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August 2, 2023 3:55 am

Precision BioSciences to Report Second Quarter Results on August 4, 2023

Precision BioSciences to Report Second Quarter Results on August 4, 2023

DURHAM, N.C.–(BUSINESS WIRE)–
Precision BioSciences, Inc. (Nasdaq: DTIL), a clinical stage gene editing company developing ARCUS®-based in vivo gene editing and ex vivo allogeneic CAR T therapies, today announced that it will publish financial results for the second quarter 2023 and provide a business update on August 4, 2023.

About Precision BioSciences, Inc.

Precision BioSciences, Inc. is a clinical stage biotechnology company dedicated to improving life (DTIL) with its novel and proprietary ARCUS® genome editing platform. ARCUS is a highly specific and versatile genome editing platform that was designed with therapeutic safety, delivery, and control in mind. Using ARCUS, the Company’s pipeline consists of multiple “off-the-shelf” CAR T immunotherapy clinical candidates and several in vivo gene editing therapy candidates designed to cure genetic and infectious diseases where no adequate treatments exist. For more information about Precision BioSciences please visit www.precisionbiosciences.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230802053062/en/

Investor and Media Contact:

Mei Burris

Director, Investor Relations and Finance

[email protected]

KEYWORDS: United States North America North Carolina

INDUSTRY KEYWORDS: Research Infectious Diseases Genetics Clinical Trials Biotechnology General Health Pharmaceutical Health Science Oncology

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August 2, 2023 3:54 am

Littelfuse Reports Second Quarter Results for 2023

Littelfuse Reports Second Quarter Results for 2023

Resilient business model continues to deliver strong year-to-date performance

CHICAGO–(BUSINESS WIRE)–Littelfuse, Inc. (NASDAQ: LFUS), a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world, today reported financial results for the second quarter ended July 1, 2023:

Net sales of $612.0 million were down 1% versus the prior year period, and down 8% organically
GAAP diluted EPS was $2.79; adjusted diluted EPS was $3.12
Cash flow from operations was $98.2 million and free cash flow was $82.4 million
On June 28, the company entered into a purchase agreement to acquire a 200mm wafer fab from Elmos Semiconductor SE, enhancing its power semiconductor capabilities to support long-term business opportunities in high-growth industrial end markets
The company’s Board of Directors approved an 8% increase in the quarterly cash dividend from $0.60 to $0.65; this equates to an annualized dividend of $2.60 per share
On July 28, the company released its 2022 Sustainability Report on littelfuse.com/about-us/sustainability

“We delivered solid results in the second quarter driven by our strong operating fundamentals, within an ongoing dynamic environment,” said Dave Heinzmann, Littelfuse President and Chief Executive Officer. “During the quarter, we secured significant new business in sustainability, connectivity, and safety applications, and continued to advance our strategic investments in high-growth end markets. Our strong overall performance to date, in 2023, reflects the resiliency of our business model. Looking ahead, our diverse technologies and capabilities, and the strength of our execution, continue to position us to deliver on our long-term growth strategy.”

Third Quarter of 2023*

Based on current market conditions, for the third quarter the company expects,

Net sales in the range of $570 to $595 million, adjusted diluted EPS in the range of $2.48 to $2.72 and an adjusted effective tax rate of approximately 19.5%

*Littelfuse provides guidance on a non-GAAP (adjusted) basis. GAAP items excluded from guidance may include the after-tax impact of items including acquisition and integration costs, restructuring, impairment and other charges, certain purchase accounting adjustments, non-operating foreign exchange adjustments and significant and unusual items. These items are uncertain, depend on various factors, and could be material to results computed in accordance with GAAP. Littelfuse is not able to forecast the excluded items in order to provide the most directly comparable GAAP financial measure without unreasonable efforts.

Dividend

The company will pay a cash dividend on its common stock of $0.65 per share on September 7, 2023, to shareholders of record as of August 24, 2023

Conference Call and Webcast Information

Littelfuse will host a conference call on Wednesday, August 2, 2023, at 9:00 a.m. Central Time to discuss the results. The call will be broadcast and available for replay at Littelfuse.com. A slide presentation is available in the Investor Relations section of the company’s website at Littelfuse.com.

About Littelfuse

Littelfuse, Inc. (NASDAQ: LFUS) is a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world. Across more than 20 countries, and with approximately 18,000 global associates, we partner with customers to design and deliver innovative, reliable solutions. Serving over 100,000 end customers, our products are found in a variety of industrial, transportation and electronics end markets – everywhere, every day. Learn more at Littelfuse.com.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995

The statements in this press release that are not historical facts are intended to constitute “forward-looking statements” entitled to the safe-harbor provisions of the Private Securities Litigation Reform Act. Such statements are based on Littelfuse, Inc.’s (“Littelfuse” or the “Company”) current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties, include, but are not limited to, risks and uncertainties relating to general economic conditions; the severity and duration of the COVID-19 pandemic and the measures taken in response thereto and the effects of those items on the company’s business; product demand and market acceptance; the impact of competitive products and pricing; product quality problems or product recalls; capacity and supply difficulties or constraints; coal mining exposures reserves; cybersecurity matters; failure of an indemnification for environmental liability; exchange rate fluctuations; commodity and other raw material price fluctuations; the effect of Littelfuse’s accounting policies; labor disputes; restructuring costs in excess of expectations; pension plan asset returns less than assumed; integration of acquisitions; uncertainties related to political or regulatory changes; and other risks which may be detailed in the company’s Securities and Exchange Commission filings. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated or implied in the forward-looking statements. This release should be read in conjunction with information provided in the financial statements appearing in the company’s Annual Report on Form 10-K for the year ended December 31, 2022. Further discussion of the risk factors of the company can be found under the caption “Risk Factors” in the company’s Annual Report on Form 10-K for the year ended December 31, 2022, and in other filings and submissions with the SEC, each of which are available free of charge on the company’s investor relations website at investor.littelfuse.com and on the SEC’s website at www.sec.gov. These forward-looking statements are made as of the date hereof. The company does not undertake any obligation to update, amend or clarify these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the availability of new information.

Non-GAAP Financial Measures

The information included in this press release includes the non-GAAP financial measures of organic net sales (decline) growth, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, adjusted income taxes, adjusted effective tax rate, free cash flow, net debt, consolidated EBITDA, and consolidated net leverage ratio (as defined in the credit agreement). Many of these non-GAAP financial measures exclude the effect of certain expenses and income not related directly to the underlying performance of our fundamental business operations.

A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is set forth in the attached schedules.

The company believes that organic net sales (decline) growth, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, adjusted income taxes, and adjusted effective tax rate provide useful information to investors regarding its operational performance because they enhance an investor’s overall understanding of our core financial performance and facilitate comparisons to historical results of operations, by excluding items that are not related directly to the underlying performance of our fundamental business operations or were not part of our business operations during a comparable period. The company believes that free cash flow is a useful measure of its ability to generate cash. The company believes that net debt, consolidated EBITDA, and consolidated net leverage ratio are useful measures of its credit position. The company believes that all of these non-GAAP financial measures are commonly used by financial analysts and others in the industries in which we operate, and thus further provide useful information to investors. Management additionally uses these measures when assessing the performance of the business and for business planning purposes. Note that our definitions of these non-GAAP financial measures may differ from those terms as defined or used by other companies.

LFUS-F

LITTELFUSE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

	(Unaudited)
(in thousands)	July 1, 2023		December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	480,743	$	562,588
Short-term investments		84		84
Trade receivables, less allowances of $86,968 and $83,562 at July 1, 2023 and December 31, 2022, respectively		339,637		306,578
Inventories		527,151		547,690
Prepaid income taxes and income taxes receivable		3,407		7,215
Prepaid expenses and other current assets		90,324		87,641
Total current assets		1,441,346		1,511,796
Net property, plant, and equipment		481,567		481,110
Intangible assets, net of amortization		628,333		593,970
Goodwill		1,289,188		1,186,922
Investments		25,248		24,121
Deferred income taxes		13,394		14,367
Right of use lease assets, net		56,379		57,382
Other long-term assets		40,259		34,066
Total assets	$	3,975,714	$	3,903,734
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	173,353	$	208,571
Accrued liabilities		143,843		187,057
Accrued income taxes		41,049		41,793
Current portion of long-term debt		137,435		134,874
Total current liabilities		495,680		572,295
Long-term debt, less current portion		864,223		866,623
Deferred income taxes		104,121		100,230
Accrued post-retirement benefits		30,038		28,037
Non-current operating lease liabilities		43,571		45,661
Other long-term liabilities		80,830		79,510
Total equity		2,357,251		2,211,378
Total liabilities and equity	$	3,975,714	$	3,903,734

LITTELFUSE, INC.
CONDENSEDCONSOLIDATED STATEMENTS OF NET INCOME
(Unaudited)

	Three Months Ended					Six Months Ended
(in thousands, except per share data)	July 1, 2023			July 2, 2022		July 1, 2023			July 2, 2022
Net sales	$	611,997		$	618,436	$	1,221,779		$	1,241,766
Cost of sales		377,165			355,465		741,990			720,199
Gross profit		234,832			262,971		479,789			521,567

Selling, general, and administrative expenses		94,543			93,093		182,853			168,601
Research and development expenses		24,496			23,488		51,786			43,044
Amortization of intangibles		16,885			11,592		33,751			24,316
Restructuring, impairment, and other charges		6,855			634		8,705			852
Total operating expenses		142,779			128,807		277,095			236,813
Operating income		92,053			134,164		202,694			284,754

Interest expense		10,056			4,368		19,702			8,670
Foreign exchange (gain) loss		(1,404	)		14,124		(3,079	)		21,860
Other (income) expense, net		(2,050	)		6,060		(8,283	)		10,487
Income before income taxes		85,451			109,612		194,354			243,737
Income taxes		15,380			22,596		35,538			39,203
Net income	$	70,071		$	87,016	$	158,816		$	204,534

Earnings per share:
Basic	$	2.82		$	3.52	$	6.40		$	8.28
Diluted	$	2.79		$	3.48	$	6.33		$	8.19

Weighted-average shares and equivalent shares outstanding:
Basic		24,839			24,734		24,810			24,712
Diluted		25,095			24,985		25,078			24,986

