Market Newsdesk

July 27, 2023 8:06 am

Masco Corporation Reports Second Quarter 2023 Results

Masco Corporation Reports Second Quarter 2023 Results

Highlights

Operating profit was $403 million; adjusted operating profit was $404 million
Operating profit margin was 18.9 percent; adjusted operating profit margin expanded 140 basis points to 19.0 percent
Earnings per share was $1.16 per share; adjusted earnings per share grew 3 percent to $1.19 per share
Entered into an agreement to acquire Sauna360 Group Oy, a strategic bolt-on that expands the Company’s spa and wellness product offerings
Raising expected 2023 earnings per share to be in the range of $3.48 – $3.63 per share, and on an adjusted basis, $3.50 – $3.65 per share

LIVONIA, Mich.–(BUSINESS WIRE)–
Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers of branded home improvement and building products, reported its second quarter results.

2023 Second Quarter Results

On a reported basis, compared to second quarter 2022:
- Net sales decreased 10 percent to $2,127 million; in local currency, net sales decreased 9 percent
- In local currency, North American sales decreased 10 percent and international sales decreased 8 percent
- Gross margin increased 350 basis points to 36.2 percent from 32.7 percent
- Operating profit decreased 1 percent to $403 million from $408 million
- Operating margin increased 160 basis points to 18.9 percent from 17.3 percent
- Net income decreased to $1.16 per share, compared to $1.18 per share
Compared to second quarter 2022, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 24 percent, were as follows:
- Gross margin increased 320 basis points to 36.2 percent from 33.0 percent
- Operating profit decreased 2 percent to $404 million from $414 million
- Operating margin increased 140 basis points to 19.0 percent from 17.6 percent
- Net income increased 3 percent to $1.19 per share, compared to $1.15 per share
Liquidity at the end of the second quarter was $1,380 million (including availability under revolving credit facility)
Plumbing Products’ net sales decreased 11 percent; in local currency, net sales decreased 10 percent
Decorative Architectural Products’ net sales decreased 8 percent

“In the first half of the year, we demonstrated our ability to mitigate the impacts of a lower demand environment with a focus on productivity and shareholder returns,” said Masco President and CEO, Keith Allman. “In the second quarter, our pricing actions and improved operational efficiency helped drive adjusted operating profit margin expansion of 140 basis points. At the same time, we continued to execute on our balanced capital deployment strategy and returned $89 million to shareholders through dividends and share repurchases in the quarter, while announcing a strategic bolt-on with the anticipated addition of Sauna360 Group Oy to expand our spa and wellness product offerings.”

Allman continued, “As a result of our strong execution during the first half of the year, we now anticipate adjusted earnings per share in the range of $3.50 to $3.65 per share for 2023, up from our previous expectation of $3.10 to $3.40 per share. While the near-term demand environment remains challenging, the long-term fundamentals of our repair and remodel markets continue to be strong. We remain focused on investing in our brands and capabilities and maintaining strong execution. Given Masco’s strong free cash flow and disciplined capital deployment, we are well positioned to drive shareholder value creation for the long-term,” concluded Allman.

Agreement to Acquire Sauna360 Group Oy

Masco has entered into an agreement to acquire Sauna360 Group Oy, a leading global manufacturer of sauna solutions. Sauna360 Group Oy complements the Company’s spa business and will expand its wellness product offerings with the addition of the Tylö^®, Helo^®, Kastor^®, Finnleo^® and Amerec^®brands. The transaction is expected to close in the third quarter, subject to regulatory approval.

Dividend Declaration

Masco’s Board of Directors declared a quarterly dividend of $0.285 per share, payable on August 28, 2023 to shareholders of record on August 11, 2023.

About Masco

Headquartered in Livonia, Michigan, Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Our portfolio of industry-leading brands includes Behr^® paint; Delta^® and Hansgrohe^® faucets, bath and shower fixtures; Kichler^® decorative and outdoor lighting; and HotSpring^® spas. We leverage our powerful brands across product categories, sales channels and geographies to create value for our customers and shareholders. For more information about Masco Corporation, visit www.masco.com.

The 2023 second quarter supplemental material, including a presentation in PDF format, is available on the Company’s website at www.masco.com.

Conference Call Details

A conference call regarding items contained in this release is scheduled for Thursday, July 27, 2023 at 8:00 a.m. ET. Participants in the call are asked to register five to ten minutes prior to the scheduled start time by dialing 888-886-7786 and from outside the U.S. at 416-764-8658. Please use the conference identification number 14959971.

The conference call will be webcast simultaneously and in its entirety through the Company’s website. Shareholders, media representatives and others interested in Masco may participate in the webcast by registering through the Investor Relations section on the Company’s website.

A replay of the call will be available on Masco’s website or by phone by dialing 877-674-7070 and from outside the U.S. at 416-764-8692. Please use the playback passcode 959971#. The telephone replay will be available approximately two hours after the end of the call and continue through August 27, 2023.

Safe Harbor Statement

This press release contains statements that reflect our views about our future performance and constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “outlook,” “believe,” “anticipate,” “appear,” “may,” “will,” “should,” “intend,” “plan,” “estimate,” “expect,” “assume,” “seek,” “forecast,” and similar references to future periods. Our views about future performance involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. We caution you against relying on any of these forward-looking statements.

Our future performance may be affected by the levels of residential repair and remodel activity, and to a lesser extent, new home construction, our ability to maintain our strong brands and to develop innovative products, our ability to maintain our public reputation, our ability to maintain our competitive position in our industries, our reliance on key customers, the cost and availability of materials, our dependence on suppliers and service providers, extreme weather events and changes in climate, risks associated with our international operations and global strategies, our ability to achieve the anticipated benefits of our strategic initiatives, our ability to successfully execute our acquisition strategy and integrate businesses that we have acquired and may in the future acquire, our ability to attract, develop and retain a talented and diverse workforce, risks associated with cybersecurity vulnerabilities, threats and attacks, risks associated with our reliance on information systems and technology and the impact of the ongoing COVID-19 pandemic on our business and operations. These and other factors are discussed in detail in Item 1A. “Risk Factors” in our most recent Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. Any forward-looking statement made by us speaks only as of the date on which it was made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise.

MASCO CORPORATION Condensed Consolidated Statements of Operations – Unaudited For the Three and Six Months Ended June 30, 2023 and 2022

(in millions, except per common share data)
	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Net sales	$	2,127		$	2,352		$	4,106		$	4,553
Cost of sales		1,358			1,583			2,668			3,080
Gross profit		769			769			1,438			1,473

Selling, general and administrative expenses		366			361			720			712
Operating profit		403			408			718			761

Other income (expense), net:
Interest expense		(28	)		(28	)		(56	)		(53	)
Other, net		(1	)		17			(3	)		16
		(29	)		(11	)		(59	)		(37	)
Income before income taxes		374			397			659			724

Income tax expense		96			103			160			178
Net income		278			294			499			546

Less: Net income attributable to noncontrolling interest		15			16			31			35
Net income attributable to Masco Corporation	$	263		$	278		$	468		$	511

Income per common share attributable to Masco Corporation (diluted):
Net income	$	1.16		$	1.18		$	2.07		$	2.15

Average diluted common shares outstanding		226			233			226			237

Historical information is available on our website.

MASCO CORPORATION Exhibit A: Reconciliations – Unaudited For the Three and Six Months Ended June 30, 2023 and 2022

	(dollars in millions)
	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Gross Profit, Selling, General and Administrative Expenses, and Operating Profit Reconciliations

Net sales	$	2,127		$	2,352		$	4,106		$	4,553

Gross profit, as reported	$	769		$	769		$	1,438		$	1,473
Rationalization charges (income) (1)		1			6			(3	)		9
Gross profit, as adjusted	$	770		$	775		$	1,435		$	1,482

Gross margin, as reported		36.2	%		32.7	%		35.0	%		32.4	%
Gross margin, as adjusted		36.2	%		33.0	%		34.9	%		32.5	%

Selling, general and administrative expenses, as reported	$	366		$	361		$	720		$	712
Rationalization charges		—			—			1			—
Selling, general and administrative expenses, as adjusted	$	366		$	361		$	719		$	712

Selling, general and administrative expenses as percent of net sales, as reported		17.2	%		15.3	%		17.5	%		15.6	%
Selling, general and administrative expenses as percent of net sales, as adjusted		17.2	%		15.3	%		17.5	%		15.6	%

Operating profit, as reported	$	403		$	408		$	718		$	761
Rationalization charges (income) (1)		1			6			(2	)		9
Operating profit, as adjusted	$	404		$	414		$	716		$	770

Operating margin, as reported		18.9	%		17.3	%		17.5	%		16.7	%
Operating margin, as adjusted		19.0	%		17.6	%		17.4	%		16.9	%

(1)		Represents income for the six months ended June 30, 2023 due to the sale of excess and obsolete inventory that was related to a rationalization activity, partially offset by rationalization charges.

Historical information is available on our website.

MASCO CORPORATION Exhibit A: Reconciliations – Unaudited For the Three and Six Months Ended June 30, 2023 and 2022

(in millions, except per common share data)
	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Income Per Common Share Reconciliations

Income before income taxes, as reported	$	374		$	397		$	659		$	724
Rationalization charges (income) (1)		1			6			(2	)		9
Fair value adjustment to contingent earnout obligation (2)		—			(28	)		—			(24	)
(Gain) on sale of business (3)		—			—			—			(2	)
Realized (gains) from private equity funds		—			—			(1	)		—
Income before income taxes, as adjusted		375			375			656			707
Tax at 24% rate		(90	)		(90	)		(157	)		(170	)
Less: Net income attributable to noncontrolling interest		15			16			31			35
Net income, as adjusted	$	270		$	269		$	468		$	502

Net income per common share, as adjusted	$	1.19		$	1.15		$	2.07		$	2.12

Average diluted common shares outstanding		226			233			226			237

(1)		Represents income for the six months ended June 30, 2023 due to the sale of excess and obsolete inventory that was related to a rationalization activity, partially offset by rationalization charges.
(2)		Represents income for the three and six months ended June 30, 2022 from the revaluation of contingent consideration related to a prior acquisition.
(3)		Represents a pre-tax post-closing gain related to the finalization of working capital items related to the divestiture of Hüppe GmbH for the six months ended June 30, 2022.

