Market Newsdesk

May 2, 2023 4:40 pm

Clearwater Paper Reports First Quarter 2023 Results

Clearwater Paper Reports First Quarter 2023 Results

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

FIRST QUARTER HIGHLIGHTS

Solid performance in the quarter, with price realization offsetting inflation

Strong demand for tissue products, softening demand for paperboard

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

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

Adjusted EBITDA of $66 million

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

OVERALL RESULTS

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

Pulp and Paperboard Segment

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

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

Pulp and Paperboard Sales Volumes and Prices:

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

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

Consumer Products Segment

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

Retail Tissue Sales Volumes and Prices:

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

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

COMPANY OUTLOOK

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

WEBCAST INFORMATION

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

ABOUT CLEARWATER PAPER

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

USE OF NON-GAAP MEASURES

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

FORWARD-LOOKING STATEMENTS

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

Clearwater Paper Corporation

Consolidated Statements of Operations

(Unaudited)

Quarter Ended March 31,

(In millions, except per-share data)

2023

2022

Net sales

$

525.4

$

488.2

Costs and expenses:

Cost of sales

448.5

422.0

Selling, general and administrative expenses

36.0

32.8

Other operating charges, net

1.1

0.5

Total operating costs and expenses

485.6

455.3

Income from operations

39.8

32.9

Interest expense, net

(7.6

)

(8.6

)

Debt retirement costs

—

(0.2

)

Other non-operating (expense) income

0.1

(1.4

)

Total non-operating expense

(7.5

)

(10.3

)

Income before income taxes

32.3

22.6

Income tax provision

8.4

6.0

Net income

$

23.8

$

16.6

Net income per common share:

Basic

$

1.42

$

0.99

Diluted

1.40

0.97

Average shares outstanding (in thousands):

Basic

16,834

16,728

Diluted

17,036

17,073

Clearwater Paper Corporation

Condensed Consolidated Balance Sheets

(Unaudited)

(In millions)

March 31, 2023

December 31, 2022

Assets

Current assets:

Cash and cash equivalents

$

16.7

$

53.7

Receivables, net

186.3

188.8

Inventories

345.5

324.0

Other current assets

19.5

19.9

Total current assets

567.9

586.3

Property, plant and equipment, net

1,004.6

1,017.1

Other assets, net

117.9

100.1

Total assets

$

1,690.5

$

1,703.5

Liabilities and stockholders’ equity

Current liabilities:

Current portion of long-term debt

$

0.9

$

0.9

Accounts payable and accrued liabilities

264.6

311.1

Total current liabilities

265.5

312.0

Long-term debt

564.9

564.9

Liability for pension and other postretirement employee benefits

57.8

58.2

Deferred tax liabilities and other long-term obligations

210.4

196.4

Total liabilities

1,098.5

1,131.5

Stockholders’ equity:

Common stock

—

—

Additional paid-in capital

24.7

28.5

Retained earnings

600.6

576.8

Accumulated other comprehensive loss, net of tax

(33.4

)

(33.3

)

Total stockholders’ equity

592.0

572.1

Total liabilities and stockholders’ equity

$

1,690.5

$

1,703.5

Clearwater Paper Corporation

Consolidated Statements of Cash Flows

(Unaudited)

Quarter Ended March 31,

(In millions)

2023

2022

Operating activities

Net income

$

23.8

$

16.6

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

Depreciation and amortization

24.8

25.4

Equity-based compensation expense

1.9

0.7

Deferred taxes

(1.3

)

(2.2

)

Defined benefit pension and other postretirement employee benefits

(0.5

)

0.7

Loss on sale or impairment associated with assets

1.1

—

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

Accounts receivable

(6.4

)

(10.6

)

Inventories

(22.3

)

(4.2

)

Accounts payable and accrued liabilities

(31.7

)

13.9

Other, net

1.4

0.7

Net cash flows provided by (used in) operating activities

(9.1

)

41.1

Investing activities

Additions to property, plant and equipment, net

(21.5

)

(7.9

)

Net cash flows used in investing activities

(21.5

)

(7.9

)

Financing activities

Borrowings on short-term debt

12.0

—

Repayments of borrowings on short-term debt

(12.0

)

—

Repayments of long-term debt

(0.2

)

(20.4

)

Taxes paid related to net share settlement of equity awards

(4.2

)

(1.5

)

Repurchases of common stock

(1.7

)

—

Other, net

(0.1

)

—

Net cash flows used in financing activities

(6.3

)

(21.9

)

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

(37.0

)

