Market Newsdesk

ATLANTA, April 27, 2023 (GLOBE NEWSWIRE) — Cumulus Media Inc. (NASDAQ: CMLS) (the “Company,” “Cumulus Media,” “we,” “us,” or “our”) today announced operating results for the three months ended March 31, 2023.

Mary G. Berner, President and Chief Executive Officer of Cumulus Media, said, “Extending our track record of strong operational and financial execution during challenging times, in the first quarter, we grew our digital marketing services revenue by more than 23%, completed the sale of WFAS-FM, continued to repurchase shares and retire debt at a discount, and have now executed $10 million of additional annualized cost reductions. That said, the impact of the considerable macro-driven weakness in the national advertising market, as well as the unfavorable prior year political and WynnBET comparisons, ultimately resulted in total revenue and Adjusted EBITDA declines.”

Berner continued, “Though the difficult national market trends persist, we have confidence in our ability to successfully navigate adverse environments such as this one. Specifically, since 2019 through the COVID-impacted years, we have had best-in-class performance in terms of fixed cost reduction, Adjusted EBITDA margin recovery, Adjusted EBITDA to free cash flow conversion and net debt reduction. With our current liquidity profile and solid balance sheet, we believe that we are not only well-positioned to weather the current storm but will rebound strongly when the market eventually recovers.”

Q1 Performance Summary:

• Posted total net revenue of $205.7 million, a decline of 11% year-over-year
• Increased digital revenue to $32.1 million, representing 16% of total revenue
  • Grew digital marketing services 23% year-over-year, driven by new products and capabilities and new customer acquisition
  • Increased streaming revenue by 16% year-over-year, driven by monetization of new NFL streaming rights
• Recorded first quarter net loss of $21.5 million compared to net loss of $0.9 million in Q1 2022 and first quarter Adjusted EBITDA⁽¹⁾ of $10.3 million compared to $31.2 million in Q1 2022
• Generated additional cash, returned capital to shareholders and reduced debt
  • Delivered $23.7 million of cash from operations
  • Completed sale of WFAS-FM for $7.3 million
  • Completed $1.5 million of open market share repurchases, retaining $16.7 million of availability under previously announced $50 million share repurchase authorization
  • Retired $6.3 million face value of debt at an average purchase price of 90.1% of par
  • Reported total debt of $713.1 million at March 31, 2023, and net debt⁽¹⁾ of $594.2 million, in each instance, the lowest level in more than a decade

(1) Adjusted EBITDA and net debt are not financial measures calculated or presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

Operating Summary (dollars in thousands, except percentages and per share data):

For the three months ended March 31, 2023, the Company reported net revenue of $205.7 million, a decrease of 11.4% from the three months ended March 31, 2022, net loss of $21.5 million and Adjusted EBITDA of $10.3 million.

As Reported	Three Months Ended March 31, 2023				Three Months Ended March 31, 2022				% Change
Net revenue	$	205,692			$	232,032				(11.4	)%
Net loss	$	(21,467	)		$	(905	)			2,272.0	%
Adjusted EBITDA	$	10,329			$	31,213				(66.9	)%
Basic loss per share	$	(1.17	)		$	(0.04	)			2,825.0	%
Diluted loss per share	$	(1.17	)		$	(0.04	)			2,825.0	%

Revenue Detail Summary (dollars in thousands):

As Reported	Three Months Ended March 31, 2023				Three Months Ended March 31, 2022				% Change
Broadcast radio revenue:
Spot	$	97,713			$	103,913				(6.0	)%
Network		50,297				65,273				(22.9	)%
Total broadcast radio revenue		148,010				169,186				(12.5	)%
Digital		32,089				31,893				0.6	%
Other		25,593				30,953				(17.3	)%
Net revenue	$	205,692			$	232,032				(11.4	)%

Balance Sheet Summary (dollars in thousands):

	March 31, 2023				December 31, 2022
Cash and cash equivalents	$	118,883			$	107,433
Term loan due 2026 (2)	$	334,702			$	338,452
6.75% Senior notes (2)	$	378,427			$	380,927

	Three Months Ended March 31, 2023				Three Months Ended March 31, 2022
Capital expenditures	$	7,372			$	5,269

(2) Excludes unamortized debt issuance costs.

Earnings Conference Call Details
The Company will host a conference call today at 8:30 AM ET to discuss its first quarter operating results. NetRoadshow (NRS) is the service provider for this call. They will require email address verification (one-time only) and will provide registration confirmation. To participate in the conference call, please register in advance using the link on the Company’s investor relations website at www.cumulusmedia.com/investors. Upon completing registration, a calendar invitation will follow with call access details, including a unique PIN, and replay details.

To join by phone with operator-assisted dial-in, domestic callers should dial 833-470-1428 and international callers should dial 404-975-4839. If prompted, the participant access code is 540830. Please call five to ten minutes in advance to ensure that you are connected prior to the call.

The conference call will also be broadcast live in listen-only mode through a link on the Company’s investor relations website at www.cumulusmedia.com/investors. This link can also be used to access a recording of the call, which will be available shortly following its completion.

Please see an update to the Company’s investor presentation on the Company’s investor relations website at www.cumulusmedia.com/investors, which may be referenced on the conference call. Unless otherwise specified, information contained in the investor presentation or on our website is not incorporated into this press release or other documents we file with, or furnish to, the SEC.

Forward-Looking Statements
Certain statements in this release may constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Such statements are statements other than historical fact and relate to our intent, belief or current expectations primarily with respect to our future operating, financial, and strategic performance and our plans and objectives, including with regard to returning capital to shareholders. Any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that may cause actual results, performance or achievements to differ from those contained in or implied by the forward-looking statements as a result of various factors. Such factors include, among others, risks and uncertainties related to the implementation of our strategic operating plans, the continued uncertain financial and economic conditions, the amount and frequency of our shareholder capital returns, the rapidly changing and competitive media industry, and the economy in general. We are subject to additional risks and uncertainties described in our quarterly and annual reports filed with the Securities and Exchange Commission from time to time, including in the “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections contained therein. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company’s control, and the unexpected occurrence or failure to occur of any such events or matters could cause our actual results, performance, financial condition or achievements to differ materially from those expressed or implied by such forward-looking statements. Cumulus Media assumes no responsibility to update any forward-looking statements, which are based upon expectations as of the date hereof, as a result of new information, future events or otherwise.

About Cumulus Media
Cumulus Media (NASDAQ: CMLS) is an audio-first media company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. Cumulus Media engages listeners with high-quality local programming through 404 owned-and-operated radio stations across 85 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across more than 9,400 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the Cumulus Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. Cumulus Media provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. Cumulus Media is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.

Non-GAAP Financial Measures

From time to time, we utilize certain financial measures that are not prepared or calculated in accordance with GAAP to assess our financial performance and profitability. Consolidated adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA” or “EBITDA”) is the financial metric by which management and the chief operating decision maker allocate resources of the Company and analyze the performance of the Company as a whole. Management also uses this measure to determine the contribution of our core operations to the funding of our corporate resources utilized to manage our operations and the funding of our non-operating expenses including debt service and acquisitions. In addition, consolidated Adjusted EBITDA is a key metric for purposes of calculating and determining our compliance with certain covenants contained in our Refinanced Credit Agreement.

In determining Adjusted EBITDA, we exclude the following from net loss: interest, taxes, depreciation, amortization, stock-based compensation expense, gain or loss on the exchange, sale, or disposal of any assets or stations or early extinguishment of debt, restructuring costs, expenses relating to acquisitions and divestitures, non-routine legal expenses incurred in connection with certain litigation matters, and non-cash impairments of assets, if any.

Management believes that Adjusted EBITDA, with and excluding impact of political advertising, although not a measure that is calculated in accordance with GAAP, is commonly employed by the investment community as a measure for determining the market value of a media company and comparing the operational and financial performance among media companies. Management has also observed that Adjusted EBITDA, with and excluding impact of political advertising, is routinely utilized to evaluate and negotiate the potential purchase price for media companies. Given the relevance to our overall value, management believes that investors consider these metrics to be extremely useful.

The Company presents revenue, excluding impact of political revenue. As a result of the cyclical nature of the electoral system and the seasonality of the related political revenue, management believes presenting net revenue, excluding impact of political revenue, provides useful information to investors about the Company’s revenue growth comparable from period to period.

The Company presents the non-GAAP financial measure net debt which is total debt principal, gross, less cash and cash equivalents.

We refer to Adjusted EBITDA, with and excluding the impact of political advertising, net revenue, excluding impact of political revenue and net debt as the “Non-GAAP Financial Measures.” Non-GAAP Financial Measures should not be considered in isolation or as a substitute for net income, net revenue, operating income, cash flows from operating activities or any other measure for determining the Company’s operating performance or liquidity that is calculated in accordance with GAAP. In addition, Non-GAAP Financial Measures may be defined or calculated differently by other companies and, therefore, comparability may be limited.

For further information, please contact:

Cumulus Media Inc.

Investor Relations Department
[email protected]
404-260-6600

Supplemental Financial Data and Reconciliations

Cumulus Media Inc.

