before income taxes		5,176			128,335
Income tax expense		(273	)		(21,036	)
Net income		4,903			107,299
Less: net income attributable to non-controlling interests		(1,734	)		(62,569	)
Net income attributable to Camping World Holdings, Inc.	$	3,169		$	44,730

Earnings per share of Class A common stock:
Basic	$	0.07		$	1.03
Diluted	$	0.05		$	1.02
Weighted average shares of Class A common stock outstanding:
Basic		44,455			43,553
Diluted		84,717			44,215


Camping World Holdings, Inc. and Subsidiaries
Supplemental Data

	Three Months Ended March 31,						Increase				Percent
	2023			2022			(decrease)				Change
Unit sales
New vehicles		13,912			19,020			(5,108	)			(26.9	%)
Used vehicles		12,432			10,976			1,456				13.3	%
Total		26,344			29,996			(3,652	)			(12.2	%)

Average selling price
New vehicles	$	46,489		$	43,899		$	2,590				5.9	%
Used vehicles	$	35,774		$	36,719		$	(945	)			(2.6	%)

Same store unit sales⁽¹⁾
New vehicles		13,080			18,838			(5,758	)			(30.6	%)
Used vehicles		11,689			10,920			769				7.0	%
Total		24,769			29,758			(4,989	)			(16.8	%)

Same store revenue⁽¹⁾ ($ in 000s)
New vehicles	$	608,041		$	827,676		$	(219,635	)			(26.5	%)
Used vehicles		417,988			400,902			17,086				4.3	%
Products, service and other		150,476			158,652			(8,176	)			(5.2	%)
Finance and insurance, net		121,893			152,275			(30,382	)			(20.0	%)
Total	$	1,298,398		$	1,539,505		$	(241,107	)			(15.7	%)

Average gross profit per unit
New vehicles	$	6,412		$	10,020		$	(3,608	)			(36.0	%)
Used vehicles		8,269			9,130		$	(861	)			(9.4	%)
Finance and insurance, net per vehicle unit		4,926			5,113		$	(187	)			(3.7	%)
Total vehicle front-end yield⁽²⁾		12,215			14,808		$	(2,593	)			(17.5	%)

Gross margin
Good Sam Services and Plans		65.2	%		62.5	%		265		bps
New vehicles		13.8	%		22.8	%		(903	)	bps
Used vehicles		23.1	%		24.9	%		(175	)	bps
Products, service and other		37.9	%		36.7	%		121		bps
Finance and insurance, net		100.0	%		100.0	%		0		bps
Good Sam Club		89.6	%		81.4	%		821		bps
Subtotal RV and Outdoor Retail		28.5	%		32.9	%		(439	)	bps
Total gross margin		29.7	%		33.7	%		(404	)	bps

RV and Outdoor Retail Inventories ($ in 000s)
New vehicles	$	1,219,889		$	1,420,136		$	(200,247	)			(14.1	%)
Used vehicles		510,689			423,409			87,280				20.6	%
Products, parts, accessories and misc.		248,998			308,855			(59,857	)			(19.4	%)
Total RV and Outdoor Retail inventories	$	1,979,576		$	2,152,400		$	(172,824	)			(8.0	%)

Vehicle inventory per location ($ in 000s)
New vehicle inventory per dealer location	$	6,489		$	7,934		$	(1,445	)			(18.2	%)
Used vehicle inventory per dealer location	$	2,716		$	2,365		$	351				14.8	%

Vehicle inventory turnover⁽³⁾
New vehicle inventory turnover		1.9			2.5			(0.6	)			(22.1	%)
Used vehicle inventory turnover		3.3			3.4			(0.1	)			(2.1	%)

Retail locations
RV dealerships		188			179			9				5.0	%
RV service & retail centers		6			10			(4	)			(40.0	%)
Subtotal		194			189			5				2.6	%
Other retail stores		1			1			—				0.0	%
Total		195			190			5				2.6	%

Other data
Active Customers⁽⁴⁾		5,291,750			5,464,510			(172,760	)			(3.2	%)
Good Sam Club members		2,025,438			2,101,399			(75,961	)			(3.6	%)
Service bays ⁽⁵⁾		2,682			2,538			144				5.7	%
Finance and insurance gross profit as a % of total vehicle revenue		11.9	%		12.4	%		(50	)	bps		n/a
Same store locations		179			n/a			n/a				n/a

⁽¹⁾	Our same store revenue and units calculations for a given period include only those stores that were open both at the end of the corresponding period and at the beginning of the preceding fiscal year.
⁽²⁾	Front end yield is calculated as gross profit from new vehicles, used vehicles and finance and insurance (net), divided by combined new and used vehicle unit sales.
⁽³⁾	Inventory turnover calculated as vehicle costs applicable to revenue over the last twelve months divided by the average quarterly ending vehicle inventory over the last twelve months.
⁽⁴⁾	An Active Customer is a customer who has transacted with us in any of the eight most recently completed fiscal quarters prior to the date of measurement.
⁽⁵⁾	A service bay is a fully-constructed bay dedicated to service, installation, and/or collision offerings.


Camping World Holdings, Inc. and Subsidiaries
Consolidated Balance Sheets (unaudited)
(In Thousands Except Per Share Amounts)

	March 31,			December 31,			March 31,
	2023			2022			2022
Assets
Current assets:
Cash and cash equivalents	$	72,828		$	130,131		$	139,480
Contracts in transit		104,148			50,349			135,513
Accounts receivable, net		109,105			112,411			116,593
Inventories		1,980,106			2,123,858			2,152,400
Prepaid expenses and other assets		58,761			66,913			57,763
Assets held for sale		13,971			—			—
Total current assets		2,338,919			2,483,662			2,601,749

Property and equipment, net		751,287			758,281			636,500
Operating lease assets		729,958			742,306			748,893
Deferred tax assets, net		145,413			143,226			185,616
Intangible assets, net		15,381			20,945			21,450
Goodwill		622,545			622,423			506,954
Other assets		27,010			29,304			26,373
Total assets	$	4,630,513		$	4,800,147		$	4,727,535
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	185,652		$	127,691		$	221,990
Accrued liabilities		172,428			147,833			224,995
Deferred revenues		94,166			95,695			92,747
Current portion of operating lease liabilities		61,421			61,745			63,490
Current portion of finance lease liabilities		5,590			10,244			10,393
Current portion of Tax Receivable Agreement liability		10,935			10,873			11,322
Current portion of long-term debt		26,969			25,229			15,825
Notes payable – floor plan, net		1,042,099			1,319,941			1,237,208
Other current liabilities		77,924			73,076			78,369
Liabilities related to assets held for sale		7,650			—			—
Total current liabilities		1,684,834			1,872,327			1,956,339

Operating lease liabilities, net of current portion		753,451			764,835			770,778
Finance lease liabilities, net of current portion		100,701			94,216			72,192
Tax Receivable Agreement liability, net of current portion		165,054			159,743			171,476
Revolving line of credit		20,885			20,885			20,885
Long-term debt, net of current portion		1,525,304			1,484,416			1,374,592
Deferred revenues		68,690			70,247			69,902
Other long-term liabilities		85,841			85,792			81,201
Total liabilities		4,404,760			4,552,461			4,517,365
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.01 per share – 20,000 shares authorized; none issued and outstanding		—			—			—
Class A common stock, par value $0.01 per share – 250,000 shares authorized; 49,571, 47,571, and 47,855 shares issued, respectively; 44,467, 42,441, and 41,688 shares outstanding, respectively		496			476			476
Class B common stock, par value $0.0001 per share – 75,000 shares authorized; 39,466, 41,466, and 69,066 shares issued, respectively; 39,466, 41,466, and 41,466 shares outstanding, respectively		4			4			4
Class C common stock, par value $0.0001 per share – 0.001 share authorized, issued and outstanding		—			—			—
Additional paid-in capital		114,017			106,051			126,071
Treasury stock, at cost; 5,104, 5,130, and 5,883 shares, respectively		(178,832	)		(179,732	)		(206,098	)
Retained earnings		196,409			221,031			207,774
Total stockholders’ equity attributable to Camping World Holdings, Inc.		132,094			147,830			128,227
Non-controlling interests		93,659			99,856			81,943
Total stockholders’ equity		225,753			247,686			210,170
Total liabilities and stockholders’ equity	$	4,630,513		$	4,800,147		$	4,727,535


Camping World Holdings, Inc. and Subsidiaries
Summary of Consolidated Statements of Cash Flows (unaudited)
(In Thousands)

	Three Months Ended March 31,
	2023			2022

Net cash provided by (used in) operating activities	$	199,217		$	(210,054	)

Investing activities
Purchases of property and equipment		(25,314	)		(31,665	)
Proceeds from sale of property and equipment		183			199
Purchases of real property		(18,236	)		(17,018	)
Proceeds from the sale of real property		22,703			—
Purchases of businesses, net of cash acquired		—			(34,808	)
Purchases of intangible assets		(23	)		(715	)
Net cash used in investing activities		(20,687	)		(84,007	)

Financing activities
Proceeds from long-term debt		59,227			—
Payments on long-term debt		(9,058	)		(3,954	)
Net (payments) proceeds on notes payable – floor plan, net		(249,822	)		275,296
Payments on finance leases		(1,233	)		(1,021	)
Proceeds from sale-leaseback arrangement		—			27,951
Payments on sale-leaseback arrangement		(46	)		(36	)
Payment of debt issuance costs		(767	)		—
Dividends on Class A common stock		(27,791	)		(26,427	)
Proceeds from exercise of stock options		41			231
RSU shares withheld for tax		(338	)		(1,238	)
Repurchases of Class A common stock to treasury stock		—			(79,757	)
Distributions to holders of LLC common units		(6,046	)		(24,836	)
Net cash (used in) provided by financing activities		(235,833	)		166,209

Decrease in cash and cash equivalents		(57,303	)		(127,852	)
Cash and cash equivalents at beginning of the period		130,131			267,332
Cash and cash equivalents at end of the period	$	72,828		$	139,480

Comparison of Certain Trends to Pre-COVID-19 Pandemic Periods

Beginning in the first quarter of 2021 and continuing through the first quarter of 2023, the Company has experienced sequential decreases in new vehicle gross margin, primarily due to the higher cost of new vehicles resulting from the lower industry supply of travel trailers and motorhomes for much of 2021. However, first quarter 2023 new vehicle gross margins were within a similar range that the Company experienced in the first quarter pre-COVID-19 pandemic periods of 2016 to 2019, which we believe are more typical demand environments than during the COVID-19 pandemic.

Additionally, the percentage of total unit sales relating to used vehicles was significantly higher in the first quarter of 2023 compared to the pre-COVID-19 pandemic periods of 2016 to 2019. The Company is continuing to execute on its used vehicle strategy, which differentiates it from the competition with proprietary tools, such as the RV Valuator, focus on the development and retention of its service technician team, and investment in its service bay infrastructure.

The following table presents vehicle gross margin and unit sales mix for the three months ended March 31, 2023 and pre-COVID-19 pandemic periods for the three months ended March 31, 2019, 2018, 2017, and 2016 (unaudited):


	Three Months Ended March 31,
	2023	2019⁽¹⁾	2018⁽¹⁾	2017⁽¹⁾	2016⁽¹⁾
Gross margin:
New vehicles	13.8%	12.6%	13.0%	13.6%	14.5%
Used vehicles	23.1%	20.6%	22.0%	23.3%	18.3%

Unit sales mix:
New vehicles	52.8%	64.7%	66.4%	67.9%	56.7%
Used vehicles	47.2%	35.3%	33.6%	32.1%	43.3%

⁽¹⁾	These periods were prior to the COVID-19 pandemic.

Earnings Per Share

Basic earnings per share of Class A common stock is computed by dividing net income attributable to Camping World Holdings, Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted earnings per share of Class A common stock is computed by dividing net income attributable to Camping World Holdings, Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities.

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock (unaudited):


	Three Months Ended March 31,
(In thousands except per share amounts)	2023			2022
Numerator:
Net income	$	4,903		$	107,299
Less: net income attributable to non-controlling interests		(1,734	)		(62,569	)
Net income attributable to Camping World Holdings, Inc. — basic	$	3,169		$	44,730
Add: reallocation of net income attributable to non-controlling interests from the assumed dilutive effect of stock options and RSUs		—			332
Add: reallocation of net income attributable to non-controlling interests from the assumed redemption of common units of CWGS, LLC for Class A common stock		1,297			—
Net income attributable to Camping World Holdings, Inc. — diluted	$	4,466		$	45,062
Denominator:
Weighted-average shares of Class A common stock outstanding — basic		44,455			43,553
Dilutive options to purchase Class A common stock		15			88
Dilutive restricted stock units		202			574
Dilutive common units of CWGS, LLC that are convertible into Class A common stock		40,045			—
Weighted-average shares of Class A common stock outstanding — diluted		84,717			44,215

Earnings per share of Class A common stock — basic	$	0.07		$	1.03
Earnings per share of Class A common stock — diluted	$	0.05		$	1.02

Weighted-average anti-dilutive securities excluded from the computation of diluted earnings per share of Class A common stock:
Restricted stock units		2,122			1,632
Common units of CWGS, LLC that are convertible into Class A common stock		—			42,045

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), we use the following non-GAAP financial measures: EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, trailing twelve-month (“TTM”) Adjusted EBITDA, Adjusted Net Income Attributable to Camping World Holdings, Inc. – Basic, Adjusted Net Income Attributable to Camping World Holdings, Inc. – Diluted, Adjusted Earnings Per Share – Basic, and Adjusted Earnings Per Share – Diluted (collectively the “Non-GAAP Financial Measures”). We believe that these Non-GAAP Financial Measures, when used in conjunction with GAAP financial measures, provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to the key metrics we use in our financial and operational decision making. These Non-GAAP Financial Measures are also frequently used by analysts, investors and other interested parties to evaluate companies in the Company’s industry and are used by management to evaluate our operating performance, to evaluate the effectiveness of strategic initiatives and for planning purposes. By providing these Non-GAAP Financial Measures, together with reconciliations, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. In addition, our Senior Secured Credit Facilities use Adjusted EBITDA, as calculated for our subsidiary CWGS Group, LLC, to measure our compliance with covenants such as the consolidated leverage ratio. The Non-GAAP Financial Measures have limitations as analytical tools, and the presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. They should not be construed as an inference that the Company’s future results will be unaffected by any items adjusted for in these Non-GAAP Financial Measures. In evaluating these Non-GAAP Financial Measures, it is reasonable to expect that certain of these items will occur in future periods. However, we believe these adjustments are appropriate because the amounts recognized can vary significantly from period to period, do not directly relate to the ongoing operations of our business and complicate comparisons of our internal operating results and operating results of other companies over time. Each of the normal recurring adjustments and other adjustments described in this section and in the reconciliation tables below help management with a measure of our core operating performance over time by removing items that are not related to day-to-day operations.