11.2

Cash, cash equivalents and restricted cash at beginning of period

54.4

26.2

Cash, cash equivalents and restricted cash at end of period

$

17.4

$

37.5

Clearwater Paper Corporation

Segment Information

(Unaudited)

Quarter Ended March 31,

(In millions)

2023

2022

Segment net sales:

Pulp and Paperboard

$

278.8

$

266.2

Consumer Products

248.3

223.0

Eliminations

(1.7

)

(1.1

)

Total segment net sales

$

525.4

$

488.2

Operating income (loss):

Pulp and Paperboard

$

57.1

$

50.3

Consumer Products

4.2

0.9

Corporate and eliminations

(20.4

)

(17.8

)

Other operating charges, net ¹

(1.1

)

(0.5

)

Income from operations

$

39.8

$

32.9

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

Clearwater Paper Corporation

Reconciliation of Non-GAAP Financial Measures

Adjusted EBITDA

(Unaudited)

Quarter Ended March 31,

(In millions)

2023

2022

Net income

$

23.8

$

16.6

Add back:

Income tax provision

8.4

6.0

Interest expense, net

7.6

8.6

Depreciation and amortization

24.8

25.4

Other operating charges, net¹

1.1

0.5

Debt retirement costs

—

0.2

Other non-operating (income) expense

(0.1

)

1.4

Adjusted EBITDA

$

65.7

$

58.9

Pulp and Paperboard segment income

$

57.1

$

50.3

Depreciation and amortization

9.1

9.3

Adjusted EBITDA Pulp and Paperboard

$

66.2

$

59.5

Consumer Products segment income

$

4.2

$

0.9

Depreciation and amortization

15.0

15.3

Adjusted EBITDA Consumer Products

$

19.2

$

16.2

Corporate and other expenses

$

(20.4

)

$

(17.8

)

Depreciation and amortization

0.6

0.9

Corporate Adjusted EBITDA

$

(19.8

)

$

(16.9

)

Pulp and Paperboard segment

$

66.2

$

59.5

Consumer Products segment

19.2

16.2

Corporate and other

(19.8

)

(16.9

)

Adjusted EBITDA

$

65.7

$

58.9

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

Clearwater Paper Corporation

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

Quarter Ended March 31,

(In millions, except per share data)

2023

2022

Adjusted net income:

Net income

$

23.8

$

16.6

Add back:

Income tax provision

8.4

6.0

Income before income taxes

32.3

22.6

Add back:

Debt retirement costs

—

0.2

Other operating charges, net

1.1

0.5

Adjusted income before tax

$

33.4

$

23.4

Normalized income tax provision

8.3

5.8

Adjusted net income

$

25.0

$

17.5

Weighted average diluted shares (thousands)

17,036

17,073

Adjusted income per diluted share

$

1.47

$

1.03

March 31, 2023

December 31, 2022

Calculation of net debt:

Current portion of long-term debt

$

0.9

$

0.9

Long-term debt

564.9

564.9

Add back:

Unamortized deferred debt costs

3.2

3.4

Less:

Finance leases

24.0

24.2

Cash and cash equivalents

16.7

53.7

Net debt

$

528.3

$

491.3

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

Clearwater Paper Corporation

Investors contact:

Sloan Bohlen

Solebury Strategic Communications

509-344-5906

[email protected]

News media:

Julia Joy, Director, Corporate Communications

208-488-8398

[email protected]

KEYWORDS: Washington United States North America

INDUSTRY KEYWORDS: Forest Products Natural Resources Other Manufacturing Manufacturing

MEDIA:

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

Mister Car Wash Announces First Quarter Fiscal 2023 Financial Results

Net revenues increased 3.0%

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

Opened four new greenfield locations

Fiscal 2023 guidance reiterated

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

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

First Quarter Highlights

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

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

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

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

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

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

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

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

Store Count

Three Months Ended March 31,

2023

2022

Beginning location count

436

396

Locations acquired

–

–

Greenfield locations opened

4

3

Closures

1

–

Ending location count

439

399

Balance Sheet and Cash Flow Highlights

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

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

Sale-Leasebacks and Rent Expense

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

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

Fiscal 2023 Outlook

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

2023 Outlook

Net revenues

$925 to $960 million

Comparable stores sales growth %

0.0% to 3.0%

Adjusted net income

$100 to $115 million

Adjusted EBITDA

$277 to $297 million

Diluted adjusted net income per share

$0.30 to $0.35

Interest expense, net

$73 million

Rent expense, net

Approx. $100 million

Weighted average common shares outstanding, diluted, full year

330 million

New greenfield locations

Approx. 35

Capital expenditures⁽¹⁾

$220 to $270 million

Sale leasebacks

$110 to $130 million

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

Conference Call Details

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

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

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

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

Use of Non-GAAP Financial Measures

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

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

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

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

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

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

Forward-Looking Statements

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

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

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

Condensed Consolidated Statements of Operations and Comprehensive Income

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

(Unaudited)