Outlook for the Year Ended December 31, 2023

	Year Ended December 31, 2023
	Low End		High End
Income Per Common Share Reconciliation

Net income per common share	$	3.48	$	3.63
Rationalization charges		0.02		0.02
Net income per common share, as adjusted	$	3.50	$	3.65

Historical information is available on our website.

MASCO CORPORATION Condensed Consolidated Balance Sheets and Other Financial Data – Unaudited June 30, 2023 and December 31, 2022

	(dollars in millions)
	June 30, 2023		December 31, 2022
Balance Sheet
Assets
Current assets:
Cash and cash investments	$	380	$	452
Receivables		1,371		1,149
Inventories		1,144		1,236
Prepaid expenses and other		112		109
Total current assets		3,007		2,946

Property and equipment, net		1,063		975
Goodwill		540		537
Other intangible assets, net		337		350
Operating lease right-of-use assets		264		266
Other assets		97		113
Total assets	$	5,308	$	5,187

Liabilities
Current liabilities:
Accounts payable	$	958	$	877
Notes payable		79		205
Accrued liabilities		712		807
Total current liabilities		1,749		1,889

Long-term debt		2,946		2,946
Noncurrent operating lease liabilities		252		255
Other liabilities		333		339
Total liabilities		5,280		5,429

Redeemable noncontrolling interest		21		20

Equity		7		(262	)
Total liabilities and equity	$	5,308	$	5,187

	As of June 30,
	2023			2022
Other Financial Data
Working capital days
Receivable days		54			52
Inventory days		80			88
Payable days		70			67
Working capital	$	1,557		$	1,660
Working capital as a % of sales (LTM)		18.9	%		18.9	%

Historical information is available on our website.

MASCO CORPORATION Condensed Consolidated Statements of Cash Flows and Other Financial Data – Unaudited For the Six Months Ended June 30, 2023 and 2022

	(dollars in millions)
	Six Months Ended June 30,
	2023			2022
Cash Flows From (For) Operating Activities:
Cash provided by operating activities	$	632		$	662
Working capital changes		(184	)		(488	)
Net cash from operating activities		448			174

Cash Flows From (For) Financing Activities:
Purchase of Company common stock		(81	)		(914	)
Cash dividends paid		(129	)		(131	)
Dividends paid to noncontrolling interest		(49	)		—
Proceeds from short-term borrowings		77			—
Proceeds from term loan		—			500
Payment of term loan		(200	)		—
Proceeds from the exercise of stock options		23			1
Employee withholding taxes paid on stock-based compensation		(23	)		(17	)
Decrease in debt, net		(4	)		(7	)
Net cash for financing activities		(386	)		(568	)

Cash Flows From (For) Investing Activities:
Capital expenditures		(133	)		(70	)
Other, net		(4	)		(4	)
Net cash for investing activities		(137	)		(74	)

Effect of exchange rate changes on cash and cash investments		3			(18	)

Cash and Cash Investments:
Decrease for the period		(72	)		(486	)
At January 1		452			926
At June 30	$	380		$	440

	As of June 30,
	2023		2022
Liquidity
Cash and cash investments	$	380	$	440
Revolver availability		1,000		1,000
Total Liquidity	$	1,380	$	1,440

Historical information is available on our website.

MASCO CORPORATION Segment Data – Unaudited For the Three and Six Months Ended June 30, 2023 and 2022

	(dollars in millions)
	Three Months Ended June 30,								Six Months Ended June 30,
	2023			2022			Change		2023			2022			Change
Plumbing Products
Net sales	$	1,225		$	1,373		(11	)%	$	2,447		$	2,732		(10	)%

Operating profit, as reported	$	244		$	238				$	450		$	466
Operating margin, as reported		19.9	%		17.3	%				18.4	%		17.1	%

Rationalization charges (income)		1			—					(3	)		—
Operating profit, as adjusted		245			238					447			466
Operating margin, as adjusted		20.0	%		17.3	%				18.3	%		17.1	%

Depreciation and amortization		25			25					50			49
EBITDA, as adjusted	$	270		$	263				$	497		$	515

Decorative Architectural Products
Net sales	$	902		$	979		(8	)%	$	1,659		$	1,821		(9	)%

Operating profit, as reported	$	180		$	192				$	312		$	347
Operating margin, as reported		20.0	%		19.6	%				18.8	%		19.1	%

Rationalization charges		—			6					1			8
Accelerated depreciation related to rationalization activity		—			—					—			1
Operating profit, as adjusted		180			198					313			356
Operating margin, as adjusted		20.0	%		20.2	%				18.9	%		19.5	%

Depreciation and amortization		9			9					17			17
EBITDA, as adjusted	$	189		$	207				$	330		$	373

Total
Net sales	$	2,127		$	2,352		(10	)%	$	4,106		$	4,553		(10	)%

Operating profit, as reported – segment	$	424		$	430				$	762		$	813
General corporate expense, net		(21	)		(22	)				(44	)		(52	)
Operating profit, as reported		403			408					718			761
Operating margin, as reported		18.9	%		17.3	%				17.5	%		16.7	%

Rationalization charges (income) – segment		1			6					(2	)		8
Accelerated depreciation related to rationalization activity – segment		—			—					—			1
Operating profit, as adjusted		404			414					716			770
Operating margin, as adjusted		19.0	%		17.6	%				17.4	%		16.9	%

Depreciation and amortization – segment		34			34					67			66
Depreciation and amortization – other		1			2					3			4

EBITDA, as adjusted	$	439		$	450				$	786		$	840

Historical information is available on our website.

MASCO CORPORATION North American and International Data – Unaudited For the Three and Six Months Ended June 30, 2023 and 2022

	(dollars in millions)
	Three Months Ended June 30,								Six Months Ended June 30,
	2023			2022			Change		2023			2022			Change
North American
Net sales	$	1,718		$	1,905		(10	)%	$	3,273		$	3,639		(10	)%

Operating profit, as reported	$	358		$	356				$	624		$	656
Operating margin, as reported		20.8	%		18.7	%				19.1	%		18.0	%

Rationalization charges (income)		1			6					(2	)		8
Accelerated depreciation related to rationalization activity		—			—					—			1
Operating profit, as adjusted		359			362					622			665
Operating margin, as adjusted		20.9	%		19.0	%				19.0	%		18.3	%

Depreciation and amortization		22			23					43			43
EBITDA, as adjusted	$	381		$	385				$	665		$	708

International
Net sales	$	409		$	447		(9	)%	$	833		$	914		(9	)%

Operating profit, as reported	$	66		$	74				$	138		$	157
Operating margin, as reported		16.1	%		16.6	%				16.6	%		17.2	%

Depreciation and amortization		12			11					24			23
EBITDA	$	78		$	85				$	162		$	180

Total
Net sales	$	2,127		$	2,352		(10	)%	$	4,106		$	4,553		(10	)%

Operating profit, as reported – segment	$	424		$	430				$	762		$	813
General corporate expense, net		(21	)		(22	)				(44	)		(52	)
Operating profit, as reported		403			408					718			761
Operating margin, as reported		18.9	%		17.3	%				17.5	%		16.7	%

Rationalization charges (income) – segment		1			6					(2	)		8
Accelerated depreciation related to rationalization activity – segment		—			—					—			1
Operating profit, as adjusted		404			414					716			770
Operating margin, as adjusted		19.0	%		17.6	%				17.4	%		16.9	%

Depreciation and amortization – segment		34			34					67			66
Depreciation and amortization – other		1			2					3			4
EBITDA, as adjusted	$	439		$	450				$	786		$	840

Historical information is available on our website.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230727124873/en/

David Chaika

Interim Chief Financial Officer

313.792.5500

[email protected]

KEYWORDS: United States North America Michigan

INDUSTRY KEYWORDS: Commercial Building & Real Estate Construction & Property Landscape Interior Design Home Goods Building Systems Retail Other Construction & Property Residential Building & Real Estate

MEDIA:

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July 27, 2023 8:05 am

Nexstar Media Group Declares Quarterly Cash Dividend of $1.35 Per Share

Nexstar Media Group Declares Quarterly Cash Dividend of $1.35 Per Share

IRVING, Texas–(BUSINESS WIRE)–
Nexstar Media Group, Inc. (NASDAQ: NXST) announced today that its Board of Directors declared a quarterly cash dividend of $1.35 per share of its common stock. The dividend is payable on Thursday, August 24, 2023, to shareholders of record on Thursday, August 10, 2023.

While the Company intends to pay regular quarterly cash dividends for the foreseeable future, all subsequent dividends will be reviewed quarterly and declared by the Board of Directors at its discretion.

About Nexstar Media Group, Inc.

Nexstar Media Group, Inc. (NASDAQ: NXST) is a leading diversified media company that produces and distributes engaging local and national news, sports and entertainment content across television, streaming and digital platforms, including more than 300,000 hours of news, sports, and entertainment programming each year. Nexstar owns America’s largest local broadcasting group comprised of top network affiliates, with 200 owned or partner stations in 116 U.S. markets reaching 212 million people. Nexstar’s national television properties include The CW, America’s fifth major broadcast network, NewsNation, America’s fastest-growing national news and entertainment cable network reaching 70 million television homes, popular entertainment multicast networks Antenna TV and Rewind TV, and a 31.3% ownership stake in TV Food Network. The Company’s portfolio of digital assets, including The Hill and BestReviews, are collectively a Top 10 U.S. digital news and information property. In addition to delivering exceptional content and service to our communities, Nexstar provides premium multiplatform and video-on-demand advertising opportunities at scale for businesses and brands seeking to leverage the strong consumer engagement of our compelling content offering. For more information, please visit nexstar.tv.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230727861595/en/

Investor:

Lee Ann Gliha

Executive Vice President and Chief Financial Officer

Nexstar Media Group, Inc.

972/373-8800

Joseph Jaffoni, Rich Land, James Leahy

JCIR

212/835-8500 or [email protected]

Media:

Gary Weitman

EVP and Chief Communications Officer

972/373-8800

[email protected]

KEYWORDS: Texas United States North America

INDUSTRY KEYWORDS: Software Banking Media Entertainment Professional Services Apps/Applications Technology TV and Radio Audio/Video Communications Finance Telecommunications

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July 27, 2023 8:02 am

Bread Financial™ Provides Performance Update for June 2023

Bread Financial™ Provides Performance Update for June 2023

COLUMBUS, Ohio–(BUSINESS WIRE)–Bread Financial Holdings, Inc. (NYSE: BFH), a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions, provided a performance update. The following tables present the Company’s net loss rate and delinquency rate for the periods indicated.