For periods beginning after December 31, 2022, we are no longer including the other associated costs category of expenses relating to the 2019 Strategic Shift as restructuring costs for purposes of our Non-GAAP Financial Measures, since these costs are not expected to be significant in future periods.

The Non-GAAP Financial Measures that we use are not necessarily comparable to similarly titled measures used by other companies due to different methods of calculation.

EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin

We define “EBITDA” as net income before other interest expense, net (excluding floor plan interest expense), provision for income tax expense and depreciation and amortization. We define “Adjusted EBITDA” as EBITDA further adjusted for the impact of certain noncash and other items that we do not consider in our evaluation of ongoing operating performance. These items include, among other things, long-lived asset impairment, lease termination costs, gains and losses on sale or disposal of assets, net, equity-based compensation, Tax Receivable Agreement liability adjustment, restructuring costs related to the 2019 Strategic Shift, loss and impairment on investments in equity securities, and other unusual or one-time items. We define “Adjusted EBITDA Margin” as Adjusted EBITDA as a percentage of total revenue. We caution investors that amounts presented in accordance with our definitions of EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin may not be comparable to similar measures disclosed by our competitors, because not all companies and analysts calculate EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin in the same manner. We present EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin because we consider them to be important supplemental measures of our performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. Management believes that investors’ understanding of our performance is enhanced by including these Non-GAAP Financial Measures as a reasonable basis for comparing our ongoing results of operations.

The following table reconciles EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and TTM Adjusted EBITDA to the most directly comparable GAAP financial performance measures (unaudited):


	Three Months Ended March 31,
($ in thousands)	2023			2022
EBITDA and Adjusted EBITDA:
Net income	$	4,903		$	107,299
Other interest expense, net		31,113			14,301
Depreciation and amortization		14,637			25,535
Income tax expense		273			21,036
Subtotal EBITDA		50,926			168,171
Long-lived asset impairment (a)		7,045			—
Lease termination (b)		—			178
(Gain) loss on sale or disposal of assets, net (c)		(4,987	)		49
Equity-based compensation (d)		6,358			11,674
Restructuring costs (e)		—			2,023
Loss and impairment on investments in equity securities (f)		1,499			—
Adjusted EBITDA	$	60,841		$	182,095


	Three Months Ended March 31,
(as percentage of total revenue)	2023		2022
Adjusted EBITDA margin:
Net income	0.3	%	6.5	%
Other interest expense, net	2.1	%	0.9	%
Depreciation and amortization	1.0	%	1.5	%
Income tax expense	0.0	%	1.3	%
Subtotal EBITDA margin	3.4	%	10.1	%
Long-lived asset impairment (a)	0.5	%	—
Lease termination (b)	—		0.0	%
(Gain) loss on sale or disposal of assets, net (c)	(0.3	%)	0.0	%
Equity-based compensation (d)	0.4	%	0.7	%
Restructuring costs (e)	—		0.1	%
Loss and impairment on investments in equity securities (f)	0.1	%	—
Adjusted EBITDA margin	4.1	%	11.0	%


	Three Months Ended											TTM Ended
	March 31,			December 31,			September 30,			June 30,		March 31,
($ in thousands)	2023			2022			2022			2022		2023
Adjusted EBITDA:
Net income	$	4,903		$	(57,201	)	$	102,948		$	197,985	$	248,635
Other interest expense, net		31,113			25,983			20,526			14,935		92,557
Depreciation and amortization		14,637			18,935			18,207			17,627		69,406
Income tax expense		273			23,276			22,397			32,375		78,321
Subtotal EBITDA		50,926			10,993			164,078			262,922		488,919
Long-lived asset impairment (a)		7,045			726			887			2,618		11,276
Lease termination (b)		—			492			—			944		1,436
(Gain) loss on sale or disposal of assets, net (c)		(4,987	)		232			(40	)		381		(4,414	)
Equity-based compensation (d)		6,358			6,413			6,792			8,968		28,531
Restructuring costs (e)		—			1,478			1,671			1,854		5,003
Loss and impairment on investments in equity securities (f)		1,499			—			—			—		1,499
Tax Receivable Agreement liability adjustment (g)		—			(114	)		—			—		(114	)
Adjusted EBITDA	$	60,841		$	20,220		$	173,388		$	277,687	$	532,136

(a)	Represents long-lived asset impairment charges related to the RV and Outdoor Retail segment.
(b)	Represents the loss on the termination of operating leases, relating primarily to the 2019 Strategic Shift, resulting from lease termination fees and the derecognition of the operating lease assets and liabilities.
(c)	Represents an adjustment to eliminate the gains and losses on disposals and sales of various assets.
(d)	Represents non-cash equity-based compensation expense relating to employees, directors, and consultants of the Company.
(e)	Represents restructuring costs relating to our 2019 Strategic Shift for periods ending on or before December 31, 2022. These restructuring costs include one-time employee termination benefits relating to retail store or distribution center closures/divestitures, incremental inventory reserve charges, and other associated costs. These costs exclude lease termination costs, which are presented separately above (see (b) above).
(f)	Represents loss and impairment on investments in equity securities for periods beginning after December 31, 2022. Amounts relating to periods prior to 2023 were not significant. These amounts are included in other expense, net in the condensed consolidated statements of operations. During the three months ended March 31, 2023, this amount included a $1.3 million impairment on an equity method investment.
(g)	Represents an adjustment to eliminate the gain on remeasurement of the Tax Receivable Agreement primarily due to changes in our blended statutory income tax rate.

Adjusted Net Income Attributable to Camping World Holdings, Inc. and Adjusted Earnings Per Share

We define “Adjusted Net Income Attributable to Camping World Holdings, Inc. – Basic” as net income attributable to Camping World Holdings, Inc. adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include, among other things, long-lived asset impairment, lease termination costs, gains and losses on sale or disposal of assets, net, equity-based compensation, restructuring costs related to the 2019 Strategic Shift, loss and impairment on investments in equity securities, other unusual or one-time items, the income tax expense effect of these adjustments, and the effect of net income attributable to non-controlling interests from these adjustments.

We define “Adjusted Net Income Attributable to Camping World Holdings, Inc. – Diluted” as Adjusted Net Income Attributable to Camping World Holdings, Inc. – Basic adjusted for the reallocation of net income attributable to non-controlling interests from stock options and restricted stock units, if dilutive, or the assumed redemption, if dilutive, of all outstanding common units in CWGS, LLC for shares of newly-issued Class A common stock of Camping World Holdings, Inc.

We define “Adjusted Earnings Per Share – Basic” as Adjusted Net Income Attributable to Camping World Holdings, Inc. – Basic divided by the weighted-average shares of Class A common stock outstanding. We define “Adjusted Earnings Per Share – Diluted” as Adjusted Net Income Attributable to Camping World Holdings, Inc. – Diluted divided by the weighted-average shares of Class A common stock outstanding, assuming (i) the redemption of all outstanding common units in CWGS, LLC for newly-issued shares of Class A common stock of Camping World Holdings, Inc., if dilutive, and (ii) the dilutive effect of stock options and restricted stock units, if any. We present Adjusted Net Income Attributable to Camping World Holdings, Inc. – Basic, Adjusted Net Income Attributable to Camping World Holdings, Inc. – Diluted, Adjusted Earnings Per Share – Basic, and Adjusted Earnings Per Share – Diluted because we consider them to be important supplemental measures of our performance and we believe that investors’ understanding of our performance is enhanced by including these Non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations.

The following table reconciles Adjusted Net Income Attributable to Camping World Holdings, Inc. – Basic, Adjusted Net Income Attributable to Camping World Holdings, Inc. – Diluted, Adjusted Earnings Per Share – Basic, and Adjusted Earnings Per Share – Diluted to the most directly comparable GAAP financial performance measure:


	Three Months Ended
	March 31,
(In thousands except per share amounts)	2023			2022
Numerator:
Net income attributable to Camping World Holdings, Inc.	$	3,169		$	44,730
Adjustments related to basic calculation:
Long-lived asset impairment (a):
Gross adjustment		7,045			—
Income tax expense for above adjustment (b)		(938	)		—
Lease termination (c):
Gross adjustment		—			178
Income tax expense for above adjustment (b)		—			—
(Gain) loss on sale or disposal of assets (d):
Gross adjustment		(4,987	)		49
Income tax expense for above adjustment (b)		665			—
Equity-based compensation (e):
Gross adjustment		6,358			11,674
Income tax expense for above adjustment (b)		(857	)		(1,337	)
Restructuring costs (f):
Gross adjustment		—			2,023
Income tax expense for above adjustment (b)		—			—
Loss and impairment on investments in equity securities (g):
Gross adjustment		1,499			—
Income tax expense for above adjustment (b)		(200	)		—
Adjustment to net income attributable to non-controlling interests resulting from the above adjustments (h)		(4,688	)		(6,827	)
Adjusted net income attributable to Camping World Holdings, Inc. – basic		7,066			50,490
Adjustments related to diluted calculation:
Reallocation of net income attributable to non-controlling interests from the dilutive effect of stock options and restricted stock units (i)		—			533
Income tax on reallocation of net income attributable to non-controlling interests from the dilutive effect of stock options and restricted stock units (j)		—			(158	)
Reallocation of net income attributable to non-controlling interests from the dilutive redemption of common units in CWGS, LLC (i)		6,422			—
Income tax on reallocation of net income attributable to non-controlling interests from the dilutive redemption of common units in CWGS, LLC (j)		(1,615	)		—
Adjusted net income attributable to Camping World Holdings, Inc. – diluted	$	11,873		$	50,865
Denominator:
Weighted-average Class A common shares outstanding – basic		44,455			43,553
Adjustments related to diluted calculation:
Dilutive redemption of common units in CWGS, LLC for shares of Class A common stock (l)		40,045			—
Dilutive options to purchase Class A common stock (l)		15			88
Dilutive restricted stock units (l)		202			574
Adjusted weighted average Class A common shares outstanding – diluted		84,717			44,215

Adjusted earnings per share – basic	$	0.16		$	1.16
Adjusted earnings per share – diluted	$	0.14		$	1.15

Anti-dilutive amounts (m):
Numerator:
Reallocation of net income attributable to non-controlling interests from the anti-dilutive redemption of common units in CWGS, LLC (i)	$	—		$	68,863
Income tax on reallocation of net income attributable to non-controlling interests from the anti-dilutive redemption of common units in CWGS, LLC (j)	$	—		$	(20,392	)
Assumed income tax benefit of combining C-corporations with full or partial valuation allowances with the income of other consolidated entities after the anti-dilutive redemption of common units in CWGS, LLC (k)	$	—		$	6,348
Denominator:
Anti-dilutive redemption of common units in CWGS, LLC for shares of Class A common stock (l)		—			42,045

Reconciliation of per share amounts:
Earnings per share of Class A common stock — basic	$	0.07		$	1.03
Non-GAAP Adjustments (n)		0.09			0.13
Adjusted earnings per share – basic	$	0.16		$	1.16

Earnings per share of Class A common stock — diluted	$	0.05		$	1.02
Non-GAAP Adjustments (n)		0.09			0.13
Adjusted earnings per share – diluted	$	0.14		$	1.15

(a)	Represents long-lived asset impairment charges related to the RV and Outdoor Retail segment.
(b)	Represents the current and deferred income tax expense or benefit effect of the above adjustments. For periods ended on or before December 31, 2022, many of these adjustments were related to entities with full valuation allowances for which no tax benefit could be recognized. This assumption uses an effective tax rate of 25.3% and 25.4% for the adjustments for the 2023 and 2022 periods, respectively, which represents the estimated tax rate that would apply had the above adjustments been included in the determination of our non-GAAP metric.
(c)	Represents the loss on termination of operating leases, relating to the 2019 Strategic Shift, resulting from the lease termination fees and the derecognition of the operating lease assets and liabilities.
(d)	Represents an adjustment to eliminate the gains and losses on disposals and sales of various assets.
(e)	Represents non-cash equity-based compensation expense relating to employees, directors, and consultants of the Company.
(f)	Represents restructuring costs relating to the 2019 Strategic Shift for periods ended on or before December 31, 2022. These restructuring costs include other associated costs. These costs exclude lease termination costs, which are presented separately above.
(g)	Represents loss and impairment on investments in equity securities for periods beginning after December 31, 2022. Amounts relating to periods prior to 2023 were not significant. These amounts are included in other expense, net in the condensed consolidated statements of operations. During the three months ended March 31, 2023, this amount included a $1.3 million impairment on an equity method investment.
(h)	Represents the adjustment to net income attributable to non-controlling interests resulting from the above adjustments that impact the net income of CWGS, LLC. This adjustment uses the non-controlling interest’s weighted average ownership of CWGS, LLC of 47.4% and 49.1% for the three months ended March 31, 2023 and 2022, respectively.
(i)	Represents the reallocation of net income attributable to non-controlling interests from the impact of the assumed change in ownership of CWGS, LLC from stock options, restricted stock units, and/or common units of CWGS, LLC.
(j)	Represents the income tax expense effect of the above adjustment for reallocation of net income attributable to non-controlling interests. This assumption uses an effective tax rate of 25.3% and 25.4% for the adjustments for 2023 and 2022 periods, respectively.
(k)	As a result of the LLC Conversion, this adjustment only relates to periods ended on or before December 31, 2022. Typically represents adjustments to reflect the income tax benefit of losses of consolidated C-corporations that under the Company’s previous equity structure, prior to the LLC Conversion, could not be used against the income of other consolidated subsidiaries of CWGS, LLC. Subsequent to the redemption of all common units in CWGS, LLC and prior to the LLC Conversion, the Company believes certain actions could have been taken such that the C-corporations’ losses could offset income of other consolidated subsidiaries. The adjustment reflects the income tax benefit assuming effective tax rate of 25.4% during 2022 for the losses experienced by the consolidated C-corporations for which valuation allowances had been recorded. No assumed release of valuation allowance established for previous periods were included in these amounts. Beginning in 2023, these C-corporation losses offset income of other consolidated subsidiaries as a result of LLC Conversion at or around December 31, 2022.
(l)	Represents the impact to the denominator for stock options, restricted stock units, and/or common units of CWGS, LLC.
(m)	The below amounts have not been considered in our adjusted earnings per share – diluted amounts as the effect of these items are anti-dilutive.
(n)	Represents the per share impact of the Non-GAAP adjustments to net income detailed above (see (a) through (g) above).