Comprehensive income	$	55,160		$	55,667	$	157,188		$	170,982

LITTELFUSE, INC.
CONDENSEDCONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	Six Months Ended
(in thousands)	July 1, 2023			July 2, 2022
OPERATING ACTIVITIES
Net income	$	158,816		$	204,534
Adjustments to reconcile net income to net cash provided by operating activities:		83,347			114,659
Changes in operating assets and liabilities:
Trade receivables		(30,562	)		(76,807	)
Inventories		26,638			(70,285	)
Accounts payable		(33,796	)		9,153
Accrued liabilities and income taxes		(57,790	)		(23,107	)
Prepaid expenses and other assets		4,980			7,175
Net cash provided by operating activities		151,633			165,322

INVESTING ACTIVITIES
Acquisitions of businesses, net of cash acquired		(158,260	)		(9,758	)
Purchases of property, plant, and equipment		(41,501	)		(56,151	)
Net proceeds from sale of property, plant and equipment, and other		741			542
Net cash used in investing activities		(199,020	)		(65,367	)

FINANCING ACTIVITIES
Net payments of credit facility		(3,750	)		275,000
Cash dividends paid		(29,790	)		(26,201	)
All other cash provided by (used in) financing activities		854			(3,782	)
Net cash (used in) provided by financing activities		(32,686	)		245,017
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(1,772	)		(15,511	)
(Decrease) increase in cash, cash equivalents, and restricted cash		(81,845	)		329,461
Cash, cash equivalents, and restricted cash at beginning of period		564,939			482,836
Cash, cash equivalents, and restricted cash at end of period	$	483,094		$	812,297

LITTELFUSE, INC.
NET SALES AND OPERATING INCOME BY SEGMENT
(Unaudited)

	Second Quarter								Year-to-Date
(in thousands)	2023			2022			% Growth / (Decline)		2023			2022			% Growth /(Decline)
Net sales
Electronics	$	350,147		$	358,176		(2.2	)%	$	708,740		$	723,997		(2.1	)%
Transportation		172,048			182,027		(5.5	)%		338,689			366,531		(7.6	)%
Industrial		89,802			78,233		14.8	%		174,350			151,238		15.3	%
Total net sales	$	611,997		$	618,436		(1.0	)%	$	1,221,779		$	1,241,766		(1.6	)%

Operating income
Electronics	$	79,844		$	105,958		(24.6	)%	$	170,006		$	226,535		(25.0	)%
Transportation		7,789			18,309		(57.5	)%		16,321			44,617		(63.4	)%
Industrial		15,108			15,285		(1.2	)%		32,249			27,790		16.0	%
Other(a)		(10,688	)		(5,388	)	N.M.			(15,882	)		(14,188	)	N.M.
Total operating income	$	92,053		$	134,164		(31.4	)%	$	202,694		$	284,754		(28.8	)%
Operating Margin		15.0	%		21.7	%				16.6	%		22.9	%

Interest expense		10,056			4,368					19,702			8,670
Foreign exchange (gain) loss		(1,404	)		14,124					(3,079	)		21,860
Other (income) expense, net		(2,050	)		6,060					(8,283	)		10,487
Income before income taxes	$	85,451		$	109,612		(22.0	)%	$	194,354		$	243,737		(20.3	)%

(a) “other” typically includes non-GAAP adjustments such as acquisition-related and integration costs, purchase accounting inventory adjustments and restructuring and impairment charges. (See Supplemental Financial Information for details.)

N.M. – Not meaningful

	Second Quarter						Year-to-Date
(in thousands)	2023		2022		% (Decline)		2023		2022		% Growth /(Decline)
Operating Margin
Electronics	22.8	%	29.6	%	(6.8	)%	24.0	%	31.3	%	(7.3	)%
Transportation	4.5	%	10.1	%	(5.6	)%	4.8	%	12.2	%	(7.4	)%
Industrial	16.8	%	19.5	%	(2.7	)%	18.5	%	18.4	%	0.1	%

LITTELFUSE, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(In millions of USD except per share amounts – unaudited)

Non-GAAP EPS reconciliation
	Q2-23		Q2-22		YTD-23		YTD-22
GAAP diluted EPS	$	2.79	$	3.48	$	6.33	$	8.19
EPS impact of Non-GAAP adjustments (below)		0.33		0.78		0.42		1.06
Adjusted diluted EPS	$	3.12	$	4.26	$	6.75	$	9.25

Non-GAAP adjustments – (income) / expense
	Q2-23			Q2-22			YTD-23			YTD-22
Acquisition-related and integration costs (a)	$	3.8		$	4.8		$	7.2		$	8.6
Purchase accounting inventory adjustments (b)		—			—			—			4.8
Restructuring, impairment and other charges (c)		6.9			0.6			8.7			0.8
Non-GAAP adjustments to operating income		10.7			5.4			15.9			14.2
Other income, net (d)		—			(0.5	)		(0.2	)		(0.5	)
Non-operating foreign exchange (gain) loss		(1.4	)		14.1			(3.1	)		21.9
Non-GAAP adjustments to income before income taxes		9.3			19.0			12.6			35.6
Income taxes (e)		1.0			(0.4	)		1.9			9.1
Non-GAAP adjustments to net income	$	8.3		$	19.4		$	10.7		$	26.5

Total EPS impact	$	0.33		$	0.78		$	0.42		$	1.06

Adjusted operating margin / Adjusted EBITDA reconciliation
	Q2-23			Q2-22			YTD-23			YTD-22
Net sales	$	612.0		$	618.4		$	1,221.8		$	1,241.8
GAAP operating income	$	92.1		$	134.2		$	202.7		$	284.8
Add back non-GAAP adjustments		10.7			5.4			15.9			14.2
Adjusted operating income	$	102.8		$	139.6		$	218.6		$	299.0
Adjusted operating margin		16.8	%		22.6	%		17.9	%		24.1	%
Add back amortization		16.9			11.6			33.8			24.3
Add back depreciation		18.0			15.7			35.6			31.3
Adjusted EBITDA	$	137.7		$	166.9		$	288.0		$	354.6
Adjusted EBITDA margin		22.5	%		27.0	%		23.6	%		28.6	%

Adjusted EBITDA by Segment	Q2-23									Q2-22
	Electronics			Transportation			Industrial			Electronics			Transportation			Industrial
GAAP operating income	$	79.8		$	7.8		$	15.1		$	106.0		$	18.3		$	15.3
Add:
Add back amortization		10.1			4.2			2.7			6.1			4.3			1.2
Add back depreciation		9.7			6.9			1.4			8.4			6.3			1.0
Adjusted EBITDA	$	99.6		$	18.9		$	19.2		$	120.5		$	28.9		$	17.5
Adjusted EBITDA Margin		28.5	%		11.0	%		21.4	%		33.6	%		15.9	%		22.3	%

Adjusted EBITDA by Segment	YTD-23									YTD-22
	Electronics			Transportation			Industrial			Electronics			Transportation			Industrial
GAAP operating income	$	170.0		$	16.3		$	32.2		$	226.5		$	44.6		$	27.8
Add:
Add back amortization		20.3			8.6			4.9			12.8			9.0			2.5
Add back depreciation		19.5			13.6			2.5			17.1			12.3			1.9
Adjusted EBITDA	$	209.9		$	38.5		$	39.6		$	256.4		$	65.9		$	32.2
Adjusted EBITDA Margin		29.6	%		11.4	%		22.8	%		35.4	%		18.0	%		21.3	%

Net sales reconciliation	Q2-23 vs. Q2-22
	Electronics		Transportation		Industrial		Total
Net sales (decline) growth	(2	)%	(5	)%	15	%	(1	)%
Less:
Acquisitions	11	%	1	%	6	%	7	%
FX impact	—	%	—	%	—	%	—	%
Organic net sales (decline) growth	(13	)%	(6	)%	9	%	(8	)%

Net sales reconciliation	YTD-23 vs. YTD-22
	Electronics		Transportation		Industrial		Total
Net sales (decline) growth	(2	)%	(8	)%	15	%	(2	)%
Less:
Acquisitions	12	%	—	%	5	%	7	%
FX impact	(1	)%	(1	)%	(1	)%	(1	)%
Organic net sales (decline) growth	(13	)%	(7	)%	11	%	(8	)%

Income tax reconciliation
	Q2-23			Q2-22			YTD-23			YTD-22
Income taxes	$	15.4		$	22.6		$	35.5		$	39.2
Effective rate		18.0	%		20.6	%		18.3	%		16.1	%
Non-GAAP adjustments – income taxes		1.0			(0.4	)		1.9			9.1
Adjusted income taxes	$	16.4		$	22.2		$	37.4		$	48.3
Adjusted effective rate		17.4	%		17.3	%		18.1	%		17.3	%
Free cash flow reconciliation
	Q2-23			Q2-22			YTD-23			YTD-22
Net cash provided by operating activities	$	98.2		$	113.6		$	151.6		$	165.3
Less: Purchases of property, plant and equipment		(15.8	)		(26.4	)		(41.5	)		(56.2	)
Free cash flow	$	82.4		$	87.2		$	110.1		$	109.1

Consolidated Total Debt	As of July 1, 2023
Consolidated Total Debt	$	1,001.7
Unamortized debt issuance costs		4.3
Consolidated funded indebtedness		1,006.0
Cash held in U.S. (up to $400 million)		127.4
Net debt	$	878.6

Consolidated EBITDA	Twelve Months Ended July 1, 2023
Net Income	$	327.4
Interest expense		37.2
Income taxes		66.1
Depreciation		69.3
Amortization		65.1
Non-cash additions:
Stock-based compensation expense		24.6
Purchase accounting inventory step-up charge		10.8
Unrealized loss on investments		0.8
Impairment charges		8.5
Other		19.4
Consolidated EBITDA (1)	$	629.2

Consolidated Net Leverage Ratio (as defined in the Credit Agreement) *	1.4x

* Our Credit Agreement and Private Placement Note with maturities ranging from 2023 to 2032, contain financial ratio covenants providing that if, as of the last day of each fiscal quarter, the Consolidated Net Leverage ratio at such time for the then most recently concluded period of four consecutive fiscal quarters of the Company exceeds 3.50:1.00, an Event of Default (as defined in the Credit Agreement and Private Placement Senior Notes) is triggered.