Unaudited Condensed Consolidated Statements of Operations

(Dollars in thousands)

	Three Months Ended March 31,
		2023				2022
Net revenue	$	205,692			$	232,032
Operating expenses:
Content costs		88,666				91,325
Selling, general & administrative expenses		94,301				95,292
Depreciation and amortization		14,684				13,554
Corporate expenses		12,598				14,435
Stock-based compensation expense		1,126				1,507
Restructuring costs		291				2,227
Gain on sale of assets or stations		(7,009	)			(1,111	)
Total operating expenses		204,657				217,229
Operating income		1,035				14,803
Non-operating expense:
Interest expense		(17,666	)			(15,865	)
Interest income		369				1
Gain on early extinguishment of debt		617				—
Other expense, net		(18	)			(24	)
Total non-operating expense, net		(16,698	)			(15,888	)
Loss before income taxes		(15,663	)			(1,085	)
Income tax (expense) benefit		(5,804	)			180
Net loss	$	(21,467	)		$	(905	)

The following tables reconcile net loss, the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA for the periods presented herein (dollars in thousands):        

As Reported	Three Months Ended March 31, 2023				Three Months Ended March 31, 2022
GAAP net loss	$	(21,467	)		$	(905	)
Income tax expense (benefit)		5,804				(180	)
Non-operating expense, including net interest expense		17,315				15,888
Depreciation and amortization		14,684				13,554
Stock-based compensation expense		1,126				1,507
Gain on sale or disposal of assets or stations		(7,009	)			(1,111	)
Gain on early extinguishment of debt		(617	)			—
Restructuring costs		291				2,277
Non-routine legal expenses		3				70
Franchise taxes		199				113
Adjusted EBITDA	$	10,329			$	31,213

The following tables reconcile the as reported net revenue and as reported Adjusted EBITDA, both including and excluding the impact of political, for the periods presented herein (dollars in thousands):

	Three Months Ended March 31, 2023				Three Months Ended March 31, 2022
As reported net revenue	$	205,692			$	232,032
Political revenue		(405	)			(1,732	)
As reported net revenue, excluding impact of political revenue	$	205,287			$	230,300

	Three Months Ended March 31, 2023				Three Months Ended March 31, 2022
As reported Adjusted EBITDA	$	10,329			$	31,213
Political EBITDA		(365	)			(1,559	)
As reported Adjusted EBITDA, excluding impact of political EBITDA	$	9,964			$	29,654

The following table sets forth a reconciliation of our total debt principal, gross, and cash and cash equivalents for the periods presented herein (dollars in thousands):

	As of March 31,
		2023				2022
Total debt principal, gross	$	713,129			$	793,426
Less: Cash and cash equivalents		(118,883	)			(181,095	)
Total debt principal, net	$	594,246			$	612,331

Results
published
in peer-reviewed Cancer Research share novel insights into Chi3L1’s role in modulating Gliomastem cells and reinforcesthe potential therapeutic impact of Anti-Chi3L1

Providence, RI, April 27, 2023 (GLOBE NEWSWIRE) — Ocean Biomedical (NASDAQ: OCEA), a biopharma company working to accelerate the development and commercialization of scientifically compelling assets from research universities and medical centers, announced today that its Scientific Co-founder, Jack A. Elias, MD, published new findings in the peer-reviewed journal Cancer Research that detail the mechanisms behind the role of chitinase 3-like-1 (Chi3L1) in the growth of glioblastoma tumors, providing further evidence of the potential impact of Ocean’s anti-Chi3L1 antibody in suppressing severe glioblastoma tumor growth.

Results of the research conducted at the Laboratory of Cancer Epigenetics and Plasticity at the Lifespan Health System and Brown University, showed that an independent team led by molecular neuroscientist Nikos Tapinos, MD, PhD, was able to uncover new data on the efficacy of Ocean Biomedical’s anti-Chi3L1 antibody in human glioblastoma implanted mouse models, resulting in clear reduction in glioblastoma tumor growth.

The paper also revealed groundbreaking insights into the mechanisms underlying stem cell differentiation in glioma stem cells, and how that differentiation process is altered by Ocean Biomedical’s cancer therapeutic candidate. In two different study approaches, treatment with anti-Chi3L1 antibody in vivo resulted in over 60% reduction of human glioblastoma growth, and significant survival benefit. This can be seen in the MRI evaluations of the human tumors in the brains of mice (which appear in red) and the quantitation of tumor volume from these scans (see figures). This represents a medical breakthrough in understanding how the most aggressive glioblastoma tumors are formed, and how patients diagnosed with this challenging disease might possibly be treated.

“This is a completely new way of thinking about how to treat this tumor. Glioblastoma is so challenging partly because the cells adapt to the environment constantly – but if you block Chi3L1 they can’t seem to acquire the more aggressive mesenchymal phenotype. It gives us a clear path forward to being able to address glioblastoma with this novel approach,” said Dr. Nikos Tapinos MD, PhD, Director of the Laboratory of Cancer Epigenetics and Plasticity, and last author on the paper.

This targeted research data builds on prior discovery work by Dr. Jack A. Elias, who is the former Dean of Medicine and Biology, and Senior Vice President for Health Affairs at Brown University and former Chair of Medicine and Chief of Pulmonology and Critical Care Medicine at Yale University and Yale-New Haven Hospital. Over the last year, Dr. Elias has published discoveries about the roles of CHI3L1 in the pathogenesis of a wide variety of cancers. He has also previously revealed discoveries that demonstrate that the metastasis of malignant melanoma cells can be inhibited by targeting immune checkpoint inhibitors (ICPI) such as PD-1 and CTLA-4 and their ligands. The novel approach to tumor suppression being advanced by Ocean Biomedical is focused on simultaneously impacting multiple cancer pathways including those mediated by PD-1, CTLA4 by controlling CHi3L1, PD-1, PD-L1, CTLA-4, other immune checkpoint inhibitors, and T-cell co-stimulators. It has been known for a long time that optimal antitumor responses frequently require the simultaneous administration of more than one therapy.

“We are excited that, step by step, we are gaining a deeper understanding of the multiple effects that CHi3L1 has in oncogenesis,” commented Dr. Elias, “This antibody is very effective – every time we put it into an appropriate modeling system we get exciting results such as the findings in these two human-mouse GBM studies. Glioblastoma is a major area of unmet medical need, and these new studies are highly encouraging because they open the door to a new way of treating this devastating cancer.”

“We are pleased to see our glioblastoma candidate being validated by Dr. Tapinos and his team, and we hope this will be another step in moving us towards filing an IND for Glioblastoma,” said Elizabeth Ng, CEO of Ocean Biomedical.

Ocean’s Chairman and co-founder, Dr. Chirinjeev Kathuria added, “There are so many challenges around finding effective treatments for glioblastoma, and we are working to advance this new approach that we believe can give hope to patients with glioblastoma, and can also be extended to potential therapeutics for non-small cell lung cancer, melanoma, and other forms of cancer.”

Prior research has established that elevated Chi3L1 levels are associated with many cancers, including glioblastoma, and may be targeted therapeutically. Recent studies from Ocean Biomedical have demonstrated that CHI3L1 is a critical regulator of a number of key cancer-causing pathways, highlighting its ability to inhibit tumor cell death (apoptosis), its inhibition of the expression of the tumor suppressors P53 and PTEN and its stimulation of the B-RAF protooncogene. Most recently Dr. Elias’s research team has discovered that CHI3L1 is a “master regulator” of ICPI, including key elements of the PD-1 and CTLA4 pathways. In accord with the importance of these pathways, Ocean has also generated antibodies: 1.) amonoclonal antibody against CHI3L1, 2.) bispecific antibodies that simultaneously target CHI3L1 and PD-1, and 3.) a new bispecific antibody that simultaneously targets CHI3L1 and CTLA4. The impressive ability of these bispecific antibodies to control primary and metastatic lung cancer in murine experimental modeling systems have been discussed in detail in an earlier article in the Journal of Clinical Investigation, and this expanded approach in Frontiers in Immunology.

Suren Ajjarapu, an Ocean Biomedical Director commented, “We’re proud to be collaborating with some of our nation’s top scientists to move these important programs forward, and we are confident that each advancement will add long term value for our shareholders and for the doctors and patients who need innovative new treatments.”

Discussing the future direction of his work Dr. Tapinos said, “Now we know which proteins are expressed in response to Chi3L1, which are different in different subpopulations of cells, with Chi3L1 common to all of them. They just receive it in different ways and upregulate different pathways. Knowing the drivers for this heterogeneity, this is the holy grail for glioblastoma.”

About Ocean Biomedical

Ocean Biomedical, Inc. (“Ocean Biomedical” or the “Company”) is a Providence, Rhode Island-based biopharma company with an innovative business model that accelerates the development and commercialization of scientifically compelling assets from research universities and medical centers. Ocean Biomedical deploys the funding and expertise to move new therapeutic candidates efficiently from the laboratory to the clinic, to the world. Ocean Biomedical is currently developing five promising discoveries that have the potential to achieve life-changing outcomes in lung cancer, brain cancer, pulmonary fibrosis, and the prevention and treatment of malaria. The Ocean Biomedical team is working on solving some of the world’s toughest problems, for the people who need it most.

To learn more, visit www.oceanbiomedical.com.

Forward-Looking Statements

The information included herein and in any oral statements made in connection herewith include “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target,” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. These forward-looking statements include but are not limited to: the expected timing and success of investigational new drug (“IND”) filings for our initial product candidates; statements regarding the expected timing of our IND-enabling studies; the frequency and timing of filing additional INDs; expectations regarding the availability and addition of future assets to our pipeline; the advantages of any of our pipeline assets and platforms; the potential benefits of our product candidates; potential commercial opportunities; the timing of key milestones for our programs; the future financial condition, results of operations, business strategy and plans, and objectives of management for future strategy and operations; and statements about industry trends and other companies in the industry. These forward-looking statements are based on various assumptions, whether or not identified herein, and on the current expectations of the Company’s management, and they are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions.

Any discoveries announced by the Company are based solely on laboratory and animal studies. Ocean Biomedical has not conducted any studies that show similar efficacy or safety in humans. There can be no assurances that any treatment tested by the Company will prove safe or effective in humans, and any clinical benefit of any such treatment is subject to clinical trials and ultimate approval of its use in patients by the FDA. Such approval, if granted, could be years away.