Our “Up-C” corporate structure may make it difficult to compare our results with those of companies with a more traditional corporate structure. There can be a significant fluctuation in the numerator and denominator for the calculation of our adjusted earnings per share – diluted depending on if the common units in CWGS, LLC are considered dilutive or anti-dilutive for a given period. To improve comparability of our financial results, users of our financial statements may find it useful to review our earnings per share assuming the full redemption of common units in CWGS, LLC for all periods, even when those common units would be anti-dilutive. The relevant numerator and denominator adjustments have been provided under “Anti-dilutive amounts” in the table above (see (m) above).

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May 2, 2023 4:42 pm

Edison International Reports First Quarter 2023 Results

Edison International Reports First Quarter 2023 Results

First Quarter 2023 GAAP earnings per share of $0.81; Core EPS of $1.09
Completed significant portion of EIX 2023 financing plan with $500 million junior subordinated notes issuance
Affirmed 2023 EPS guidance of $4.55-$4.85 and long-term EPS growth rate target of 5%-7% for 2021-2025

ROSEMEAD, Calif.–(BUSINESS WIRE)–
Edison International (NYSE: EIX) today reported first-quarter net income of $310 million, or $0.81 per share, compared to net income of $84 million, or $0.22 per share, in the first quarter of 2022. As adjusted, first-quarter core earnings were $416 million, or $1.09 per share, compared to core earnings of $407 million, or $1.07 per share, in the first quarter of 2022.

Southern California Edison’s first-quarter core earnings per share (EPS) increased year over year, primarily due to revenue from the escalation mechanism set forth in the 2021 General Rate Case final decision, partially offset by higher net interest expense.

Edison International Parent and Other’s first-quarter core loss per share increased year over year, primarily due to higher interest expense.

“We are pleased with our start to the year and are confident in affirming our 2023 core EPS guidance range,” said Pedro J. Pizarro, president and CEO of Edison International. “We continue to see a number of positives for the company in the near term and long term, which make us excited for the company’s future.”

Pizarro added, “In the near term, SCE continues its diligent execution of its Wildfire Mitigation Plan and has reduced the probability of losses from catastrophic wildfires by 75% to 80% compared to pre-2018 levels, predominantly from grid hardening measures that allow the utility to mitigate risk while keeping electricity flowing to customers. In the long term, transportation electrification is a key driver of SCE’s investment in the grid and for enabling customer affordability. We are already seeing customers start to embrace and adopt electric vehicles today — including operators of medium- and heavy-duty vehicle fleets.”

Edison International uses core earnings internally for financial planning and for analysis of performance. Core earnings are also used when communicating with investors and analysts regarding Edison International’s earnings results to facilitate comparisons of the company’s performance from period to period. Please see the attached tables for a reconciliation of core earnings to basic GAAP earnings.

2023 Financing Plan

In March, Edison International Parent accomplished a significant portion of its 2023 financing plan by issuing $500 million of junior subordinated notes, due in 2053, which provide approximately $250 million of equity content, as viewed by rating agencies. The transaction was in line with company expectations and was significantly oversubscribed. The company expects to raise any additional equity this year through its internal programs, which are estimated to generate approximately $100 million. The total expected equity content is consistent with the $300 million to $400 million of equity content identified in the company’s 2023 financing plan.

2023 Earnings Guidance

The company affirmed its earnings guidance range for 2023 as summarized in the following chart. See the presentation accompanying the company’s conference call for further information and assumptions.

2023 Earnings Guidance

as of Feb. 23, 2023

as of May 2, 2023

Low

High

Low

High

EIX Basic EPS

4.55

4.85

4.27

4.57

Less: Non-core Items*

–

(0.28

)

(0.28

)

EIX Core EPS

4.55

4.85

4.55

4.85

* There were ($106) million, or ($0.28) per share of non-core items recorded for the three months ended March 31, 2023. Basic EIX EPS guidance only incorporates non-core items to March 31, 2023.

First Quarter 2023 Earnings Conference Call and Webcast Details


When:		Tuesday, May 2, 2023, 1:30-2:30 p.m. (Pacific time)
Telephone Numbers:		1-888-673-9780 (U.S.) and 1-312-470-0178 (Int’l) — Passcode: Edison
Telephone Replay:		1-866-405-7290 (U.S.) and 1-203-369-0603 (Int’l) — Passcode: 7345
		Telephone replay available through May 17, 2023, at 6 p.m. (Pacific time)
Webcast:		www.edisoninvestor.com

Edison International has posted its earnings conference call prepared remarks by the CEO and CFO, the teleconference presentation and Form 10-Q to the company’s investor relations website. These materials are available at www.edisoninvestor.com.

About Edison International

Edison International (NYSE: EIX) is one of the nation’s largest electric utility holding companies, providing clean and reliable energy and energy services through its independent companies. Headquartered in Rosemead, California, Edison International is the parent company of Southern California Edison Company, a utility that delivers electricity to 15 million people across Southern, Central and Coastal California. Edison International is also the parent company of Edison Energy LLC, a global energy advisory firm engaged in the business of providing integrated decarbonization and energy solutions to commercial, industrial and institutional customers.

Appendix

Use of Non-GAAP Financial Measures

Edison International’s earnings are prepared in accordance with generally accepted accounting principles used in the United States and represent the company’s earnings as reported to the Securities and Exchange Commission. Our management uses core earnings and core earnings per share (EPS) internally for financial planning and for analysis of performance of Edison International and Southern California Edison. We also use core earnings and core EPS when communicating with analysts and investors regarding our earnings results to facilitate comparisons of the Company’s performance from period to period. Financial measures referred to as net income, basic EPS, core earnings, or core EPS also apply to the description of earnings or earnings per share.

Core earnings and core EPS are non-GAAP financial measures and may not be comparable to those of other companies. Core earnings and core EPS are defined as basic earnings and basic EPS excluding income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings. Basic earnings and losses refer to net income or losses attributable to Edison International shareholders. Core earnings are reconciled to basic earnings in the attached tables. The impact of participating securities (vested awards that earn dividend equivalents that may participate in undistributed earnings with common stock) for the principal operating subsidiary is not material to the principal operating subsidiary’s EPS and is therefore reflected in the results of the Edison International holding company, which is included in Edison International Parent and Other.

Safe Harbor Statement

Statements contained in this presentation about future performance, including, without limitation, operating results, capital expenditures, rate base growth, dividend policy, financial outlook, and other statements that are not purely historical, are forward-looking statements. These forward-looking statements reflect our current expectations; however, such statements involve risks and uncertainties. Actual results could differ materially from current expectations. These forward-looking statements represent our expectations only as of the date of this presentation, and Edison International assumes no duty to update them to reflect new information, events or circumstances. Important factors that could cause different results include, but are not limited to the:

ability of SCE to recover its costs through regulated rates, including uninsured wildfire-related and debris flow-related costs, costs incurred to mitigate the risk of utility equipment causing future wildfires, costs incurred as a result of the COVID-19 pandemic, and increased costs due to supply chain constraints, inflation and rising interest rates;
ability of SCE to implement its Wildfire Mitigation Plan and capital program;
risks of regulatory or legislative restrictions that would limit SCE’s ability to implement operational measures to mitigate wildfire risk, including Public Safety Power Shutoff (“PSPS”) and fast curve settings, when conditions warrant or would otherwise limit SCE’s operational practices relative to wildfire risk mitigation;
risks associated with SCE implementing PSPS, including regulatory fines and penalties, claims for damages and reputational harm;
ability of SCE to maintain a valid safety certification;
ability of Edison International and SCE to obtain sufficient insurance at a reasonable cost, including insurance relating to wildfire-related claims, and to recover the costs of such insurance or, in the event liabilities exceed insured amounts, the ability to recover uninsured losses (including amounts paid for self-insured retention and co-insurance) from customers or other parties;
extreme weather-related incidents (including events caused, or exacerbated, by climate change, such as wildfires, debris flows, flooding, droughts, high wind events and extreme heat events) and other natural disasters (such as earthquakes), which could cause, among other things, public safety issues, property damage, rotating outages and other operational issues (such as issues due to damaged infrastructure), PSPS activations and unanticipated costs;
risk that California Assembly Bill 1054 (“AB 1054”) does not effectively mitigate the significant exposure faced by California investor-owned utilities related to liability for damages arising from catastrophic wildfires where utility facilities are alleged to be a substantial cause, including the longevity of the Wildfire Insurance Fund and the CPUC’s interpretation of and actions under AB 1054, including its interpretation of the prudency standard clarified by AB 1054;
ability of Edison International and SCE to effectively attract, manage, develop and retain a skilled workforce, including its contract workers;
decisions and other actions by the California Public Utilities Commission, the Office of Energy Infrastructure Safety of the California Natural Resources Agency, the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission and other governmental authorities, including decisions and actions related to nationwide or statewide crisis, determinations of authorized rates of return or return on equity, the recoverability of wildfire-related and debris flow-related costs, issuance of SCE’s wildfire safety certification, wildfire mitigation efforts, approval and implementation of electrification programs, and delays in executive, regulatory and legislative actions;
cost and availability of labor, equipment and materials, including as a result of supply chain constraints and inflation;
ability of Edison International or SCE to borrow funds and access bank and capital markets on reasonable terms;
risks associated with the decommissioning of San Onofre, including those related to worker and public safety, public opposition, permitting, governmental approvals, on-site storage of spent nuclear fuel and other radioactive material, delays, contractual disputes, and cost overruns;
pandemics, such as COVID-19, and other events that cause regional, statewide, national or global disruption, which could impact, among other things, Edison International’s and SCE’s business, operations, cash flows, liquidity and/or financial results and cause Edison International and SCE to incur unanticipated costs;
physical security of Edison International’s and SCE’s critical assets and personnel and the cybersecurity of Edison International’s and SCE’s critical information technology systems for grid control, and business, employee and customer data;
risks associated with cost allocation resulting in higher rates for utility bundled service customers because of possible customer bypass or departure for other electricity providers such as Community Choice Aggregators (“CCA,” which are cities, counties, and certain other public agencies with the authority to generate and/or purchase electricity for their local residents and businesses) and Electric Service Providers (entities that offer electric power and ancillary services to retail customers, other than electrical corporations (like SCE) and CCAs) ;
risks inherent in SCE’s capital investment program, including those related to project site identification, public opposition, environmental mitigation, construction, permitting, contractor performance, availability of labor, equipment and materials, weather, changes in the California Independent System Operator’s transmission plans, and governmental approvals; and
risks associated with the operation of electrical facilities, including worker and public safety issues, the risk of utility assets causing or contributing to wildfires, failure, availability, efficiency, and output of equipment and facilities, and availability and cost of spare parts.

Additional information about risks and uncertainties is contained in Edison International and SCE’s most recent combined Annual Report on Form 10-K for the year ended December 31, 2022, and subsequent Quarterly Report(s) on Form 10-Q filed with the Securities and Exchange commission, including the “Risk Factors” sections. Readers are urged to read this entire release as well as the most recent Form 10-K and Form 10-Q (including information incorporated by reference), and carefully consider the risks, uncertainties, and other factors that affect Edison International’s and SCE’s businesses. Edison International and SCE post or provide direct links (i) to certain SCE and other parties’ regulatory filings and documents with the CPUC and the FERC and certain agency rulings and notices in open proceedings in a section titled “SCE Regulatory Highlights,” (ii) to certain documents and information related to Southern California wildfires which may be of interest to investors in a section titled “Southern California Wildfires,” and (iii) to presentations, documents and other information that may be of interest to investors in a section titled “Presentations and Updates” at www.edisoninvestor.com in order to publicly disseminate such information.

These forward-looking statements represent our expectations only as of the date of this news release, and Edison International assumes no duty to update them to reflect new information, events or circumstances. Readers should review future reports filed by Edison International and SCE with the SEC.


First Quarter Reconciliation of Basic Earnings Per Share to Core Earnings Per Share

	Three months ended
	March 31,
	2023			2022			Change
Earnings (loss) per share attributable to Edison International
SCE	$	0.97		$	0.38		$	0.59
Edison International Parent and Other		(0.16	)		(0.16	)		—
Edison International		0.81			0.22			0.59
Less: Non-core items
SCE		(0.32	)		(0.85	)		0.53
Edison International Parent and Other		0.04			—			0.04
Total non-core items		(0.28	)		(0.85	)		0.57
Core earnings (loss) per share
SCE		1.29			1.23			0.06
Edison International Parent and Other		(0.20	)		(0.16	)		(0.04	)
Edison International	$	1.09		$	1.07		$	0.02

Note: Diluted earnings were $0.81 and $0.22 per share for the three months ended March 31, 2023 and 2022.


First Quarter Reconciliation of Basic Earnings Per Share to Core Earnings (in millions)

	Three months ended
	March 31,
(in millions)	2023			2022			Change
Net income (loss) attributable to Edison International
SCE	$	370		$	147		$	223
Edison International Parent and Other		(60	)		(63	)		3
Edison International		310			84			226
Less: Non-core items
SCE^1,2,3		(124	)		(323	)		199
Edison International Parent and Other⁴		18			—			18
Total non-core items		(106	)		(323	)		217
Core earnings (loss)
SCE		494			470			24
Edison International Parent and Other		(78	)		(63	)		(15	)
Edison International	$	416		$	407		$	9

¹Includes charges of $90 million ($65 million after-tax) and $396 million ($285 million after-tax) for 2017/2018 Wildfire/Mudslide Events claims and expenses, net of recoveries, for the three months ended March 31, 2023 and 2022, respectively.

²Includes charges of $52 million ($38 million after-tax) and $53 million ($38 million after-tax) from the amortization of SCE’s contribution to the Wildfire Insurance Fund, for the three months ended March 31, 2023 and 2022, respectively.

³Includes a charge of $30 million ($21 million after-tax) for estimated losses related to the reasonableness review of recorded San Onofre Units 2 and 3 decommissioning costs in the 2021 NDCTP for the three months ended March 31, 2023.

⁴Includes customer revenues of $22 million ($18 million after-tax) related to an EIS insurance contract for the three months ended March 31, 2023.