	For the month ended June 30, 2023			For the three months ended June 30, 2023
	(dollars in millions)
End-of-period credit card and other loans	$	17,962		$	17,962
Average credit card and other loans	$	17,623		$	17,652
Year-over-year change in average credit card and other loans		2	%		4	%
Net principal losses⁽¹⁾	$	113		$	351
Net loss rate⁽¹⁾		7.7	%		8.0	%

	As of June 30, 2023			As of June 30, 2022
	(dollars in millions)
30 days + delinquencies – principal	$	926		$	737
Period ended credit card and other loans – principal	$	16,728		$	16,825
Delinquency rate		5.5	%		4.4	%

________________________________________________
⁽¹⁾	As previously communicated, the month and three months ended June 30, 2023 Net principal losses and Net loss rate were impacted by the transition of our credit card processing services.

About Bread Financial™

Bread Financial™(NYSE: BFH) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The company creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, Bread Financial delivers growth for its partners through a comprehensive suite of payment solutions that includes private label and co-brand credit cards and Bread Pay™ buy now, pay later products. Bread Financial also offers direct-to-consumer products that give customers more access, choice and freedom through its branded Bread Cashback™ American Express^® Credit Card and Bread Savings™ products.

Headquartered in Columbus, Ohio, Bread Financial is powered by its 7,500+ global associates and is committed to sustainable business practices. To learn more about Bread Financial, visit BreadFinancial.com or follow us on Facebook, LinkedIn, Twitter and Instagram.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our expectations or forecasts of future events and can generally be identified by the use of words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “project,” “plan,” “likely,” “may,” “should” or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding, and the guidance we give with respect to, our anticipated operating or financial results, future financial performance and outlook, future dividend declarations, and future economic conditions.

We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that are difficult to predict and, in many cases, beyond our control. Accordingly, our actual results could differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurances can be given that our expectations will prove to have been correct. Factors that could cause the outcomes to differ materially include, but are not limited to, the following: macroeconomic conditions, including market conditions, inflation, rising interest rates, unemployment levels and the increased probability of a recession, and the related impact on consumer payment rates, savings rates and other behavior; global political and public health events and conditions, including the ongoing war in Ukraine and the continuing effects of the global COVID-19 pandemic; future credit performance, including the level of future delinquency and write-off rates; the loss of, or reduction in demand from, significant brand partners or customers in the highly competitive markets in which we compete; the concentration of our business in U.S. consumer credit; inaccuracies in the models and estimates on which we rely, including the amount of our Allowance for credit losses and our credit risk management models; the inability to realize the intended benefits of acquisitions, dispositions and other strategic initiatives; our level of indebtedness and ability to access financial or capital markets; pending and future legislation, regulation, supervisory guidance, and regulatory and legal actions, including, but not limited to, those related to financial regulatory reform and consumer financial services practices, as well as any such actions with respect to late fees, interchange fees or other charges; impacts arising from or relating to the transition of our credit card processing services to third party service providers that we completed in 2022; failures or breaches in our operational or security systems, including as a result of cyberattacks, unanticipated impacts from technology modernization projects or otherwise; and any tax liability, disputes or other adverse impacts arising out of or relating to the spinoff of our former LoyaltyOne segment or the recent bankruptcy filings of Loyalty Ventures Inc. and certain of its subsidiaries. The foregoing factors, along with other risks and uncertainties that could cause actual results to differ materially from those expressed or implied in forward-looking statements, are described in greater detail under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K. Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230727479980/en/

Brian Vereb — Investor Relations

[email protected]

Susan Haugen — Investor Relations

[email protected]

Rachel Stultz — Media

[email protected]

KEYWORDS: Ohio United States North America

INDUSTRY KEYWORDS: Fintech Professional Services Finance

MEDIA:

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July 27, 2023 7:58 am

EyePoint Pharmaceuticals Presents Interim Masked Safety Data and Patient Baseline Characteristics for DAVIO 2 Clinical Trial at OIS Retina Innovation Summit

Interim safety data from the Phase 2 DAVIO 2 trial continues to demonstrate EYP-1901 is well tolerated with no reported drug-related ocular or systemic SAEs

Patient demographics demonstrate the Phase 2 DAVIO 2 population has a better baseline BCVA and decreased CST compared to the Phase 1 DAVIO trial cohort at trial start

Phase 2 DAVIO 2 clinical trial remains on track to report topline data in December 2023

WATERTOWN, Mass., July 27, 2023 (GLOBE NEWSWIRE) — EyePoint Pharmaceuticals, Inc. (NASDAQ: EYPT), a company committed to developing and commercializing therapeutics to improve the lives of patients with serious eye disorders, today announced interim masked safety data and baseline patient demographics from its Phase 2 DAVIO 2 clinical trial of EYP-1901, a potential sustained delivery maintenance treatment for wet age-related macular degeneration (wet AMD). These data are being presented today at the OIS Retina Innovation Summit in Seattle, WA by Nancy Lurker, Executive Vice-Chair of EyePoint Pharmaceuticals.

“EYP-1901 continues to demonstrate an excellent safety profile in the Phase 2 DAVIO 2 trial with no reported drug-related ocular serious adverse events (SAEs) and no reported drug-related systemic SAEs in the 160 enrolled patients as of July 1, 2023,” said Jay S. Duker, M.D., President and Chief Executive Officer of EyePoint Pharmaceuticals. “Safety is paramount for both patients and physicians in the development of ophthalmic treatments, and these data support EYP-1901’s continued track record of safety in humans. We are developing EYP-1901 as a sustained delivery therapeutic option to maintain vision in a majority of wet AMD patients for up to six-months or longer, while also reducing the treatment burden of frequent injections and improving treatment compliance. Additionally, we are also pleased to present the Phase 2 DAVIO 2 patient baseline characteristics, demonstrating DAVIO 2 patients had better starting visual acuity and less central subfield thickness (CST) than the Phase 1 DAVIO cohort. We look forward to sharing our topline results from the DAVIO 2 trial in December of this year.”

A masked safety summary as of July 1, 2023 found that there have been no reported drug-related ocular SAEs and no reported drug-related systemic SAEs in the DAVIO 2 trial. There were two ocular SAEs unrelated to EYP-1901 in the trial:

Retinal detachment in a study eye detected at week 1 (one week post initial aflibercept injection, prior to EYP-1901 injection)
Retinal hemorrhage in a non-study fellow eye

EyePoint also presented the Phase 2 DAVIO 2 trial screening characteristics and provided a comparison to baseline demographics of the Phase 1 DAVIO patients. Interim baseline data on patients in the Phase 2 DAVIO 2 trial as of July 1, 2023 reveal that patients feature a mean best corrected visual acuity (BCVA) of 74 letters, compared with a mean BCVA of 69 letters in the Phase 1 DAVIO trial. Mean CST in the Phase 2 DAVIO 2 trial was 265 μm, compared to 299 μm in the Phase 1 DAVIO trial. Mean age of patients in the Phase 2 DAVIO 2 trial is 76 years old, compared to 77.4 years old in the Phase 1 DAVIO trial.

DAVIO 2 is a randomized, controlled Phase 2 clinical trial of EYP-1901 in patients with previously treated wet AMD. All enrolled patients had been previously treated with standard-of-care anti-VEGF therapy and were randomly assigned to one of two doses of EYP-1901 (approximately 2 mg or 3 mg) or an aflibercept control. EYP-1901 is delivered with a single intravitreal injection in the physician’s office, similar to current FDA approved anti-VEGF treatments. The primary efficacy endpoint of the DAVIO 2 trial is change in BCVA compared to the aflibercept control, six-months after the EYP-1901 injection. Secondary efficacy endpoints include change in CST as measured by optical coherence tomography (OCT), number of eyes that remain free of supplemental anti-VEGF injections, number of aflibercept injections in each group, and safety. More information about the trial is available at clinicaltrials.gov (identifier: NCT05381948).

About EYP-1901

EYP-1901 is being developed as an investigational sustained delivery treatment for retinal disease combining a bioerodible formulation of EyePoint’s proprietary Durasert^® delivery technology (Durasert E™) with vorolanib, a tyrosine kinase inhibitor. Positive safety and efficacy data from the Phase 1 DAVIO clinical trial of EYP-1901 in wet AMD showed a positive safety profile with stable visual acuity and OCT. Further, the data demonstrated an impressive treatment burden reduction of 75% at six months and 73% at the 12-month visit following a single dose of EYP-1901. Phase 2 trials are fully enrolled in wet AMD and non-proliferative diabetic retinopathy, and a diabetic macular edema trial is planned for initiation in Q1 2024. Vorolanib is licensed to EyePoint exclusively by Equinox Sciences for the localized treatment of all ophthalmic diseases.

About EyePoint Pharmaceuticals

EyePoint Pharmaceuticals (Nasdaq: EYPT) is a company committed to developing and commercializing therapeutics to help improve the lives of patients with serious eye disorders. The Company’s pipeline leverages its proprietary bioerodible Durasert E™ technology for sustained intraocular drug delivery including EYP-1901, an investigational sustained delivery intravitreal anti-VEGF treatment currently in Phase 2 clinical trials. The proven Durasert^® drug delivery platform has been safely administered to thousands of patients’ eyes across four U.S. FDA approved products. EyePoint Pharmaceuticals is headquartered in Watertown, Massachusetts. For more information visit www.eyepointpharma.com.