Three Months Ended March 31,

2023

2022

Net revenues

$

225,960

$

219,419

Cost of labor and chemicals

66,792

65,538

Other store operating expenses

89,466

77,801

General and administrative

24,183

23,687

(Gain) loss on sale of assets

(63

)

459

Total costs and expenses

180,378

167,485

Operating income

45,582

51,934

Other expense:

Interest expense, net

17,748

8,166

Total other expense

17,748

8,166

Income before taxes

27,834

43,768

Income tax provision

6,698

8,280

Net income

$

21,136

$

35,488

Other comprehensive income, net of tax:

Gain on interest rate swap

–

1,869

Total comprehensive income

$

21,136

$

37,357

Net income per share:

Basic

$

0.07

$

0.12

Diluted

$

0.06

$

0.11

Weighted-average common shares outstanding:

Basic

307,291,909

300,931,453

Diluted

327,608,266

329,172,437

Condensed Consolidated Balance Sheets

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

(Unaudited)

As of

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

March 31, 2023

December 31, 2022

Assets

Current assets:

Cash and cash equivalents

$

69,903

$

65,152

Restricted cash

70

70

Accounts receivable, net

933

3,941

Other receivables

14,116

15,182

Inventory, net

8,228

9,174

Prepaid expenses and other current assets

10,767

12,618

Total current assets

104,017

106,137

Property and equipment, net

596,695

560,874

Operating lease right of use assets, net

776,496

776,689

Other intangible assets, net

122,122

123,615

Goodwill

1,109,815

1,109,815

Other assets

8,190

9,102

Total assets

$

2,717,335

$

2,686,232

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$

30,379

$

25,649

Accrued payroll and related expenses

20,036

17,218

Other accrued expenses

30,730

41,196

Current maturities of operating lease liability

41,279

40,367

Current maturities of finance lease liability

687

668

Deferred revenue

30,509

29,395

Total current liabilities

153,620

154,493

Long-term portion of debt, net

896,223

895,830

Operating lease liability

758,752

759,775

Financing lease liability

14,599

14,779

Deferred tax liability

58,823

53,395

Other long-term liabilities

6,577

6,832

Total liabilities

1,888,594

1,885,104

Stockholders’ equity:

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

3,087

3,072

Additional paid-in capital

790,041

783,579

Retained earnings (Accumulated Deficit)

35,613

14,477

Total stockholders’ equity

828,741

801,128

Total liabilities and stockholders’ equity

$

2,717,335

$

2,686,232

Condensed Consolidated Statements of Cash Flows

(Amounts in thousands)

(Unaudited)

Three Months Ended March 31,

2023

2022

Cash flows from operating activities:

Net income

$

21,136

$

35,488

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

Depreciation and amortization expense

17,307

14,945

Stock-based compensation expense

5,361

5,519

(Gain) loss on sale of assets, net

(63

)

459

Amortization of debt issuance costs

419

419

Non-cash lease expense

10,739

9,606

Deferred income tax

5,428

5,018

Changes in assets and liabilities:

Accounts receivable, net

3,009

146

Other receivables

1,128

10,108

Inventory, net

946

(665

)

Prepaid expenses and other current assets

1,850

901

Accounts payable

2,553

5,679

Accrued expenses

5,155

3,635

Deferred revenue

1,114

648

Operating lease liability

(9,696

)

(9,094

)

Other noncurrent assets and liabilities

631

(1,268

)

Net cash provided by operating activities

$

67,017

$

81,544

Cash flows from investing activities:

Purchases of property and equipment

(72,059

)

(30,015

)

Proceeds from sale of property and equipment

8,899

1

Net cash used in investing activities

$

(63,160

)

$

(30,014

)

Cash flows from financing activities:

Proceeds from issuance of common stock under employee plans

1,055

1,281

Payments on debt borrowings

–

(2,100

)

Principal payments on finance lease obligations

(161

)

(134

)

Net cash provided (used) by financing activities

$

894

$

(953

)