Consolidated Statements of Income

	Three months ended
	March 31,
(in millions, except per-share amounts)	2023			2022
Operating revenue	$	3,966		$	3,968
Purchased power and fuel		1,318			1,037
Operation and maintenance		1,084			1,487
Wildfire-related claims, net of insurance recoveries		96			425
Wildfire Insurance Fund expense		52			53
Depreciation and amortization		656			583
Property and other taxes		140			126
Other operating income		—			(2	)
Total operating expenses		3,346			3,709
Operating income		620			259
Interest expense		(361	)		(246	)
Other income		119			68
Income before income taxes		378			81
Income tax expense (benefit)		13			(55	)
Net income		365			136
Less: Preference stock dividend requirements of SCE		29			26
Preferred stock dividend requirement of Edison International		26			26
Net income attributable to Edison International common shareholders	$	310		$	84
Basic earnings per share:
Weighted average shares of common stock outstanding		383			381
Basic earnings per common share attributable to Edison International common shareholders	$	0.81		$	0.22
Diluted earnings per share:
Weighted average shares of common stock outstanding, including effect of dilutive securities		384			382
Diluted earnings per common share attributable to Edison International common shareholders	$	0.81		$	0.22


Consolidated Balance Sheets	Edison International

	March 31,		December 31,
(in millions)	2023		2022
ASSETS
Cash and cash equivalents	$	836	$	914
Receivables, less allowances of $323 and $347 for uncollectible accounts at respective dates		1,451		1,695
Accrued unbilled revenue		766		641
Inventory		500		474
Prepaid expenses		311		248
Regulatory assets		2,817		2,497
Wildfire Insurance Fund contributions		204		204
Other current assets		325		397
Total current assets		7,210		7,070
Nuclear decommissioning trusts		4,093		3,948
Marketable securities		2		5
Other investments		62		50
Total investments		4,157		4,003
Utility property, plant and equipment, less accumulated depreciation and amortization of $12,505 and $12,260 at respective dates		53,955		53,274
Nonutility property, plant and equipment, less accumulated depreciation of $108 and $106 at respective dates		215		212
Total property, plant and equipment		54,170		53,486
Regulatory assets (include $827 and $834 related to Variable Interest Entities “VIEs” at respective dates)		8,151		8,181
Wildfire Insurance Fund contributions		2,104		2,155
Operating lease right-of-use assets		1,346		1,442
Long-term insurance receivables		458		465
Other long-term assets		1,258		1,239
Total long-term assets		13,317		13,482

Total assets	$	78,854	$	78,041


Consolidated Balance Sheets	Edison International

		March 31,			December 31,
(in millions, except share amounts)	2023			2022
LIABILITIES AND EQUITY
Short-term debt	$	1,645		$	2,015
Current portion of long-term debt		2,214			2,614
Accounts payable		1,795			2,359
Wildfire-related claims		75			121
Customer deposits		172			167
Regulatory liabilities		425			964
Current portion of operating lease liabilities		420			506
Other current liabilities		1,620			1,601
Total current liabilities		8,366			10,347
Long-term debt (include $809 related to VIEs at both dates)		29,442			27,025
Deferred income taxes and credits		6,280			6,149
Pensions and benefits		413			422
Asset retirement obligations		2,733			2,754
Regulatory liabilities		8,555			8,211
Operating lease liabilities		926			936
Wildfire-related claims		1,600			1,687
Other deferred credits and other long-term liabilities		2,990			2,988
Total deferred credits and other liabilities		23,497			23,147
Total liabilities		61,305			60,519
Commitments and contingencies
Preferred stock (50,000,000 shares authorized; 1,250,000 shares of Series A and 750,000 shares of Series B issued and outstanding at respective dates)		1,978			1,978
Common stock, no par value (800,000,000 shares authorized; 382,659,081 and 382,208,498 shares issued and outstanding at respective dates)		6,223			6,200
Accumulated other comprehensive loss		(9	)		(11	)
Retained earnings		7,456			7,454
Total Edison International’s shareholders’ equity		15,648			15,621
Noncontrolling interests – preference stock of SCE		1,901			1,901
Total equity		17,549			17,522

Total liabilities and equity	$	78,854		$	78,041


Consolidated Statements of Cash Flows	Edison International

	Three months ended March 31,
(in millions)	2023			2022
Cash flows from operating activities:
Net income	$	365		$	136
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization		676			624
Allowance for equity during construction		(36	)		(30	)
Deferred income taxes		12			(55	)
Wildfire Insurance Fund amortization expense		52			53
Other		8			11
Nuclear decommissioning trusts		(19	)		(34	)
Changes in operating assets and liabilities:
Receivables		227			130
Inventory		(29	)		(14	)
Accounts payable		(508	)		(84	)
Tax receivables and payables		(9	)		54
Other current assets and liabilities		(329	)		(30	)
Derivative assets and liabilities, net		(99	)		35
Regulatory assets and liabilities, net		(296	)		259
Wildfire-related insurance receivable		—			(96	)
Wildfire-related claims		(133	)		(196	)
Other noncurrent assets and liabilities		28			29
Net cash (used in) provided by operating activities		(90	)		792
Cash flows from financing activities:
Long-term debt issued, net of discount and issuance costs of $19 and $20 for the respective periods		1,681			1,713
Long-term debt repaid		(401	)		(365	)
Short-term debt repaid		(600	)		(518	)
Common stock issued		10			4
Commercial paper borrowing (repayments), net		960			(306	)
Dividends and distribution to noncontrolling interests		(29	)		(32	)
Common stock dividends paid		(277	)		(262	)
Preferred stock dividends paid		(52	)		(46	)
Other		24			17
Net cash provided by financing activities		1,316			205
Cash flows from investing activities:
Capital expenditures		(1,324	)		(1,207	)
Proceeds from sale of nuclear decommissioning trust investments		951			867
Purchases of nuclear decommissioning trust investments		(932	)		(833	)
Other		—			16
Net cash used in investing activities		(1,305	)		(1,157	)
Net decrease in cash, cash equivalents and restricted cash		(79	)		(160	)
Cash, cash equivalents and restricted cash at beginning of period		917			394
Cash, cash equivalents and restricted cash at end of period	$	838		$	234

View source version on businesswire.com: https://www.businesswire.com/news/home/20230502006075/en/

Investor Relations: Sam Ramraj, (626) 302-2540

Media Contact: Jeff Monford, (626) 302-2255

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Energy Other Energy Utilities

MEDIA:

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May 2, 2023 4:42 pm

Wolverine Worldwide Declares Quarterly Dividend

Wolverine Worldwide Declares Quarterly Dividend

ROCKFORD, Mich.–(BUSINESS WIRE)–
Wolverine World Wide, Inc. (NYSE: WWW) today announced that its Board of Directors has declared a quarterly cash dividend of $0.10 per share of common stock. The dividend is payable on August 1, 2023, to stockholders of record on July 3, 2023. The dividend is equal to the last quarterly dividend and reflects an indicated annual dividend of $0.40 per share.

ABOUT WOLVERINE WORLDWIDE

Founded in 1883 on the belief in the possibility of opportunity, Wolverine World Wide, Inc. (NYSE:WWW) is one of the world’s leading marketers and licensors of branded casual, active lifestyle, work, outdoor sport, athletic, children’s and uniform footwear and apparel. Through a diverse portfolio of highly recognized brands, our products are designed to empower, engage and inspire our consumers every step of the way. The Company’s portfolio includes Merrell®, Saucony®, Sweaty Betty®, Sperry®, HushPuppies®,Wolverine®, Chaco®,Bates®, HYTEST®, and Stride Rite®. Wolverine Worldwide is also the global footwear licensee of the popular brands Cat® and Harley-Davidson®. Based in Rockford, Michigan, for more than 130 years, the Company’s products are carried by leading retailers in the U.S. and globally in approximately 170 countries and territories. For additional information, please visit our website, www.wolverineworldwide.com or visit us on Facebook, LinkedIn, and Instagram.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230502006107/en/

Mike Stornant

(616) 866-5728

KEYWORDS: Michigan United States North America

INDUSTRY KEYWORDS: Fashion Footwear Online Retail Retail Department Stores Catalog

MEDIA:

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May 2, 2023 4:41 pm

SuRo Capital Corp. to Report First Quarter 2023 Financial Results on Tuesday, May 9, 2023

NEW YORK, May 02, 2023 (GLOBE NEWSWIRE) — SuRo Capital Corp. (“SuRo Capital”) (Nasdaq: SSSS) today announced that it will report its financial results for the quarter ended March 31, 2023 after the close of the U.S. market on Tuesday, May 9, 2023.

Management will hold a conference call and webcast for investors at 2:00 p.m. PT (5:00 p.m. ET). The conference call access number for U.S. participants is 866-580-3963, and the conference call access number for participants outside the U.S. is +1 786-697-3501. The conference ID number for both access numbers is 0401553. Additionally, interested parties can listen to a live webcast of the call from the “Investor Relations” section of SuRo Capital’s website at www.surocap.com. An archived replay of the webcast will also be available for 12 months following the live presentation.

A replay of the conference call may be accessed until 5:00 p.m. PT (8:00 p.m. ET) on May 16, 2023 by dialing 866-583-1035 (U.S.) or +44 (0) 20 3451 9993 (International) and using conference ID number 0401553.

About SuRo Capital Corp.

SuRo Capital Corp. (Nasdaq: SSSS) is a publicly traded investment fund that seeks to invest in high-growth, venture-backed private companies. The fund seeks to create a portfolio of high-growth emerging private companies via a repeatable and disciplined investment approach, as well as to provide investors with access to such companies through its publicly traded common stock. SuRo Capital is headquartered in New York, NY and has offices in San Francisco, CA. Connect with the company on Twitter, LinkedIn, and at www.surocap.com.

Contact

SuRo Capital Corp.
(212) 931-6331
[email protected]

May 2, 2023 4:41 pm

Viracta Therapeutics Announces Departure of Chief Medical Officer

SAN DIEGO, May 02, 2023 (GLOBE NEWSWIRE) — Viracta Therapeutics, Inc. (Nasdaq: VIRX), a precision oncology company focused on the treatment and prevention of virus-associated cancers that impact patients worldwide, today announced that Chief Medical Officer, Lisa Rojkjaer, M.D., will be leaving the company to pursue another opportunity, effective May 5, 2023. Donald Strickland, M.D., Viracta’s Vice President, Clinical Development and Medical Director, and Yisrael Katz, M.D., Senior Medical Director, will continue to oversee Viracta’s pivotal NAVAL-1 trial and solid tumor clinical program, respectively.

“Viracta has built an excellent team of talented professionals that have achieved important milestones such as the initiation and global expansion of Nana-val’s pivotal NAVAL-1 trial in EBV-positive relapsed/refractory lymphoma in addition to the advancement of our Nana-val program into EBV-positive solid tumors,” said Mark Rothera, President and Chief Executive Officer of Viracta. “I have the utmost confidence that this team will continue to efficiently advance the development of Nana-val as a potentially tumor agnostic therapy for EBV-associated cancers. I would like to thank Lisa for her contributions to Viracta and wish her well in her next endeavor.”

About Viracta Therapeutics, Inc.

Viracta is a precision oncology company focused on the treatment and prevention of virus-associated cancers that impact patients worldwide. Viracta’s lead product candidate is an all-oral combination therapy of its proprietary investigational drug, nanatinostat, and the antiviral agent valganciclovir (collectively referred to as Nana-val). Nana-val is currently being evaluated in multiple ongoing clinical trials, including a pivotal, global, multicenter, open-label Phase 2 basket trial for the treatment of multiple subtypes of relapsed/refractory Epstein-Barr virus-positive (EBV⁺) lymphoma (NAVAL-1), as well as a multinational, open-label Phase 1b/2 trial for the treatment of EBV⁺ recurrent or metastatic nasopharyngeal carcinoma and other EBV⁺ solid tumors. Viracta is also pursuing the application of its “Kick and Kill” approach in other virus-related cancers.

For additional information please visit www.viracta.com.

Forward Looking Statements
This communication contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding: the details, timeline and expected progress for Viracta’s ongoing and anticipated trials and updates regarding the same, including NAVAL-1 and the Phase 1b/2 trial of Nana-val in EBV⁺ solid tumors, the announced changes to management, statements concerning or implying Viracta’s future performance, goals and potential, and the ability of management personnel to contribute to the execution of Viracta’s vision, performance, goals and potential. Risks and uncertainties related to Viracta that may cause actual results to differ materially from those expressed or implied in any forward-looking statement include, but are not limited to: Viracta’s ability to successfully enroll patients in and complete its ongoing and planned clinical trials; Viracta’s plans to develop and commercialize its product candidates, including all oral combinations of nanatinostat and valganciclovir; the timing of initiation of Viracta’s planned clinical trials; the timing of the availability of data from Viracta’s clinical trials; previous preclinical and clinical results may not be predictive of future clinical results; the timing of any planned investigational new drug application or new drug application; Viracta’s plans to research, develop and commercialize its current and future product candidates; the clinical utility, potential benefits and market acceptance of Viracta’s product candidates; Viracta’s ability to manufacture or supplying nanatinostat, valganciclovir and pembrolizumab for clinical testing; Viracta’s ability to identify additional products or product candidates with significant commercial potential; developments and projections relating to Viracta’s competitors and its industry; the impact of government laws and regulations; Viracta’s ability to protect its intellectual property position; and Viracta’s estimates regarding future expenses, capital requirements and need for additional financing in the future.

These risks and uncertainties may be amplified by the COVID-19 pandemic, which has caused significant economic uncertainty. If any of these risks materialize or underlying assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in Viracta’s reports and other documents that Viracta has filed, or will file, with the SEC from time to time and available at www.sec.gov.

The forward-looking statements included in this communication are made only as of the date hereof. Viracta assumes no obligation and does not intend to update these forward-looking statements, except as required by law or applicable regulation.

Investor Relations Contact:

Ashleigh Barreto
Head of Investor Relations & Corporate Communications
Viracta Therapeutics, Inc.
[email protected]

SOURCE Viracta Therapeutics, Inc.

May 2, 2023 4:40 pm

Ascent Solar Technologies Names New CEO

THORNTON, Colo., May 02, 2023 (GLOBE NEWSWIRE) — Ascent Solar Technologies, (Nasdaq: ASTI) (“ASTI” or the “Company”), the leading U.S. innovator in the design and manufacture of featherweight, flexible, and durable CIGS thin-film photovoltaic (PV) solutions, announced today that the Board of Directors has terminated Jeffrey Max, ASTI’s President and Chief Executive Officer, effective April 26, 2023. The Company also announced that it has named its Chief Financial Officer, Paul Warley, as the Company’s Chief Executive Officer, effective immediately. Mr. Warley will remain in his current role as CFO on an interim basis until his replacement is appointed by the Company’s Board.