EYEPOINT SAFE HARBOR STATEMENTS UNDER THE PRIVATE SECURITIES LITIGATION ACT OF 1995: To the extent any statements made in this press release deal with information that is not historical, these are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements regarding the sufficiency of our existing cash resources into 2025; our plans and any other statements about future expectations, prospects, estimates and other matters that are dependent upon future events or developments, including statements containing the words “will,” “potential,” “could,” “can,” “believe,” “intends,” “continue,” “plans,” “expects,” “anticipates,” “estimates,” “may,” other words of similar meaning or the use of future dates. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Uncertainties and risks may cause EyePoint’s actual results to be materially different than those expressed in or implied by EyePoint’s forward-looking statements. For EyePoint, this includes uncertainties regarding our ability to realize the anticipated benefits of the 2023 sale of YUTIQ® to Alimera Sciences including our potential to receive additional payments from Alimera pursuant to the our agreements with Alimera; our ability to manufacture YUTIQ in sufficient quantities pursuant to our commercial supply agreements with Alimera and Ocumension Therapeutics; the timing and clinical development of our product candidates, including EYP-1901; the potential for EYP-1901 as a novel sustained delivery treatment for serious eye diseases, including wet age-related macular degeneration, non-proliferative diabetic retinopathy and diabetic macular edema; the effectiveness and timeliness of clinical trials, and the usefulness of the data; the timeliness of regulatory approvals; the success of current and future license agreements, including our agreements with Alimera, Ocumension, Equinox Science and Betta Pharmaceuticals; termination or breach of current and future license agreements; our dependence on contract research organizations, co-promotion partners, and other outside vendors and service providers; effects of competition; market acceptance of our products, including our out-licensed products; product liability; industry consolidation; compliance with environmental laws; risks and costs of international business operations; volatility of stock price; possible dilution; the impact of instability in general business and economic conditions, including changes in inflation, interest rates and the labor market; the extent to which COVID-19 impacts our business and the medical community; protection of our intellectual property and avoiding intellectual property infringement; retention of key personnel; manufacturing risks; the sufficiency of the Company’s cash resources and need for additional financing; and other factors described in our filings with the Securities and Exchange Commission. We cannot guarantee that the results and other expectations expressed, anticipated or implied in any forward-looking statement will be realized. A variety of factors, including these risks, could cause our actual results and other expectations to differ materially from the anticipated results or other expectations expressed, anticipated, or implied in our forward-looking statements. Should known or unknown risks materialize, or should underlying assumptions prove inaccurate, actual results could differ materially from past results and those anticipated, estimated, or projected in the forward-looking statements. You should bear this in mind as you consider any forward-looking statements. Our forward-looking statements speak only as of the dates on which they are made. EyePoint undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Investors:

Christina Tartaglia
Stern IR
Direct: 212-698-8700
[email protected]

Media Contact:

Amy Phillips
Green Room Communications
Direct: 412-327-9499
[email protected]

July 27, 2023 7:55 am

Janus International Group to Report Second Quarter 2023 Results on August 10, 2023

Janus International Group to Report Second Quarter 2023 Results on August 10, 2023

TEMPLE, Ga.–(BUSINESS WIRE)–Janus International Group, Inc. (NYSE: JBI) (“Janus” or the “Company”), a leading global provider of cutting-edge access control technologies and building product solutions for the self-storage and other commercial and industrial sectors, announced today that the Company will release its second quarter 2023 financial results before the market opens on Thursday, August 10, 2023. A webcast and conference call will be held that same day at 10:00 a.m. ET to review the Company’s second quarter results and conduct a question-and-answer session.

The live webcast and archived replay of the conference call can be accessed on the Investors section of the Company’s website at www.janusintl.com. For those unable to access the webcast, the conference call will be accessible domestically or internationally, by dialing 1-877-407-0789 or 1-201-689-8562, respectively. Upon dialing in, please request to join the Janus International Group Second Quarter 2023 Earnings Conference Call. To access the replay of the call, dial 1-844-512-2921 (Domestic) or 1-412-317-6671 (International) with pass code 13740072.

About Janus International Group

Janus International Group, Inc. (www.JanusIntl.com) is a leading global manufacturer and supplier of turn-key self-storage, commercial and industrial building solutions, including roll-up and swing doors, hallway systems, relocatable storage units and facility and door automation technologies. The Janus team operates out of several U.S. locations and six locations internationally.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230727147078/en/

Investors, Janus

John Rohlwing

Vice President, Investor Relations, FP&A & M&A, Janus International

(770) 562-6399

[email protected]

Media, Janus

Suzanne Reitz

Vice President of Marketing, Janus International

(770) 746-9576

[email protected]

KEYWORDS: United States North America Georgia

INDUSTRY KEYWORDS: Technology Manufacturing Commercial Building & Real Estate Construction & Property Building Systems Other Manufacturing Hardware

MEDIA:

July 27, 2023 7:53 am

Akoustis Introduces New, Advanced, Single Crystal AlScN on Si Wafer XBAW® Technology

Multi-Year Development with DARPA Drives Core BAW Technology Differentiation
Advanced Single-Crystal Material Delivers Improved Power Handling and Harmonics
Enables Broader Use Case for BAW Technology in High Power Applications

Charlotte, N.C., July 27, 2023 (GLOBE NEWSWIRE) — Akoustis Technologies, Inc. (NASDAQ: AKTS) (“Akoustis” or the “Company”), an integrated device manufacturer (IDM) of patented bulk acoustic wave (BAW) high-band RF filters for mobile and other wireless applications, announced today that it has developed a new advanced single-crystal XBAW^® material using epitaxial (EPI) aluminum scandium nitride (AlScN) on silicon wafer. This new material was developed with funding from the Defense Advanced Research Projects Agency (DARPA) to scale the XBAW® technology to frequencies up to 18 GHz. The Company plans to begin sampling filters using the new single-crystal material in the current quarter.

Akoustis re-developed its advanced single-crystal nanomaterial that delivers BAW filters with higher power handling and improved harmonics over its existing poly-crystal technology. Higher power handling offers customers the ability to design products with higher transmit power and, consequently, greater range and obstruction penetration. Improved harmonics reduce the unwanted out-of-band spurious emissions that could cause interference or fail FCC and other standards approval. The development of the new single-crystal material relies significantly on many of the Company’s fundamental patents and trade secrets.

Jeff Shealy, founder and CEO of Akoustis, stated, “Producing this new single-crystal material is the culmination of many years of engineering and has been enabled through our strong partnership with DARPA, which has recognized our technology through its continued support.” Mr. Shealy continued, “This new material offers significant improvements over what can be achieved today in our poly-crystal technologies, with advantages in power handling and improved harmonics. We expect this new material will deliver improved performance in BAW across 5G mobile devices, 5G mobile infrastructure, Wi-Fi, automotive, defense and other markets.”

Akoustis continues to experience strong demand and a growing sales funnel for its Wi-Fi, 5G mobile, and 5G infrastructure products, as well as its new XBAW^®/SAW resonator and oscillator products, and semiconductor back-end services. During the June quarter, the Company shipped samples of its new 5.6 GHz/6.6 GHz Wi-Fi 6E/7 XBAW^® filter products to multiple customers. Akoustis continues to add new Wi-Fi design wins, many of which are expected to ramp into production in calendar 2023.

About Akoustis Technologies, Inc.

Akoustis^® (http://www.akoustis.com/) is a high-tech BAW RF filter solutions company that is pioneering next-generation materials science and MEMS wafer manufacturing to address the market requirements for improved RF filters – targeting higher bandwidth, higher operating frequencies and higher output power compared to legacy polycrystalline BAW technology. The Company utilizes its proprietary and patented XBAW^® manufacturing process to produce bulk acoustic wave RF filters for mobile and other wireless markets, which facilitate signal acquisition and accelerate band performance between the antenna and digital back end. Superior performance is driven by the significant advances of poly-crystal, single-crystal and other high purity piezoelectric materials and the resonator-filter process technology which enables optimal trade-offs between critical power, frequency and bandwidth performance specifications.

Akoustis plans to service the fast growing, multi-billion-dollar RF filter market, using its integrated device manufacturer (IDM) business model. The Company owns and operates a 120,000 sq. ft. ISO-9001:2015 registered commercial wafer-manufacturing facility located in Canandaigua, NY, which includes a class 100 / class 1000 cleanroom facility – tooled for 150-mm diameter wafers – for the design, development, fabrication and packaging of RF filters, MEMS and other semiconductor devices. Akoustis Technologies, Inc. is headquartered in the Piedmont technology corridor near Charlotte, North Carolina.

Forward-Looking Statements

This document includes “forward-looking statements” within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, each as amended, that are intended to be covered by the “safe harbor” created by those sections. These forward-looking statements include, but are not limited to, statements about our estimates, expectations, beliefs, intentions, plans or strategies for the future (including our possible future results of operations, profitability, business strategies, competitive position, potential growth opportunities, potential market opportunities and the effects of competition), the anticipated benefits of the acquisition of Grinding and Dicing Services, Inc., future cash flow and forecasts of breakeven point and expectations regarding funding under the CHIPS and Science Act, and the assumptions underlying such statements. Forward-looking statements include all statements that are not historical facts and typically are identified by use of terms such as “may,” “might,” “would,” “will,” “should,” “could,” “project,” “expect,” “plan,” “strategy,” “anticipate,” “attempt,” “develop,” “help,” “believe,” “think,” “estimate,” “predict,” “intend,” “forecast,” “seek,” “potential,” “possible,” “continue,” “future,” and similar words (including the negative of any of the foregoing), although some forward-looking statements are expressed differently. Forward-looking statements are neither historical facts nor assurances of future results, performance, events or circumstances. Instead, these forward-looking statements are based on management’s current beliefs, expectations and assumptions, and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from those currently anticipated include, without limitation, risks relating to our inability to obtain adequate financing and sustain our status as a going concern; our limited operating history; our inability to generate revenues or achieve profitability; the results of our research and development activities; our inability to achieve acceptance of our products in the market; the possibility that the anticipated benefits from business acquisitions (including the acquisition of Grinding and Dicing Services, Inc.) will not be realized in full or at all or may take longer to realize than expected; the possibility that costs or difficulties related to the integration of acquired businesses’ operations will be greater than expected and the possibility of disruptions to our business during integration efforts and strain on management time and resources; the impact of a pandemic or epidemic or a natural disaster, including the COVID-19 pandemic, the Russian-Ukrainian conflict and other sources of volatility on our operations, financial condition and the worldwide economy, including its impact on our ability to access the capital markets; increases in prices for raw materials, labor, and fuel caused by rising inflation; general economic conditions, including upturns and downturns in the industry; shortages in supplies needed to manufacture our products, or needed by our customers to manufacture devices incorporating our products; our limited number of patents; failure to obtain, maintain, and enforce our intellectual property rights; claims of infringement, misappropriation or misuse of third party intellectual property, including the lawsuit filed by Qorvo, Inc. in October 2021, that, regardless of merit, could result in significant expense and negatively impact our business results; our inability to attract and retain qualified personnel; our reliance on third parties to complete certain processes in connection with the manufacture of our products; product quality and defects; existing or increased competition; our ability to successfully manufacture, market and sell products based on our technologies; our ability to meet the required specifications of customers and achieve qualification of our products for commercial manufacturing in a timely manner; our inability to successfully scale our New York wafer fabrication facility and related operations while maintaining quality control and assurance and avoiding delays in output; the rate and degree of market acceptance of any of our products; our ability to achieve design wins from current and future customers; contracting with customers and other parties with greater bargaining power and agreeing to terms and conditions that may adversely affect our business; risks related to doing business in foreign countries, including China; any security breaches, cyber-attacks or other disruptions compromising our proprietary information and exposing us to liability; our failure to innovate or adapt to new or emerging technologies, including in relation to our competitors; our failure to comply with regulatory requirements; results of any arbitration or litigation that may arise; stock volatility and illiquidity; dilution caused by any future issuance of common stock or securities that are convertible into or exercisable for common stock; our failure to implement our business plans or strategies; and our ability to maintain effective internal control over financial reporting. These and other risks and uncertainties are described in more detail in the Risk Factors and Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of the Company’s most recent Annual Report on Form 10-K and in subsequently filed Quarterly Reports on Form 10-Q. Considering these risks, uncertainties and assumptions, the forward-looking statements regarding future events and circumstances discussed in this document may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements included in this document speak only as of the date hereof and, except as required by law, we undertake no obligation to update publicly or privately any forward-looking statements, whether written or oral, for any reason after the date of this document to conform these statements to new information, actual results or to changes in our expectations.