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

4,751

50,577

Cash and cash equivalents and restricted cash at beginning of period

65,222

19,858

Cash and cash equivalents and restricted cash at end of period

$

69,973

$

70,435

Supplemental disclosure of cash flow information:

Cash paid for interest

$

11,697

$

7,821

Cash paid for income taxes

$

151

$

–

Supplemental disclosure of non-cash investing and financing activities:

Property and equipment in accounts payable

$

11,993

$

18,123

Property and equipment in other accrued expenses

$

5,969

$

–

Stock option exercise proceeds in other receivables

$

61

$

45

GAAP to Non-GAAP Reconciliations

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

(Unaudited)

Three Months Ended March 31,

2023

2022

Reconciliation of net income to Adjusted EBITDA:

Net income

$

21,136

$

35,488

Interest expense, net

17,748

8,166

Income tax provision

6,698

8,280

Depreciation and amortization expense

17,307

14,945

Loss on sale of assets

(63

)

459

Stock-based compensation expense

5,361

5,519

Acquisition expenses

459

534

Non-cash rent expense

1,030

520

Expenses associated with initial public offering

–

286

Other

1,300

652

Adjusted EBITDA

$

70,976

$

74,849

Three Months Ended March 31,

2023

2022

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

Weighted-average common shares outstanding – diluted

327,608,266

329,172,437

Adjustments for potentially dilutive securities

–

–

Adjusted weighted-average common shares outstanding – diluted

327,608,266

329,172,437

Three Months Ended March 31,

2023

2022

Reconciliation of net income to Adjusted Net Income:

Net income

$

21,136

$

35,488

Loss on sale of assets

(63

)

459

Stock-based compensation expense

5,361

5,519

Acquisition expenses

459

534

Non-cash rent expense

1,030

520

Expenses associated with initial public offering

–

286

Other

1,300

652

Income tax impact of stock award exercises

(516

)

(3,704

)

Tax impact of adjustments to net income

(2,022

)

(1,993

)

Adjusted Net Income

$

26,685

$

37,761

Diluted Adjusted Net Income per Share

$

0.08

$

0.11

Adjusted weighted-average common shares outstanding – diluted

327,608,266

329,172,437

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

Investors

John Rouleau

ICR

[email protected]

Media

Jill Adams

[email protected]

KEYWORDS: Arizona United States North America

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

MEDIA:

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

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

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

About Myriad Genetics

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

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

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

Liberty Broadband Reports First Quarter 2023 Financial Results

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

Headlines include⁽¹⁾:

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

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

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

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

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

Share Repurchases

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

Charter Ownership

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

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

Balance Sheet

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

(amounts in millions)

12/31/2022

3/31/2023

Cash and Cash Equivalents:

GCI Holdings

$

85

$

59

Corporate and Other

290

110

Total Liberty Broadband Consolidated Cash

$

375

$

169

Fair Value of Public Holdings in Charter^(a)

$

16,012

$

16,843

Debt:

Senior Notes^(b)

$

600

$

600

Senior Credit Facility

397

396

Tower Obligations and Other^(c)

94

93

Total GCI Holdings Debt

$

1,091

$

1,089

GCI Leverage^(d)

2.8x

2.9x

Charter Margin Loan

$

1,400

$

1,400

3.125% Exchangeable Senior Debentures due 2053^(e)

—

1,265

1.25% Exchangeable Senior Debentures due 2050^(e)

825

2

1.75% Exchangeable Senior Debentures due 2046^(e)

15

—

2.75% Exchangeable Senior Debentures due 2050^(e)

575

—

Total Corporate Level Debt

$

2,815

$

2,667

Total Liberty Broadband Debt

$

3,906

$

3,756

Fair market value adjustment and deferred loan costs

(16

)

11

Tower obligations and finance leases (excluded from GAAP Debt)

(89

)

(88

)

Total Liberty Broadband Debt (GAAP)

$

3,801

$

3,679

Other Financial Obligations:

Indemnification Obligation^(f)

$

50

$

29

Preferred Stock^(g)

180

180

____________________

a)

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

b)

Principal amount of Senior Notes.

c)

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

d)

As defined in GCI’s credit agreement.

e)

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

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

g)

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

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

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

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

GCI Operating and Financial Results

1Q22

1Q23

% Change

(amounts in millions, except operating metrics)

GCI Consolidated Financial Metrics

Revenue

Consumer

$

119

$

118

(1

)%

Business

114

128

12

%

Total revenue

$

233

$

246

6

%

Operating income

$

21

$

29

38

%

Operating income margin (%)

9.0

%

11.8

%

280

bps

Adjusted OIBDA^(a)