The Credit Agreement and Private Placement Senior Notes were amended in Q2 2022 and now allow for the addition of acquisition and integration costs up to 15% of Consolidated EBITDA and the netting of up to $400M of Available Cash (Cash held by US Subsidiaries).

(1) Represents Consolidated EBITDA as defined in our Credit Agreement and Private Placement Senior Notes and is calculated using the most recently concluded period of four consecutive quarters.

Note: Total will not always foot due to rounding.

(a) reflected in selling, general and administrative expenses (“SG&A”).

(b) reflected in cost of sales.

(d) reflected YTD gain of $0.2 million from the sale of a building within the Electronics segment in the first quarter of 2023. 2022 amount included $0.5 million gain from the sale of a building within Transportation segment.

(e) reflected the tax impact associated with the non-GAAP adjustments, and 2022 amount includes the one-time net benefit of $7.2 million that resulted from the dissolution of one of the Company’s affiliates.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230801001781/en/

Trisha Tuntland

Head of Investor Relations

(773) 628-2163

KEYWORDS: Illinois United States North America

INDUSTRY KEYWORDS: Automotive Manufacturing Semiconductor Manufacturing Mobile/Wireless Technology

MEDIA:

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August 2, 2023 3:54 am

Claros Mortgage Trust, Inc. Reports Second Quarter 2023 Results

Claros Mortgage Trust, Inc. Reports Second Quarter 2023 Results

NEW YORK–(BUSINESS WIRE)–
Claros Mortgage Trust, Inc. (NYSE: CMTG) (the “Company” or “CMTG”) today reported its financial results for the quarter ended June 30, 2023. The Company’s second quarter 2023 GAAP net income was $4.3 million, or $0.02 per diluted share of common stock. Distributable Earnings (a non-GAAP financial measure defined below), prior to realized gain and principal charge-off, was $50.3 million, or $0.35 per diluted share of common stock. Distributable Loss was ($14.5 million), or ($0.10) per diluted share of common stock.

Second Quarter 2023 Highlights

Current loan portfolio:
- $7.5 billion portfolio with a weighted average all-in yield of 9.2%
- Multi-family exposure of 41%
Received loan repayment proceeds of $49 million.
Funded approximately $162 million of follow-on fundings related to the existing loan portfolio via financings from three lenders.
Paid a cash dividend of $0.37 per share of common stock for the second quarter of 2023.
On June 30, 2023, acquired a mixed-use property located in New York City through an assignment-in-lieu of foreclosure, resulting in a principal charge-off of approximately $67 million.

“Our team continues to proactively manage our portfolio amidst dynamic capital market conditions,” said Richard Mack, Chief Executive Officer and Chairman of CMTG. “We have strong conviction in our portfolio assets, underscored by our Sponsor’s deep experience as an owner, operator and developer of multiple real estate asset classes. This expertise positions us well to navigate the current environment and strategically capitalize on opportunities in both the near and longer term.”

Teleconference Details

A conference call to discuss CMTG’s financial results will be held on Wednesday, August 2, 2023, at 11:00 a.m. ET. The conference call may be accessed by dialing 1-833-470-1428 and referencing the Claros Mortgage Trust, Inc. teleconference call; access code 019557.

The conference call will also be broadcast live over the internet and may be accessed through the Investor Relations section of CMTG’s website at www.clarosmortgage.com.The earnings presentation accompanying this release and containing supplemental information about the Company’s financial results may also be accessed through this website in advance of the call.

For those unable to listen to the live broadcast, a webcast replay will be available on CMTG’s website or by dialing 1-866-813-9403, access code 205734, beginning approximately two hours after the event.

About Claros Mortgage Trust, Inc.

CMTG is a real estate investment trust that is focused primarily on originating senior and subordinate loans on transitional commercial real estate assets located in major markets across the U.S. CMTG is externally managed and advised by Claros REIT Management LP, an affiliate of Mack Real Estate Credit Strategies, L.P. Additional information can be found on the Company’s website at www.clarosmortgage.com.

Forward-Looking Statements

Certain statements contained in this press release may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. CMTG intends for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in those acts. Such forward-looking statements can generally be identified by CMTG’s use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” “seek,” “objective,” “goal,” “strategy,” “plan,” “focus,” “priority,” “should,” “could,” “potential,” “possible,” “look forward,” “optimistic,” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Such statements are subject to certain risks and uncertainties, including known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of CMTG’s performance in future periods. Except as required by law, CMTG does not undertake any obligation to update or revise any forward-looking statements contained in this release.

Definitions

Distributable Earnings:

Distributable Earnings is a non-GAAP measure used to evaluate the Company’s performance excluding the effects of certain transactions, non-cash items and GAAP adjustments, as determined by our Manager, which the Company believes are not necessarily indicative of the Company’s current performance and operations. Distributable Earnings is a non-GAAP measure, which the Company defines as net income as determined in accordance with GAAP, excluding (i) non-cash stock-based compensation expense, (ii) real estate depreciation and amortization, (iii) any unrealized gains or losses from mark-to-market valuation changes (other than permanent impairments) that are included in net income for the applicable period, (iv) one-time events pursuant to changes in GAAP and (v) certain non-cash items, which in the judgment of the Company’s Manager, should not be included in Distributable Earnings. Furthermore, the Company presents Distributable Earnings prior to realized gains and losses, which includes principal charge-offs, as the Company believes these non-recurring items are not necessarily indicative of the Company’s current performance and operations.

The Company believes that Distributable Earnings and Distributable Earnings prior to realized gains and losses provide meaningful information to consider in addition to the Company’s net income and cash flows from operating activities determined in accordance with GAAP. The Company believes these metrics help it to evaluate the Company’s performance excluding the effects of certain transactions, non-cash items and GAAP adjustments, as determined by the Company’s Manager, that it believes are not necessarily indicative of the Company’s current performance and operations. Distributable Earnings and Distributable Earnings prior to realized gains and losses do not represent net income or cash flows from operating activities and should not be considered as an alternative to GAAP net income, an indication of the Company’s cash flows from operating activities, a measure of the Company’s liquidity or an indication of funds available for the Company’s cash needs. In addition, the Company’s methodology for calculating Distributable Earnings and Distributable Earnings prior to realized gains and losses may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures and, accordingly, the Company’s reported Distributable Earnings and Distributable Earnings prior to realized gains and losses may not be comparable to the Distributable Earnings and Distributable Earnings prior to realized gains and losses reported by other companies.

In order to maintain the Company’s status as a REIT, the Company is required to distribute at least 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gain, as dividends. Distributable Earnings, Distributable Earnings prior to realized gains and losses, and other similar measures, have historically been a useful indicator of mortgage REITs’ ability to cover their dividends, and to mortgage REITs themselves in determining the amount of any dividends. Distributable Earnings and Distributable Earnings prior to realized gains and losses are key factors considered by the board of directors in setting the dividend and as such the Company believes Distributable Earnings and Distributable Earnings prior to realized gains and losses are useful to investors. Accordingly, the Company believes providing these metrics on a supplemental basis to the Company’s net income as determined in accordance with GAAP is helpful to its stockholders in assessing the overall performance of its business.

While Distributable Earnings excludes the impact of the Company’s provision for current expected credit loss reserves, loan losses are charged off and recognized through Distributable Earnings when deemed non-recoverable. Non-recoverability is determined (i) upon the resolution of a loan (i.e., when the loan is repaid, fully or partially, or when we acquire title in the case of foreclosure, deed-in-lieu of foreclosure, or assignment-in-lieu of foreclosure), or (ii) with respect to any amount due under any loan, when such amount is determined to be non-collectible.

Claros Mortgage Trust, Inc. Reconciliation of Distributable Earnings (Loss) to Net Income Attributable to Common Stock (Amounts in thousands, except share and per share data)
	Three Months Ended
	June 30, 2023			March 31, 2023
Net income attributable to common stock:	$	4,253		$	36,678
Adjustments:
Non-cash stock-based compensation expense		4,395			3,366
Provision for (reversal of) current expected credit loss reserve		41,476			(3,239	)
Depreciation expense		2,092			2,058
Unrealized loss on interest rate cap		259			1,404
Realized gain on extinguishment of debt		(2,217	)		–
Distributable Earnings prior to realized gain and principal charge-off	$	50,258		$	40,267
Realized gain on extinguishment of debt		2,217			–
Principal charge-off from assignment-in-lieu of foreclosure		(66,935	)		–
Distributable (Loss) Earnings	$	(14,460	)	$	40,267
Weighted average diluted shares – Distributable Earnings		141,648,701			140,568,979
Diluted Distributable Earnings per share prior to realized gain and principal charge-off	$	0.35		$	0.29
Diluted Distributable (Loss) Earnings per share	$	(0.10	)	$	0.29

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Investor Relations:

Claros Mortgage Trust, Inc.

Anh Huynh

212-484-0090

[email protected]

Media Relations:

Financial Profiles

Kelly McAndrew

203-613-1552

[email protected]

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Commercial Building & Real Estate Construction & Property

MEDIA:

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August 2, 2023 3:53 am

Douglas Emmett Releases Second Quarter 2023 Earnings Results

Douglas Emmett Releases Second Quarter 2023 Earnings Results

SANTA MONICA, Calif.–(BUSINESS WIRE)–
Douglas Emmett, Inc. (NYSE: DEI), a real estate investment trust (REIT), has released its Second Quarter 2023 Earnings Results and Operating Information package by posting it to the investor relations section of its website at www.douglasemmett.com/investors.

As previously announced, Jordan Kaplan, CEO, Peter Seymour, CFO, Kevin Crummy, CIO, and Stuart McElhinney, Vice President Investor Relations, will host a live conference call to discuss Douglas Emmett’s financial results at 2:00 pm Eastern Time (11:00 am Pacific Time) on Wednesday, August 2, 2023. Interested parties can listen to the call via the following:

INTERNET: Go to www.douglasemmett.com/investors at least fifteen minutes prior to the start time of the call in order to register, download and install any necessary audio software.

PHONE: 888-349-0488 (U.S.) or 412-542-4156 (International). Please ask to join the Douglas Emmett call.

REPLAY: A rebroadcast of the live call will be available for 90 days on our website at www.douglasemmett.com/investors

About Douglas Emmett, Inc.