Forward-looking statements are predictions, projections, and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. These forward-looking statements are not guarantees of future performance, conditions, or results, and involve a number of known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside the control of the Company that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include but are not limited to: recently transitioning to operating as a NASDAQ-listed public company with a limited operating history; our ability to successfully complete our pre-clinical trials and for those trials to produce positive results; our ability to timely file and obtain approval of INDs from the FDA in the future; the timing of the initiation, progress and potential results of our planned pre-clinical studies and clinical trials and our research programs; our ability to access additional product candidates from research universities and medical centers; the timing or likelihood of regulatory filings and approvals; the commercializing of our product candidates, if approved; our product development and marketing strategy; our ability and the potential to successfully manufacture and supply our product candidates for clinical trials and for commercial use, if approved; future strategic arrangements and/or collaborations and partnerships, and the potential benefits of such arrangements; our assessment that the early observations from our pre-clinical studies are encouraging; the potential for IND-enabling studies and future clinical trial results to differ from initial results or from our pre-clinical studies; regulatory developments in the United States and other countries; difficulties in managing our growth; our estimates regarding expenses, future revenue, capital requirements and needs for financing and our ability to obtain capital; the sufficiency of our existing and anticipated capital to fund our planned operating expenses; our ability to retain the continued service of our key personnel and to identify, hire and retain additional qualified professionals; the implementation of our business model and strategic plans for our business and product candidates; the scope of protection we are able to establish and maintain for intellectual property rights, product candidates and our pipeline; our ability to contract with third-party suppliers and manufacturers and their ability to perform adequately; the pricing, coverage and reimbursement of our product candidates, if approved; developments relating to our competitors and our industry, including competing product candidates and therapies; changes in the markets in which the Company competes, including with respect to its competitive landscape, technology evolution, or regulatory changes; changes in domestic and global general economic and market conditions; risks related to the ongoing COVID-19 pandemic and response, including supply chain disruptions; the risk that the Company may fail to keep pace with rapid technological developments to provide new and innovative products and services or make substantial investments in unsuccessful new products and services; the outcome of any legal proceedings that may be instituted against the Company; the risk of product liability or regulatory lawsuits or proceedings relating to the Company’s business; the risk of cyber security or foreign exchange losses; the risk that the Company is unable to secure or protect its intellectual property; the risk that the Company may not be able to develop and maintain effective internal controls; the ability to develop, license, or acquire new therapeutics; the risk that the Company will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; and those factors discussed in the Company’s filings with the SEC.

The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and which are described in the “Risk Factors” section of the Company’s definitive proxy statement filed by the Company on January 12, 2023, and other documents to be filed by the Company from time to time with the SEC and which are and will be available at www.sec.gov. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. We do not undertake any obligation to update any forward-looking statements made by us. Readers are cautioned not to put undue reliance on forward-looking statements. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this filing. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Ocean Biomedical Investor Relations
[email protected]

Ocean Biomedical Media Relations
[email protected]

Kevin Kertscher
Communications Director

CAMBRIDGE, Mass., April 27, 2023 (GLOBE NEWSWIRE) — EQRx, Inc. (Nasdaq: EQRX), a new type of pharmaceutical company committed to developing and expanding access to innovative medicines for some of the most prevalent disease areas, including cancer and immune-inflammatory conditions, today announced it will host a conference call and webcast on Monday, May 8, 2023, at 4:30 p.m. ET to report its first quarter 2023 financial results and provide a business update.

A live webcast of the call will be available on the “Investor Relations” page of the Company’s website at https://investors.eqrx.com/news-events/events-presentations. To access the call by phone, participants should visit this link (registration link) to receive dial-in details. Participants are requested to register at least 15 minutes before the start of the call. The webcast will be made available for replay on the Company’s website beginning approximately two hours after the event.

About EQRx

EQRx is a new type of pharmaceutical company committed to developing and expanding access to innovative medicines for some of the most prevalent disease areas, including cancer and immune-inflammatory conditions. Launched in January 2020, EQRx is leveraging cutting-edge science, technology and strategic partnerships with stakeholders from across the healthcare system toward the goal of increasing access for patients around the world. To learn more, visit www.eqrx.com and follow us on social media: Twitter: @EQRx_US, LinkedIn.

EQRx™ and Remaking Medicine™ are trademarks of EQRx.

EQRx Contacts:

Media:
Dan Budwick
1AB
[email protected]

Investors:
[email protected]

OAK RIDGE, N.J., April 27, 2023 (GLOBE NEWSWIRE) — Lakeland Bancorp, Inc. (NASDAQ: LBAI) (the “Company”), the parent company of Lakeland Bank (“Lakeland”), reported net income of $19.8 million and earnings per diluted share (“EPS”) of $0.30 for the three months ended March 31, 2023 compared to net income of $15.9 million and diluted EPS of $0.25 for the three months ended March 31, 2022.

For the first quarter of 2023, annualized return on average assets was 0.75%, annualized return on average common equity was 7.17% and annualized return on average tangible common equity was 9.57%.

Thomas Shara, Lakeland Bancorp’s President and CEO, commented, “Lakeland’s operating performance for the quarter was solid in light of the current economic conditions and the liquidity concerns in the banking industry. Despite the continued increase in market interest rates during the quarter and concern over bank failures in March, our loan portfolio was up 1%, our deposit portfolio remained flat compared to year-end balances, our stellar asset quality improved further in the quarter with non-performing assets to total assets decreasing to 16 basis points and our capital and liquidity levels remain strong. Lakeland’s franchise value is based upon our focus on full customer relationships including long-term core deposits and lending solutions that solve our customers’ needs. Finally, we are incredibly proud of our associates and appreciate their efforts in serving our customers during a challenging time for the industry.”

Regarding the Company’s pending merger with Provident Financial Service, Inc., Mr. Shara added, “The preparation for the merger is well underway and teams from both banks have participated in numerous planning and integration meetings to ensure the smooth transition to a combined company once the regulatory approvals are received.” The shareholders of both companies approved the merger at special shareholder meetings in February.

First Quarter 2023 Highlights

• First quarter 2023 results were negatively impacted by a provision for credit losses on investment securities of $6.5 million resulting exclusively from a $6.6 million provision and subsequent charge-off of an investment in subordinated debt of Signature Bank, which failed in March. First quarter 2022 results were negatively impacted by a provision for credit losses of $6.3 million, of which $4.6 million was related to the acquired 1st Constitution Bank non purchased credit deteriorated loans and $1.2 million related to investment securities.
• In response to the volatility in the banking industry during first quarter 2023 caused by high-profile bank failures, the Company instituted measures to maintain its liquidity including proactively reaching out to clients and maximizing our funding sources. These measures included increasing our usage of our insured cash sweep (“ICS”) product, as a method to increase the level of customers’ deposit insurance. The Company’s ICS deposits increased from $349.1 million on December 31, 2022 to $417.9 million at March 31, 2023. Currently, the Company’s estimated uninsured and uncollateralized deposits are $2.1 billion and we have borrowing capacity of $2.0 billion.
• Net interest margin for the first quarter of 2023 increased to 3.07% compared to 3.02% in the first quarter of 2022 and decreased from 3.28% in the linked quarter.
• Nonperforming assets decreased 14% to $16.9 million for the first quarter of 2023 compared to $19.7 million in the first quarter of 2022 and $17.4 million in the linked quarter.
• Loan growth for the first quarter of $86.5 million, or 1.1%, compared to the linked fourth quarter of 2022 was attributable to expansion primarily in the residential mortgage portfolio.

Net Interest Margin and Net Interest Income

Net interest margin for the first quarter of 2023 of 3.07% increased five basis points compared to the first quarter of 2022 and decreased 21 basis points compared to the fourth quarter of 2022. The increase in net interest margin compared to the first quarter of 2022 was due primarily to an increase in yields on loans and securities partially offset by an increase in cost of interest-bearing liabilities. The decrease in net interest margin compared to the fourth quarter of 2022 was due primarily to an increase in rates on interest-bearing liabilities as well as an increase in higher costing average time deposits and short-term borrowings during the first quarter of 2023.

The yield on interest-earning assets for the first quarter of 2023 was 4.56% as compared to 3.25% for the first quarter of 2022 and 4.31% for the fourth quarter of 2022. The increase in the yield on interest-earning assets compared to prior periods was due primarily to an increase in the yield on loans and investment securities driven primarily by increases in market interest rates.

The cost of interest-bearing liabilities for the first quarter of 2023 was 2.11% compared to 0.34% for the first quarter of 2022 and 1.50% for the fourth quarter of 2022. The increase in the cost of interest-bearing liabilities compared to prior periods was largely driven by increases in market interest rates as well as an increase in balances of higher costing average time deposits and borrowings.

Net interest income for the first quarter of 2023 of $75.9 million increased $5.5 million compared to the first quarter of 2022. The increase in net interest income compared to the first quarter of 2022 was due primarily to an increase in the yield on loans and investment securities as well as an increase in average loan balances, partially offset by increased interest paid on interest-bearing liabilities related to increases in market interest rates.

Noninterest Income

For the first quarter of 2023, noninterest income totaled $6.3 million, a decrease of $515,000 as compared to the first quarter of 2022. Gains on sales of loans decreased $996,000 compared to the first quarter of 2022 due primarily to lower sale volume. Commissions and fees decreased $181,000 driven primarily by a decrease in loan fees. Partially offsetting these unfavorable variances was gains on equity securities which totaled $148,000 in the first quarter of 2023 compared to losses of $485,000 in the first quarter of 2022. Additionally, service charges on deposit accounts increased $163,000.

Noninterest Expense

Noninterest expense for the first quarter of 2023 of $48.6 million decreased $1.4 million compared to the first quarter of 2022. The decrease in noninterest expense was primarily due to merger-related expenses which totaled $295,000 in the first quarter of 2023 compared to $4.6 million during the first quarter of 2022. Merger-related expense during the current quarter was a result of the anticipated merger with Provident Financial, while merger-related expense for the first quarter of 2022 was due to the acquisition of 1st Constitution Bancorp. Compensation and employee benefits increased $2.3 million resulting primarily from increased commissions, bonus expense, share based compensation expense and normal merit increases. FDIC insurance expense increased $291,000 due to an estimated increase in 2023 assessment rates related to Lakeland’s asset size exceeding $10 billion. Other operating expenses in the first quarter of 2023 increased $131,000 compared to the same period in 2022 due primarily to increased marketing expense.

Income Tax Expense

The effective tax rate for the first quarter of 2023 was 22.9% compared to 23.9% for the first quarter of 2022. The decreased effective tax rate for the first quarter of 2023 was primarily a result of tax advantaged items increasing as a percentage of pretax income.

Financial Condition

At March 31, 2023, total assets were $10.84 billion, an increase of $53.4 million, compared to December 31, 2022. As of March 31, 2023, total loans increased $86.5 million, to $7.95 billion while investment securities decreased $42.5 million, to $1.99 billion from December 31, 2022. On the funding side, total deposits decreased $30.5 million from December 31, 2022, to $8.54 billion at March 31, 2023, including an increase in brokered deposits of $141.9 million. At March 31, 2023, total loans as a percent of total deposits was 93.15%. Uninsured and uncollateralized deposits as a percent of total deposits were 25.26% at March 31, 2023 compared to 26.81% at December 31, 2022.