$

87

$

90

3

%

Adjusted OIBDA margin^(a) (%)

37.3

%

36.6

%

(70

)bps

GCI Consumer

Financial Metrics

Revenue

Data

$

58

$

59

2

%

Wireless

46

47

2

%

Other

15

12

(20

)%

Total revenue

$

119

$

118

(1

)%

Operating Metrics

Data:

Cable modem subscribers^(b)

153,600

159,100

4

%

Wireless:

Lines in service^(c)

185,900

193,700

4

%

GCI Business

Financial Metrics

Revenue

Data

$

90

$

106

18

%

Wireless

14

13

(7

)%

Other

10

9

(10

)%

Total revenue

$

114

$

128

12

%

____________________

a)

See reconciling schedule 1.

b)

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

c)

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

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

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

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

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

FOOTNOTES

1)

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

2)

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

3)

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

4)

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

NOTES

LIBERTY BROADBAND FINANCIAL METRICS

(amounts in millions)

1Q22

1Q23

Revenue

GCI Holdings

$

233

$

246

Corporate and other^(a)

5

—

Total Liberty Broadband Revenue

$

238

$

246

Operating Income (Loss)

GCI Holdings

$

21

$

29

Corporate and other^(a)

(14

)

(13

)

Total Liberty Broadband Operating Income (Loss)

$

7

$

16

Adjusted OIBDA (Loss)

GCI Holdings

$

87

$

90

Corporate and other^(a)

(7

)

(8

)

Total Liberty Broadband Adjusted OIBDA (Loss)

$

80

$

82

____________________

a)

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

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

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

NON-GAAP FINANCIAL MEASURES

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

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

SCHEDULE 1

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

GCI HOLDINGS ADJUSTED OIBDA RECONCILIATION

(amounts in millions)

1Q22

1Q23

GCI Holdings Operating Income

$

21

$

29

Depreciation and amortization

63

58

Stock-based compensation

3

3

GCI Holdings Adjusted OIBDA

$

87

$

90

SCHEDULE 2

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

LIBERTY BROADBAND ADJUSTED OIBDA RECONCILIATION

(amounts in millions)

1Q22

1Q23

Liberty Broadband Operating Income (Loss)

$

7

$

16

Depreciation and amortization

64

58

Stock-based compensation

9

8

Liberty Broadband Adjusted OIBDA (Loss)

$

80

$

82

GCI Holdings

$

87

$

90

Corporate and other

(7

)

(8)

LIBERTY BROADBAND CORPORATION

BALANCE SHEET INFORMATION

(unaudited)

March 31,

December 31,

2023

2022

amounts in millions,

except share amounts

Assets

Current assets:

Cash and cash equivalents

$

169

375

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

194

201

Prepaid and other current assets

91

84

Total current assets

454

660

Investment in Charter, accounted for using the equity method

11,609

11,433

Property and equipment, net

1,012

1,011

Intangible assets not subject to amortization

Goodwill

755

755

Cable certificates

550

550

Other

37

37

Intangible assets subject to amortization, net

506

516

Other assets, net

206

180

Total assets

$

15,129

15,142

Liabilities and Equity

Current liabilities:

Accounts payable and accrued liabilities

$

86

92

Deferred revenue

21

20

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

5

1,376

Indemnification obligation

29

50

Other current liabilities

152

137

Total current liabilities

293

1,675

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

3,674

2,425

Obligations under tower obligations and finance leases, excluding current portion

85

86

Long-term deferred revenue

62

63

Deferred income tax liabilities

2,074

2,040

Preferred stock

202

202

Other liabilities

155

150

Total liabilities

6,545

6,641

Equity

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

—

—

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

—

—

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

1

1

Additional paid-in capital

3,282

3,318

Accumulated other comprehensive earnings (loss), net of taxes

59

9

Retained earnings

5,224

5,155

Total stockholders’ equity

8,566

8,483

Non-controlling interests

18

18

Total equity

8,584

8,501

Commitments and contingencies

Total liabilities and equity

$

15,129

15,142

LIBERTY BROADBAND CORPORATION

STATEMENT OF OPERATIONS INFORMATION

(unaudited)

Three months ended

March 31,

2023

2022

amounts in millions,

except per share amounts

Revenue

$

246

238

Operating costs and expenses:

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

62

66

Selling, general and administrative, including stock-based compensation

110

101

Depreciation and amortization

58

64

230

231

Operating income (loss)

16

7

Other income (expense):

Interest expense (including amortization of deferred loan fees)

(45

)