“We are thrilled that Paul has agreed to take on this leadership role at Ascent during such an important moment in the Company’s journey,” said David Peterson, Chairman of the Board at Ascent Solar Technologies. “Paul brings tremendous financial and executive leadership experience serving middle market companies, that coupled with his depth of thin-film solar knowledge, will propel the Company to its next phases of growth and commercial adoption.”

Prior to joining Ascent as its Chief Financial Officer in December 2022, Mr. Warley spent nearly 40 years specializing in corporate turnarounds, restructurings, cross-border trade and capital advisory mandates at Bank of America, Bankers Trust, GE Capital, Deloitte Corporate Finance, and his consulting firm, Warley & Company. The firm provided executive management, capital and M&A advisory services to middle-market companies in the manufacturing, service, construction, technology, oil and gas, clean energy, food, retail and green-building sectors. Mr. Warley graduated from The Citadel with a BS in Business Administration with a concentration in accounting, and served in the U.S. Army, attaining the rank of Captain.

“I am eager to continue working with the talented Ascent team to build on the progress we have made this year to commercialize our exceptional technology and re-establish the Company as a leader in the thin-film PV industry,” said Paul Warley, Chief Executive Officer at Ascent Solar Technologies. “Following the acquisition of Flisom’s assets and the repurposing of the Thornton plant as a Perovskite Center of Excellence, we are confident the Company has a strong foundation and is well positioned for growth. We are now capable of meeting market demand in Europe, Asia and North America, while simultaneously advancing R&D efforts of Perovskite – long considered a promising material for next generation solar materials.”

ABOUT ASCENT SOLAR TECHNOLOGIES, INC.

Backed by 20+ years of R&D, 17 years of manufacturing experience, numerous awards, and a comprehensive IP and patent portfolio, Ascent Solar Technologies, Inc. (ASTI) is a leading provider of innovative, high-performance, flexible thin-film solar panels for use in scenarios where traditional rigid solar panels don’t work. Ascent’s photovoltaic (PV) modules have been deployed on space missions, multiple airborne vehicles, agrivoltaic installations, in industrial and commercial construction, and in consumer goods, revolutionizing the use cases and environments for solar power. Ascent Solar’s Headquarters & Perovskite Manufacturing Center of Excellence are located in Thornton, Colorado and Ascent’s 15MW manufacturing facility is located in Zurich, Switzerland. To learn more, please visit https://www.ascentsolar.com.

FORWARD-LOOKING STATEMENTS

Statements in this press release that are not statements of historical or current fact constitute “forward-looking statements” including statements about the financing transaction, our business strategy and the potential uses of the proceeds from the transaction. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the company’s actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. We have based these forward-looking statements on our current assumptions, expectations and projections about future events. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as “will,” “believes,” “belief,” “expects,” “expect,” “intends,” “intend,” “anticipate,” “anticipates,” “plans,” “plan,” to be uncertain and forward-looking. No information in this press release should be construed as any indication whatsoever of our future revenues, stock price, or results of operations. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the company’s filings with the Securities and Exchange Commission including those discussed under the heading “Risk Factors” in our most recently filed reports on Forms 10-K and 10-Q.

MEDIA CONTACT

Spencer Herrmann
FischTank PR
[email protected]

INVESTOR CONTACT

James Masters
Vallum Advisors
[email protected]

May 2, 2023 4:40 pm

Clearwater Paper Reports First Quarter 2023 Results

Clearwater Paper Reports First Quarter 2023 Results

SPOKANE, Wash.–(BUSINESS WIRE)–Clearwater Paper Corporation (NYSE:CLW),a premier supplier of quality tissue and bleached paperboard products, today reported financial results for the first quarter ended March 31, 2023.

FIRST QUARTER HIGHLIGHTS

Solid performance in the quarter, with price realization offsetting inflation

Strong demand for tissue products, softening demand for paperboard

Net sales of $525 million, up 8% compared to the first quarter of last year, driven by higher pricing

Net income of $24 million, or $1.40 per diluted share

Adjusted EBITDA of $66 million

“Our performance improved relative to the fourth quarter, as we resolved operational issues at our paperboard mills and continued to see higher pricing,” said Arsen Kitch, president and chief executive officer. “Demand for our tissue products remained strong, while demand softened in our paperboard business. Despite uncertain economic conditions, both of our businesses are in markets that have historically been economically resilient.”

OVERALL RESULTS

For the first quarter of 2023, Clearwater Paper reported net sales of $525 million, an 8% increase compared to net sales of $488 million for the first quarter of 2022. Net income for the first quarter of 2023 was $24 million, or $1.40 per diluted share, compared to net income for the first quarter of 2022 of $17 million, or $0.97 per diluted share. On a non-GAAP basis, Clearwater Paper reported adjusted net income in the first quarter of 2023 of $25 million, or $1.47 per diluted share, compared to first quarter 2022 adjusted net income of $18 million, or $1.03 per diluted share. Adjusted EBITDA for the quarter was $66 million, compared to the first quarter of 2022 Adjusted EBITDA of $59 million.

Pulp and Paperboard Segment

Net sales in the Pulp and Paperboard segment were $279 million for the first quarter of 2023, up 5% compared to first quarter 2022 net sales of $266 million. Segment operating income for the first quarter of 2023 was $57 million, compared to $50 million for the first quarter of 2022. Adjusted EBITDA for the segment was $66 million in the first quarter of 2023, compared to $60 million in the first quarter of 2022.

The increase in operating income and Adjusted EBITDA was driven by higher sales prices, partly offset by higher input costs in fiber, chemicals and energy.

Pulp and Paperboard Sales Volumes and Prices:

Paperboard sales volumes were 189,398 tons in the first quarter of 2023 compared to 201,356 tons in the first quarter of 2022.

Paperboard average net selling price increased 14% to $1,441 per ton for the first quarter of 2023, compared to $1,263 per ton in the first quarter of 2022.

Consumer Products Segment

Net sales in the Consumer Products segment were $248 million for the first quarter of 2023, up 11% compared to first quarter 2022 net sales of $223 million. Segment operating income for the first quarter of 2023 was $4 million compared to operating income of $1 million in the first quarter of 2022. Adjusted EBITDA for the segment was $19 million in the first quarter of 2023, compared to $16 million in the first quarter of 2022. The increase in operating income and Adjusted EBITDA was driven by higher sales prices partly offset by higher input costs in pulp and energy.

Retail Tissue Sales Volumes and Prices:

Retail tissue volumes sold were 76,848 tons in the first quarter of 2023 compared to 75,426 tons in the first quarter of 2022.

Retail tissue average net selling price increased 11% to $3,201 per ton in the first quarter of 2023, compared to $2,872 per ton in the first quarter of 2022.

COMPANY OUTLOOK

“We expect demand for paperboard to improve in the second half versus the first half as we believe that customers will adjust their inventories and end users will return to more normal buying patterns. We will continue to monitor our paperboard inventories and intend to match supply with demand as needed. We expect continued strength in our tissue business in the coming quarters, with anticipated strong demand and moderating input costs driving margin improvement,” continued Kitch.

WEBCAST INFORMATION

Clearwater Paper Corporation will discuss these results during an earnings conference call that begins at 2:00 p.m. Pacific Time today. A live webcast and accompanying supplemental information will be available on the company’s website at http://ir.clearwaterpaper.com. A replay of today’s conference call will be available on the website at https://ir.clearwaterpaper.com/investors/events-and-presentations beginning at 5:00 p.m. Pacific Time today.

ABOUT CLEARWATER PAPER

Clearwater Paper is a premier supplier of private brand tissue to major retailers, including grocery, club, mass merchants, and discount stores. In addition, the company produces bleached paperboard used by quality-conscious printers and packaging converters, and offers services that include custom sheeting, slitting, and cutting. Clearwater Paper’s employees build shareholder value by developing strong relationships through quality and service.

USE OF NON-GAAP MEASURES

In this press release, the company presents certain non-GAAP financial information for the first quarter of 2023 and 2022, including adjusted income and Adjusted EBITDA. Because these amounts are not in accordance with GAAP, reconciliations to net income as determined in accordance with GAAP are included in the tables at the end of this press release. The company presents these non-GAAP metrics because management believes they assist investors and analysts in comparing the company’s performance across reporting periods on a consistent basis by excluding items that the company does not believe are indicative of its core operating performance. In addition, the company uses Adjusted EBITDA: (i) as a factor in evaluating management’s performance when determining incentive compensation, (ii) to evaluate the effectiveness of the company’s business strategies, and (iii) because the company’s credit agreement and the indentures governing the company’s outstanding notes use metrics similar to Adjusted EBITDA to measure the company’s compliance with certain covenants.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including statements regarding inflation, our expectations regarding the paperboard and tissue markets, operational and financial performance. These forward-looking statements are based on current expectations, estimates, assumptions, and projections that are subject to change, and actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to: competitive pricing pressures for our products, including as a result of capacity additions, demand reduction and the impact of foreign currency fluctuations on the pricing of products globally; changes in the U.S. and international economies and in general economic conditions in the regions and industries in which we operate; manufacturing or operating disruptions, including equipment malfunctions and damage to our manufacturing facilities; the loss of, changes in prices in regard to, or reduction in, orders from a significant customer; changes in the cost and availability of wood fiber and wood pulp; changes in energy, chemicals, packaging and transportation costs and disruptions in transportation services impacting our ability to receive inputs or ship products to customers; reliance on a limited number of third-party suppliers, vendors and service providers required for the production of our products and our operations; changes in customer product preferences and competitors’ product offerings; cyber-security risks; larger competitors having operational, financial and other advantages; consolidation and vertical integration of converting operations in the paperboard industry; our ability to successfully execute capital projects and other activities to operate our assets, including effective maintenance, implement our operational efficiencies and realize higher throughput or lower costs; IT system disruptions and IT system implementation failures; labor disruptions; cyclical industry conditions; changes in expenses, required contributions and potential withdrawal costs associated with our pension plans; environmental liabilities or expenditures and climate change; our ability to attract, motivate, train and retain qualified and key personnel; ability to service our debt obligations and restrictions on our business from debt covenants and terms; changes in our banking relations, or in our customer supply chain financing; negative changes in our credit agency ratings; changes in laws, regulations or industry standards affecting our business; and other risks and uncertainties described from time to time in the company’s public filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2022. The forward-looking statements are made as of the date of this press release and the company does not undertake to update any forward-looking statements based on new developments or changes in the company’s expectations after the date of this press release.

Clearwater Paper Corporation

Consolidated Statements of Operations

(Unaudited)

Quarter Ended March 31,

(In millions, except per-share data)

2023

2022

Net sales

$

525.4

$

488.2

Costs and expenses:

Cost of sales

448.5

422.0

Selling, general and administrative expenses

36.0

32.8

Other operating charges, net

1.1

0.5

Total operating costs and expenses

485.6

455.3

Income from operations

39.8

32.9

Interest expense, net

(7.6

)

(8.6

)

Debt retirement costs

—

(0.2

)

Other non-operating (expense) income

0.1

(1.4

)

Total non-operating expense

(7.5

)

(10.3

)

Income before income taxes

32.3

22.6

Income tax provision

8.4

6.0

Net income

$

23.8

$

16.6

Net income per common share:

Basic

$

1.42

$

0.99

Diluted

1.40

0.97

Average shares outstanding (in thousands):

Basic

16,834

16,728

Diluted

17,036

17,073

Clearwater Paper Corporation

Condensed Consolidated Balance Sheets

(Unaudited)

(In millions)

March 31, 2023

December 31, 2022

Assets

Current assets:

Cash and cash equivalents

$

16.7

$

53.7

Receivables, net

186.3

188.8

Inventories

345.5

324.0

Other current assets

19.5

19.9

Total current assets

567.9

586.3

Property, plant and equipment, net

1,004.6

1,017.1

Other assets, net

117.9

100.1

Total assets

$

1,690.5

$

1,703.5

Liabilities and stockholders’ equity

Current liabilities:

Current portion of long-term debt

$

0.9

$

0.9

Accounts payable and accrued liabilities

264.6

311.1

Total current liabilities

265.5

312.0

Long-term debt

564.9

564.9

Liability for pension and other postretirement employee benefits

57.8

58.2

Deferred tax liabilities and other long-term obligations

210.4

196.4

Total liabilities

1,098.5

1,131.5

Stockholders’ equity:

Common stock

—

—

Additional paid-in capital

24.7

28.5

Retained earnings

600.6

576.8

Accumulated other comprehensive loss, net of tax

(33.4

)

(33.3

)

Total stockholders’ equity

592.0

572.1

Total liabilities and stockholders’ equity

$

1,690.5

$

1,703.5

Clearwater Paper Corporation

Consolidated Statements of Cash Flows

(Unaudited)

Quarter Ended March 31,

(In millions)

2023

2022

Operating activities

Net income

$

23.8

$

16.6

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

Depreciation and amortization

24.8

25.4

Equity-based compensation expense

1.9

0.7

Deferred taxes

(1.3

)

(2.2

)

Defined benefit pension and other postretirement employee benefits

(0.5

)

0.7

Loss on sale or impairment associated with assets

1.1

—

Increase (decrease) in cash from changes in operating assets and liabilities:

Accounts receivable

(6.4

)

(10.6

)

Inventories

(22.3

)

(4.2

)

Accounts payable and accrued liabilities

(31.7

)

13.9

Other, net

1.4

0.7

Net cash flows provided by (used in) operating activities

(9.1

)

41.1

Investing activities

Additions to property, plant and equipment, net

(21.5

)

(7.9

)

Net cash flows used in investing activities

(21.5

)

(7.9

)

Financing activities

Borrowings on short-term debt

12.0

—

Repayments of borrowings on short-term debt

(12.0

)

—

Repayments of long-term debt

(0.2

)

(20.4

)

Taxes paid related to net share settlement of equity awards

(4.2

)

(1.5

)

Repurchases of common stock

(1.7

)

—

Other, net

(0.1

)

—

Net cash flows used in financing activities

(6.3

)

(21.9

)

Increase (decrease) in cash, cash equivalents and restricted cash

(37.0

)

11.2

Cash, cash equivalents and restricted cash at beginning of period

54.4

26.2

Cash, cash equivalents and restricted cash at end of period

$

17.4

$

37.5

Clearwater Paper Corporation

Segment Information

(Unaudited)

Quarter Ended March 31,

(In millions)

2023

2022

Segment net sales:

Pulp and Paperboard

$

278.8

$

266.2

Consumer Products

248.3

223.0

Eliminations

(1.7

)

(1.1

)

Total segment net sales

$

525.4

$

488.2

Operating income (loss):

Pulp and Paperboard

$

57.1

$

50.3

Consumer Products

4.2

0.9

Corporate and eliminations

(20.4

)

(17.8

)

Other operating charges, net ¹

(1.1

)

(0.5

)

Income from operations

$

39.8

$

32.9

¹Other operating charges, net consist of amounts unrelated to ongoing core operating activities. Please refer to Note 9 within Clearwater Paper’s Form 10-Q filed with the SEC for the period end March 31, 2023 for the detailed breakout of this amount.