Asset Quality

At March 31, 2023, non-performing assets totaled $16.9 million or 0.16% of total assets compared to $19.7 million, or 0.19% of total assets at March 31, 2022. Non-accrual loans as a percent of total loans was 0.21% at March 31, 2023, compared to 0.28% at March 31, 2022. The decrease in non-accrual loans resulted primarily from an improvement in asset quality. The allowance for credit losses on loans totaled $71.4 million, 0.90% of total loans, at March 31, 2023, compared to $67.1 million, 0.94% of total loans, at March 31, 2022. In the first quarter of 2023, the Company had net charge-offs of $74,000 compared to $7.6 million or 0.44% of average loans on an annualized basis for the same period in 2022.

The provision for credit losses for the first quarter of 2023 was $7.9 million compared to $6.3 million in the first quarter of 2022. The provision in the 2023 period is comprised of a provision for credit losses on loans of $1.2 million, a provision for credit losses on investment securities of $6.5 million and a provision for off-balance-sheet exposures of $140,000. The provision for credit losses on investment securities was exclusively related to the $6.6 million provision and subsequent charge-off of an investment in subordinated debt of Signature Bank.

Capital

At March 31, 2023, stockholders’ equity was $1.13 billion compared to $1.11 billion at December 31, 2022, a 2% increase, resulting primarily from net income and a decrease in other comprehensive loss, partially offset by the payment of dividends. Lakeland Bank remains above FDIC “well capitalized” standards, with a Tier 1 leverage ratio of 9.13% at March 31, 2023. The book value per common share increased 3% to $17.33 at March 31, 2023 compared to $16.82 at March 31, 2022. Tangible book value per common share was $13.01 and $12.45 at March 31, 2023 and 2022, respectively (see “Supplemental Information – Non-GAAP Financial Measures” for a reconciliation of non-GAAP financial measures, including tangible book value). At March 31, 2023, the Company’s common equity to assets ratio and tangible common equity to tangible assets ratio were 10.40% and 8.02%, respectively, compared to 10.60% and 8.07% at March 31, 2022. On April 25, 2023, the Company declared a quarterly cash dividend of $0.145 per share to be paid on May 17, 2023, to shareholders of record as of May 8, 2023.

Forward-Looking Statements

The information disclosed in this document includes various forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipates,” “projects,” “intends,” “estimates,” “expects,” “believes,” “plans,” “may,” “will,” “should,” “could,” and other similar expressions are intended to identify such forward-looking statements. The Company cautions that these forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from such forward-looking statements. Accordingly, you should not place undue reliance on forward-looking statements. In addition to the specific risk factors disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as updated by our subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, the following factors, among others, could cause actual results to differ materially and adversely from such forward-looking statements: changes in levels of market interest rates, which may affect demand for our products and the value of our financial instruments; pricing pressures on loan and deposit products; changes in the financial services industry and the U.S. and global capital markets; inflation and other changes in economic conditions nationally, regionally and in the Company’s markets; the nature and timing of actions of the Federal Reserve Board and other regulators; the nature and timing of legislation and regulation affecting the financial services industry; government intervention in the U.S. financial system; changes in federal and state tax laws; credit risks of the Company’s lending and leasing activities; the effects of the recent turmoil in the banking industry (including the failures of two financial institutions); successful implementation, deployment and upgrades of new and existing technology, systems, services and products; customers’ acceptance of the Company’s products and services; competition; failure to realize anticipated efficiencies and synergies from the merger of 1st Constitution Bancorp into Lakeland Bancorp and the merger of 1st Constitution Bank into Lakeland Bank; and expenses related to our proposed merger with Provident Financial, unexpected delays related to the merger, inability to obtain regulatory approvals or satisfy other closing conditions required to complete the merger, and failure to realize anticipated efficiencies and synergies from the merger. Further, given its ongoing and dynamic nature, it is difficult to predict the continuing effects that the COVID-19 pandemic will have on our business and results of operations. Any statements made by the Company that are not historical facts should be considered to be forward-looking statements. The Company is not obligated to update and does not undertake to update any of its forward-looking statements made herein.

Explanation of Non-GAAP Financial Measures

Reported amounts are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results.

The Company also provides measurements and ratios based on tangible equity and tangible assets. These measures are utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.

Specifically, the Company also uses an efficiency ratio that is a non-GAAP financial measure. The ratio that the Company uses excludes amortization of core deposit intangibles, and, where applicable, long-term debt prepayment fees and merger-related expenses. Income for the non-GAAP ratio is increased by the favorable effect of tax-exempt income and excludes gains and losses from the sale of investment securities, which can vary from period to period. The Company uses this ratio because it believes the ratio provides a relevant measure to compare the operating performance period to period.

These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. See accompanying “Supplemental Information – Non-GAAP Financial Measures” and “Supplemental Information – Reconciliation of Net Income” for a reconciliation of non-GAAP financial measures.

About Lakeland

Lakeland Bank is the wholly-owned subsidiary of Lakeland Bancorp, Inc. (NASDAQ:LBAI), which had $10.84 billion in total assets at March 31, 2023. With an extensive branch network and commercial lending centers throughout New Jersey and Highland Mills, New York, the Bank offers business and retail banking products and services. Business services include commercial loans and lines of credit, commercial real estate loans, loans for healthcare services, asset-based lending, equipment financing, small business loans and lines and cash management services. Consumer services include online and mobile banking, home equity loans and lines, mortgage options and wealth management solutions. Lakeland is proud to be recognized as New Jersey’s Best-In-State Bank by Forbes and Statista for the fourth consecutive year, Best Banks to Work For by American Banker, rated a 5-Star Bank by Bauer Financial and named one of New Jersey’s 50 Fastest Growing Companies by NJBIZ. Visit LakelandBank.com or 973-697-6140 for more information.

Thomas J. Shara		Thomas F. Splaine
President & CEO		EVP & CFO

Lakeland Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
		For the Three Months Ended March 31,
(in thousands, except per share data)			2023				2022
Interest Income
Loans and fees		$	100,481			$	67,809
Federal funds sold and interest-bearing deposits with banks			728				182
Taxable investment securities and other			11,554				6,709
Tax-exempt investment securities			1,642				1,302
Total Interest Income			114,405				76,002
Interest Expense
Deposits			29,158				4,039
Federal funds purchased and securities sold under agreements to repurchase			7,222				20
Other borrowings			2,100				1,555
Total Interest Expense			38,480				5,614
Net Interest Income			75,925				70,388
Provision for credit losses			7,893				6,272
Net Interest Income after Provision for Credit Losses			68,032				64,116
Noninterest Income
Service charges on deposit accounts			2,789				2,626
Commissions and fees			1,925				2,106
Income on bank owned life insurance			776				830
Gain (loss) on equity securities			148				(485	)
Gains on sales of loans			430				1,426
Swap income			56				—
Other income			141				277
Total Noninterest Income			6,265				6,780
Noninterest Expense
Compensation and employee benefits			29,996				27,679
Premises and equipment			7,977				7,972
FDIC insurance			963				672
Data processing			1,862				1,670
Merger-related expenses			295				4,585
Other operating expenses			7,512				7,381
Total Noninterest Expense			48,605				49,959
Income before provision for income taxes			25,692				20,937
Provision for income taxes			5,887				5,008
Net Income		$	19,805			$	15,929
Per Share of Common Stock
Basic earnings		$	0.30			$	0.25
Diluted earnings		$	0.30			$	0.25
Dividends		$	0.145			$	0.135

Lakeland Bancorp, Inc. and Subsidiaries
Consolidated Balance Sheets
(dollars in thousands)	March 31, 2023				December 31, 2022
	(Unaudited)
Assets
Cash	$	261,261			$	223,299
Interest-bearing deposits due from banks		13,681				12,651
Total cash and cash equivalents		274,942				235,950
Investment securities available for sale, at estimated fair value (allowance for credit losses of $160 at March 31, 2023 and $310 at December 31, 2022)		1,029,127				1,054,312
Investment securities held to maturity (estimated fair value of $762,720 at March 31, 2023 and $760,455 at December 31, 2022, allowance for credit losses of $156 at March 31, 2023 and $107 at December 31, 2022)		902,498				923,308
Equity securities, at fair value		17,496				17,283
Federal Home Loan Bank and other membership stocks, at cost		45,806				42,483
Loans held for sale		—				536
Loans, net of deferred fees		7,952,553				7,866,050
Less: Allowance for credit losses		71,403				70,264
Net loans		7,881,150				7,795,786
Premises and equipment, net		55,556				55,429
Operating lease right-of-use assets		19,329				20,052
Accrued interest receivable		34,220				33,374
Goodwill		271,829				271,829
Other identifiable intangible assets		8,572				9,088
Bank owned life insurance		157,761				156,985
Other assets		138,955				167,425
Total Assets	$	10,837,241			$	10,783,840
Liabilities and Stockholders’ Equity
Liabilities
Deposits:
Noninterest-bearing	$	1,998,590			$	2,113,289
Savings and interest-bearing transaction accounts		4,918,041				5,246,005
Time deposits $250 thousand and under		1,233,856				901,505
Time deposits over $250 thousand		386,456				306,672
Total deposits		8,536,943				8,567,471
Federal funds purchased and securities sold under agreements to repurchase		813,328				728,797
Other borrowings		25,000				25,000
Subordinated debentures		194,376				194,264
Operating lease liabilities		20,644				21,449
Other liabilities		120,370				138,272
Total Liabilities		9,710,661				9,675,253
Stockholders’ Equity
Common stock, no par value; authorized 100,000,000 shares; issued 65,148,180 shares and outstanding 65,017,145 shares at March 31, 2023 and issued 65,002,738 shares and outstanding 64,871,703 shares at December 31, 2022		855,657				855,425
Retained earnings		339,680				329,375
Treasury shares, at cost, 131,035 shares at March 31, 2023 and December 31, 2022		(1,452	)			(1,452	)
Accumulated other comprehensive loss		(67,305	)			(74,761	)
Total Stockholders’ Equity		1,126,580				1,108,587
Total Liabilities and Stockholders’ Equity	$	10,837,241			$	10,783,840