(26

)

Share of earnings (losses) of affiliate

248

303

Gain (loss) on dilution of investment in affiliate

(27

)

(56

)

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

(114

)

137

Other, net

14

(21

)

Earnings (loss) before income taxes

92

344

Income tax benefit (expense)

(23

)

(45

)

Net earnings (loss)

69

299

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

—

—

Net earnings (loss) attributable to Liberty Broadband shareholders

$

69

299

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

$

0.47

1.79

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

$

0.47

1.77

LIBERTY BROADBAND CORPORATION

STATEMENT OF CASH FLOWS INFORMATION

(unaudited)

Three months ended

March 31,

2023

2022

amounts in millions

Cash flows from operating activities:

Net earnings (loss)

$

69

299

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

Depreciation and amortization

58

64

Stock-based compensation

8

9

Share of (earnings) losses of affiliate, net

(248

)

(303

)

(Gain) loss on dilution of investment in affiliate

27

56

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

114

(137

)

Deferred income tax expense (benefit)

22

6

Other, net

(1

)

(1

)

Change in operating assets and liabilities:

Current and other assets

(6

)

65

Payables and other liabilities

(2

)

32

Net cash provided by (used in) operating activities

41

90

Cash flows from investing activities:

Capital expenditures

(54

)

(32

)

Cash received for Charter shares repurchased by Charter

42

602

Other investing activities, net

—

4

Net cash provided by (used in) investing activities

(12

)

574

Cash flows from financing activities:

Borrowings of debt

1,248

300

Repayments of debt, tower obligations and finance leases

(1,416

)

(2

)

Repurchases of Liberty Broadband common stock

(40

)

(843

)

Indemnification payment to Qurate Retail

(24

)

—

Other financing activities, net

(3

)

(3

)

Net cash provided by (used in) financing activities

(235

)

(548

)

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

(206

)

116

Cash, cash equivalents and restricted cash, beginning of period

400

206

Cash, cash equivalents and restricted cash, end of period

$

194

322

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

Shane Kleinstein (720) 875-5432

KEYWORDS: Colorado United States North America

INDUSTRY KEYWORDS: Networks Internet Mobile/Wireless Technology Telecommunications

MEDIA:

Logo

Posted on May 2, 2023 4:38 pm
Performant Financial Corporation to Report first Quarter 2023 Earnings on May 9, 2023

Performant Financial Corporation to Report first Quarter 2023 Earnings on May 9, 2023

LIVERMORE, Calif.–(BUSINESS WIRE)–
Performant Financial Corporation (Nasdaq: PFMT) (the Company), a leading provider of technology-enabled payment integrity, eligibility, and related analytics services, announced today that the Company will report its first quarter 2023 results after the market closes on Tuesday, May 9, 2023. The Company will also hold a conference call to discuss results at 5:00 pm (Eastern Time) that day.

The conference call can be accessed by dialing 888-886-7786 (domestic) or 416-764-8658 (international). A replay will be available approximately three hours after the call, through May 16, 2023 accessible by dialing 844-512-2921 (domestic), or 412-317-6671 (international). The passcode for the replay is 87830265.

The Company will also host a live webcast of its conference call which may be accessed on the Investor Relations section of the Company’s website at investors.performantcorp.com. A replay will be available on the website following the call.

ABOUT PERFORMANT

Performant helps commercial healthcare and government payers enhance revenue and contain costs by identifying, preventing, and recovering waste, improper payments, and defaulted assets. Performant is a leading provider of these services in several markets, including Medicare, Medicaid, and commercial healthcare. Performant has been providing healthcare recovery audit services for more than a decade and works with leading national payers, regional payers, and Blues plans.

Powered by a proprietary analytics platform and workflow technology, Performant also provides professional services related to the recovery effort, including advanced reporting capabilities, support services, customer care, and stakeholder training programs meant to mitigate future instances of improper payments. Founded in 1976, Performant is headquartered in Livermore, California.

To learn more about Performant, please visit https://www.performantcorp.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20230502006071/en/

Richard Zubek, Investor Relations

Performant Financial Corporation

(925) 960-4988

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Payments Health Technology Practice Management Health Technology Managed Care Software

MEDIA:

Logo

Posted on May 2, 2023 4:38 pm
Mondelēz International Names Deepak Iyer as EVP & President, Asia Pacific, Middle East and Africa

25+ year veteran Iyer has successfully led growth of businesses in India, Southeast Asia and Africa

Maurizio Brusadelli to leave company in June to pursue external leadership opportunity

CHICAGO, May 02, 2023 (GLOBE NEWSWIRE) — Mondelēz International (Nasdaq: MDLZ) today announced that Deepak Iyer, 56, the company’s President, India & Southeast Asia, has been named Executive Vice President and President, Asia Pacific, Middle East and Africa (AMEA) effective June 5. In his new role, Iyer will be responsible for leading the company’s $6.8 billion AMEA business across more than 70 countries, which includes iconic brands such as Oreo and belVita biscuits, Cadbury chocolate and Kinh Do cakes.