Contact:

COMPANY:
Tom Sepenzis
Akoustis Technologies
VP of Corporate Development & IR
(980) 689-4961
[email protected]

July 27, 2023 7:50 am

H&E Equipment Services, Inc. Reports Second Quarter 2023 Results

H&E Equipment Services, Inc. Reports Second Quarter 2023 Results

BATON ROUGE, La.–(BUSINESS WIRE)–
H&E Equipment Services, Inc. (NASDAQ: HEES) (“H&E”, the “Company”) today reported strong financial results for the second quarter ended June 30, 2023, and updated its outlook for 2023, increasing gross capital expenditures and branch additions. The Company sold its crane business (the “Crane Sale”) in October 2021 and completed associated closing adjustments during the second quarter of 2022. As such, results and comparisons for the prior period are presented on a continuing operations basis with the Crane Sale reported as discontinued operations in certain statements and schedules accompanying this report, in accordance with Generally Accepted Accounting Principles (“GAAP”). The Company also completed its acquisition of One Source Equipment Rentals, Inc. (“One Source”) on October 1, 2022, which added 10 branch locations.

SECOND QUARTER 2023 SUMMARY WITH A COMPARISON TO SECOND QUARTER 2022

Revenues increased 22.2% to $360.2 million compared to $294.7 million.
Net income was $41.2 million compared to $27.9 million. The effective income tax rate was 26.3% compared to 26.8%.
EBITDA totaled $166.5 million, an increase of 36.6% compared to $121.9 million.
Total equipment rental revenues were $291.5 million, an increase of $63.9 million, or 28.1%, compared to $227.6 million. Rental revenues were $258.7 million, an increase of $57.5 million, or 28.6%, compared to $201.2 million.
Used equipment sales increased 110.6% to $39.7 million compared to $18.8 million.
Gross margin improved to 46.7% compared to 44.9%.
Total equipment rental gross margins were 46.8% compared to 48.6%. Rental gross margins were 51.8% compared to 53.7%.
EBITDA gross margins improved to 46.2% of revenues compared to 41.4%.
Average time utilization (based on original equipment cost) was 69.3% compared to 73.2%. The Company’s rental fleet, based on original acquisition cost, closed the second quarter of 2023 at just over $2.6 billion, an increase of $601.6 million, or 30.0%.
Average rental rates, excluding One Source, increased 7.1% compared to the second quarter of 2022, and 1.1% compared to the first quarter of 2023.
Dollar utilization of 40.6% compared to 40.9% in the second quarter of 2022 and 38.6% in the first quarter of 2023.
Average rental fleet age on June 30, 2023, was 42.5 months compared to an industry average age of 50.3 months.
Paid regular quarterly cash dividend of $0.275 per share of common stock.

“Further rental rate improvement and strong execution of growth initiatives led to another quarter of superb financial achievement,” noted Brad Barber, chief executive officer of H&E. “Our second quarter results included records for rental revenues, which increased 28.6% from the year-ago measure, and gross profit. Rental rates were 7.1% better than the same quarter in 2022, while improving 1.1% on a sequential quarterly basis. Through the first six months of 2023, rental rates were up 8.2% compared to the same period in 2022. Our rate performance, which excludes One Source, remains among the best in the industry. Physical utilization in the quarter reached 69.3%, 390 basis points below the extraordinary measure of 73.2% recorded in the year-ago quarter, while increasing 200 basis points on a sequential quarterly basis. Dollar utilization of 40.6% in the quarter was essentially unchanged from the year-ago measure, while improving 200 basis points from the first quarter of 2023. Finally, robust revenues and gross margin in our used equipment sales underscore the exceptional opportunities available for this segment of our business.”

Continuing, Mr. Barber added, “We achieved substantial progress in the quarter with business expansion initiatives focused on our rental fleet and branch network. Gross capital investment in our rental fleet totaled approximately $247 million, representing a record quarterly outlay for the Company. At the close of the second quarter, the size of our rental fleet, as measured by original equipment cost (“OEC”), totaled approximately $2.6 billion, a 30% increase when compared to our OEC on June 30, 2022. Also, we continued our focus on branch expansion with the opening of six new locations in the quarter. These locations, which improved our branch density in the Mid-Atlantic, Southeast, Gulf Coast, and Intermountain regions, increased our branch count on June 30, 2023, to 126 locations across 29 states, representing branch growth over the last year of 19%.”

Mr. Barber closed with an encouraging assessment of the industry and the Company’s prospects for additional growth, stating, “Resilient nonresidential construction demand through May 2023 resulted in a 17% improvement in year-over-year customer spending growth, according to the U.S. Census Bureau. As a result, healthy project backlogs remain in place, and we expect them to be sustained through 2023, with positive implications for 2024. Also, an increase in the number of large-scale projects serve as a likely catalyst for further construction spending and expansion across the equipment rental industry. Construction of these private and federally funded projects, which include sizable manufacturing installations and public infrastructure programs, are active throughout our geographic footprint and represent a growing component of our project mix. We expect the combination of strong industry fundamentals and the stimulus from major projects to produce solid business opportunities through the balance of 2023 and into 2024. As an indication of our confidence in the continuation of this favorable industry environment, we have raised our 2023 gross capital expenditures to a range of $600 million to $650 million, up from a previous range of $500 million to $550 million. Also, we have raised our anticipated 2023 branch additions to a range of 12 to 15 locations, up from 10 to 15 locations.”

FINANCIAL DISCUSSION FOR SECOND QUARTER 2023

Revenue

Total revenues improved to $360.2 million, or 22.2%, in the second quarter of 2023 from $294.7 million in the second quarter of 2022. Total equipment rental revenues of $291.5 million improved 28.1% compared to $227.6 million in the second quarter of 2022. Rental revenues of $258.7 million increased 28.6% compared to $201.2 million in the second quarter of 2022. Used equipment sales totaled $39.7 million, an increase of 110.6% compared to $18.8 million in the second quarter of 2022. New equipment sales of $8.9 million declined 58.8% compared to $21.5 million in the same quarter of 2022. Parts sales of $12.0 million declined 25.6% when compared to the second quarter of 2022, while service revenues of $7.1 million declined 19.8% over the same period of comparison.

Gross Profit

Gross profit totaled $168.4 million in the second quarter of 2023, increasing 27.2% compared to $132.3 million in the second quarter of 2022. Gross margin improved to 46.7% for the second quarter of 2023 compared to 44.9% for the same quarter in 2022. On a segment basis, gross margin on total equipment rentals was 46.8% in the second quarter of 2023 compared to 48.6% in the second quarter of 2022. Rental margins were 51.8% compared to 53.7% over the same period of comparison. Rental rates in the second quarter of 2023, excluding One Source, were 7.1% better than rates in the second quarter of 2022. Time utilization (based on original equipment cost) was 69.3% in the second quarter of 2023 compared to 73.2% in the second quarter of 2022. Gross margins on used equipment sales improved to a record 59.1% in the second quarter of 2023 compared to 47.6% in second quarter of 2022. Gross margins on new equipment sales were 14.9% in the second quarter of 2023 compared to 15.0% over the same period of comparison. Gross margins on parts sales were 29.6% in the second quarter of 2023, compared to 26.8% in the second quarter of 2022, while gross margins on service revenues were 62.2% compared to 64.6% over the same period of comparison.

Rental Fleet

The original equipment cost of the Company’s rental fleet as of June 30, 2023, was just over $2.6 billion, representing an increase of $601.6 million, or 30.0%, from the end of the second quarter of 2022. Dollar utilization for the second quarter of 2023 of 40.6% compared to 40.9% in the second quarter of 2022.

Selling, General and Administrative Expenses

Selling, General, and Administrative (“SG&A”) expenses for the second quarter of 2023 were $99.3 million, an increase of $16.6 million, or 20.1%, compared to $82.7 million in the second quarter of 2022. The higher expenses were primarily due to an increase in employee salaries, wages, payroll taxes, and other related employee expenses. In addition, higher facilities expenses, professional fees, and depreciation contributed to the rise in costs. SG&A expenses in the second quarter of 2023 as a percentage of total revenues declined to 27.6% compared to 28.1% in the second quarter of 2022. Approximately $7.4 million of the increase in SG&A expenses in the second quarter of 2023 were attributable to branches opened or acquired during or after the second quarter of 2022.

Income from Operations

Income from operations for the second quarter of 2023 was $69.5 million, or 19.3% of revenues, compared to $50.7 million, or 17.2% of revenues, in the second quarter of 2022.

Interest Expense

Interest expense was $14.7 million for the second quarter of 2023, compared to $13.5 million in the second quarter of 2022.

Net Income

Net income in the second quarter of 2023 was $41.2 million, or $1.14 per diluted share, compared to net income in the second quarter of 2022 of $27.9 million, or $0.76 per diluted share. The effective income tax rate for the second quarter of 2023 was 26.3% compared to an effective income tax rate of 26.8% in the same quarter of 2022.

EBITDA

EBITDA in the second quarter of 2023 increased to $166.5 million, or 46.2% of revenues, compared to $121.9 million, or 41.4% of revenues, in the same quarter of 2022.

Non-GAAP Financial Measures

This press release contains certain non-GAAP measures (EBITDA, and the disaggregation of equipment rental revenues and cost of sales numbers) detailed below. EBITDA is a non-GAAP measure as defined under the rules of the Securities and Exchange Commission (“SEC”).