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
		For the Quarter Ended
(dollars in thousands, except per share data)		March 31, 2023				December 31, 2022				September 30, 2022				June 30, 2022				March 31, 2022
Income Statement
Net interest income		$	75,925			$	81,640			$	80,285			$	80,302			$	70,388
(Provision) benefit for credit losses			(7,893	)			2,760				(1,358	)			(3,644	)			(6,272	)
Gains on sales of loans			430				269				355				715				1,426
Gains (loss) on equity securities			148				11				(464	)			(364	)			(485	)
Other noninterest income			5,687				6,743				7,342				6,712				5,839
Merger-related expenses			(295	)			(533	)			(3,488	)			—				(4,585	)
Other noninterest expense			(48,310	)			(44,837	)			(44,323	)			(45,068	)			(45,374	)
Pretax income			25,692				46,053				38,349				38,653				20,937
Provision for income taxes			(5,887	)			(12,476	)			(9,603	)			(9,536	)			(5,008	)
Net income		$	19,805			$	33,577			$	28,746			$	29,117			$	15,929
Basic earnings per common share		$	0.30			$	0.51			$	0.44			$	0.44			$	0.25
Diluted earnings per common share		$	0.30			$	0.51			$	0.44			$	0.44			$	0.25
Dividends paid per common share		$	0.145			$	0.145			$	0.145			$	0.145			$	0.135
Dividends paid		$	9,500			$	9,505			$	9,506			$	9,507			$	8,809
Weighted average shares – basic			64,966				64,854				64,842				64,828				63,961
Weighted average shares – diluted			65,228				65,222				65,061				64,989				64,238
Selected Operating Ratios
Annualized return on average assets			0.75	%			1.26	%			1.10	%			1.15	%			0.64	%
Annualized return on average common equity			7.17	%			12.19	%			10.33	%			10.71	%			5.89	%
Annualized return on average tangible common equity (1)			9.57	%			16.42	%			13.87	%			14.45	%			7.88	%
Annualized net interest margin			3.07	%			3.28	%			3.28	%			3.38	%			3.02	%
Efficiency ratio (1)			57.84	%			49.67	%			49.76	%			50.69	%			57.77	%
Common stockholders’ equity to total assets			10.40	%			10.28	%			10.29	%			10.51	%			10.60	%
Tangible common equity to tangible assets (1)			8.02	%			7.88	%			7.83	%			8.01	%			8.07	%
Tier 1 risk-based ratio			11.33	%			11.24	%			11.16	%			11.12	%			11.34	%
Total risk-based ratio			13.93	%			13.83	%			13.78	%			13.74	%			14.03	%
Tier 1 leverage ratio			9.13	%			9.16	%			9.10	%			9.05	%			8.97	%
Common equity tier 1 capital ratio			10.81	%			10.71	%			10.62	%			10.57	%			10.72	%
Book value per common share		$	17.33			$	17.09			$	16.70			$	16.82			$	16.82
Tangible book value per common share (1)		$	13.01			$	12.76			$	12.36			$	12.47			$	12.45

(1) See Supplemental Information – Non-GAAP Financial Measures

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
		For the Quarter Ended
(dollars in thousands)		March 31, 2023				December 31, 2022				September 30, 2022				June 30, 2022				March 31, 2022
Selected Balance Sheet Data at Period End
Loans		$	7,952,553			$	7,866,050			$	7,568,826			$	7,408,540			$	7,137,793
Allowance for credit losses on loans			71,403				70,264				68,879				68,836				67,112
Investment securities			1,994,927				2,037,386				2,047,186				2,124,213				2,139,054
Total assets			10,837,241				10,783,840				10,515,599				10,374,178				10,275,233
Total deposits			8,536,943				8,567,471				8,677,799				8,501,804				8,748,909
Short-term borrowings			813,328				728,797				357,787				432,206				102,911
Other borrowings			219,376				219,264				219,148				219,027				218,904
Stockholders’ equity			1,126,580				1,108,587				1,082,406				1,090,145				1,089,282
Loans
Non-owner occupied commercial		$	2,943,897			$	2,906,014			$	2,873,824			$	2,777,003			$	2,639,784
Owner occupied commercial			1,205,635				1,246,189				1,141,290				1,179,527				1,122,754
Multifamily			1,275,771				1,260,814				1,186,036				1,134,938				1,104,206
Non-owner occupied residential			210,203				218,026				222,597				221,339				225,795
Commercial, industrial and other			562,287				606,276				612,494				647,531				620,611
Paycheck Protection Program			390				435				734				10,404				36,785
Construction			404,994				380,100				381,109				370,777				404,186
Equipment financing			161,889				151,575				137,999				134,136				123,943
Residential mortgages			857,427				765,552				690,453				622,417				564,042
Consumer and home equity			330,060				331,069				322,290				310,468				295,687
Total loans		$	7,952,553			$	7,866,050			$	7,568,826			$	7,408,540			$	7,137,793
Deposits
Noninterest-bearing		$	1,998,590			$	2,113,289			$	2,288,902			$	2,330,550			$	2,300,030
Savings and interest-bearing transaction accounts			4,918,041				5,246,005				5,354,716				5,407,212				5,602,674
Time deposits			1,620,312				1,208,177				1,034,181				764,042				846,205
Total deposits		$	8,536,943			$	8,567,471			$	8,677,799			$	8,501,804			$	8,748,909
Total loans to total deposits ratio			93.2	%			91.8	%			87.2	%			87.1	%			81.6	%
Selected Average Balance Sheet Data
Loans		$	7,900,426			$	7,729,510			$	7,517,878			$	7,229,175			$	7,021,462
Investment securities			2,117,076				2,145,252				2,160,719				2,188,199				2,019,578
Interest-earning assets			10,091,341				9,923,173				9,755,797				9,588,396				9,504,287
Total assets			10,698,807				10,534,884				10,358,600				10,192,140				10,138,437
Noninterest-bearing demand deposits			2,040,070				2,240,197				2,325,391				2,310,702				2,194,038
Savings deposits			928,796				1,001,870				1,092,222				1,153,591				1,131,359
Interest-bearing transaction accounts			4,224,024				4,389,672				4,337,559				4,369,067				4,399,531
Time deposits			1,385,661				1,100,911				905,735				803,421				879,427
Total deposits			8,578,551				8,732,650				8,660,907				8,636,781				8,604,355
Short-term borrowings			617,611				311,875				240,728				130,242				104,633
Other borrowings			219,308				219,202				219,082				218,958				217,983
Total interest-bearing liabilities			7,375,400				7,023,530				6,795,326				6,675,279				6,732,933
Stockholders’ equity			1,120,356				1,092,720				1,104,145				1,090,613				1,095,913

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
		For the Quarter Ended
(dollars in thousands)		March 31, 2023				December 31, 2022				September 30, 2022				June 30, 2022				March 31, 2022
Average Annualized Yields (Taxable Equivalent Basis) and Costs
Assets
Loans			5.10	%			4.84	%			4.43	%			4.22	%			3.92	%
Taxable investment securities and other			2.61	%			2.41	%			2.12	%			1.81	%			1.60	%
Tax-exempt securities			2.41	%			2.36	%			2.12	%			2.02	%			1.91	%
Federal funds sold and interest-bearing cash accounts			4.00	%			3.68	%			2.21	%			0.55	%			0.16	%
Total interest-earning assets			4.56	%			4.31	%			3.90	%			3.61	%			3.25	%
Liabilities
Savings accounts			0.28	%			0.29	%			0.25	%			0.18	%			0.17	%
Interest-bearing transaction accounts			1.85	%			1.46	%			0.97	%			0.33	%			0.25	%
Time deposits			2.71	%			1.77	%			1.00	%			0.39	%			0.40	%
Borrowings			4.46	%			3.52	%			2.15	%			2.04	%			1.95	%
Total interest-bearing liabilities			2.11	%			1.50	%			0.94	%			0.40	%			0.34	%
Net interest spread (taxable equivalent basis)			2.45	%			2.81	%			2.96	%			3.22	%			2.92	%
Annualized net interest margin (taxable equivalent basis)			3.07	%			3.28	%			3.28	%			3.38	%			3.02	%
Annualized cost of deposits			1.38	%			0.99	%			0.62	%			0.22	%			0.19	%
Loan Quality Data
Allowance for Credit Losses on Loans
Balance at beginning of period		$	70,264			$	68,879			$	68,836			$	67,112			$	58,047
Initial allowance for credit losses on purchased credit deteriorated loans			—				—				—				—				12,077
Charge-offs on purchased credit deteriorated loans			—				—				—				—				(7,634	)
Provision for credit losses on loans			1,213				1,464				11				1,583				4,630
Charge-offs			(139	)			(138	)			(56	)			(365	)			(170	)
Recoveries			65				59				88				506				162
Balance at end of period		$	71,403			$	70,264			$	68,879			$	68,836			$	67,112
Net Loan Charge-Offs (Recoveries)
Non owner occupied commercial		$	—			$	—			$	—			$	(4	)		$	4
Owner occupied commercial			—				—				—				(337	)			24
Non owner occupied residential			—				—				—				—				(14	)
Commercial, industrial and other			(35	)			(24	)			(49	)			272				778
Construction			—				—				—				—				6,804
Equipment finance			46				51				(23	)			(40	)			82
Residential mortgages			—				—				—				—				(48	)
Consumer and home equity			63				52				40				(32	)			12
Net charge-offs (recoveries)		$	74			$	79			$	(32	)		$	(141	)		$	7,642

Lakeland Bancorp, Inc.
Financial Highlights
(Unaudited)
		For the Quarter Ended
(dollars in thousands)		March 31, 2023				December 31, 2022				September 30, 2022				June 30, 2022				March 31, 2022
Non-Performing Assets (1)
Non owner occupied commercial		$	908			$	618			$	307			$	324			$	5,482
Owner occupied commercial			8,757				9,439				10,322				12,587				2,626
Multifamily			584				—				—				—				—
Non owner occupied residential			—				441				868				839				2,430
Commercial, industrial and other			2,221				2,978				3,623				4,882				6,098
Construction			980				980				—				—				220
Equipment finance			379				114				226				112				51
Residential mortgages			1,918				2,011				2,226				2,249				1,935
Consumer and home equity			1,131				781				798				1,168				898
Total non-accrual loans			16,878				17,362				18,370				22,161				19,740
Total non-performing assets		$	16,878			$	17,362			$	18,370			$	22,161			$	19,740
Loans past due 90 days or more and still accruing		$	—			$	—			$	31			$	—			$	—
Loans restructured and still accruing		$	—			$	2,640			$	3,113			$	3,189			$	3,290
Ratio of allowance for loan losses to total loans			0.90	%			0.89	%			0.91	%			0.93	%			0.94	%
Total non-accrual loans to total loans			0.21	%			0.22	%			0.24	%			0.30	%			0.28	%
Total non-performing assets to total assets			0.16	%			0.16	%			0.17	%			0.21	%			0.19	%
Annualized net (recoveries) charge-offs to average loans			—	%			—	%			—	%		(0.01		)%			0.44	%

(1) Includes non-accrual purchased credit deteriorated loans.