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities. Please visit our website at www.douglasemmett.com for more information about Douglas Emmett.

Safe Harbor Statement

Except for the historical facts, the statements in this press release regarding Douglas Emmett’s business activities are forward-looking statements based on the beliefs of, assumptions made by, and information currently available to us about known and unknown risks, trends, uncertainties and factors that are beyond our control or ability to predict. Although we believe that our assumptions are reasonable, they are not guarantees of future performance and some will inevitably prove to be incorrect. As a result, our actual future results can be expected to differ from our expectations, and those differences may be material. Accordingly, investors should use caution in relying on forward-looking statements to anticipate future results or trends. For a discussion of some of the risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in our Annual Report on Form 10-K for 2021, filed with the U.S. Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230801920454/en/

Stuart McElhinney, Vice President – Investor Relations

310.255.7751 [email protected]

KEYWORDS: United States North America California

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

MEDIA:

August 2, 2023 3:53 am

Southland Schedules Second Quarter 2023 Conference Call

Southland Schedules Second Quarter 2023 Conference Call

GRAPEVINE, Texas–(BUSINESS WIRE)–
Southland Holdings, Inc. (NYSE American: SLND and SLND WS) (“Southland”), a leading provider of specialized infrastructure construction services, announced today that it will release its second quarter 2023 results on Form 10-Q on Monday, August 14, 2023, after the market closes.

Southland will also host a conference call at 10:00 a.m. Eastern Time on Tuesday, August 15, 2023. The call may be accessed here, or at www.southlandholdings.com. Following the conference call, a replay will be available on Southland’s website.

About Southland

Southland is a leading provider of specialized infrastructure construction services. With roots dating back to 1900, Southland and its subsidiaries form one of the largest infrastructure construction companies in North America, with experience throughout the world. The company serves the bridges, tunneling, communications, transportation and facilities, marine, steel structures, water and wastewater treatment, and water pipeline end markets. Southland is headquartered in Grapevine, Texas.

For more information, please visit Southland’s website at www.southlandholdings.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230801932594/en/

Cody Gallarda

EVP, Chief Financial Officer

[email protected]

Alex Murray

Corporate Development & Investor Relations

[email protected]

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Architecture Utilities Other Construction & Property Energy Construction & Property Building Systems Urban Planning

MEDIA:

August 2, 2023 3:53 am

Brookfield Real Assets Income Fund Inc. Announces Portfolio Manager Update Webcast

NEW YORK, Aug. 01, 2023 (GLOBE NEWSWIRE) — Brookfield Public Securities Group LLC (“PSG”) will host a webcast for Brookfield Real Assets Income Fund Inc. (NYSE: RA) (the “Fund”) on Monday, August 7, 2023 at 4:30pm ET. PSG will provide an update on the Fund and on general market conditions.

There will be an opportunity to ask questions about the Fund during the call. Questions may also be submitted ahead of the call by sending an e-mail to [email protected].

Registration and Webcast Link: https://event.webcasts.com/starthere.jsp?ei=1625434&tp_key=b8717848c4

Audio Only Dial-In: Audience Listen by Phone: +1 323-794-2423 or 888-394-8218
Participant Code (required): 8377782

It is not necessary to dial into the audio conference, unless you are unable to join via the webcast URL.

A replay will be available via this link shortly following the webcast. A transcript of the call will also be available by calling 855-777-8001 or by sending an e-mail request to the Fund at [email protected].

Brookfield Public Securities Group LLC (“Public Securities Group” or “PSG”) is a Delaware limited liability company and an indirect wholly owned subsidiary of Brookfield Asset Management ULC, an unlimited liability company formed under the laws of British Columbia, Canada. Brookfield Corporation holds a 75% interest in Brookfield Asset Management ULC, while Brookfield Asset Management Ltd. (“Brookfield Asset Management”), holds a 25% interest in Brookfield Asset Management ULC. Brookfield Asset Management is a leading global alternative asset manager with approximately US$825 billion of assets under management as of March 31 ,2023.

PSG is an SEC-registered investment adviser and represents the Public Securities platform of Brookfield Asset Management Ltd., providing global listed real assets strategies including real estate equities, infrastructure equities, multi-strategy real asset solutions and real asset debt. With over US$20 billion of assets under management as of June 30, 2023, PSG manages separate accounts, registered funds and opportunistic strategies for institutional and individual clients, including financial institutions, public and private pension plans, insurance companies, endowments and foundations, sovereign wealth funds and high net worth investors. For more information, go to https://publicsecurities.brookfield.com/.

Brookfield Real Assets Income Fund Inc. is managed by PSG. The Fund uses its website as a channel of distribution of material information about the Fund. Financial and other material information regarding the Fund is routinely posted on and accessible at https://publicsecurities.brookfield.com/.

COMPANY CONTACT

Brookfield Real Assets Income Fund Inc.

Brookfield Place
225 Liberty Street, 43rd Floor
New York, NY 10281-1048
(855) 777-8001
[email protected]

Investing involves risk; principal loss is possible. Past performance is not a guarantee of future results.

Quasar Distributors, LLC, provides filing administration for Brookfield Real Assets Income Fund Inc.

August 2, 2023 3:52 am

Fiserv Appoints Charlotte Yarkoni to Board of Directors

Fiserv Appoints Charlotte Yarkoni to Board of Directors

BROOKFIELD, Wis.–(BUSINESS WIRE)–Fiserv, Inc. (NYSE: FI), a leading global provider of payments and financial services technology solutions, today announced the appointment of Charlotte Yarkoni to its board of directors. Yarkoni is a proven technology leader with an extensive background in cloud-based applications who has held executive leadership roles at both public and privately held technology firms.

Yarkoni joined Microsoft Corporation in 2016 and has served as President of Commerce, Ecosystems, Cloud & AI since 2022. In this role, she is responsible for driving accelerated cloud adoption and end-to-end customer and partner success for startups, enterprises, partners, and students. Prior to joining Microsoft, Yarkoni served as President of Telstra Software Group, a strategic global software business where she led the strategy and development of specific software competencies across the company. Her background also includes senior leadership roles at EMC and VMWare and as CEO of a tech startup.

“Charlotte brings valuable perspectives and further enhances the collective experiences on the Board to advance our strategic priorities,” said Frank Bisignano, Chairman of the Board of Directors of Fiserv. “Her extensive background in cloud-based applications, AI, and business, and her commitment to enabling customer success, will inform our focus on innovation, talent, and investment.”

In a world moving faster than ever before, Fiserv helps clients deliver solutions in step with the way people live and work today – financial services at the speed of life. Learn more at fiserv.com.

About Fiserv

Fiserv, Inc. (NYSE: FI), a Fortune 500 company, aspires to move money and information in a way that moves the world. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and the Clover® cloud-based point-of-sale and business management platform. Fiserv is a member of the S&P 500® Index and one of Fortune^® World’s Most Admired Companies^™. Visit fiserv.com and follow on social media for more information and the latest company news.

FISV-G

View source version on businesswire.com: https://www.businesswire.com/news/home/20230801850572/en/

Media Relations:

Ann S. Cave

Vice President, External Communications

Fiserv, Inc.

678-325-9435

[email protected]

Additional Contact:

Julie Chariell

Investor Relations

Fiserv, Inc.

212-515-0278

[email protected]

KEYWORDS: Wisconsin United States North America

INDUSTRY KEYWORDS: Professional Services Payments Data Management Technology Software Fintech Banking

MEDIA:

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August 2, 2023 3:52 am

W&T Offshore Announces Second Quarter 2023 Results

HOUSTON, Aug. 01, 2023 (GLOBE NEWSWIRE) — W&T Offshore, Inc. (NYSE: WTI) (“W&T” or the “Company”) today reported operational and financial results for the second quarter of 2023. This press release includes non-GAAP financial measures, including Adjusted Net Income (Loss), Adjusted EBITDA, Free Cash Flow, Net Debt and PV-10, which are described and reconciled to the most comparable GAAP measures below in the accompanying tables under “Non-GAAP Information.”

Key highlights for the second quarter of 2023 and through the date of this press release include:

Increased second quarter 2023 production by 14% over production in the first quarter 2023 to 37.0 thousand barrels of oil equivalent per day (“MBoe/d”) (50% liquids), or 3.4 million barrels of oil equivalent (“MMBoe”);
- Production was at the midpoint of guidance and recovered from first quarter 2023 planned and unplanned downtime;
Reported a net loss of $12.1 million, or $0.08 per diluted share in the second quarter of 2023;
- Adjusted Net Loss totaled $12.4 million, or $0.08 per share in the second quarter of 2023, which excludes the net unrealized gain on outstanding derivative contracts and non-recurring costs related to IT services transition;
Generated Adjusted EBITDA of $38.8 million for the second quarter of 2023;
Produced net cash from operating activities of $26.2 million and Free Cash Flow of $9.7 million for the second quarter of 2023, the 22^nd consecutive quarter of positive Free Cash Flow;
- Continued the amortization of the non-recourse Mobile Bay term loan and repaid an additional $9.6 million in second quarter 2023;
Maintained strong cash and cash equivalents of $171.6 million at June 30, 2023;
Reported Net Debt of $231.9 million as of June 30, 2023, which is down substantially from Net Debt of $331.4 million a year ago;
Continued to maintain a low leverage profile with Net Debt to trailing twelve months (“TTM”) Adjusted EBITDA of 0.9 times;
Appointed Sameer Parasnis as Executive Vice President and Chief Financial Officer in July 2023;
Was awarded two shallow water blocks, Eugene Island South Addition block 371 and Eugene Island South Addition block 387 in the recent Gulf of Mexico (“GOM”) Lease Sale 259 in March 2023. These two blocks cover a total of approximately 10,000 gross acres; and
Reported mid-year SEC proved reserves, based on a reserve report prepared by Netherland, Sewell and Associates, Inc. (“NSAI”) using SEC pricing, of 157.7 MMBoe, and the present value of those SEC proved reserves discounted at 10% (“PV-10”) was $2.1 billion.