We use EBITDA in our business operations to, among other things, evaluate the performance of our business, develop budgets and measure our performance against those budgets. We also believe that analysts and investors use EBITDA as supplemental measures to evaluate a company’s overall operating performance. However, EBITDA has material limitations as an analytical tool and you should not consider the measure in isolation, or as a substitute for analysis of our results as reported under GAAP. We consider EBITDA a useful tool to assist us in evaluating performance because it eliminates items related to components of our capital structure, taxes and non-cash charges. The items that we have eliminated in determining EBITDA for the periods presented are interest expense, income taxes, depreciation of fixed assets (which includes rental equipment and property and equipment) and amortization of intangible assets. However, some of these eliminated items are significant to our business. For example, (i) interest expense is a necessary element of our costs and ability to generate revenue because we incur a significant amount of interest expense related to our outstanding indebtedness; (ii) payment of income taxes is a necessary element of our costs; and (iii) depreciation is a necessary element of our costs and ability to generate revenue because rental equipment is the single largest component of our total assets and we recognize a significant amount of depreciation expense over the estimated useful life of this equipment. Any measure that eliminates components of our capital structure and costs associated with carrying significant amounts of fixed assets on our consolidated balance sheet has material limitations as a performance measure. In light of the foregoing limitations, we do not rely solely on EBITDA as a performance measure and also consider our GAAP results. EBITDA is not a measurement of our financial performance or liquidity under GAAP and, accordingly, should not be considered an alternative to net income, operating income or any other measures derived in accordance with GAAP. Because EBITDA may not be calculated in the same manner by all companies, the measure may not be comparable to other similarly titled measures used by other companies.

Conference Call

The Company’s management will hold a conference call to discuss second quarter 2023 results today, July 27, 2023, at 10:00 a.m. (Eastern Time). To listen to the call, participants should dial 844-887-9400 approximately 10 minutes prior to the start of the call. A telephonic replay will become available after 1:00 p.m. (Eastern Time) on July 27, 2023, and will continue through August 3, 2023, by dialing 877-344-7529 and entering the confirmation code 6189104.

The live broadcast of H&E Equipment Services’ quarterly conference call will be available online at www.he-equipment.com on July 27, 2023, beginning at 10:00 a.m. (Eastern Time) and will remain available for 30 days. Related presentation materials will be posted to the “Investor Relations” section of the Company’s web site at www.he-equipment.com prior to the call. The presentation materials will be in Adobe Acrobat format.

About H&E Equipment Services, Inc.

Founded in 1961, H&E Equipment Services, Inc. is one of the largest rental equipment companies in the nation. The Company’s fleet is among the industry’s youngest and most versatile with a superior equipment mix comprised of aerial work platforms, earthmoving, material handling, and other general and specialty lines. H&E serves a diverse set of end markets in many high-growth geographies including branches throughout the Pacific Northwest, West Coast, Intermountain, Southwest, Gulf Coast, Southeast, Midwest, and Mid-Atlantic regions.

Forward-Looking Statements

Statements contained in this press release that are not historical facts, including statements about H&E’s beliefs and expectations, are “forward-looking statements” within the meaning of the federal securities laws. Statements containing the words “may,” “could,” “would,” “should,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project,” “intend,” “foresee” and similar expressions constitute forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, the following: (1) risks related to a global pandemic and similar health concerns, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response to the pandemic, material delays and cancellations of construction or infrastructure projects, labor shortages, supply chain disruptions and other impacts to the business; (2) general economic conditions and construction and industrial activity in the markets where we operate in North America; (3) our ability to forecast trends in our business accurately, and the impact of economic downturns and economic uncertainty on the markets we serve (including as a result of current uncertainty due to inflation and increasing interest rates); (4) the impact of conditions in the global credit and commodity markets and their effect on construction spending and the economy in general; (5) trends in oil and natural gas which could adversely affect the demand for our services and products; (6) our inability to obtain equipment and other supplies for our business from our key suppliers on acceptable terms or at all, as a result of supply chain disruptions, insolvency, financial difficulties, supplier relationships or other factors; (7) increased maintenance and repair costs as we age our fleet and decreases in our equipment’s residual value; (8) our indebtedness; (9) risks associated with the expansion of our business and any potential acquisitions we may make, including any related capital expenditures, or our ability to consummate such acquisitions; (10) our possible inability to integrate any businesses we acquire; (11) competitive pressures; (12) security breaches, cybersecurity attacks, failure to protect personal information, compliance with data protection laws and other disruptions in our information technology systems; (13) adverse weather events or natural disasters; (14) risks related to climate change and climate change regulation; (15) compliance with laws and regulations, including those relating to environmental matters, corporate governance matters and tax matters, as well as any future changes to such laws and regulations; and (16) other factors discussed in our public filings, including the risk factors included in the Company’s most recent Annual Report on Form 10-K. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the SEC, we are under no obligation to publicly update or revise any forward-looking statements after the date of this release, whether as a result of any new information, future events or otherwise. These statements are based on the current beliefs and assumptions of H&E’s management, which in turn are based on currently available information and important, underlying assumptions. Investors, potential investors, security holders and other readers are urged to consider the above-mentioned factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements.

H&E EQUIPMENT SERVICES, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited) (Amounts in thousands, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Revenues:
Equipment rentals	$	291,459		$	227,577		$	553,467		$	426,802
Used equipment sales		39,653			18,833			71,768			40,359
New equipment sales		8,857			21,486			16,675			47,522
Parts sales		12,028			16,172			24,185			32,231
Services revenues		7,133			8,889			14,319			17,023
Other		1,102			1,714			2,300			3,184
Total revenues		360,232			294,671			682,714			567,121
Cost of revenues:
Rental depreciation		85,913			62,288			167,785			122,309
Rental expense		38,757			30,815			76,624			59,574
Rental other		30,350			23,873			58,325			44,786
		155,020			116,976			302,734			226,669
Used equipment sales		16,215			9,871			29,503			22,419
New equipment sales		7,535			18,271			14,316			40,600
Parts sales		8,464			11,832			17,116			23,536
Services revenues		2,698			3,143			5,288			5,957
Other		1,939			2,244			4,018			4,026
Total cost of revenues		191,871			162,337			372,975			323,207
Gross profit		168,361			132,334			309,739			243,914
Selling, general and administrative expenses		99,259			82,664			194,594			160,942
Gain on sales of property and equipment, net		436			996			1,103			2,382
Income from operations		69,538			50,666			116,248			85,354
Other income (expense):
Interest expense		(14,700	)		(13,500	)		(28,397	)		(26,947	)
Other, net		1,064			893			2,780			1,773
Total other expense, net		(13,636	)		(12,607	)		(25,617	)		(25,174	)
Income from operations before provision for income taxes		55,902			38,059			90,631			60,180
Provision for income taxes		14,686			10,189			23,741			16,014
Net income from continuing operations	$	41,216		$	27,870		$	66,890		$	44,166

Discontinued Operations:
Loss from discontinued operations before benefit from income taxes	$	—		$	(2,049	)	$	—		$	(2,049	)
Benefit from income taxes		—			(525	)		—			(525	)
Net loss from discontinued operations	$	—		$	(1,524	)	$	—		$	(1,524	)

Net income	$	41,216		$	26,346		$	66,890		$	42,642

H&E EQUIPMENT SERVICES, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited) (Amounts in thousands, except per share amounts)

	Three Months Ended June 30,					Six Months Ended June 30,
	2023		2022			2023		2022
Net income from continuing operations per common share:
Basic	$	1.14	$	0.77		$	1.86	$	1.21
Diluted	$	1.14	$	0.76		$	1.84	$	1.21
Net loss from discontinued operations per common share:
Basic	$	—	$	(0.04	)	$	—	$	(0.04	)
Diluted	$	—	$	(0.04	)	$	—	$	(0.04	)
Net income per common share:
Basic	$	1.14	$	0.72		$	1.86	$	1.17
Diluted	$	1.14	$	0.72		$	1.84	$	1.17
Weighted average common shares outstanding:
Basic		36,075		36,382			36,050		36,373
Diluted		36,302		36,541			36,327		36,540
Dividends declared per common share outstanding	$	0.275	$	0.275		$	0.55	$	0.55

H&E EQUIPMENT SERVICES, INC. SELECTED BALANCE SHEET DATA (unaudited) (Amounts in thousands)

	June 30, 2023		December 31, 2022
Cash and cash equivalents	$	46,902	$	81,330
Rental equipment, net		1,597,265		1,418,951
Total assets		2,560,198		2,291,699
Total debt ⁽¹⁾		1,379,549		1,251,594
Total liabilities		2,110,302		1,890,657
Stockholders’ equity		449,896		401,042
Total liabilities and stockholders’ equity	$	2,560,198	$	2,291,699

(1)	Total debt consists of the aggregate amounts on the senior unsecured notes, senior secured credit facility, and finance lease obligations.

H&E EQUIPMENT SERVICES, INC. UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Amounts in thousands)

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

Net Income	$	41,216	$	26,346		$	66,890	$	42,642
Net Loss from discontinued operations		—		(1,524	)		—		(1,524	)
Net Income from continuing operations		41,216		27,870			66,890		44,166
Interest Expense		14,700		13,500			28,397		26,947
Provision for income taxes		14,686		10,189			23,741		16,014
Depreciation		94,247		69,336			184,192		136,214
Amortization of intangibles		1,682		992			3,365		1,985

EBITDA from continuing operations	$	166,531	$	121,887		$	306,585	$	225,326

Net Loss from discontinued operations	$	—	$	(1,524	)	$	—	$	(1,524	)
Benefit from income taxes		—		(525	)		—		(525	)

EBITDA from discontinued operations	$	—	$	(2,049	)	$	—	$	(2,049	)
Loss on sale of discontinued operations		—		1,917			—		1,917
Adjusted EBITDA from discontinued operations	$	—	$	(132	)	$	—	$	(132	)

Adjusted EBITDA	$	166,531	$	121,755		$	306,585	$	225,194

H&E EQUIPMENT SERVICES, INC. UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Amounts in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
RENTAL
Equipment rentals ⁽¹⁾	$	258,723		$	201,243		$	490,799		$	378,425
Rental other		32,736			26,334			62,668			48,377
Total equipment rentals		291,459			227,577			553,467			426,802

RENTAL COST OF SALES
Rental depreciation		85,913			62,288			167,785			122,309
Rental expense		38,757			30,815			76,624			59,574
Rental other		30,350			23,873			58,325			44,786
Total rental cost of sales		155,020			116,976			302,734			226,669