Lakeland Bancorp, Inc.
Supplemental Information – Non-GAAP Financial Measures
(Unaudited)
		At or for the Quarter Ended
(dollars in thousands, except per share amounts)		March 31, 2023				December 31, 2022				September 30, 2022				June 30, 2022				March 31, 2022
Calculation of Tangible Book Value Per Common Share
Total common stockholders’ equity at end of period – GAAP		$	1,126,580			$	1,108,587			$	1,082,406			$	1,090,145			$	1,089,282
Less: Goodwill			271,829				271,829				271,829				271,829				271,829
Less: Other identifiable intangible assets			8,572				9,088				9,669				10,250				10,842
Total tangible common stockholders’ equity at end of period – Non-GAAP		$	846,179			$	827,670			$	800,908			$	808,066			$	806,611
Shares outstanding at end of period			65,017				64,872				64,804				64,794				64,780
Book value per share – GAAP		$	17.33			$	17.09			$	16.70			$	16.82			$	16.82
Tangible book value per share – Non-GAAP		$	13.01			$	12.76			$	12.36			$	12.47			$	12.45
Calculation of Tangible Common Equity to Tangible Assets
Total tangible common stockholders’ equity at end of period – Non-GAAP		$	846,179			$	827,670			$	800,908			$	808,066			$	806,611
Total assets at end of period – GAAP		$	10,837,241			$	10,783,840			$	10,515,599			$	10,374,178			$	10,275,233
Less: Goodwill			271,829				271,829				271,829				271,829				271,829
Less: Other identifiable intangible assets			8,572				9,088				9,669				10,250				10,842
Total tangible assets at end of period – Non-GAAP		$	10,556,840			$	10,502,923			$	10,234,101			$	10,092,099			$	9,992,562
Common equity to assets – GAAP			10.40	%			10.28	%			10.29	%			10.51	%			10.60	%
Tangible common equity to tangible assets – Non-GAAP			8.02	%			7.88	%			7.83	%			8.01	%			8.07	%
Calculation of Return on Average Tangible Common Equity
Net income – GAAP		$	19,805			$	33,577			$	28,746			$	29,117			$	15,929
Total average common stockholders’ equity – GAAP		$	1,120,356			$	1,092,720			$	1,104,145			$	1,090,613			$	1,095,913
Less: Average goodwill			271,829				271,829				271,829				271,829				265,409
Less: Average other identifiable intangible assets			8,904				9,386				9,982				10,569				10,851
Total average tangible common stockholders’ equity – Non-GAAP		$	839,623			$	811,505			$	822,334			$	808,215			$	819,653
Return on average common stockholders’ equity – GAAP			7.17	%			12.19	%			10.33	%			10.71	%			5.89	%
Return on average tangible common stockholders’ equity – Non-GAAP			9.57	%			16.42	%			13.87	%			14.45	%			7.88	%
Calculation of Efficiency Ratio
Total noninterest expense		$	48,605			$	45,370			$	47,811			$	45,068			$	49,959
Less:
Amortization of core deposit intangibles			516				581				581				593				596
Merger-related expenses			295				533				3,488				—				4,585
Noninterest expense, as adjusted		$	47,794			$	44,256			$	43,742			$	44,475			$	44,778
Net interest income		$	75,925			$	81,640			$	80,285			$	80,302			$	70,388
Total noninterest income			6,265				7,023				7,233				7,063				6,780
Total revenue			82,190				88,663				87,518				87,365				77,168
Tax-equivalent adjustment on municipal securities			436				443				395				382				346
Total revenue, as adjusted		$	82,626			$	89,106			$	87,913			$	87,747			$	77,514
Efficiency ratio – Non-GAAP			57.84	%			49.67	%			49.76	%			50.69	%			57.77	%

WOBURN, Mass., April 27, 2023 (GLOBE NEWSWIRE) — Comera Life Sciences Holdings, Inc. (Nasdaq: CMRA) (“Company” or “Comera”), a life sciences company developing a new generation of bio-innovative biologic medicines to improve patient access, safety and convenience, today announced that its scientists and executives will participate in four upcoming scientific and industry conferences.

“We look forward to sharing more about our proprietary formulation platform and partnering opportunities at these upcoming conferences including the ways our SQore™ platform integrates computational modeling, a robust library of excipients, and formulation engineering to address challenges in subcutaneous therapeutic development,” said Jeffrey Hackman, Chairman and Chief Executive Officer of Comera.

Details on upcoming conference participation and presentations:

Excipient World Conference & Expo 2023 (May 1-3, 2023)

Location: National Harbor, Md. (Gaylord National Resort & Convention Center)
Presentation Date & Time: May 1, 2023 at 11:20 a.m. EDT
Title: SQore ™ Platform Technology and Excipients for Highly Concentrated mAb Formulations
Speaker: Yuhong Zeng, Ph.D., Director of Formulation at Comera

Pharma Partnering Summit (May 4-5, 2023)

Location: San Diego, Calif. (DoubleTree by Hilton Hotel San Diego)
Details: Available for 1×1 meetings onsite
Participant: Janice Marie McCourt, Chief Business Officer at Comera

PEGS Boston Conference & Expo (May 15-19, 2023)

Location: Boston, Mass. (Hynes Convention Center & Virtual)
Booth Details: Exhibit Hall booth #222
Participants: Neal Muni, M.D., Chief Operating Officer at Comera; Robert P. Mahoney, Ph.D., Chief Scientific Officer at Comera; members of the Comera R & D team

BIO International Convention (June 5-8, 2023)

Location: Boston, Mass. (Boston Convention & Exhibition Center)
Details: Available for 1×1 meetings onsite
Participants: Jeffrey Hackman, Chairman and Chief Executive Officer at Comera; Neal Muni, M.D., Chief Operating Officer at Comera; Michael Campbell, Chief Financial Officer at Comera; Janice Marie McCourt, Chief Business Officer at Comera; Robert P. Mahoney, Ph.D., Chief Scientific Officer at Comera

About Comera Life Sciences

Leading a compassionate new era in medicine, Comera Life Sciences is applying a deep knowledge of formulation science and technology to transform essential biologic medicines from intravenous (IV) to subcutaneous (SQ) forms. The goal of this approach is to provide patients with the freedom of self-injectable care, reduce institutional dependency and to put patients at the center of their treatment regimen.

To learn more about the Comera Life Sciences mission, as well as the proprietary SQore™ platform, visit https://comeralifesciences.com/.

Contacts

Comera Investor

John Woolford
ICR Westwicke
[email protected]

Comera Press

Jon Yu
ICR Westwicke
[email protected]

Third Quarter Highlights

Reported earnings per share of $0.38 improved from loss per share of $0.16 in prior year period

Net sales excluding surcharge up 17% sequentially and up 33% year-over-year

Backlog up 10% sequentially and up 70% year-over-year

PHILADELPHIA, April 27, 2023 (GLOBE NEWSWIRE) — Carpenter Technology Corporation (NYSE: CRS) (the “Company”) today announced financial results for the fiscal third quarter ended March 31, 2023. For the quarter, the Company reported net income of $18.6 million, or $0.38 earnings per diluted share.

“By outperforming expectations for the third quarter of fiscal year 2023, we remain on the path to returning to pre-pandemic levels of profitability in the fourth quarter of fiscal year 2023,” said Tony R. Thene, President and CEO of Carpenter Technology. “Our third quarter performance was driven by increased productivity across our manufacturing facilities and ongoing strong demand in each of our end-use markets.”

“The Specialty Alloys Operations (“SAO”) segment demonstrated continued improvement with operating income of $49.0 million for the third quarter of fiscal year 2023. The results for SAO were driven by increased productivity at our facilities as we continued to safely onboard new employees and accelerate training. The Performance Engineered Products (“PEP”) segment had a strong quarter with operating income of $10.2 million, led by our Dynamet Titanium and Additive businesses.”

“Looking ahead, we are well positioned to achieve our goal of delivering operating income of $54-60 million in the fourth quarter of fiscal year 2023. To achieve this goal, we are continuing to focus on increasing productivity across our manufacturing facilities to meet the strong demand across each of our end-use markets. With higher volumes, improved product mix and increased prices, we expect to realize accelerating sales momentum and improved margins.”

Financial Highlights

		Q3				Q3				Q2
($ in millions except per share amounts)		FY2023				FY2022				FY2023
Net sales		$	690.1			$	489.0			$	579.1
Net sales excluding surcharge (a)		$	491.5			$	369.0			$	420.8
Operating income		$	39.3			$	1.1			$	22.6
Adjusted operating income (loss) excluding special items (a)		$	39.3			$	(1.6	)		$	22.6
Net income (loss)		$	18.6			$	(7.5	)		$	6.2
Earnings (loss) per share		$	0.38			$	(0.16	)		$	0.13
Adjusted earnings (loss) per share (a)		$	0.38			$	(0.20	)		$	0.13
Net cash provided from (used for) operating activities		$	4.3			$	35.3			$	(86.4	)
Adjusted free cash flow (a)		$	(26.0	)		$	0.4			$	(113.7	)
(a) Non-GAAP financial measures explained in the tables below

Net sales for the third quarter of fiscal year 2023 were $690.1 million, compared with $489.0 million in the third quarter of fiscal year 2022, an increase of $201.1 million (or 41 percent), on a 15 percent increase in shipment volume. Net sales excluding surcharge were $491.5 million, an increase of $122.5 million (or 33 percent) from the same period a year ago.