Tracy W. Krohn, W&T’s Board Chair and Chief Executive Officer, commented, “Our second quarter 2023 production volumes recovered from first quarter downtime and were up 14% over first quarter 2023 to 37.0 Mboe per day, which resulted in a good quarter of positive operational and financial results. Despite weaker commodity prices, we continued to generate meaningful Adjusted EBITDA and Free Cash Flow with Adjusted EBITDA of $38.8 million in the second quarter and positive Free Cash Flow of $9.7 million, marking the 22^nd consecutive quarter of positive Free Cash Flow. In early 2023 we strengthened our balance sheet by issuing $275 million in new 2026 Senior Second Lien Notes, and used the proceeds along with our considerable cash position to repurchase all $552.5 million principal amount of the outstanding 2023 Senior Second Lien Notes. The benefits were seen in the second quarter with our significantly lower interest expense. We maintained our strong cash and cash equivalents position at $171.6 million and our Net Debt to Adjusted EBITDA ratio remains low at 0.9 times. Operationally, we continued our successful workover program and were pleased to recently be awarded the two leases on which we were high bidders in the GOM lease sale back in March.”

Mr. Krohn continued, “In early July we appointed Sameer Parasnis as our new Chief Financial Officer and welcomed him to our senior leadership team. Sameer has served as a trusted financial advisor for many years, including on key strategic initiatives like our drilling joint venture, corporate debt refinancing, non-recourse term loan financing and our opportunistic At-The-Market equity offering in 2022. We are confident that his extensive experience with our business, energy markets and our leadership team will greatly benefit W&T and our shareholders.”

Mr. Krohn concluded, “With our financial flexibility and strong liquidity position, we believe we are very well positioned to take advantage of potential acquisitions that may present themselves in the near term and poised to continue delivering on our strategic vision. Our management team is closely aligned with our shareholders through our sizeable stock ownership position. We remain committed to enhancing shareholder value through a proven strategy focused on free cash flow generation and operational excellence, which we believe positions us well for the future.”

Production, Prices, and Revenue: Production for the second quarter of 2023 was 37.0 MBoe/d, which was at the midpoint of the Company’s guidance range provided for the quarter. This represented an increase of 14% from 32.5 Mboe/d for the first quarter of 2023 and a decrease of 13% from 42.4 MBoe/d for the corresponding period in 2022. The increase in production compared to the first quarter of 2023 was primarily driven by recovery from first quarter 2023 unplanned downtime at non-operated fields and extended planned downtime associated with a maintenance project at the Company’s Mobile Bay onshore treatment facility to properly maintain, inspect and clean out process vessels in the plant as well as pipeline maintenance, which shut in production at the Mobile Bay field for 35 days. Second quarter 2023 production was comprised of 13.8 MBbl/d of oil (37%), 4.9 MBbl/d of natural gas liquids (“NGLs”) (13%), and 110.1 million cubic feet per day (“MMcf/d”) of natural gas (50%).

W&T’s average realized price per barrel of oil equivalent (“Boe”) before realized derivative settlements was $36.76 per Boe in the second quarter of 2023, a decrease of 17% from $44.32 per Boe in the first quarter of 2023 and a decrease of 47% from $69.55 per Boe in the second quarter of 2022. Crude oil, NGL, and natural gas prices, before realized derivative settlements for the second quarter of 2023, were $71.76 per barrel, $23.44 per barrel, and $2.34 per Mcf, respectively.

Revenues for the second quarter of 2023 were $126.2 million, which was lower than first quarter 2023 revenue of $131.7 million and lower than $273.8 million in the second quarter of 2022, due primarily to lower realized prices.

Lease Operating Expense: Lease operating expense (“LOE”), which includes base lease operating expenses, insurance premiums, workovers and facilities maintenance, was $66.0 million in the second quarter of 2023, which was below the midpoint of the previously provided guidance range. This compared to $65.2 million in the first quarter of 2023 and $53.0 million for the corresponding period in 2022. On a component basis for the second quarter of 2023, base LOE and insurance premiums were $48.2 million, workovers were $9.0 million, and facilities maintenance and other expenses were $8.8 million. On a unit of production basis, LOE was $19.60 per Boe in the second quarter of 2023. This compares to $22.29 per Boe for the first quarter of 2023 and $13.73 per Boe for the second quarter of 2022.

Gathering, Transportation Costs, and Production Taxes: Gathering, transportation costs and production taxes totaled $6.8 million ($2.02 per Boe) in the second quarter of 2023, compared to $6.1 million ($2.10 per Boe) in the first quarter of 2023 and $9.2 million ($2.38 per Boe) in the second quarter of 2022. Production taxes decreased on a per Boe basis due to lower realized natural gas prices during the second quarter of 2023.

Depreciation, Depletion, Amortization and Accretion (“DD&A”): DD&A, including accretion expense related to asset retirement obligations (“ARO”), was $10.66 per Boe in the second quarter of 2023. This compares to $10.31 per Boe and $8.90 per Boe for the first quarter of 2023 and the second quarter of 2022, respectively.

General & Administrative Expenses (“G&A”): G&A was $17.4 million for the second quarter of 2023, which decreased by 13% compared to the first quarter of 2023. Employee salaries and benefits costs were higher in the first quarter of 2023 due to payment of the amounts due under the 2022 short-term incentive compensation plan in the first quarter of 2023. General and administrative expense increased year over year primarily due to an increase in employee costs and incentive compensation, as well as increased costs for non-recurring professional and legal services compared to 2022. On a unit of production basis, G&A was $5.16 per Boe in the second quarter of 2023 compared to $6.81 per Boe in the first quarter of 2023 and $3.88 per Boe in the corresponding period of 2022.

Derivative (Gain) Loss: In the second quarter of 2023, W&T recorded a net gain of $0.8 million related to commodity derivative contracts comprised of a $1.1 million unrealized gain related primarily to the increase in fair value of open contracts, partially offset by $0.3 million of realized losses. The Company recognized a net gain of $39.2 million in the first quarter of 2023 and $8.9 million in the second quarter of 2022 related to commodity derivative activities.

For the remainder of 2023, W&T is approximately 64% hedged for natural gas and currently has no hedges for oil. A significant portion of the W&T’s natural gas hedges, in the form of sold swaps and purchased calls and puts, were entered into in conjunction with the non-recourse Mobile Bay term loan entered into by borrowers owned by the Company’s wholly-owned subsidiary Aquasition Energy LLC and will continue through the life of that loan.

A summary of the Company’s outstanding derivative positions is provided on W&T’s website in the “Investors” section under the “Financial Information” tab.

Interest Expense: Net interest expense in the second quarter of 2023 was $10.3 million compared to $14.7 million in the first quarter of 2023 and $18.2 million in the second quarter of 2022. The decreases are due to the full redemption of the 9.75% Senior Second Lien Notes which occurred in February 2023, lower interest expense on the lower outstanding principal balance of the Term Loan and increased interest income. These decreases were partially offset by interest expense incurred on the 11.75% Senior Second Lien Notes issued in late January 2023.

Income Tax: W&T recognized income tax expense of $3.0 million in the second quarter of 2023. This compares to the recognition of income tax expense of $8.6 million and $31.1 million for the quarters ended March 31, 2023 and June 30, 2022, respectively.

Balance Sheet and Liquidity: As of June 30, 2023, W&T had available liquidity of $221.6 million comprised of $171.6 million in cash and cash equivalents and $50.0 million of borrowing availability under W&T’s first priority secured revolving facility provided by Calculus Lending LLC (“Calculus”). At quarter-end, the Company had total debt of $403.6 million, or Net Debt of $231.9 million, net of cash and cash equivalents. Of total debt of $403.6 million, only $278.6 million is recourse to W&T. The remaining $125.0 million is held at our subsidiary, Aquasition Energy LLC, and is non-recourse to W&T. As of June 30, 2023, Net Debt to TTM Adjusted EBITDA was 0.9 times.

Capital Expenditures and Acquisitions: Capital expenditures (excluding changes in working capital associated with investing activities) in the second quarter of 2023 were $15.6 million, and asset retirement costs totaled $3.2 million. For the first six months of 2023, capital expenditures totaled $23.0 million and asset retirement costs were $11.8 million.

OPERATIONS UPDATE

Front-end Engineering and Design and permitting processes are underway on the Holy Grail well at Garden Banks 783 in the Magnolia Field.

Well Recompletions and Workovers

During the second quarter of 2023, the Company performed seven workovers that positively impacted production for the quarter. W&T plans to continue performing these low cost, short payout operations that impact both production and revenue.

Addition to Senior Management

In early July 2023, W&T appointed Sameer Parasnis to the position of Executive Vice President and Chief Financial Officer. Mr. Parasnis has 25 years of financial and operational experience, of which 20 have been in banking. He has advised companies in the Oil & Gas and Energy Transition industry on equity capital markets, debt capital markets and strategic M&A. Prior to joining W&T, Mr. Parasnis served as Managing Director of Stifel Financial Corporation’s Energy & Energy Transition team in Houston. He has served as a trusted financial advisor to W&T over the years on key strategic initiatives of the Company, including its drilling joint venture and corporate debt refinancing in 2018, the non-recourse term loan financing with Munich Re Reserve Risk Financing, Inc. in 2021 as well as its opportunistic At-The-Market equity offering in 2022.

Lease Sale 259

W&T was recently awarded a 100% working interest in two shallow water blocks, Eugene Island South Addition block 371 and Eugene Island South Addition block 387 on which it was the apparent high bidder during the GOM lease sale held in March 2023. These two blocks cover a total of approximately 10,000 gross acres and together cost approximately $340,000. The blocks have a lease term of five years and an 18.75% royalty.

Mid-Year 2023 Proved Reserves

As calculated by NSAI, W&T’s independent reserve engineering consultants, proved reserves using SEC pricing methodology totaled 157.7 MMBoe at June 30, 2023, compared with 165.3 MMBoe at year-end 2022. The decrease in proved reserves was primarily driven by downward price revisions of 4.8 MMBoe and 6.3 MMBoe of production in the first half of 2023, partially offset by 3.5 MMBoe of positive technical revisions related primarily to increases in performance-based projections across several producing fields. There were no reserve additions from acquisitions during the period. The mid-year proved reserves, which were 71% proved developed producing, 16% proved developed non-producing, and 13% proved undeveloped, were 36% liquids (24% crude oil and 12% NGLs) and 64% natural gas. W&T operates approximately 92% of its mid-year 2023 proved reserves.