Clearwater Paper Corporation

Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA

(Unaudited)

Quarter Ended March 31,

(In millions)

2023

2022

Net income

$

23.8

$

16.6

Add back:

Income tax provision

8.4

6.0

Interest expense, net

7.6

8.6

Depreciation and amortization

24.8

25.4

Other operating charges, net¹

1.1

0.5

Debt retirement costs

—

0.2

Other non-operating (income) expense

(0.1

)

1.4

Adjusted EBITDA

$

65.7

$

58.9

Pulp and Paperboard segment income

$

57.1

$

50.3

Depreciation and amortization

9.1

9.3

Adjusted EBITDA Pulp and Paperboard

$

66.2

$

59.5

Consumer Products segment income

$

4.2

$

0.9

Depreciation and amortization

15.0

15.3

Adjusted EBITDA Consumer Products

$

19.2

$

16.2

Corporate and other expenses

$

(20.4

)

$

(17.8

)

Depreciation and amortization

0.6

0.9

Corporate Adjusted EBITDA

$

(19.8

)

$

(16.9

)

Pulp and Paperboard segment

$

66.2

$

59.5

Consumer Products segment

19.2

16.2

Corporate and other

(19.8

)

(16.9

)

Adjusted EBITDA

$

65.7

$

58.9

¹Other operating charges, net consist of amounts unrelated to ongoing core operating activities. Please refer to Note 9 within Clearwater Paper’s Form 10-Q filed with the SEC for the period end March 31, 2023 for the detailed breakout of this amount.

Clearwater Paper Corporation

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

Quarter Ended March 31,

(In millions, except per share data)

2023

2022

Adjusted net income:

Net income

$

23.8

$

16.6

Add back:

Income tax provision

8.4

6.0

Income before income taxes

32.3

22.6

Add back:

Debt retirement costs

—

0.2

Other operating charges, net

1.1

0.5

Adjusted income before tax

$

33.4

$

23.4

Normalized income tax provision

8.3

5.8

Adjusted net income

$

25.0

$

17.5

Weighted average diluted shares (thousands)

17,036

17,073

Adjusted income per diluted share

$

1.47

$

1.03

March 31, 2023

December 31, 2022

Calculation of net debt:

Current portion of long-term debt

$

0.9

$

0.9

Long-term debt

564.9

564.9

Add back:

Unamortized deferred debt costs

3.2

3.4

Less:

Finance leases

24.0

24.2

Cash and cash equivalents

16.7

53.7

Net debt

$

528.3

$

491.3

View source version on businesswire.com: https://www.businesswire.com/news/home/20230502006062/en/

Clearwater Paper Corporation

Investors contact:

Sloan Bohlen

Solebury Strategic Communications

509-344-5906

[email protected]

News media:

Julia Joy, Director, Corporate Communications

208-488-8398

[email protected]

KEYWORDS: Washington United States North America

INDUSTRY KEYWORDS: Forest Products Natural Resources Other Manufacturing Manufacturing

MEDIA:

Logo

Posted on May 2, 2023 4:39 pm
Mister Car Wash Announces First Quarter Fiscal 2023 Financial Results

Mister Car Wash Announces First Quarter Fiscal 2023 Financial Results

Net revenues increased 3.0%

Unlimited Wash Club memberships increased 12.6% and exceeded 2.0 million members

Opened four new greenfield locations

Fiscal 2023 guidance reiterated

TUCSON, Ariz.–(BUSINESS WIRE)–
Mister Car Wash, Inc. (the “Company”) (NYSE: MCW), the nation’s largest car wash brand, today announced its financial results for the quarter ended March 31, 2023.

“Our Unlimited Wash Club® (“UWC”) proved resilient during the first quarter fueled by good member retention and signup levels. Despite some weather-related headwinds to retail sales in the first quarter, we added 122 thousand net new UWC Members and surpassed two million members marking another milestone for the Company,” commented John Lai, Chairperson and CEO of Mister Car Wash. “We remain committed to the ongoing investments in our business to drive sustainable long-term growth and remain confident in our 2023 full year outlook.”

First Quarter Highlights

Net revenues increased 3.0% to $226.0 million from $219.4 million in the first quarter of 2022.

Comparable stores sales decreased 1.6%, compared to an 11.0% increase in the first quarter of 2022.

The Company added 122 thousand net new UWC Members in the first quarter. As of March 31, 2023, the Company had more than 2.0 million UWC Members, which represented a 12.6% increase over the same time last year. UWC sales represented approximately 69.3% of total wash sales in the first quarter of 2023 compared to approximately 64.3% in the first quarter of 2022.

The Company opened four new greenfield locations in the first quarter of 2023, bringing the total number of car wash locations operated to 439 as of March 31, 2023, compared to 399 car wash locations as of March 31, 2022, an increase of 10.0%.

Net income and net income per diluted share were $21.1 million and $0.06, respectively.

Adjusted net income⁽¹⁾ and diluted adjusted net income per share⁽¹⁾ were $26.7 million and $0.08, respectively.

Adjusted EBITDA⁽¹⁾ decreased 5.2% to $71.0 million from $74.8 million in the first quarter of 2022.

⁽¹⁾ See Use of Non-GAAP Financial Measures and Reconciliation of GAAP to Non-GAAP Financial Measures disclosures included below in this press release.

Store Count

Three Months Ended March 31,

2023

2022

Beginning location count

436

396

Locations acquired

–

–

Greenfield locations opened

4

3

Closures

1

–

Ending location count

439

399

Balance Sheet and Cash Flow Highlights

As of March 31, 2023, cash and cash equivalents totaled $69.9 million, and there were no borrowings under the Company’s Revolving Commitment, compared to cash and cash equivalents of $65.2 million and no borrowings under the Revolving Commitment as of December 31, 2022.

Net cash provided by operating activities totaled $67.0 million during the first quarter of 2023, compared to $81.5 million in the first quarter of 2022.

Sale-Leasebacks and Rent Expense

In the first quarter of 2023, the Company completed two separate sale-leaseback transactions involving a total of two car wash locations for aggregate consideration of $9.2 million.

With 388 car wash leases at the end of the first quarter versus 348 leases at the end of the first quarter last year, rent expense increased 13.1% to $23.8 million.

Fiscal 2023 Outlook

The Company reiterates the guidance previously provided for the fiscal year ending December 31, 2023:

2023 Outlook

Net revenues

$925 to $960 million

Comparable stores sales growth %

0.0% to 3.0%

Adjusted net income

$100 to $115 million

Adjusted EBITDA

$277 to $297 million

Diluted adjusted net income per share

$0.30 to $0.35

Interest expense, net

$73 million

Rent expense, net

Approx. $100 million

Weighted average common shares outstanding, diluted, full year

330 million

New greenfield locations

Approx. 35

Capital expenditures⁽¹⁾

$220 to $270 million

Sale leasebacks

$110 to $130 million

(1)
Total capital expenditures for the fiscal year ending December 31, 2023 are expected to consist of approximately $175 million to $205 million of growth capital expenditures related to the opening of new stores and $45 million to $65 million of other capital expenditures related to store maintenance, growth and the expenditures to integrate acquired locations.

Conference Call Details

A conference call to discuss the Company’s financial results for the first quarter of fiscal 2023 and to provide a business update is scheduled for today, May 02, 2023, at 4:30 p.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial 855-209-8213 (international callers please dial 1-412-542-4146) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available online at https://ir.mistercarwash.com/.

A recorded replay of the conference call will be available within approximately three hours of the conclusion of the call and can be accessed online at https://ir.mistercarwash.com/ for 90 days.

About Mister Car Wash^® | Inspiring People to Shine^®

Headquartered in Tucson, AZ, Mister Car Wash, Inc. (NYSE: MCW) operates over 435 car washes nationwide and has the largest car wash subscription program in North America. With over 25 years of car wash experience, the Mister team is focused on operational excellence and delivering a memorable customer experience through elevated hospitality. The Mister brand is anchored in quality, friendliness and a commitment to the communities we serve as good stewards of the environment and the resources we use. We believe that when you take care of your people, they will take care of your customers. To learn more visit: https://mistercarwash.com.

Use of Non-GAAP Financial Measures

This press release includes references to non-GAAP financial measures, including Adjusted EBITDA, Adjusted net income, and Diluted adjusted net income per share (the “Company’s Non-GAAP Financial Measures”). These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, the Company’s Non-GAAP Financial Measures should be read in conjunction with the Company’s financial statements prepared in accordance with GAAP. The reconciliations of the Company’s Non-GAAP Financial Measures to the corresponding GAAP measures should be carefully evaluated.

The Company’s Non-GAAP Financial Measures are non-GAAP measures of the Company’s operating performance and should not be considered as an alternative to net income as a measure of financial performance or any other performance measure derived in accordance with U.S. GAAP and should not be construed as an inference that the Company’s future results will be unaffected by unusual or nonrecurring items. Adjusted EBITDA is defined as net income before interest expense, net, income tax provision, depreciation and amortization expense, (gain) loss on sale of assets, net, stock-based compensation expense, acquisition expenses, non-cash rent expense, expenses associated with the IPO, and other nonrecurring charges. Adjusted net income is defined as net income before (gain) loss on sale of assets, net, stock-based compensation expense, acquisition expenses, non-cash rent expense, expenses associated with the Company’s initial public offering, other nonrecurring charges, tax benefits related to stock awards exercised and the tax impact of adjustments to net income. Adjusted net income per share is defined as basic net income per share before (gain) loss on sale of assets, net, stock-based compensation expense, acquisition expenses, non-cash rent expense, expenses associated with the Company’s initial public offering, other nonrecurring charges, tax benefits related to stock awards exercised and the tax impact of adjustments to basic net income per share. Diluted adjusted net income per share is defined as diluted net income per share before (gain) loss on sale of assets, net, stock-based compensation expense, acquisition expenses, non-cash rent expense, expenses associated with the IPO, other nonrecurring charges, tax benefits related to stock awards exercised and the tax impact of adjustments to basic net income per share.

Management believes the Company’s Non-GAAP Financial Measures assist investors and analysts in comparing the Company’s operating performance across reporting periods on a consistent basis by excluding items that management does not believe are indicative of the Company’s ongoing operating performance. Investors are encouraged to evaluate these adjustments and the reasons the Company considers them appropriate for supplemental analysis. In evaluating Company’s Non-GAAP Financial Measures, investors should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in the Company’s presentation of Company’s Non-GAAP Financial Measures. The Company’s presentation of Company’s Non-GAAP Financial Measures should not be construed as an inference that the Company’s future results will be unaffected by unusual or nonrecurring items. There can be no assurance that the Company will not modify the presentation of the Company’s Non-GAAP Financial Measures in future periods, and any such modification may be material. In addition, the Company’s Non-GAAP Financial Measures may not be comparable to similarly titled measures used by other companies in the Company’s industry or across different industries.

Management believes that the Company’s Non-GAAP Financial Measures are helpful in highlighting trends in the Company’s core operating performance compared to other measures, which can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate and capital investments. Management also uses Adjusted EBITDA in connection with establishing discretionary annual incentive compensation; to supplement U.S. GAAP measures of performance in the evaluation of the effectiveness of the Company’s business strategies; to make budgeting decisions; and because the Company’s credit facilities use measures similar to Adjusted EBITDA to measure the Company’s compliance with certain covenants.

The Company’s Non-GAAP Financial Measures have limitations as analytical tools, and investors should not consider these measures in isolation or as substitutes for analysis of the Company’s results as reported under U.S. GAAP. Some of these limitations include, for example, Adjusted EBITDA does not reflect: the Company’s cash expenditure or future requirements for capital expenditures or contractual commitments; the Company’s cash requirements for the Company’s working capital needs; the interest expense and the cash requirements necessary to service interest or principal payments on the Company’s debt; cash requirements for replacement of assets that are being depreciated and amortized; and the impact of certain cash charges or cash receipts resulting from matters management does not find indicative of the Company’s ongoing operations. In addition, other companies in the Company’s industry may calculate similarly titled non-GAAP financial measures differently than the Company.

The Company is not providing a reconciliation of the fiscal 2023 outlook for Adjusted EBITDA, Adjusted net income and Diluted adjusted net income per share because we are unable to predict with reasonable certainty the reconciling items that may affect the most directly comparable GAAP financial measures without unreasonable efforts. The amounts that are necessary for such reconciliations, including acquisition expenses, other expenses and the other adjustments reflected are uncertain, depend on various factors and could significantly impact, either individually or in the aggregate, the GAAP measures.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding Mister Car Wash’s expansion efforts and expected growth and financial and operational results for fiscal 2023. Words including “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “seek,” or “should,” or the negative thereof or other variations thereon or comparable terminology are intended to identify forward-looking statements. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking, though not all forward-looking statements use these words or expressions.

These forward-looking statements are based on management’s current expectations and beliefs. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: our inability to attract new customers, retain existing customers and maintain or grow the number of Unlimited Wash Club® (“UWC”) members, which could adversely affect our business, financial condition and results of operations and rate of growth; our failure to acquire, or open and operate new locations in a timely and cost-effective manner, and enter into new markets or leverage new technologies, may materially and adversely affect our competitive advantage or financial performance; our inability to successfully implement our growth strategies on a timely basis or at all; we are subject to a number of risks and regulations related to credit card and debit card payments we accept; an overall decline in the health of the economy and other factors impacting consumer spending, such as natural disasters and fluctuations in inflation, may affect consumer purchases, reduce demand for our services and materially and adversely affect our business, results of operations and financial condition; growing inflation, supply chain disruption and other increased operating costs could materially and adversely affect our results of operations; our locations may experience difficulty hiring and retaining qualified personnel, resulting in higher labor costs; we lease or sublease the land and buildings where a number of our locations are situated, which could expose us to possible liabilities and losses; our indebtedness could adversely affect our financial health and competitive position; our business is subject to various laws and regulations and changes in such laws and regulations, or failure to comply with existing or future laws and regulations, may result in litigation, investigation or claims by third parties or employees that could adversely affect our business; our locations are subject to certain environmental laws and regulations; we are subject to data security and privacy risks that could negatively impact our results of operations or reputation; we may be unable to adequately protect, and we may incur significant costs in enforcing or defending, our intellectual property and other proprietary rights; stockholders’ ability to influence corporate matters may be limited because a small number of stockholders beneficially own a substantial amount of our common stock and continue to have substantial control over us; our stock price may be volatile or may decline regardless of our operating performance, resulting in substantial losses for investors purchasing shares of our common stock; and the other important factors discussed under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as such factors may be updated from time to time in its other filings with the SEC accessible on the SEC’s website at www.sec.gov and Investors Relations section of the Company’s website at www.mistercarwash.com.