Operating income was $39.3 million in the current quarter compared to operating income of $1.1 million in the prior year period. Earnings per share in the third quarter of fiscal year 2023 was $0.38 compared to loss of $0.16 per share in the prior year quarter. Excluding special items, adjusted loss per share in the third quarter of fiscal year 2022 was $0.20. The improvement in operating income and earnings per share is primarily the result of increased shipments as activity levels continued to increase to meet improving market conditions in key end-use markets compared to the prior year period.

Cash provided from operating activities in the third quarter of fiscal year 2023 was $4.3 million compared to cash provided from operating activities of $35.3 million in the same quarter last year. Adjusted free cash flow in the third quarter of fiscal year 2023 was negative $26.0 million, compared to positive $0.4 million in the same quarter last year. The operating cash flow and adjusted free cash flow in the third quarter of fiscal year 2023 compared to the prior year period reflect improved earnings offset by higher cash used for working capital needs to meet growing demand. Capital expenditures in the third quarter of fiscal year 2023 were $20.5 million, compared to $25.1 million in the same quarter last fiscal year.

Total liquidity, including cash and available revolver balance, was $211.9 million at the end of the third quarter of fiscal year 2023. This consisted of $22.3 million of cash and $189.6 million of available borrowing under the Company’s credit facility.

Conference Call and Webcast Presentation

Carpenter Technology will host a conference call and webcast presentation today, April 27, 2023, at 10:00 a.m. ET, to discuss the financial results of operations for the third quarter of fiscal year 2023. Please dial +1 412-317-9259 for access to the live conference call. Access to the live webcast will be available at Carpenter Technology’s website (http://www.carpentertechnology.com), and a replay will soon be made available at http://www.carpentertechnology.com. Presentation materials used during this conference call will be available for viewing and download at http://www.carpentertechnology.com.

Non-GAAP Financial Measures

This press release includes discussions of financial measures that have not been determined in accordance with U.S. Generally Accepted Accounting Principles (GAAP). A reconciliation of the non-GAAP financial measures to their most directly comparable financial measures prepared in accordance with GAAP, accompanied by reasons why the Company believes the non-GAAP measures are important, are included in the schedules below.

About Carpenter Technology

Carpenter Technology Corporation is a recognized leader in high-performance specialty alloy-based materials and process solutions for critical applications in the aerospace, defense, medical, transportation, energy, industrial and consumer electronics markets. Founded in 1889, Carpenter Technology has evolved to become a pioneer in premium specialty alloys, including titanium, nickel, and cobalt, as well as alloys specifically engineered for additive manufacturing (AM) processes and soft magnetics applications. Carpenter Technology has expanded its AM capabilities to provide a complete “end-to-end” solution to accelerate materials innovation and streamline parts production. More information about Carpenter Technology can be found at www.carpentertechnology.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected, anticipated or implied. The most significant of these uncertainties are described in Carpenter Technology’s filings with the Securities and Exchange Commission, including its report on Form 10-K for the fiscal year ended June 30, 2022, Form 10-Q for the fiscal quarters ended September 30, 2022, and December 31, 2022, and the exhibits attached to those filings. They include but are not limited to: (1) the cyclical nature of the specialty materials business and certain end-use markets, including aerospace, defense, medical, transportation, energy, industrial and consumer, or other influences on Carpenter Technology’s business such as new competitors, the consolidation of competitors, customers, and suppliers or the transfer of manufacturing capacity from the United States to foreign countries; (2) the ability of Carpenter Technology to achieve cash generation, growth, earnings, profitability, operating income, cost savings and reductions, qualifications, productivity improvements or process changes; (3) the ability to recoup increases in the cost of energy, raw materials, freight or other factors; (4) domestic and foreign excess manufacturing capacity for certain metals; (5) fluctuations in currency exchange rates; (6) the effect of government trade actions; (7) the valuation of the assets and liabilities in Carpenter Technology’s pension trusts and the accounting for pension plans; (8) possible labor disputes or work stoppages; (9) the potential that our customers may substitute alternate materials or adopt different manufacturing practices that replace or limit the suitability of our products; (10) the ability to successfully acquire and integrate acquisitions; (11) the availability of credit facilities to Carpenter Technology, its customers or other members of the supply chain; (12) the ability to obtain energy or raw materials, especially from suppliers located in countries that may be subject to unstable political or economic conditions; (13) Carpenter Technology’s manufacturing processes are dependent upon highly specialized equipment located primarily in facilities in Reading and Latrobe, Pennsylvania and Athens, Alabama for which there may be limited alternatives if there are significant equipment failures or a catastrophic event; (14) the ability to hire and retain key personnel, including members of the executive management team, management, metallurgists and other skilled personnel; (15) fluctuations in oil and gas prices and production; (16) uncertainty regarding the return to service of the Boeing 737 MAX aircraft and the related supply chain disruption; (17) potential impacts of the COVID-19 pandemic on our operations, financial results and financial position; (18) our efforts and efforts by governmental authorities to mitigate the COVID-19 pandemic, such as travel bans, shelter in place orders and business closures, and the related impact on resource allocations and manufacturing and supply chains; (19) our ability to execute our business continuity, operational, budget and fiscal plans in light of the COVID-19 pandemic; and (20) our ability to successfully carry out restructuring and business exit activities on the expected terms and timelines. Any of these factors could have an adverse and/or fluctuating effect on Carpenter Technology’s results of operations. The forward-looking statements in this document are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date of this press release or as of the dates otherwise indicated in such forward-looking statements. Carpenter Technology undertakes no obligation to update or revise any forward-looking statements.

PRELIMINARY

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)
(Unaudited)

		Three Months Ended							Nine Months Ended
		March 31,							March 31,
			2023			2022				2023			2022
NET SALES		$	690.1		$	489.0			$	1,792.1		$	1,272.6
Cost of sales			596.6			449.5				1,573.9			1,194.8
Gross profit			93.5			39.5				218.2			77.8
Selling, general and administrative expenses			54.2			38.4				148.0			127.3
Operating income (loss)			39.3			1.1				70.2			(49.5	)
Interest expense, net			14.5			11.2				40.1			31.5
Other expense (income), net			0.8			(1.8	)			6.2			(12.5	)
Income (loss) before income taxes			24.0			(8.3	)			23.9			(68.5	)
Income tax expense (benefit)			5.4			(0.8	)			5.9			(16.8	)
NET INCOME (LOSS)		$	18.6		$	(7.5	)		$	18.0		$	(51.7	)
EARNINGS (LOSS) PER COMMON SHARE:
Basic		$	0.38		$	(0.16	)		$	0.36		$	(1.07	)
Diluted		$	0.38		$	(0.16	)		$	0.36		$	(1.07	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic			48.8			48.6				48.7			48.5
Diluted			49.2			48.6				49.0			48.5

PRELIMINARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)
(Unaudited)

		Nine Months Ended
		March 31,
			2023				2022
OPERATING ACTIVITIES
Net income (loss)		$	18.0			$	(51.7	)
Adjustments to reconcile net income (loss) to net cash used for operating activities:
Depreciation and amortization			97.5				98.5
Acquisition-related contingent liability release			—				(4.7	)
Deferred income taxes			—				(19.0	)
Net pension expense (income)			14.9				(5.5	)
Share-based compensation expense			10.4				8.6
Net loss on disposals of property, plant and equipment			0.7				0.7
Changes in working capital and other:
Accounts receivable			(130.6	)			(29.9	)
Inventories			(213.5	)			(101.4	)
Other current assets			(0.3	)			(12.6	)
Accounts payable			42.0				63.1
Accrued liabilities			8.4				(38.5	)
Pension plan contributions			—				(0.2	)
Other postretirement plan contributions			(2.6	)			(1.2	)
Other, net			(5.1	)			(7.2	)
Net cash used for operating activities			(160.2	)			(101.0	)
INVESTING ACTIVITIES
Purchases of property, plant, equipment and software			(51.5	)			(58.5	)
Proceeds from disposals of property, plant and equipment and assets held for sale			—				1.8
Net cash used for investing activities			(51.5	)			(56.7	)
FINANCING ACTIVITIES
Short-term credit agreement borrowings, net change			3.6				—
Credit agreement borrowings			183.7				—
Credit agreement repayments			(78.7	)			—
Proceeds from issuance of long-term debt, net of offering costs			—				296.6
Payments for debt issue costs			—				(1.1	)
Dividends paid			(29.5	)			(29.4	)
Proceeds from stock options exercised			1.5				—
Withholding tax payments on share-based compensation awards			(3.5	)			(3.2	)
Net cash provided from financing activities			77.1				262.9
Effect of exchange rate changes on cash and cash equivalents			2.7				1.3
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS			(131.9	)			106.5
Cash and cash equivalents at beginning of year			154.2				287.4
Cash and cash equivalents at end of period		$	22.3			$	393.9

PRELIMINARY

CONSOLIDATED BALANCE SHEETS

(in millions)
(Unaudited)

		March 31,				June 30,
			2023				2022
ASSETS
Current assets:
Cash and cash equivalents		$	22.3			$	154.2
Accounts receivable, net			515.5				382.3
Inventories			710.4				496.1
Other current assets			84.4				86.8
Total current assets			1,332.6				1,119.4
Property, plant and equipment, net			1,383.6				1,420.8
Goodwill			241.4				241.4
Other intangibles, net			30.2				35.2
Deferred income taxes			5.3				5.7
Other assets			101.2				109.8
Total assets		$	3,094.3			$	2,932.3
LIABILITIES
Current liabilities:
Short-term credit agreement borrowings		$	108.6			$	—
Accounts payable			288.0				242.1
Accrued liabilities			147.4				133.5
Total current liabilities			544.0				375.6
Long-term debt			692.7				691.8
Accrued pension liabilities			200.9				196.6
Accrued postretirement benefits			78.4				77.4
Deferred income taxes			159.9				162.4
Other liabilities			91.2				98.0
Total liabilities			1,767.1				1,601.8
STOCKHOLDERS’ EQUITY
Common stock			280.3				280.1
Capital in excess of par value			319.9				320.3
Reinvested earnings			1,199.5				1,211.0
Common stock in treasury, at cost			(298.4	)			(307.4	)
Accumulated other comprehensive loss			(174.1	)			(173.5	)
Total stockholders’ equity			1,327.2				1,330.5
Total liabilities and stockholders’ equity		$	3,094.3			$	2,932.3