The pre-tax PV-10 of the mid-year 2023 proved reserves using SEC pricing was $2.1 billion (before consideration of expenditures for asset retirement obligations), a decrease of 35% compared with the PV-10 of $3.1 billion at year-end 2022 using SEC pricing. The decrease was driven by lower overall pricing. Mid-year 2023 SEC proved reserves and PV-10 were based on an average 12-month crude oil and natural gas prices of $83.23 per barrel and $4.76 per MMBtu, respectively. Prices used to determine proved reserves and PV-10 for year-end 2022 were $94.14 per barrel of oil and $6.36 per MMBtu of natural gas.

Third Quarter and Full Year 2023 Production and Expense Guidance

Addressing updated guidance for the balance of 2023, Tracy Krohn commented, “We have always believed that the key to long-term sustainability is to prioritize free cash flow generation. In the first half of 2023, we have seen commodity price weakness, with much lower natural gas prices and soft oil prices. As a result, we decided to proactively reduce our current year capital budget and delay a significant portion of our drilling capital investments until 2024. We believe that the lower pricing scenario enhances acquisition opportunities, and we have a strong cash position and balance sheet to act quickly should we see the right acquisition opportunity arise. We feel that patience is important as we are looking for strategic value and free cash flow generation potential in all acquisition opportunities that we are currently evaluating. Assuming no acquisitions for the remainder of the year, we are reducing our capital expenditure plans for 2023 from a range of $90 to $110 million to $50 to $70 million, and are focused on maintaining cash which will result in a related deferral of production. We will continue to invest in workovers and recompletions this year to help mitigate natural declines in production. We have successfully built W&T over the past 40 years with a proven acquisition strategy and believe the market will afford us several opportunities in the near term. One of the most attractive attributes of our asset base is our ability to adjust our drilling plans without losing drilling opportunities since our leases are largely held by existing production.”

The guidance for the third quarter and full year 2023 in the table below represents the Company’s current expectations. Please refer to the section entitled “Forward-Looking and Cautionary Statements” below for risk factors that could impact guidance.

Production	Third Quarter 2023	Full Year 2023
Oil (MBbl)	1,130 – 1,260	4,750 – 5,250
NGLs (MBbl)	320 – 360	1,350 – 1,480
Natural gas (MMcf)	9,900 – 11,000	36,300 – 40,200
Total equivalents (MBoe)	3,100 – 3,453	12,150 – 13,430
Average daily equivalents (MBoe/d)	34 – 37	33 – 37
Expenses	Third Quarter 2023	Full Year 2023
Lease operating expense ($MM)	$60.0 – $67.0	$240.0 – $260.0
Gathering, transportation & production taxes ($MM)	$7.4 – $8.4	$27.0 – $31.0

General & administrative – cash ($MM)	$15.4 – $17.3	$63.0 – $68.0
General & administrative – non-cash ($MM)	$3.1 – $3.5	$10.5 – $12.0

DD&A ($ per Boe)		$9.00 – $10.00

We expect all taxes in 2023 to be deferred.

Conference Call Information: W&T will hold a conference call to discuss its financial and operational results on Wednesday, August 2, 2023 at 9:00 a.m. Central Time (10:00 Eastern Time). Interested parties may dial 1-844-739-3797. International parties may dial 1-412-317-5713. Participants should request to connect to the “W&T Offshore Conference Call”. This call will also be webcast and available on W&T’s website at www.wtoffshore.com under “Investors”. An audio replay will be available on the Company’s website following the call.

About W&T Offshore

W&T Offshore, Inc. is an independent oil and natural gas producer with operations offshore in the Gulf of Mexico and has grown through acquisitions, exploration and development. As of June 30, 2023, the Company had working interests in 46 fields in federal and state waters (which include 38 fields in federal waters and eight in state waters). The Company has under lease approximately 578,000 gross acres (419,000 net acres) spanning across the outer continental shelf off the coasts of Louisiana, Texas, Mississippi and Alabama, with approximately 8,000 gross acres in Alabama State waters, 416,500 gross acres on the conventional shelf and approximately 153,500 gross acres in the deepwater. A majority of the Company’s daily production is derived from wells it operates. For more information on W&T, please visit the Company’s website at www.wtoffshore.com.

Forward-Looking and Cautionary Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, including but not limited to, any forward-looking guidance provided herein, reflect our current views with respect to future events, based on what we believe are reasonable estimates and assumptions. No assurance can be given, however, that these events will occur or that our estimates will be correct. These statements are subject to risks and uncertainties that could cause actual results to differ materially including, among other things, market conditions, commodity price volatility, uncertainties inherent in oil and gas production operations and estimating reserves, uncertainties of the timing and impact of bringing new wells online and repairing and restoring infrastructure due to hurricane damage, the ability to achieve leverage targets, unexpected future capital expenditures, competition, the success of our risk management activities, governmental regulations, uncertainties and other factors described or referenced in W&T’s Annual Report on Form 10-K for the year ended December 31, 2022 and subsequent Quarterly Reports on Form 10-Q found at www.sec.gov or on our website at www.wtoffshore.com under the Investor Relations section. Our forward-looking statements in this press release are based upon assumptions made, and information known, by the Company as of the date of this release; it should not be assumed that the Company will undertake to revise or update any such forward-looking statements as such assumptions and information changes, except as required under applicable law. Investors are urged to consider closely the disclosures and risk factors in these reports.

W&T OFFSHORE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

	Three Months Ended										Six Months Ended
		June 30,			March 31,			June 30,			June 30,
		2023			2023			2022			2023			2022

Revenues:
Oil		$	89,982		$	97,000		$	159,264		$	186,982		$	281,966
NGLs			10,385			7,795			16,735			18,180			30,555
Natural gas			23,438			24,804			92,413			48,242			143,779
Other			2,376			2,126			5,396			4,502			8,512
Total revenues			126,181			131,725			273,808			257,906			464,812

Operating expenses:
Lease operating expenses			66,021			65,186			52,976			131,207			96,387
Gathering, transportation and production taxes			6,802			6,136			9,181			12,938			14,448
Depreciation, depletion, amortization and accretion			35,894			30,134			34,360			66,028			65,271
General and administrative expenses			17,393			19,919			14,967			37,312			28,743
Total operating expenses			126,110			121,375			111,484			247,485			204,849
Operating income			71			10,350			162,324			10,421			259,963

Interest expense, net			10,323			14,713			18,183			25,036			38,066
Derivative (gain) loss, net			(829	)		(39,240	)		(8,854	)		(40,069	)		71,143
Other (income) expense, net			(311	)		233			(1,534	)		(78	)		(629	)
(Loss) income before income taxes			(9,112	)		34,644			154,529			25,532			151,383
Income tax expense			2,997			8,639			31,093			11,636			30,404
Net (loss) income		$	(12,109	)	$	26,005		$	123,436		$	13,896		$	120,979

Basic		$	(0.08	)	$	0.18		$	0.86		$	0.09		$	0.85
Diluted			(0.08	)		0.17			0.85			0.09			0.84

Weighted average common shares outstanding
Basic			146,452			146,418			143,020			146,435			142,981
Diluted			146,452			148,726			144,525			149,045			144,094

W&T OFFSHORE, INC. AND SUBSIDIARIES
Condensed Operating Data
(Unaudited)

	Three Months Ended							Six Months Ended
		June 30,		March 31,		June 30,		June 30,
		2023		2023		2022		2023		2022
Net sales volumes:
Oil (MBbls)			1,254		1,350		1,476		2,604		2,780
NGLs (MBbls)			443		294		384		738		733
Natural gas (MMcf)			10,023		7,677		11,995		17,699		22,466
Total oil and natural gas (MBoe) ⁽¹⁾			3,368		2,924		3,859		6,292		7,257

Average daily equivalent sales (MBoe/d)			37.0		32.5		42.4		34.8		40.1

Average realized sales prices (before the impact of derivative settlements):
Oil ($/Bbl)		$	71.76	$	71.85	$	107.90	$	71.81	$	101.43
NGLs ($/Bbl)			23.44		26.51		43.58		24.63		41.68
Natural gas ($/Mcf)			2.34		3.23		7.70		2.73		6.40
Barrel of oil equivalent ($/Boe)			36.76		44.32		69.55		40.27		62.88

Average operating expenses per Boe ($/Boe):
Lease operating expenses		$	19.60	$	22.29	$	13.73	$	20.85	$	13.28
Gathering, transportation and production taxes			2.02		2.10		2.38		2.06		1.99
Depreciation, depletion, amortization and accretion			10.66		10.31		8.90		10.49		8.99
General and administrative expenses			5.16		6.81		3.88		5.93		3.96


(1) MBoe is determined using the ratio of six Mcf of natural gas to one Bbl of crude oil, condensate or NGLs (totals may not compute due to rounding). The conversion ratio does not assume price equivalency and the price on an equivalent basis for oil, NGLs and natural gas may differ significantly.

(1) MBoe is determined using the ratio of six Mcf of natural gas to one Bbl of crude oil, condensate or NGLs (totals may not compute due to rounding). The conversion ratio does not assume price equivalency and the price on an equivalent basis for oil, NGLs and natural gas may differ significantly. The realized prices presented above are volume-weighted for production in the respective period.