RENTAL REVENUES GROSS PROFIT
Equipment rentals		134,053			108,140			246,390			196,542
Rentals other		2,386			2,461			4,343			3,591
Total rental revenues gross profit	$	136,439		$	110,601		$	250,733		$	200,133

RENTAL REVENUES GROSS MARGIN
Equipment rentals		51.8	%		53.7	%		50.2	%		51.9	%
Rentals other		7.3	%		9.3	%		6.9	%		7.4	%
Total rental revenues gross margin		46.8	%		48.6	%		45.3	%		46.9	%

(1)

Pursuant to SEC Regulation S-X, the Company’s equipment rental revenues are aggregated and presented in our unaudited condensed consolidated statements of operations in this press release as a single line item, “Equipment Rentals.” The above table disaggregates the Company’s equipment rental revenues for discussion and analysis purposes only.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230727414633/en/

Leslie S. Magee

Chief Financial Officer

225-298-5261

[email protected]

Jeffrey L. Chastain

Vice President of Investor Relations

225-952-2308

[email protected]

KEYWORDS: Louisiana United States North America

INDUSTRY KEYWORDS: Commercial Building & Real Estate Construction & Property Machinery Machine Tools, Metalworking & Metallurgy Landscape Other Construction & Property Manufacturing Residential Building & Real Estate

MEDIA:

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July 27, 2023 7:47 am

Novocure Reports Second Quarter 2023 Financial Results

Novocure Reports Second Quarter 2023 Financial Results

Quarterly net revenues of $126 million with 3,571 active patients on therapy as of June 30, 2023

Phase 3 LUNAR trial in non-small cell lung cancer met primary and key secondary survival endpoints, the first of four phase 3 trials to readout by year-end 2024

Interim analysis for fully enrolled phase 3 PANOVA-3 trial in pancreatic cancer concluded with recommendation to proceed to final analysis

ROOT, Switzerland–(BUSINESS WIRE)–
Novocure (NASDAQ: NVCR) today reported financial results for the quarter ended June 30, 2023. Novocure is a global oncology company working to extend survival in some of the most aggressive forms of cancer by developing and commercializing its innovative therapy, Tumor Treating Fields (TTFields).

“The second quarter was a period of sound execution and expansion at Novocure,” said Asaf Danziger, Novocure’s Chief Executive Officer. “Our restructured commercial organization has begun driving greater penetration in key markets, the launch of Optune^® in France has been a resounding success, and we are preparing to introduce our next generation arrays in more markets later this year. We believe there are many more patients who can benefit from TTFields therapy and we are determined to reach them.”

“The positive results from the LUNAR trial in non-small cell lung cancer mark the beginning of the next chapter at Novocure, as we strive to extend survival for patients diagnosed with difficult-to-treat tumors,” said William Doyle, Novocure’s Executive Chairman. “With three more phase 3 trials set to read out by the end of 2024 and a new generation of trials slated to launch, our determination and commitment are strengthened by the prospect of potentially treating many more patients across a number of new indications in the coming years.”

Financial updates for the second quarter ended June 30, 2023:

Total net revenues for the quarter were $126.1 million, a decrease of 11% compared to the same period in 2022. The decrease resulted primarily from $13.4 million in reduced collections from previously denied or appealed claims in the U.S.
- The United States, Germany and Japan contributed $87.0 million, $15.7 million and $7.9 million in quarterly net revenues, respectively, with our other active markets contributing $8.7 million.
- Revenue in Greater China from Novocure’s partnership with Zai Lab totaled $6.8 million.
Gross margin for the quarter was 73%.
Research, development and clinical studies expenses for the quarter were $55.4 million, a decrease of 3% from the same period in 2022. This primarily reflects reduced costs associated with recently completed trials in the quarter. Total clinical trial expenses can fluctuate quarter-to-quarter dependent upon the amount of clinical research organization services delivered, clinical materials procured and number of trials actively underway. As our current phase 3 clinical trials near completion, we expect to backfill our clinical trial pipeline with new phase 2 and 3 trials.
Sales and marketing expenses for the quarter were $58.5 million, an increase of 31% compared to the same period in 2022. This increase reflects increased investments associated with geographic expansion and pre-launch activities intended to increase awareness of TTFields therapy in anticipation of future approvals in new indications.
General and administrative expenses for the quarter were $40.8 million, an increase of 29% compared to the same period in 2022. This reflects increased personnel and project costs to support larger patient populations, new geographic launches, supply chain expansion and information technology enhancements.
Net loss for the quarter was $57.4 million with loss per share of $0.54.
Adjusted EBITDA* for the quarter was $(27.2) million.
Cash, cash equivalents and short-term investments were $940.8 million as of June 30, 2023.

Operational updates for the second quarter ended June 30, 2023:

1,556 prescriptions were received in the quarter, an increase of 13% compared to the same period in 2022. Prescriptions from the United States, Germany and Japan contributed 981, 204 and 92 prescriptions, respectively, with our other active markets contributing 279 prescriptions.
As of June 30, 2023, there were 3,571 active patients on therapy. Active patients from the United States, Germany and Japan contributed 2,200, 499 and 352 active patients, respectively, with the remaining 520 active patients contributed by our other active markets.

Quarterly updates and achievements:

In June, we presented positive results from the phase 3 LUNAR trial evaluating the use of TTFields therapy together with standard therapies for the treatment of metastatic non-small cell lung cancer (NSCLC) following platinum-failure. The LUNAR trial met its primary endpoint with a statistically significant and clinically meaningful 3-month improvement in median overall survival (OS) with TTFields therapy added to standard therapies (HR=0.74, P=0.035). Patients randomized to receive TTFields therapy together with standard therapies demonstrated median OS of 13.2 months compared to 9.9 months in patients treated with standard therapies alone. Patients randomized to receive TTFields therapy and physician’s choice immune checkpoint inhibitor (ICI) demonstrated a median OS of 18.5 months, a profound extension compared to the median OS of 10.8 months demonstrated by patients that received ICI alone (HR=0.63; P=0.03). Patients randomized to receive TTFields therapy and docetaxel had a positive survival trend with a median OS of 11.1 months vs 8.7 months. TTFields therapy was well-tolerated with no added systemic toxicities and few grade 3 (no grade 4 or 5) device-related adverse events. These data are expected to serve as the basis for a PMA submission to the FDA in the second half of 2023.
In July, we announced that an independent data monitoring committee (DMC) reviewed the safety and efficacy data for all patients in the fully enrolled PANOVA-3 clinical trial. The interim analysis resulted in a DMC recommendation that the clinical trial proceed to final analysis. The PANOVA-3 study accrued 556 patients as of February 2023 and data will be reviewed in 2024, following an 18-month follow-up period.
In July, the U.S. Food and Drug Administration accepted the investigation device exemption for the LUNAR-2 clinical trial, a randomized, phase 3 study testing the safety and effectiveness of TTFields therapy concomitant with pembrolizumab and platinum-based chemotherapy in patients with metastatic NSCLC. The two primary endpoints of LUNAR-2 are overall survival and progression-free survival. LUNAR-2 is designed to accrue 734 patients with a 21-month follow-up following the enrollment of the last patient.

Anticipated clinical milestones:

Data from phase 3 INNOVATE-3 clinical trial in recurrent ovarian cancer (2H 2023)
Top-line data from phase 3 METIS clinical trial in brain metastases (Q1 2024)
Data from phase 3 PANOVA-3 clinical trial in locally advanced pancreatic cancer (2H 2024)

Conference call details

Novocure will host a conference call and webcast to discuss second quarter 2023 financial results at 8 a.m. EDT today, Thursday, July 27, 2023. To access the conference call by phone, use the following conference call registration link and dial-in details will be provided. To access the webcast, use the following webcast registration link.

The webcast, earnings slides presented during the webcast and the corporate presentation can be accessed live from the Investor Relations page of Novocure’s website, www.novocure.com/investor-relations, and will be available for at least 14 days following the call. Novocure has used, and intends to continue to use, its investor relations website, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

About Novocure

Novocure is a global oncology company working to extend survival in some of the most aggressive forms of cancer through the development and commercialization of its innovative therapy, Tumor Treating Fields. Novocure’s commercialized products are approved in certain countries for the treatment of adult patients with glioblastoma, malignant pleural mesothelioma and pleural mesothelioma. Novocure has ongoing or completed clinical trials investigating Tumor Treating Fields in brain metastases, gastric cancer, glioblastoma, liver cancer, non-small cell lung cancer, pancreatic cancer and ovarian cancer.

Headquartered in Root, Switzerland and with a growing global footprint, Novocure has regional operating centers in Portsmouth, New Hampshire and Tokyo, as well as a research center in Haifa, Israel. For additional information about the company, please visit Novocure.com and follow @Novocure on LinkedIn and Twitter.

*Non-GAAP Financial Measurements

We measure our performance based upon a non-U.S. GAAP measurement of earnings before interest, taxes, depreciation, amortization and shared-based compensation (“Adjusted EBITDA”). We believe Adjusted EBITDA is useful to investors in evaluating our operating performance because it helps investors compare the results of our operations from period to period by removing the impact of earnings attributable to our capital structure, tax rate and material non-cash items, specifically share-based compensation.

Forward-Looking Statements

In addition to historical facts or statements of current condition, this press release may contain forward-looking statements. Forward-looking statements provide Novocure’s current expectations or forecasts of future events. These may include statements regarding anticipated scientific progress on its research programs, clinical trial progress, development of potential products, interpretation of clinical results, prospects for regulatory approval, manufacturing development and capabilities, market prospects for its products, coverage, collections from third-party payers and other statements regarding matters that are not historical facts. You may identify some of these forward-looking statements by the use of words in the statements such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe” or other words and terms of similar meaning. Novocure’s performance and financial results could differ materially from those reflected in these forward-looking statements due to general financial, economic, environmental, regulatory and political conditions as well as issues arising from the COVID-19 pandemic and other more specific risks and uncertainties facing Novocure such as those set forth in its Annual Report on Form 10-K filed on February 23, 2023, and subsequent filings with the U.S. Securities and Exchange Commission. Given these risks and uncertainties, any or all of these forward-looking statements may prove to be incorrect. Therefore, you should not rely on any such factors or forward-looking statements. Furthermore, Novocure does not intend to update publicly any forward-looking statement, except as required by law. Any forward-looking statements herein speak only as of the date hereof. The Private Securities Litigation Reform Act of 1995 permits this discussion.