“With close to three decades of leadership experience and a strong track record of success driving the growth of brands in emerging markets across Asia and Africa, Deepak is the ideal leader to continue our strong and sustained growth across the AMEA region,” said Chairman and CEO Dirk Van de Put. “Under his leadership these past six and a half years, India has delivered strong, profitable growth and become a consistent exporter of talent and best practices across our global network. We look forward to leveraging his skills and experience in this expanded role to drive greater positive impact across the broader region and the entire company.”

Since 2016, Iyer has successfully led the company’s India business driving sustained double-digit revenue growth, significantly expanded profit margins, strong cash flow generation and the adoption of advanced technologies and use of consumer data. An engineer with and MBA and more than three decades of management experience across Sales, Marketing and General Management, he has successfully managed businesses across India, Southeast Asia and Africa. Iyer has vast and versatile industry and operating model experiences including time at PepsiCo and Wrigley India Pvt Ltd. Importantly, he has built a top team in CPG, widely recognized for best-in-class marketing, sales, sustainability integration, talent and engagement and supply chain capability. Iyer replaces Maurizio Brusadelli, who will leave the company in June to pursue another leadership opportunity.

“I am thankful to Maurizio, for his leadership during these past seven years in AMEA and for his three decades of contributions at the company,” said Van de Put. “Maurizio is a passionate leader who has played a key role in building our AMEA business into a growth engine of the company. I appreciate the foundation he has built to set Deepak and the team up for continued success and wish him the best in his future endeavor.”

About Mondelēz International

Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2022 net revenues of approximately $31 billion, MDLZ is leading the future of snacking with iconic global and local brands such as Oreo, Ritz, LU, Clif Bar and Tate’s Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka and Toblerone chocolate. Mondelēz International is a proud member of the Standard and Poor’s 500, Nasdaq 100 and Dow Jones Sustainability Index. Visit www.mondelezinternational.com or follow the company on Twitter at www.twitter.com/MDLZ.

Contact: Tracey Noe (Media) Shep Dunlap (Investors)

1-847-943-5678 1-847-943-5454

[email protected] [email protected]

Posted on May 2, 2023 4:37 pm
Mayville Engineering Company Announces First Quarter and 2023 Results

Mayville Engineering Company Announces First Quarter and 2023 Results

MAYVILLE, Wis.–(BUSINESS WIRE)–
Mayville Engineering Company (NYSE: MEC) (the “Company” or “MEC”), a leading value-added provider of design, prototyping and manufacturing solutions serving diverse end-markets, today announced results for the three months ended March 31, 2023.

FIRST QUARTER 2023 RESULTS

(All comparisons versus the prior-year period)

Net sales of $142.6 million, or +4.7% y/y

Net income of $2.6 million, ($1.3) million y/y

Diluted EPS of $0.12, including a ($0.10) per share impact from the Hazel Park facility ramp

Adjusted EBITDA of $13.8 million, or (6.3%) y/y, including $1.8 million impact from the Hazel Park facility ramp

MANAGEMENT COMMENTARY

“We delivered solid organic sales growth in the first quarter, highlighted by continued momentum within our commercial vehicle, military and powersports markets,” stated Jag Reddy, President and Chief Executive Officer. “Despite stable demand conditions, near-term supply chain disruptions and cost under-absorption impacted our margins as we ramp production at our new Hazel Park facility. As expected, Hazel Park affected first quarter Adjusted EBITDA and Adjusted EBITDA margin rate by $1.8 million and 120 basis points, respectively. Excluding the impact of Hazel Park, Adjusted EBITDA increased 5.6% on a year-over-year basis, while Adjusted EBITDA margin increased to 10.9%.”

“Our first quarter results demonstrate continued progress on our MBX-driven commercial and operational priorities, with a long-term focus on margin expansion and profitable growth,” stated Reddy. “We continue to drive MBX adoption across each of organizational centers of excellence and intend to provide MBX-led, multi-year performance targets at our first-ever Investor Day in late 2023.”