W&T OFFSHORE, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)

	June 30,			December 31,
	2023			2022

Assets
Current assets:
Cash and cash equivalents	$	171,627		$	461,357
Restricted cash		4,417			4,417
Receivables:
Oil and natural gas sales		41,342			66,146
Joint interest, net		13,875			14,000
Income taxes		1,941			—
Total receivables		57,158			80,146
Prepaid expenses and other assets		21,365			24,343
Total current assets		254,567			570,263

Oil and natural gas properties and other		8,887,645			8,834,319
Less accumulated depreciation, depletion, amortization and impairment		8,149,905			8,099,104
Oil and natural gas properties and other, net		737,740			735,215
Restricted deposits for asset retirement obligations		22,092			21,483
Deferred income taxes		45,700			57,280
Other assets		42,118			47,549
Total assets	$	1,102,217		$	1,431,790

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	67,303		$	65,570
Undistributed oil and natural gas proceeds		31,178			41,934
Advances from joint interest partners		3,110			3,181
Asset retirement obligations		37,763			25,359
Accrued liabilities		39,323			74,041
Current portion of long-term debt, net		30,550			582,249
Total current liabilities		209,227			792,334

Long-term debt, net		373,021			111,188
Asset retirement obligations, less current portion		443,069			441,071
Other liabilities		52,109			79,563
Shareholders’ equity:
Common stock, $0.00001 par value; 200,000 shares authorized; 149,350 issued and 146,481 outstanding at June 30, 2023; 149,002 issued and 146,133 outstanding at December 31, 2022		1			1
Additional paid-in capital		579,849			576,588
Retained deficit		(530,892	)		(544,788	)
Treasury stock, at cost; 2,869 shares for both dates presented		(24,167	)		(24,167	)
Total shareholders’ equity		24,791			7,634
Total liabilities and shareholders’ equity	$	1,102,217		$	1,431,790

W&T OFFSHORE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

	Three Months Ended										Six Months Ended
		June 30,			March 31,			June 30,			June 30,
		2023			2023			2022			2023			2022
Operating activities:
Net (loss) income		$	(12,109	)	$	26,005		$	123,436		$	13,896		$	120,979
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation, depletion, amortization and accretion			35,894			30,134			34,360			66,028			65,271
Amortization and write off of debt issuance costs			1,114			3,249			1,771			4,363			4,365
Share-based compensation			2,087			1,922			2,014			4,009			2,534
Derivative (gain) loss			(829	)		(39,240	)		(8,854	)		(40,069	)		71,143
Derivative cash payments (receipts), net			901			(5,328	)		100,742			(4,427	)		70,227
Derivative cash premium payments			—			—			(46,111	)		—			(46,111	)
Deferred income taxes			7,184			4,396			27,764			11,580			27,031
Changes in operating assets and liabilities:
Oil and natural gas receivables			4,183			20,621			(6,462	)		24,804			(44,236	)
Joint interest receivables			3,241			(3,116	)		851			125			(3,625	)
Prepaid expenses and other assets			(4,497	)		31,489			(17,909	)		26,992			(30,092	)
Income tax			(6,588	)		4,243			3,179			(2,345	)		3,223
Asset retirement obligation settlements			(3,199	)		(8,642	)		(34,283	)		(11,841	)		(39,775	)
Cash advances from joint interest partners			(50	)		(21	)		(1,263	)		(71	)		(9,813	)
Accounts payable, accrued liabilities and other			(1,135	)		(42,277	)		30,987			(43,412	)		46,638
Net cash provided by operating activities			26,197			23,435			210,222			49,632			237,759

Investing activities:
Investment in oil and natural gas properties and equipment			(15,632	)		(7,367	)		(8,050	)		(22,999	)		(25,489	)
Changes in operating assets and liabilities associated with investing activities			3,453			(5,791	)		(8,416	)		(2,338	)		(5,786	)
Acquisition of property interests			—			—			(17,472	)		—			(47,625	)
Purchases of furniture, fixtures and other			(9,045	)		(156	)		—			(9,201	)		—
Net cash used in investing activities			(21,224	)		(13,314	)		(33,938	)		(34,538	)		(78,900	)

Financing activities:
Repayment of Note Payable			(183	)		—			—			(183	)		—
Issuance of 11.75% Senior Second Lien Notes			—			275,000			—			275,000			—
Repayments on 9.75% Second Senior Lien Notes			—			(552,460	)		—			(552,460	)		—
Repayments on Term Loan			(9,629	)		(9,552	)		(12,311	)		(19,181	)		(24,941	)
Debt issuance costs			(898	)		(6,354	)		(1,290	)		(7,252	)		(1,290	)
Other			(25	)		(723	)		(434	)		(748	)		(703	)
Net cash used in financing activities			(10,735	)		(294,089	)		(14,035	)		(304,824	)		(26,934	)
(Decrease) increase in cash and cash equivalents			(5,762	)		(283,968	)		162,249			(289,730	)		131,925
Cash and cash equivalents and restricted cash, beginning of period			181,806			465,774			219,892			465,774			250,216
Cash and cash equivalents and restricted cash, end of period		$	176,044		$	181,806		$	382,141		$	176,044		$	382,141

W&T OFFSHORE, INC. AND SUBSIDIARIES

Non-GAAP Information

Certain financial information included in W&T’s financial results are not measures of financial performance recognized by accounting principles generally accepted in the United States, or GAAP. These non-GAAP financial measures are “Net Debt”, “Adjusted Net (Loss) Income”, “Adjusted EBITDA,” “Free Cash Flow” and “PV-10” or are derivable from a combination of these measures. Management uses these non-GAAP financial measures in its analysis of performance. These disclosures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP performance measures which may be reported by other companies. Prior period amounts have been conformed to the methodology and presentation of the current period.

We calculate Net Debt as total debt (current and long-term portions), less cash and cash equivalents. Management uses Net Debt to evaluate the Company’s financial position, including its ability to service its debt obligations.

Reconciliation of Net (Loss) Income to Adjusted Net (Loss) Income

Adjusted Net (Loss) Income adjusts for certain items that the Company believes affect comparability of operating results, including items that are generally non-recurring in nature or whose timing and/or amount cannot be reasonably estimated. These items include unrealized commodity derivative (gain) loss net of derivative premiums, allowance for credit losses, write-off of debt issuance costs, non-recurring IT-transition costs, non-ARO plugging and abandonment costs, and other which are then tax effected using the Federal Statutory Rate.

	Three Months Ended										Six Months Ended
		June 30,			March 31,			June 30,			June 30,
		2023			2023			2022			2023			2022
	(In thousands)
	(Unaudited)

Net (loss) income		$	(12,109	)	$	26,005		$	123,436		$	13,896		$	120,979
Selected items
Unrealized commodity derivative (gain) loss and effect of derivative premiums, net			(1,129	)		(39,470	)		86,272			(40,599	)		126,768
Allowance for credit losses			3			—			181			3			299
Write-off debt issuance costs			—			2,330			—			2,330			—
Non-recurring costs related to IT services transition			1,078			785			—			1,863			—
Non-ARO P&A costs			—			6			—			6			—
Other			(294	)		378			(1,534	)		84			(629	)
Tax effect of selected items ⁽¹⁾			72			7,554			(17,833	)		7,626			(26,552	)
Adjusted Net (loss) income		$	(12,379	)	$	(2,412	)	$	190,522		$	(14,791	)	$	220,865

Adjusted net (loss) income per common share
Basic		$	(0.08	)	$	(0.02	)	$	1.33		$	(0.10	)	$	1.54
Diluted		$	(0.08	)	$	(0.02	)	$	1.32		$	(0.10	)	$	1.53

Weighted Average Shares Outstanding
Basic			146,452			146,418			143,020			146,435			142,981
Diluted			146,452			146,418			144,525			146,435			144,094

⁽¹⁾ Selected items were tax effected with the Federal Statutory Rate of 21% for each respective period.

(1) Selected items were tax effected with the Federal Statutory Rate of 21% for each respective period.

W&T OFFSHORE, INC. AND SUBSIDIARIES

Non-GAAP Information

Adjusted EBITDA/ Free Cash Flow Reconciliations

The Company also presents the non-GAAP financial measures Adjusted EBITDA and Free Cash Flow. The Company defines Adjusted EBITDA as net (loss) income plus net interest expense, income tax expense, depreciation, depletion, amortization and accretion, excluding the unrealized commodity derivative (gain) loss net of derivative premiums, allowance for credit losses, non-cash incentive compensation, non-recurring IT-transition costs, non-ARO plugging and abandonment costs, and other. Company management believes this presentation is relevant and useful because it helps investors understand W&T’s operating performance and makes it easier to compare its results with those of other companies that have different financing, capital and tax structures. Adjusted EBITDA should not be considered in isolation from or as a substitute for net income, as an indication of operating performance or cash flows from operating activities or as a measure of liquidity. Adjusted EBITDA, as W&T calculates it, may not be comparable to Adjusted EBITDA measures reported by other companies. In addition, Adjusted EBITDA does not represent funds available for discretionary use.

The Company defines Free Cash Flow as Adjusted EBITDA (defined above), less capital expenditures, plugging and abandonment costs and interest expense (all on an accrual basis). For this purpose, the Company’s definition of capital expenditures includes costs incurred related to oil and natural gas properties (such as drilling and infrastructure costs and the lease maintenance costs) and equipment, furniture and fixtures, but excludes acquisition costs of oil and gas properties from third parties that are not included in the Company’s capital expenditures guidance provided to investors. Company management believes that Free Cash Flow is an important financial performance measure for use in evaluating the performance and efficiency of its current operating activities after the impact of accrued capital expenditures, plugging and abandonment costs and interest expense and without being impacted by items such as changes associated with working capital, which can vary substantially from one period to another. There is no commonly accepted definition of Free Cash Flow within the industry. Accordingly, Free Cash Flow, as defined and calculated by the Company, may not be comparable to Free Cash Flow or other similarly named non-GAAP measures reported by other companies. While the Company includes interest expense in the calculation of Free Cash Flow, other mandatory debt service requirements of future payments of principal at maturity (if such debt is not refinanced) are excluded from the calculation of Free Cash Flow. These and other non-discretionary expenditures that are not deducted from Free Cash Flow would reduce cash available for other uses.

The following tables present (i) a reconciliation of cash flow from operating activities, a GAAP measure, to Free Cash Flow, as defined by the Company and (ii) a reconciliation of the Company’s net (loss) income, a GAAP measure, to Adjusted EBITDA and Free Cash Flow, as such terms are defined by the Company.