Consolidated Statements of Operations USD in thousands (except share and per share data)

	Three months ended June 30,						Six months ended June 30,						Year ended December 31,
		2023			2022			2023			2022			2022
	Unaudited						Unaudited						Audited
Net revenues	$	126,051		$	140,866		$	248,233		$	278,413		$	537,840
Cost of revenues		34,018			28,503			63,632			56,230			114,867
Gross profit		92,033			112,363			184,601			222,183			422,973

Operating costs and expenses:
Research, development and clinical studies		55,427			57,075			115,131			99,309			206,085
Sales and marketing		58,488			44,750			109,657			82,634			173,658
General and administrative		40,778			31,666			82,722			62,174			132,753
Total operating costs and expenses		154,693			133,491			307,510			244,117			512,496

Operating income (loss)		(62,660	)		(21,128	)		(122,909	)		(21,934	)		(89,523	)
Financial income (expenses), net		8,756			(2,228	)		17,925			(3,937	)		7,677

Income (loss) before income taxes		(53,904	)		(23,356	)		(104,984	)		(25,871	)		(81,846	)
Income taxes		3,514			652			5,495			2,784			10,688
Net income (loss)		(57,418	)		(24,008	)		(110,479	)		(28,655	)		(92,534	)

Basic net income (loss) per ordinary share	$	(0.54	)	$	(0.23	)	$	(1.04	)	$	(0.27	)	$	(0.88	)
Weighted average number of ordinary shares used in computing basic net income (loss) per share		106,289,073			104,627,789			105,979,791			104,408,164			104,660,476
Diluted net income (loss) per ordinary share	$	(0.54	)	$	(0.23	)	$	(1.04	)	$	(0.27	)	$	(0.88	)
Weighted average number of ordinary shares used in computing diluted net income (loss) per share		106,289,073			104,627,789			105,979,791			104,408,164			104,660,476


Consolidated Balance Sheets USD in thousands (except share data)

	June 30, 2023		December 31, 2022
	Unaudited		Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	156,978	$	115,326
Short-term investments		783,837		854,099
Restricted cash		516		508
Trade receivables, net		70,988		86,261
Receivables and prepaid expenses		20,148		25,959
Inventories		33,023		29,376
Total current assets		1,065,490		1,111,529
LONG-TERM ASSETS:
Property and equipment, net		41,156		32,678
Field equipment, net		11,519		12,684
Right-of-use assets		26,278		23,596
Other long-term assets		14,572		11,161
Total long-term assets		93,525		80,119
TOTAL ASSETS	$	1,159,015	$	1,191,648


Consolidated Balance Sheets USD in thousands (except share data)

	June 30, 2023			December 31, 2022
	Unaudited			Audited
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Trade payables	$	82,536		$	85,197
Other payables, lease liabilities and accrued expenses		67,551			73,580
Total current liabilities		150,087			158,777
LONG-TERM LIABILITIES:
Long-term debt, net		567,150			565,509
Deferred revenues		807			2,878
Long-term leases		20,329			18,762
Employee benefit liabilities		4,840			4,404
Other long-term liabilities		119			148
Total long-term liabilities		593,245			591,701
TOTAL LIABILITIES		743,332			750,478

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS’ EQUITY:
Share capital –
Ordinary shares no par value, unlimited shares authorized; issued and outstanding: 106,605,331 shares and 105,049,411 shares at June 30, 2023 (unaudited) and December 31, 2022, respectively		—			—
Additional paid-in capital		1,306,603			1,222,063
Accumulated other comprehensive income (loss)		(1,981	)		(2,433	)
Retained earnings (accumulated deficit)		(888,939	)		(778,460	)
TOTAL SHAREHOLDERS’ EQUITY		415,683			441,170
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,159,015		$	1,191,648


Non-U.S. GAAP financial measures reconciliation USD in thousands

	Three months ended June 30,								Six months ended June 30,
		2023			2022		%Change			2023			2022		%Change
Net income (loss)	$	(57,418	)	$	(24,008	)	139	%	$	(110,479	)	$	(28,655	)	286	%
Add: Income tax		3,514			652		439	%		5,495			2,784		97	%
Add: Financial expenses (income), net		(8,756	)		2,228		(493	)%		(17,925	)		3,937		(555	)%
Add: Depreciation and amortization		2,721			2,654		3	%		5,443			5,264		3	%
EBITDA	$	(59,939	)	$	(18,474	)	224	%	$	(117,466	)	$	(16,670	)	605	%
Add: Share-based compensation		32,740			25,823		27	%		71,824			50,868		41	%
Adjusted EBITDA	$	(27,199	)	$	7,349		(470	)%	$	(45,642	)	$	34,198		(233	)%

View source version on businesswire.com: https://www.businesswire.com/news/home/20230727100429/en/

Investors:

Ingrid Goldberg

[email protected]

610-723-7427

Media:

Leigh Labrie

[email protected]

610-723-7428

KEYWORDS: Switzerland Europe

INDUSTRY KEYWORDS: Oncology FDA Health Clinical Trials Pharmaceutical Biotechnology

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July 27, 2023 7:46 am

Earth.Vision Empowers Clients with Near Intelligence Platform, Driving Optimal Market Strategies and Closing Deals

Earth.Vision Empowers Clients with Near Intelligence Platform, Driving Optimal Market Strategies and Closing Deals

With Near’s Privacy-Safe Platform, Earth.Vision identified customer demographics, trade area, and cannibalization risk to help its real estate clients, resulting in 488 successful projects

PASADENA, Calif.–(BUSINESS WIRE)–Near Intelligence, Inc. (Nasdaq: NIR) (“Near” or the “Company”), a global leader in privacy-led data intelligence on people and places, today announced that its customer, Earth.Vision, helped its real estate clients to identify customer demographics, analyze trade areas, and assess cannibalization risks to make informed decisions, optimize their market strategies, and close real estate transactions using Near’s Privacy-Safe Platform, resulting in 488 successfully completed projects.

Earth.Vision is a mapping and research services company providing a range of offerings to the retail-focused commercial real estate industry, such as retailers, property owners, and brokers. Based in Dallas, Texas, and armed with more than 20 years of experience, Earth.Vision provides its clients with a flexible toolbox of software, data, and processes that allows for rapid response to the ever-changing demands of the real estate industry. With the help of the Near Platform, Earth.Vision empowers its clients with the powerful information they need to inform critical business decisions, combining demographics, customer intercepts, aerials, retail, segmentation, GIS mapping, and analytics so that its clients can generate, support, and ultimately close strategic retail real estate transactions.

“Working with Near has transformed the quality of what we are able to offer our clients,” said Jeff Card, President of Earth.Vision. “Being able to inform any retailer or property owner – in aggregate – about the types of customers coming to their stores, areas they come from, and most importantly what their competitors are doing has really become the holy grail of our market research, and something we couldn’t have accomplished without the Near Platform.”

With the Near Platform, Earth.Vision was able to create 3,500 full-service location reports so its clients could understand their customer profiles, current locations, and expansion opportunities in new markets. The extra edge they are able to provide has earned them long-standing relationships with a diverse range of clients, including a total of 488 closed deals in partnership with Near.

“We take immense pride in delivering exceptional value to our customers, and it’s especially gratifying to witness Earth.Vision leverage the Near Platform to empower its retailers and property owners with unparalleled insights into their customer bases and competitors,” said Anil Mathews, CEO of Near. “This partnership truly solidifies Earth.Vision’s position as the epitome of market research excellence.”

To learn more about the Near Platform, please visit: https://near.com/platform/

About Near

Near, a global, full-stack data intelligence software-as-a-service (“SaaS”) platform curates one of the world’s largest sources of intelligence on people and places. The Near platform’s patented technology processes data from an estimated 1.6 billion unique user IDs and 70 million points of interest, in more than 44 countries. Near’s data and insights empower marketing and operations teams to understand consumers’ online and offline behaviors, affinities, and attributes in order to engage them and grow their businesses. With a presence in Los Angeles, Paris, Bangalore, Singapore, Sydney, and Tokyo, Near serves scaled enterprises in retail, real estate, restaurant/QSR, travel/tourism, telecom, and financial services. For more information, please visit https://near.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230727972733/en/

Near –

Media Inquiries

Kat Harwood, Near

[email protected]

Investor Relations

Marc P. Griffin, ICR

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Commercial Building & Real Estate Technology Construction & Property Marketing Communications Professional Services Software Data Analytics Data Management

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July 27, 2023 7:44 am

First Foundation Inc. Reports Second Quarter 2023 Financial Results

First Foundation Inc. Reports Second Quarter 2023 Financial Results

DALLAS–(BUSINESS WIRE)–
First Foundation Inc. (NASDAQ: FFWM), a financial services company with two wholly-owned operating subsidiaries, First Foundation Advisors (“FFA”) and First Foundation Bank (“FFB”), today reported its financial results for the quarter ended June 30, 2023.

The detailed earnings report and investor presentation can be accessed online at https://investor.ff-inc.com/financials/quarterly-results/default.aspx.

At 8 a.m. PT / 11 a.m. ET, President and Chief Executive Officer, Scott F. Kavanaugh, and Chief Operating Officer, Chris Naghibi, of First Foundation will host a discussion of the Company’s financial results and performance and provide an update on recent activities.

The call will be broadcast live over the Internet and can be accessed using the link: First Foundation Q2 Earnings Webcast. The call can also be accessed by dialing in using the following toll-free number, 800-245-3047 and conference ID, FFWMQ223.

About First Foundation

First Foundation Inc. (NASDAQ: FFWM) and its subsidiaries offer personal banking, business banking, and private wealth management services, including investment, trust, insurance, and philanthropy services. This comprehensive platform of financial services is designed to help clients at any stage in their financial journey. The broad range of financial products and services offered by First Foundation are more consistent with those offered by larger financial institutions, while its high level of personalized service, accessibility, and responsiveness to clients is more aligned with community banks and boutique wealth management firms. This combination of an integrated platform of comprehensive financial products and personalized service differentiates First Foundation from many of its competitors and has contributed to the growth of its client base and business. Learn more at firstfoundationinc.com or connect with us on LinkedIn and Twitter.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230727565531/en/

Investor contact: Amy Djou, Interim CFO, [email protected], (949) 299-5461

Media contact: Shannon Wherry, Director of Corporate Communications, [email protected], (469) 638-9642

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Banking Professional Services Finance

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