PRELIMINARY

SEGMENT FINANCIAL DATA

(in millions, except pounds sold)
(Unaudited)

	Three Months Ended								Nine Months Ended
	March 31,								March 31,
		2023				2022				2023				2022
Pounds sold (000):
Specialty Alloys Operations		56,516				49,872				150,522				136,128
Performance Engineered Products		3,232				2,706				8,536				7,854
Intersegment		(2,446	)			(2,838	)			(6,366	)			(7,630	)
Consolidated pounds sold		57,302				49,740				152,692				136,352
Net sales:
Specialty Alloys Operations
Net sales excluding surcharge	$	411.5			$	300.0			$	1,063.3			$	809.8
Surcharge		191.9				118.0				483.3				270.9
Specialty Alloys Operations net sales		603.4				418.0				1,546.6				1,080.7
Performance Engineered Products
Net sales excluding surcharge		103.8				86.4				289.5				243.8
Surcharge		11.3				2.0				25.6				4.9
Performance Engineered Products net sales		115.1				88.4				315.1				248.7
Intersegment
Net sales excluding surcharge		(23.8	)			(17.4	)			(64.8	)			(56.7	)
Surcharge		(4.6	)			—				(4.8	)			(0.1	)
Intersegment net sales		(28.4	)			(17.4	)			(69.6	)			(56.8	)
Consolidated net sales	$	690.1			$	489.0			$	1,792.1			$	1,272.6
Operating income (loss):
Specialty Alloys Operations	$	49.0			$	5.8			$	99.1			$	(20.4	)
Performance Engineered Products		10.2				4.2				25.9				7.8
Corporate		(19.6	)			(8.6	)			(53.1	)			(37.3	)
Intersegment		(0.3	)			(0.3	)			(1.7	)			0.4
Consolidated operating income (loss)	$	39.3			$	1.1			$	70.2			$	(49.5	)

The Company has two reportable segments, Specialty Alloys Operations (“SAO”) and Performance Engineered Products (“PEP”).

The SAO segment is comprised of Carpenter’s major premium alloy and stainless steel manufacturing operations. This includes operations performed at mills primarily in Reading and Latrobe, Pennsylvania and surrounding areas as well as South Carolina and Alabama.

The PEP segment is comprised of the Company’s differentiated operations. This segment includes the Dynamet titanium business, the Carpenter Additive business and the Latrobe and Mexico distribution businesses. The businesses in the PEP segment are managed with an entrepreneurial structure to promote flexibility and agility to quickly respond to market dynamics. It is our belief this model will ultimately drive overall revenue and profit growth. The pounds sold data above for the PEP segment includes only the Dynamet and Additive businesses.

Corporate costs are comprised of executive and director compensation, and other corporate facilities and administrative expenses not allocated to the segments. Also included are items that management considers not representative of ongoing operations and other specifically-identified income or expense items.

The service cost component of net pension expense, which represents the estimated cost of future pension liabilities earned associated with active employees, is included in the operating results of the business segments. The residual net pension expense is comprised of the expected return on plan assets, interest costs on the projected benefit obligations of the plans, and amortization of actuarial gains and losses and prior service costs and is included in other expense (income), net.

PRELIMINARY

NON-GAAP FINANCIAL MEASURES

(in millions, except per share data)
(Unaudited)

		Three Months Ended								Nine Months Ended
		March 31,								March 31,
ADJUSTED OPERATING MARGIN EXCLUDING SURCHARGE REVENUE AND SPECIAL ITEMS			2023				2022				2023				2022
Net sales		$	690.1			$	489.0			$	1,792.1			$	1,272.6
Less: surcharge revenue			198.6				120.0				504.1				275.7
Net sales excluding surcharge revenue		$	491.5			$	369.0			$	1,288.0			$	996.9
Operating income (loss)		$	39.3			$	1.1			$	70.2			$	(49.5	)
Special items:
COVID-19 costs			—				2.0				—				5.3
Acquisition-related contingent liability release			—				(4.7	)			—				(4.7	)
Adjusted operating income (loss)		$	39.3			$	(1.6	)		$	70.2			$	(48.9	)
Operating margin			5.7	%			0.2	%			3.9	%		(3.9)%
Adjusted operating margin excluding surcharge revenue and special items			8.0	%		(0.4)%					5.5	%		(4.9)%

Management believes that removing the impact of raw material surcharge from operating margin provides a more consistent basis for comparing results of operations from period to period, thereby permitting management to evaluate performance and investors to make decisions based on the ongoing operations of the Company. In addition, management believes that excluding the impact of special items from operating margin is helpful in analyzing the operating performance of the Company, as these items are not indicative of ongoing operating performance. Management uses its results excluding these amounts to evaluate its operating performance and to discuss its business with investment institutions, the Company’s board of directors and others.

ADJUSTED EARNINGS PER SHARE EXCLUDING SPECIAL ITEM		Income Before Income Taxes			Income Tax Expense				Net Income			Earnings Per Diluted Share*
Three Months Ended March 31, 2023, as reported		$	24.0		$	(5.4	)		$	18.6		$	0.38
Special item:
None reported			—			—				—			—
Three Months Ended March 31, 2023, as adjusted		$	24.0		$	(5.4	)		$	18.6		$	0.38
* Impact per diluted share calculated using weighted average common shares outstanding of 49.2 million for the three months ended March 31, 2023.

ADJUSTED LOSS PER SHARE EXCLUDING SPECIAL ITEMS		Loss Before Income Taxes				Income Tax Benefit				Net Loss				Loss Per Diluted Share*
Three Months Ended March 31, 2022, as reported		$	(8.3	)		$	0.8			$	(7.5	)		$	(0.16	)
Special items:
COVID-19 costs			2.0				(0.4	)			1.6				0.03
Acquisition-related contingent liability release			(4.7	)			1.1				(3.6	)			(0.07	)
Three Months Ended March 31, 2022, as adjusted		$	(11.0	)		$	1.5			$	(9.5	)		$	(0.20	)
* Impact per diluted share calculated using weighted average common shares outstanding of 48.6 million for the three months ended March 31, 2022.

ADJUSTED EARNINGS PER SHARE EXCLUDING SPECIAL ITEM		Income Before Income Taxes			Income Tax Expense				Net Income			Earnings Per Diluted Share*
Nine Months Ended March 31, 2023, as reported		$	23.9		$	(5.9	)		$	18.0		$	0.36
Special item:
None reported			—			—				—			—
Nine Months Ended March 31, 2023, as adjusted		$	23.9		$	(5.9	)		$	18.0		$	0.36
* Impact per diluted share calculated using weighted average common shares outstanding of 49.0 million for the nine months ended March 31, 2023.

ADJUSTED LOSS PER SHARE EXCLUDING SPECIAL ITEMS		Loss Before Income Taxes				Income Tax Benefit				Net Loss				Loss Per Diluted Share*
Nine Months Ended March 31, 2022, as reported		$	(68.5	)		$	16.8			$	(51.7	)		$	(1.07	)
Special items:
COVID-19 costs			5.3				(1.3	)			4.0				0.08
Acquisition-related contingent liability release			(4.7	)			1.1				(3.6	)			(0.07	)
Nine Months Ended March 31, 2022, as adjusted		$	(67.9	)		$	16.6			$	(51.3	)		$	(1.06	)
* Impact per diluted share calculated using weighted average common shares outstanding of 48.5 million for the nine months ended March 31, 2022.

Management believes that earnings (loss) per share adjusted to exclude the impact of the special items is helpful in analyzing the operating performance of the Company, as these items are not indicative of ongoing operating performance. Management uses its results excluding these amounts to evaluate its operating performance and to discuss its business with investment institutions, the Company’s board of directors and others.

		Three Months Ended								Nine Months Ended
		March 31,								March 31,
ADJUSTED FREE CASH FLOW			2023				2022				2023				2022
Net cash provided from (used for) operating activities		$	4.3			$	35.3			$	(160.2	)		$	(101.0	)
Purchases of property, plant, equipment and software			(20.5	)			(25.1	)			(51.5	)			(58.5	)
Proceeds from disposals of property, plant and equipment and assets held for sale			—				—				—				1.8
Dividends paid			(9.8	)			(9.8	)			(29.5	)			(29.4	)
Adjusted free cash flow		$	(26.0	)		$	0.4			$	(241.2	)		$	(187.1	)

Management believes that the adjusted free cash flow measure provides useful information to investors regarding the Company’s financial condition because it is a measure of cash generated which management evaluates for alternative uses.

PRELIMINARY

SUPPLEMENTAL SCHEDULE

(in millions)
(Unaudited)

		Three Months Ended						Nine Months Ended
		March 31,						March 31,
NET SALES BY END-USE MARKET			2023			2022			2023			2022
End-Use Market Excluding Surcharge Revenue:
Aerospace and Defense		$	241.5		$	152.2		$	625.4		$	421.1
Medical			62.2			46.1			174.7			123.5
Transportation			34.0			32.4			85.0			92.4
Energy			28.6			23.1			69.5			55.3
Industrial and Consumer			95.7			82.0			242.7			214.8
Distribution			29.5			33.2			90.7			89.8
Total net sales excluding surcharge revenue			491.5			369.0			1,288.0			996.9
Surcharge revenue			198.6			120.0			504.1			275.7
Total net sales		$	690.1		$	489.0		$	1,792.1		$	1,272.6

Investor Inquiries:	Media Inquiries:
John Huyette	Heather Beardsley
+1 610-208-2061	+1 610-208-2278
[email protected]	[email protected]