These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement that the Company makes in this press release speaks only as of the date of such statement. Except as required by law, the Company does not have any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.

Condensed Consolidated Statements of Operations and Comprehensive Income

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

(Unaudited)

Three Months Ended March 31,

2023

2022

Net revenues

$

225,960

$

219,419

Cost of labor and chemicals

66,792

65,538

Other store operating expenses

89,466

77,801

General and administrative

24,183

23,687

(Gain) loss on sale of assets

(63

)

459

Total costs and expenses

180,378

167,485

Operating income

45,582

51,934

Other expense:

Interest expense, net

17,748

8,166

Total other expense

17,748

8,166

Income before taxes

27,834

43,768

Income tax provision

6,698

8,280

Net income

$

21,136

$

35,488

Other comprehensive income, net of tax:

Gain on interest rate swap

–

1,869

Total comprehensive income

$

21,136

$

37,357

Net income per share:

Basic

$

0.07

$

0.12

Diluted

$

0.06

$

0.11

Weighted-average common shares outstanding:

Basic

307,291,909

300,931,453

Diluted

327,608,266

329,172,437

Condensed Consolidated Balance Sheets

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

(Unaudited)

As of

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

March 31, 2023

December 31, 2022

Assets

Current assets:

Cash and cash equivalents

$

69,903

$

65,152

Restricted cash

70

70

Accounts receivable, net

933

3,941

Other receivables

14,116

15,182

Inventory, net

8,228

9,174

Prepaid expenses and other current assets

10,767

12,618

Total current assets

104,017

106,137

Property and equipment, net

596,695

560,874

Operating lease right of use assets, net

776,496

776,689

Other intangible assets, net

122,122

123,615

Goodwill

1,109,815

1,109,815

Other assets

8,190

9,102

Total assets

$

2,717,335

$

2,686,232

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$

30,379

$

25,649

Accrued payroll and related expenses

20,036

17,218

Other accrued expenses

30,730

41,196

Current maturities of operating lease liability

41,279

40,367

Current maturities of finance lease liability

687

668

Deferred revenue

30,509

29,395

Total current liabilities

153,620

154,493

Long-term portion of debt, net

896,223

895,830

Operating lease liability

758,752

759,775

Financing lease liability

14,599

14,779

Deferred tax liability

58,823

53,395

Other long-term liabilities

6,577

6,832

Total liabilities

1,888,594

1,885,104

Stockholders’ equity:

Common stock, $0.01 par value, 1,000,000,000 shares authorized, 308,101,847 and 306,626,530 shares outstanding as of March 31, 2023 and December 31, 2022, respectively

3,087

3,072

Additional paid-in capital

790,041

783,579

Retained earnings (Accumulated Deficit)

35,613

14,477

Total stockholders’ equity

828,741

801,128

Total liabilities and stockholders’ equity

$

2,717,335

$

2,686,232

Condensed Consolidated Statements of Cash Flows

(Amounts in thousands)

(Unaudited)

Three Months Ended March 31,

2023

2022

Cash flows from operating activities:

Net income

$

21,136

$

35,488

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

Depreciation and amortization expense

17,307

14,945

Stock-based compensation expense

5,361

5,519

(Gain) loss on sale of assets, net

(63

)

459

Amortization of debt issuance costs

419

419

Non-cash lease expense

10,739

9,606

Deferred income tax

5,428

5,018

Changes in assets and liabilities:

Accounts receivable, net

3,009

146

Other receivables

1,128

10,108

Inventory, net

946

(665

)

Prepaid expenses and other current assets

1,850

901

Accounts payable

2,553

5,679

Accrued expenses

5,155

3,635

Deferred revenue

1,114

648

Operating lease liability

(9,696

)

(9,094

)

Other noncurrent assets and liabilities

631

(1,268

)

Net cash provided by operating activities

$

67,017

$

81,544

Cash flows from investing activities:

Purchases of property and equipment

(72,059

)

(30,015

)

Proceeds from sale of property and equipment

8,899

1

Net cash used in investing activities

$

(63,160

)

$

(30,014

)

Cash flows from financing activities:

Proceeds from issuance of common stock under employee plans

1,055

1,281

Payments on debt borrowings

–

(2,100

)

Principal payments on finance lease obligations

(161

)

(134

)

Net cash provided (used) by financing activities

$

894

$

(953

)

Net change in cash and cash equivalents and restricted cash during period

4,751

50,577

Cash and cash equivalents and restricted cash at beginning of period

65,222

19,858

Cash and cash equivalents and restricted cash at end of period

$

69,973

$

70,435

Supplemental disclosure of cash flow information:

Cash paid for interest

$

11,697

$

7,821

Cash paid for income taxes

$

151

$

–

Supplemental disclosure of non-cash investing and financing activities:

Property and equipment in accounts payable

$

11,993

$

18,123

Property and equipment in other accrued expenses

$

5,969

$

–

Stock option exercise proceeds in other receivables

$

61

$

45

GAAP to Non-GAAP Reconciliations

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

(Unaudited)

Three Months Ended March 31,

2023

2022

Reconciliation of net income to Adjusted EBITDA:

Net income

$

21,136

$

35,488

Interest expense, net

17,748

8,166

Income tax provision

6,698

8,280

Depreciation and amortization expense

17,307

14,945

Loss on sale of assets

(63

)

459

Stock-based compensation expense

5,361

5,519

Acquisition expenses

459

534

Non-cash rent expense

1,030

520

Expenses associated with initial public offering

–

286

Other

1,300

652

Adjusted EBITDA

$

70,976

$

74,849

Three Months Ended March 31,

2023

2022

Reconciliation of weighted-average common shares outstanding – diluted to Adjusted weighted-average common shares outstanding – diluted:

Weighted-average common shares outstanding – diluted

327,608,266

329,172,437

Adjustments for potentially dilutive securities

–

–

Adjusted weighted-average common shares outstanding – diluted

327,608,266

329,172,437

Three Months Ended March 31,

2023

2022

Reconciliation of net income to Adjusted Net Income:

Net income

$

21,136

$

35,488

Loss on sale of assets

(63

)

459

Stock-based compensation expense

5,361

5,519

Acquisition expenses

459

534

Non-cash rent expense

1,030

520

Expenses associated with initial public offering

–

286

Other

1,300

652

Income tax impact of stock award exercises

(516

)

(3,704

)

Tax impact of adjustments to net income

(2,022

)

(1,993

)

Adjusted Net Income

$

26,685

$

37,761

Diluted Adjusted Net Income per Share

$

0.08

$

0.11

Adjusted weighted-average common shares outstanding – diluted

327,608,266

329,172,437

View source version on businesswire.com: https://www.businesswire.com/news/home/20230502006035/en/

Investors

John Rouleau

ICR

[email protected]

Media

Jill Adams

[email protected]

KEYWORDS: Arizona United States North America

INDUSTRY KEYWORDS: Professional Services Retail Automotive Other Automotive Other Retail Finance

MEDIA:

Posted on May 2, 2023 4:39 pm
Myriad Genetics to Participate in BofA Securities Healthcare Conference

SALT LAKE CITY, May 02, 2023 (GLOBE NEWSWIRE) — Myriad Genetics, Inc., (NASDAQ: MYGN), a leader in genetic testing and precision medicine, today announced it will be participating in the upcoming BofA Securities Healthcare Conference in Las Vegas, NV.

Myriad management will participate in a fireside chat on Tuesday, May 9 at 3:00 p.m. PT. A live and archived webcast of the presentation can be viewed in the investor relations section of Myriad’s website at www.myriad.com.

About Myriad Genetics

Myriad Genetics is a leading genetic testing and precision medicine company dedicated to advancing health and well-being for all. Myriad develops and offers genetic tests that help assess the risk of developing disease or disease progression and guide treatment decisions across medical specialties where genetic insights can significantly improve patient care and lower healthcare costs. For more information, visit www.myriad.com.

Media Contact:
Glenn Farrell
(385) 318-3718
[email protected] Investor Contact:
Matt Scalo
(801) 584-3532
[email protected]

Posted on May 2, 2023 4:39 pm
Liberty Broadband Reports First Quarter 2023 Financial Results

Liberty Broadband Reports First Quarter 2023 Financial Results

ENGLEWOOD, Colo.–(BUSINESS WIRE)–
Liberty Broadband Corporation (“Liberty Broadband”) (Nasdaq: LBRDA, LBRDK, LBRDP) today reported first quarter 2023 results.

Headlines include⁽¹⁾:

Fair value of Charter investment was $16.8 billion as of March 31^st

Issued $1.3 billion aggregate principal amount of 3.125% exchangeable senior debentures due 2053 and used net proceeds and cash on hand to repurchase $1.4 billion of near-term liabilities

Liberty Broadband did not sell Charter shares to Charter from February 1^st through April 30^th as its fully diluted equity interest in Charter remained below 26%⁽²⁾

From February 1^st through April 30^th, Liberty Broadband repurchased 137 thousand LBRDA/K shares at an average price per share of $92.84 for total cash consideration of $13 million

In the first quarter, GCI⁽³⁾ increased revenue 6% to $246 million, generated $29 million in operating income and grew Adjusted OIBDA⁽⁴⁾ 3% to $90 million

Share Repurchases

From February 1, 2023 through April 30, 2023, Liberty Broadband repurchased 99 thousand shares of Series C Liberty Broadband common stock (Nasdaq: LBRDK) at an average cost per share of $92.82 for total cash consideration of $9 million and repurchased 38 thousand shares of Series A Liberty Broadband common stock (Nasdaq: LBRDA) at an average cost per share of $92.88 for total cash consideration of $4 million. The total remaining repurchase authorization for Liberty Broadband as of May 1, 2023 is approximately $2.0 billion.

Charter Ownership

Under the terms of Liberty Broadband and Charter’s stockholder agreement, Liberty Broadband has sold and will continue to sell to Charter a number of shares of Class A common stock as is necessary to maintain Liberty Broadband’s percentage equity interest at 26% on a fully diluted basis. Such sales are executed by Liberty Broadband monthly based on Charter’s repurchase activity in the month prior.

From February 1, 2023 through April 30, 2023, Liberty Broadband did not sell any Charter shares to Charter as its fully diluted equity interest in Charter for the period was below 26%.

Balance Sheet

The following presentation is provided to separately identify cash and liquid investments, debt and public holdings of Liberty Broadband as of December 31, 2022 and March 31, 2023.

(amounts in millions)

12/31/2022

3/31/2023

Cash and Cash Equivalents:

GCI Holdings

$

85

$

59

Corporate and Other

290

110

Total Liberty Broadband Consolidated Cash

$

375

$

169

Fair Value of Public Holdings in Charter^(a)

$

16,012

$

16,843

Debt:

Senior Notes^(b)

$

600

$

600

Senior Credit Facility

397

396

Tower Obligations and Other^(c)

94

93

Total GCI Holdings Debt

$

1,091

$

1,089

GCI Leverage^(d)

2.8x

2.9x

Charter Margin Loan

$

1,400

$

1,400

3.125% Exchangeable Senior Debentures due 2053^(e)

—

1,265

1.25% Exchangeable Senior Debentures due 2050^(e)

825

2

1.75% Exchangeable Senior Debentures due 2046^(e)

15

—

2.75% Exchangeable Senior Debentures due 2050^(e)

575

—

Total Corporate Level Debt

$

2,815

$

2,667

Total Liberty Broadband Debt

$

3,906

$

3,756

Fair market value adjustment and deferred loan costs

(16

)

11

Tower obligations and finance leases (excluded from GAAP Debt)

(89

)

(88

)

Total Liberty Broadband Debt (GAAP)

$

3,801

$

3,679

Other Financial Obligations:

Indemnification Obligation^(f)

$

50

$

29

Preferred Stock^(g)

180

180

____________________

a)

Represents fair value of the investment in Charter as of December 31, 2022 and March 31, 2023. A portion of the Charter equity securities are considered covered shares and subject to certain contractual restrictions in accordance with the indemnification obligation, as described below.

b)

Principal amount of Senior Notes.

c)

Includes the Wells Fargo Note Payable and current and long-term obligations under tower obligations and finance leases.

d)

As defined in GCI’s credit agreement.

e)

Principal amount of Senior Exchangeable Debentures exclusive of fair market value adjustments.

f)
Indemnity to Qurate Retail, Inc. (“Qurate Retail”), pursuant to an indemnification agreement (the “indemnification agreement”), with respect to the Liberty Interactive LLC (“LI LLC”) 1.75% exchangeable debentures due 2046 (the “LI LLC Charter exchangeable debentures”), as described below. LI LLC is a wholly owned subsidiary of Qurate Retail.

g)

Liquidation value of preferred stock. Preferred stock has a 7% coupon, $25/share liquidation preference plus accrued and unpaid dividends and 1/3 vote per share. The redemption date is the first business day following March 8, 2039. The preferred stock is considered a liability for GAAP purposes.

Liberty Broadband cash decreased $206 million in the first quarter due to repurchases of the 1.75%, 2.75% and 1.25% debentures (described below), partially offset by proceeds from the issuance of $1,265 million principal amount of 3.125% exchangeable senior debentures due 2053. GCI cash decreased $26 million in the first quarter as cash from operations was more than offset by a $40 million dividend paid to Liberty Broadband and capital expenditures during the quarter.

Liberty Broadband debt decreased $150 million in the first quarter due to the repurchases of (i) $15 million aggregate principal of all outstanding 1.75% exchangeable senior debentures due 2046, (ii) $575 million aggregate principal of all outstanding 2.75% exchangeable senior debentures due 2050 and (iii) $823 million aggregate principal of almost all outstanding 1.25% exchangeable senior debentures due 2050. There is $900 million of available capacity under the Charter margin loan. GCI’s credit facility has undrawn capacity of $397 million (net of letters of credit), and GCI’s leverage as defined in its credit agreement is 2.9x.