	Three Months Ended										Six Months Ended
		June 30,			March 31,			June 30,			June 30,
		2023			2023			2022			2023			2022
	(In thousands)
	(Unaudited)

Net (loss) income		$	(12,109	)	$	26,005		$	123,436		$	13,896		$	120,979
Interest expense, net			10,323			14,713			18,183			25,036			38,066
Income tax expense			2,997			8,639			31,093			11,636			30,404
Depreciation, depletion, amortization and accretion			35,894			30,134			34,360			66,028			65,271
Unrealized commodity derivative (gain) loss and effect of derivative premiums, net			(1,129	)		(39,470	)		86,272			(40,599	)		126,768
Allowance for credit losses			3			—			181			3			299
Non-cash incentive compensation			2,087			1,922			2,014			4,009			2,534
Non-recurring costs related to IT services transition			1,078			785			—			1,863			—
Non-ARO P&A costs			—			6			—			6			—
Other			(312	)		378			(1,534	)		66			(629	)
Adjusted EBITDA		$	38,832		$	43,112		$	294,005		$	81,944		$	383,692

Investment in oil and natural gas properties and equipment			(15,632	)		(7,367	)		(8,050	)		(22,999	)		(25,489	)
Asset retirement obligation settlements			(3,199	)		(8,642	)		(34,283	)		(11,841	)		(39,775	)
Interest expense, net			(10,323	)		(14,713	)		(18,183	)		(25,036	)		(38,066	)
Free Cash Flow		$	9,678		$	12,390		$	233,489		$	22,068		$	280,362

	Three Months Ended										Six months ended
		June 30,			March 31,			June 30,			June 30,
		2023			2023			2022			2023			2022
	(In thousands)
	(Unaudited)

Net cash provided by operating activities		$	26,197		$	23,435		$	210,222		$	49,632		$	237,759
Allowance for credit losses			3			—			181			3			299
Amortization of debt items and other items			(1,114	)		(3,249	)		(1,771	)		(4,363	)		(4,365	)
Non-recurring costs related to IT services transition			1,078			785			—			1,863			—
Current tax benefit ⁽¹⁾			(4,187	)		4,243			3,329			56			3,373
Changes in derivatives (payable) receivable⁽¹⁾			(1,202	)		5,098			40,495			3,896			31,509
Non-ARO P&A costs			—			6			—			6			—
Changes in operating assets and liabilities, excluding asset retirement obligation settlements			4,846			(10,939	)		(9,383	)		(6,093	)		37,905
Investment in oil and natural gas properties, equipment and other			(15,632	)		(7,367	)		(8,050	)		(22,999	)		(25,489	)
Other			(312	)		378			(1,534	)		66			(629	)
Free Cash Flow		$	9,678		$	12,390		$	233,489		$	22,068		$	280,362


(1) A reconciliation of the adjustment used to calculate Free Cash Flow to the Condensed Consolidated Financial Statements is included below:


Current tax benefit:
Income tax expense (benefit)		$	2,997		$	8,639		$	31,093		$	11,636		$	30,404
Less: Deferred income taxes			7,184			4,396			27,764			11,580			27,031
Current tax benefit		$	(4,187	)	$	4,243		$	3,329		$	56		$	3,373

Changes in derivatives receivable:
Derivatives payable, end of period		$	(677	)	$	524		$	(20,998	)	$	(677	)	$	(20,998	)
Derivatives payable, beginning of period			(524	)		4,574			15,382			4,574			6,396
Derivative premiums paid			—			—			46,111			—			46,111
Change in derivatives receivable (payable)		$	(1,201	)	$	5,098		$	40,495		$	3,897		$	31,509

Reconciliation of PV-10 to Standardized Measure

The Company also discloses PV-10, which is not a financial measure defined under GAAP. The standardized measure of discounted future net cash flows is the most directly comparable GAAP financial measure for proved reserves calculated using SEC pricing. Company management believes that the non-GAAP financial measure of PV-10 is relevant and useful for evaluating the relative monetary significance of oil and natural gas properties. PV-10 is also used internally when assessing the potential return on investment related to oil and natural gas properties and in evaluating acquisition opportunities. Company management believes that the use of PV-10 is valuable because there are many unique factors that can impact an individual company when estimating the amount of future income taxes to be paid. Additionally, Company management believes that the presentation of PV-10 provides useful information to investors because it is widely used by professional analysts and sophisticated investors in evaluating oil and natural gas companies. PV-10 is not a measure of financial or operating performance under GAAP, nor is it intended to represent the current market value of the Company’s estimated oil and natural gas reserves. PV-10 should not be considered in isolation or as substitutes for the standardized measure of discounted future net cash flows as defined under GAAP. Investors should not assume that PV-10 of the Company’s proved oil and natural gas reserves represents a current market value of the Company’s estimated oil and natural gas reserves.

With respect to PV-10 calculated as of an interim date (i.e. other than year-end), it is not practical for the Company to reconcile the PV-10 of its SEC pricing proved reserves as of June 30, 2023 because GAAP does not provide for disclosure of standardized measure on an interim basis.

August 2, 2023 3:51 am

Silgan Declares Quarterly Dividend

Silgan Declares Quarterly Dividend

STAMFORD, Conn.–(BUSINESS WIRE)–
Silgan Holdings Inc. (NYSE: SLGN), a leading supplier of sustainable rigid packaging solutions for the world’s essential consumer goods products, announced today that its Board of Directors declared a quarterly cash dividend on its common stock. The Board of Directors approved an $0.18 per share quarterly cash dividend payable on September 15, 2023 to the holders of record of common stock of the Company on September 1, 2023. With this dividend payment, the Company will have paid a quarterly cash dividend on its common stock, which it has increased every year, for seventy-eight consecutive quarters since 2004.

Silgan is a leading supplier of sustainable rigid packaging solutions for the world’s essential consumer goods products with annual net sales of approximately $6.4 billion in 2022. Silgan operates 110 manufacturing facilities in North and South America, Europe and Asia. The Company is a leading worldwide supplier of dispensing and specialty closures for food, beverage, health care, garden, home, personal care, fragrance and beauty products. The Company is also a leading supplier of metal containers in North America and Europe for food and general line products. In addition, the Company is a leading supplier of custom containers for shelf-stable food and personal care products in North America.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230801271513/en/

Alexander Hutter

Vice President, Investor Relations

[email protected]

203-406-3187

KEYWORDS: United States North America Connecticut

INDUSTRY KEYWORDS: Packaging Manufacturing

MEDIA:

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August 2, 2023 3:51 am

Celestica Announces Proposed Secondary Offering of Subordinate Voting Shares by Onex Corporation

TORONTO, Aug. 01, 2023 (GLOBE NEWSWIRE) — Celestica Inc. (“Celestica”) (NYSE, TSX: CLS), a leader in design, manufacturing, hardware platform and supply chain solutions for the world’s most innovative companies, announced today that Onex Corporation, its controlling shareholder, intends to offer for sale 6,757,198 of Celestica’s subordinate voting shares (“SVS”), substantially all of which will be issued upon conversion of a corresponding number of Celestica’s multiple voting shares into SVS. Celestica is not selling any shares and will not receive any proceeds from the proposed offering.

BofA Securities will act as the underwriter for the proposed offering.

The offering is being made in the United States only by means of a prospectus supplement to a base prospectus forming a part of an effective registration statement on Form F-3ASR (File No. 333-273467) filed with the United States Securities and Exchange Commission (the “SEC”). Prospective investors in the United States should read the base prospectus, registration statement, the prospectus supplement related to this offering and the documents incorporated by reference therein. You may obtain these documents for free on EDGAR on the SEC website at www.sec.gov. Alternatively, copies of the base prospectus and, when available, the prospectus supplement relating to this offering may also be obtained from BofA Securities, NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, Attention: Prospectus Department by email at [email protected].

This offering is being made in Canada only by means of a prospectus supplement, together with a short form base shelf prospectus for the province of Québec and an amended and restated short form base shelf prospectus for all other provinces and territories of Canada. Prospective investors in Canada should read the short form base shelf prospectus and the amended and restated base shelf prospectus of Celestica filed with the Canadian securities regulatory authorities on May 30, 2023, the prospectus supplement thereto relating to the offering and the documents incorporated by reference therein. You may obtain these documents for free on SEDAR+ at www.sedarplus.ca.

This press release does not constitute an offer for sale of securities or a solicitation ‎for offers to buy any Celestica securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any public offering of securities in the United States or Canada will be made solely by means of ‎the applicable prospectus and prospectus supplement. ‎

About Celestica

Celestica enables the world’s best brands. Through our recognized customer-centric approach, we partner with leading companies in Aerospace and Defense, Communications, Enterprise, HealthTech, Industrial, and Capital Equipment to deliver solutions for their most complex challenges. As a leader in design, manufacturing, hardware platform and supply chain solutions, Celestica brings global expertise and insight at every stage of product development – from the drawing board to full-scale production and after-market services. With talented teams across North America, Europe and Asia, we imagine, develop and deliver a better future with our customers.

Cautionary Note Regarding Forward-looking Statements

This news release contains forward-looking information related to our plans, objectives, expectations and intentions, including our expectations regarding the details and timing of the proposed offering; the number of SVS subject to the offering; the terms and jurisdictions of the offering; and other statements contained in this release that are not historical facts. Such forward-looking statements are predictive in nature and may be based on current expectations, forecasts or assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially from the forward-looking statements themselves. Such forward-looking statements may, without limitation, be preceded by, followed by, or include words such as “believes”, “expects”, “anticipates”, “estimates”, “intends”, “plans”, “continues”, “project”, “potential”, “possible”, “contemplate”, “seek”, or similar expressions, or may employ such future or conditional verbs as “may”, “might”, “will”, “could”, “should” or “would”, or may otherwise be indicated as forward-looking statements by grammatical construction, phrasing or context. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in applicable U.S. and Canadian securities laws. Forward-looking statements are not guarantees of future performance and are subject to risks that could cause actual results to differ materially from conclusions, forecasts or projections expressed in such statements, including, among others, risks related to: Celestica’s future capital requirements, market and general economic conditions, and its ability to obtain regulatory approvals. These statements are inherently subject to significant risks, uncertainties and changes in circumstances, many of which are beyond the control of Celestica. Our actual results may differ materially from those expressed or implied by such forward-looking statements, including as a result of changes in global, political, economic, business, competitive, market and regulatory factors. These and other risks and uncertainties, as well as other information related to Celestica, are discussed in our various public filings at www.sedarplus.ca and www.sec.gov, including in our interim Management’s Discussion and Analysis of Financial Condition and Results of Operations, our 2022 Annual Report on Form 20-F and subsequent reports on Form 6-K filed with or furnished to (as applicable) the SEC, and as applicable, the securities commissions or similar securities regulatory authorities in each of the provinces and territories of Canada. Forward-looking statements are provided for the purpose of assisting readers in understanding management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The forward-looking statements contained in this press release speak only as of the date of this release, and except as required by applicable law, we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts:

Celestica Global Communications               
(416) 448-2200                                    
[email protected]                                  

Celestica Investor Relations
(416) 448-2211
[email protected]