Liberty Broadband has an indemnification agreement with Qurate Retail with respect to the LI LLC Charter exchangeable debentures. Pursuant to the indemnification agreement, Liberty Broadband will be required to indemnify LI LLC for any payments made to a holder of such debentures that exercises its exchange right on or before the put/call date of October 5, 2023 in excess of the sum of the adjusted principal amount of such debentures plus certain estimated tax benefits to Qurate Retail, if any, resulting from the exchange. This indemnity is supported by a negative pledge in favor of Qurate Retail on the reference shares of Class A common stock of Charter held at Liberty Broadband that underlie the LI LLC Charter exchangeable debentures. The indemnification obligation on Liberty Broadband’s balance sheet is valued based on the estimated exchange feature in the LI LLC Charter exchangeable debentures. As of March 31, 2023, holders of the LI LLC Charter exchangeable debentures have the ability to put their debentures on October 5, 2023, and accordingly, the indemnification obligation is classified as a current liability. During the three months ended March 31, 2023, indemnification payments of $24 million were made by Liberty Broadband to Qurate Retail in connection with exchanges of $157 million of the LI LLC Charter exchangeable debentures that settled in the quarter.

GCI Operating and Financial Results

1Q22

1Q23

% Change

(amounts in millions, except operating metrics)

GCI Consolidated Financial Metrics

Revenue

Consumer

$

119

$

118

(1

)%

Business

114

128

12

%

Total revenue

$

233

$

246

6

%

Operating income

$

21

$

29

38

%

Operating income margin (%)

9.0

%

11.8

%

280

bps

Adjusted OIBDA^(a)

$

87

$

90

3

%

Adjusted OIBDA margin^(a) (%)

37.3

%

36.6

%

(70

)bps

GCI Consumer

Financial Metrics

Revenue

Data

$

58

$

59

2

%

Wireless

46

47

2

%

Other

15

12

(20

)%

Total revenue

$

119

$

118

(1

)%

Operating Metrics

Data:

Cable modem subscribers^(b)

153,600

159,100

4

%

Wireless:

Lines in service^(c)

185,900

193,700

4

%

GCI Business

Financial Metrics

Revenue

Data

$

90

$

106

18

%

Wireless

14

13

(7

)%

Other

10

9

(10

)%

Total revenue

$

114

$

128

12

%

____________________

a)

See reconciling schedule 1.

b)

A cable modem subscriber is defined by the purchase of cable modem service regardless of the level of service purchased. If one entity purchases multiple cable modem service access points, each access point is counted as a subscriber. Data cable modem subscribers as of March 31, 2023 include 1,100 subscribers that were reclassified from GCI Business to GCI Consumer subscribers in the first quarter of 2023 and are not new additions.

c)

A wireless line in service is defined as a wireless device with a monthly fee for services. Wireless lines in service as of March 31, 2023 include 1,400 lines that were reclassified from GCI Business to GCI Consumer lines in the first quarter of 2023 and are not new additions.

Unless otherwise noted, the following discussion compares financial information for the three months ended March 31, 2023 to the same period in 2022.

GCI revenue increased 6% in the first quarter. Consumer revenue was down 1% driven by declines in video revenue that offset demand for consumer data and wireless. Business revenue increased 12% with strength in data primarily driven by sales to rural health care and schools due to service upgrades as well as new customer growth.

Operating income increased by $8 million in the first quarter and Adjusted OIBDA increased $3 million due to higher revenue, partially offset by increased labor related costs and comparisons against certain one-time benefits recognized in the prior year period.

In the first quarter, GCI spent $54 million on net capital expenditures. Capital expenditure spending was related primarily to improvements to the wireless and hybrid fiber coax networks. GCI’s net capital expenditures for the full year 2023 are expected to be approximately $185 million related to increased investment in middle mile and last mile data connectivity, including network expansion in rural Alaska.

FOOTNOTES

1)

Liberty Broadband will discuss these highlights and other matters on Liberty Broadband’s earnings conference call that will begin at 4:30 p.m. (E.T.) on May 2, 2023. For information regarding how to access the call, please see “Important Notice” later in this document.

2)

Calculated pursuant to the stockholder agreement between Liberty Broadband and Charter Communications, Inc. (“Charter”).

3)

Liberty Broadband’s principal operating asset is GCI Holdings, LLC (“GCI” or “GCI Holdings”), Alaska’s largest communications provider. Liberty Broadband also holds an interest in Charter.

4)

For a definition of Adjusted OIBDA and Adjusted OIBDA margin and applicable reconciliations, see the accompanying schedules.

NOTES

LIBERTY BROADBAND FINANCIAL METRICS

(amounts in millions)

1Q22

1Q23

Revenue

GCI Holdings

$

233

$

246

Corporate and other^(a)

5

—

Total Liberty Broadband Revenue

$

238

$

246

Operating Income (Loss)

GCI Holdings

$

21

$

29

Corporate and other^(a)

(14

)

(13

)

Total Liberty Broadband Operating Income (Loss)

$

7

$

16

Adjusted OIBDA (Loss)

GCI Holdings

$

87

$

90

Corporate and other^(a)

(7

)

(8

)

Total Liberty Broadband Adjusted OIBDA (Loss)

$

80

$

82

____________________

a)

Corporate and other included Skyhook Holdings, Inc. until its sale on May 2, 2022

Important Notice: Liberty Broadband (Nasdaq: LBRDA, LBRDK, LBRDP) will discuss Liberty Broadband’s earnings release on a conference call which will begin at 4:30 p.m. (E.T.) on May 2, 2023. The call can be accessed by dialing (877) 407-3944 or (412) 902-0038, passcode 13736369, at least 10 minutes prior to the start time. The call will also be broadcast live across the Internet and archived on our website. To access the webcast go to https://www.libertybroadband.com/investors/news-events/ir-calendar. Links to this press release and replays of the call will also be available on Liberty Broadband’s website.

This press release includes certain forward-looking statements under the Private Securities Litigation Reform Act of 1995, including statements about business strategies, market potential, future financial prospects, capital expenditures, matters relating to Liberty Broadband’s equity interest in Charter and Charter’s buyback of common stock, Liberty Broadband’s participation in Charter’s buyback of common stock, indemnification by Liberty Broadband, the continuation of our stock repurchase program and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of new products or services, competitive issues, regulatory matters affecting our businesses, continued access to capital on terms acceptable to Liberty Broadband, changes in law and government regulations, the availability of investment opportunities, general market conditions (including as a result of inflationary pressures) and market conditions conducive to stock repurchases. These forward-looking statements speak only as of the date of this press release, and Liberty Broadband expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Broadband’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Liberty Broadband, including the most recent Forms 10-K and 10-Q, for additional information about Liberty Broadband and about the risks and uncertainties related to Liberty Broadband which may affect the statements made in this press release.

NON-GAAP FINANCIAL MEASURES

To provide investors with additional information regarding our financial results, this press release includes a presentation of Adjusted OIBDA, which is a non-GAAP financial measure, for Liberty Broadband (and certain of its subsidiaries) and GCI Holdings together with a reconciliation to that entity or such businesses’ operating income, as determined under GAAP. Liberty Broadband defines Adjusted OIBDA as operating income (loss) plus depreciation and amortization, stock-based compensation, transaction costs, separately reported litigation settlements, restructuring and impairment charges. Further, this press release includes Adjusted OIBDA margin which is also a non-GAAP financial measure. Liberty Broadband defines Adjusted OIBDA margin as Adjusted OIBDA divided by revenue.

Liberty Broadband believes Adjusted OIBDA is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. Because Adjusted OIBDA is used as a measure of operating performance, Liberty Broadband views operating income as the most directly comparable GAAP measure. Adjusted OIBDA is not meant to replace or supersede operating income or any other GAAP measure, but rather to supplement such GAAP measures in order to present investors with the same information that Liberty Broadband’s management considers in assessing the results of operations and performance of its assets. Please see the tables below for applicable reconciliations.

SCHEDULE 1

The following table provides a reconciliation of GCI’s operating income to its Adjusted OIBDA for the three months ended March 31, 2022 and March 31, 2023.

GCI HOLDINGS ADJUSTED OIBDA RECONCILIATION

(amounts in millions)

1Q22

1Q23

GCI Holdings Operating Income

$

21

$

29

Depreciation and amortization

63

58

Stock-based compensation

3

3

GCI Holdings Adjusted OIBDA

$

87

$

90

SCHEDULE 2

The following table provides a reconciliation of operating income (loss) calculated in accordance with GAAP to Adjusted OIBDA for Liberty Broadband for the three months ended March 31, 2022 and March 31, 2023.

LIBERTY BROADBAND ADJUSTED OIBDA RECONCILIATION

(amounts in millions)

1Q22

1Q23

Liberty Broadband Operating Income (Loss)

$

7

$

16

Depreciation and amortization

64

58

Stock-based compensation

9

8

Liberty Broadband Adjusted OIBDA (Loss)

$

80

$

82

GCI Holdings

$

87

$

90

Corporate and other

(7

)

(8)

LIBERTY BROADBAND CORPORATION

BALANCE SHEET INFORMATION

(unaudited)

March 31,

December 31,

2023

2022

amounts in millions,

except share amounts

Assets

Current assets:

Cash and cash equivalents

$

169

375

Trade and other receivables, net of allowance for credit losses of $4 and $4, respectively

194

201

Prepaid and other current assets

91

84

Total current assets

454

660

Investment in Charter, accounted for using the equity method

11,609

11,433

Property and equipment, net

1,012

1,011

Intangible assets not subject to amortization

Goodwill

755

755

Cable certificates

550

550

Other

37

37

Intangible assets subject to amortization, net

506

516

Other assets, net

206

180

Total assets

$

15,129

15,142

Liabilities and Equity

Current liabilities:

Accounts payable and accrued liabilities

$

86

92

Deferred revenue

21

20

Current portion of debt, including $2 and $1,373 measured at fair value, respectively

5

1,376

Indemnification obligation

29

50

Other current liabilities

152

137

Total current liabilities

293

1,675

Long-term debt, net, including $1,251 and zero measured at fair value, respectively

3,674

2,425

Obligations under tower obligations and finance leases, excluding current portion

85

86

Long-term deferred revenue

62

63

Deferred income tax liabilities

2,074

2,040

Preferred stock

202

202

Other liabilities

155

150

Total liabilities

6,545

6,641

Equity

Series A common stock, $.01 par value. Authorized 500,000,000 shares; issued and outstanding 18,221,602 and 18,528,468 at March 31, 2023 and December 31, 2022, respectively

—

—

Series B common stock, $.01 par value. Authorized 18,750,000 shares; issued and outstanding 2,037,259 and 2,106,636 at March 31, 2023 and December 31, 2022, respectively

—

—

Series C common stock, $.01 par value. Authorized 500,000,000 shares; issued and outstanding 125,938,456 and 125,962,296 at March 31, 2023 and December 31, 2022, respectively

1

1

Additional paid-in capital

3,282

3,318

Accumulated other comprehensive earnings (loss), net of taxes

59

9

Retained earnings

5,224

5,155

Total stockholders’ equity

8,566

8,483

Non-controlling interests

18

18

Total equity

8,584

8,501

Commitments and contingencies

Total liabilities and equity

$

15,129

15,142

LIBERTY BROADBAND CORPORATION

STATEMENT OF OPERATIONS INFORMATION

(unaudited)

Three months ended

March 31,

2023

2022

amounts in millions,

except per share amounts

Revenue

$

246

238

Operating costs and expenses:

Operating expense (exclusive of depreciation and amortization shown separately below)

62

66

Selling, general and administrative, including stock-based compensation

110

101

Depreciation and amortization

58

64

230

231

Operating income (loss)

16

7

Other income (expense):

Interest expense (including amortization of deferred loan fees)

(45

)

(26

)

Share of earnings (losses) of affiliate

248

303

Gain (loss) on dilution of investment in affiliate

(27

)

(56

)

Realized and unrealized gains (losses) on financial instruments, net

(114

)

137

Other, net

14

(21

)

Earnings (loss) before income taxes

92

344

Income tax benefit (expense)

(23

)

(45

)

Net earnings (loss)

69

299

Less net earnings (loss) attributable to the non-controlling interests

—

—

Net earnings (loss) attributable to Liberty Broadband shareholders

$

69

299

Basic net earnings (loss) attributable to Series A, Series B and Series C Liberty Broadband shareholders per common share

$

0.47

1.79

Diluted net earnings (loss) attributable to Series A, Series B and Series C Liberty Broadband shareholders per common share

$

0.47

1.77

LIBERTY BROADBAND CORPORATION

STATEMENT OF CASH FLOWS INFORMATION

(unaudited)

Three months ended

March 31,

2023

2022

amounts in millions

Cash flows from operating activities:

Net earnings (loss)

$

69

299

Adjustments to reconcile net earnings (loss) to net cash from operating activities:

Depreciation and amortization

58

64

Stock-based compensation

8

9

Share of (earnings) losses of affiliate, net

(248

)

(303

)

(Gain) loss on dilution of investment in affiliate

27

56

Realized and unrealized (gains) losses on financial instruments, net

114

(137

)

Deferred income tax expense (benefit)

22

6

Other, net

(1

)

(1

)

Change in operating assets and liabilities:

Current and other assets

(6

)

65

Payables and other liabilities

(2

)

32

Net cash provided by (used in) operating activities

41

90

Cash flows from investing activities:

Capital expenditures

(54

)

(32

)

Cash received for Charter shares repurchased by Charter

42

602

Other investing activities, net

—

4

Net cash provided by (used in) investing activities

(12

)

574

Cash flows from financing activities:

Borrowings of debt

1,248

300

Repayments of debt, tower obligations and finance leases

(1,416

)

(2

)

Repurchases of Liberty Broadband common stock

(40

)

(843

)

Indemnification payment to Qurate Retail

(24

)

—

Other financing activities, net

(3

)

(3

)

Net cash provided by (used in) financing activities

(235

)

(548

)

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

(206

)

116

Cash, cash equivalents and restricted cash, beginning of period

400

206

Cash, cash equivalents and restricted cash, end of period

$

194

322

View source version on businesswire.com: https://www.businesswire.com/news/home/20230501005794/en/

Shane Kleinstein (720) 875-5432

KEYWORDS: Colorado United States North America

INDUSTRY KEYWORDS: Networks Internet Mobile/Wireless Technology Telecommunications

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