“Today, we are reiterating our full-year 2023 financial guidance,” continued Reddy. “While first quarter operating cash flow was impacted by the timing of capital payments, we continue to anticipate MEC will generate significant year-over-year growth in free cash flow this year, positioning us to reduce net leverage, while investing in new capabilities that further enhance the full suite of integrated solutions we provide our customers. As before, we see the potential to expand our fabrication capabilities to include lightweight materials, such as aluminum, plastics and composites, the combination of which position us to capitalize on demand growth within energy transition markets.”

PERFORMANCE SUMMARY

Net sales increased by 4.7% on a year-over-year basis in the first quarter 2023, driven by a combination of increased commercial sales volumes and continued price discipline, partially offset by supply chain challenges affecting some of our customers and softening demand in our construction & access end market.

Manufacturing margin was $16.4 million in the first quarter 2023, or 11.5% of net sales, versus $14.9 million, or 10.9% of net sales, in the prior year period. The year-over-year improvement in manufacturing gross margin was driven by a combination of strong volume growth resulting from new project starts and strong commercial vehicle demand, together with targeted commercial price actions, which partially offset lower scrap income.

Profit sharing, bonus and deferred compensation expense increased $0.5 million to $3.0 million in the first quarter of 2023 as the Company transitioned to an employer match program for its 401(k) plan. Other selling, general and administrative expenses were $7.0 million in the first quarter of 2023 as compared to $5.7 million for the same prior year period. The increase was predominantly attributable to increasing salaries, wages and benefits, recruiting fees and higher professional fees related to the Company preparing to be Sarbanes-Oxley Act Section 404(b) compliant for 2024.

Interest expense was $1.7 million in the first quarter 2023, compared to $0.6 million in the prior year period, primarily due to higher interest rates.

MEC reported Adjusted EBITDA of $13.8 million in the first quarter 2023, or 9.7% of net sales, versus $14.8 million, or 10.8% of net sales, in the prior-year period. First quarter 2023 Adjusted EBITDA reflects $1.8 million of cost under-absorption associated with the ramp-up of production at the Hazel Park facility. Excluding the impact of the ramp-up of the Hazel Park facility, Adjusted EBITDA margin would have been 10.9%.

Net income for the first quarter of 2023 was $2.6 million, or $0.12 per diluted share, versus $3.8 million, or $0.19 per diluted share, in the prior-year year period. The 32.7% year-over-year decline in net income in the first quarter of 2023 reflects a $1.8 million, or $0.10 per diluted share, impact from the ramp-up of the Hazel Park facility and a $1.2 million, or $0.06 per diluted share, non-recurring gain in the prior-year period resulting from an impairment on long-lived assets and a gain on contracts associated with the former fitness customer.

Net cash used in operations during the first quarter of 2023 was $6.0 million, compared to $0.4 million in the prior year period. Net cash used in operations during the quarter reflects a $7.8 million use of cash for working capital purposes.

END-MARKET UPDATE

Three Months Ended

March 31,

2023

2022

Commercial Vehicle

$

59,155

$

50,865

Construction & Access

26,507

29,744

Powersports

24,098

22,575

Agriculture

14,451

15,248

Military

8,569

5,171

Other

9,866

12,649

Net Sales

$

142,645

$

136,252

Commercial Vehicles

MEC is a Tier 1 supplier to many of the country’s top original equipment manufacturers (OEM) of commercial vehicles providing exhaust & aftertreatment, engine components, cooling, fuel and structural systems for both heavy- and medium-duty commercial vehicles.

Net sales to the commercial vehicle market were $59.2 million in the first quarter of 2023, an increase of 16.3% versus the prior-year period. The increase in sales was primarily the result of volume increases and strengthened end market demand due to a 17% year-over-year increase in the class 8 commercial vehicle build schedule.

Construction & Access

MEC manufactures thousands of parts for the construction & access market including fenders, hoods, supports, frames, platforms, frame structures, doors and tubular products such as exhaust & aftertreatment, engine components, cooling system components, handrails and full electro-mechanical assemblies.

Net sales to the construction & access market were $26.5 million in the first quarter 2023, a decrease of 10.9% versus the prior-year period. The decrease in sales was primarily driven by decelerating residential construction demand.

Powersports

MEC manufactures stampings and complex metal assemblies and coatings for the marine propulsion, all-terrain vehicles (ATV), multi-utility vehicles (MUV) and motorcycle markets. MEC’s powersports expertise includes axle housings, steering columns, swing arms, fenders, suspension components, ATV/MUV racks, cowl assemblies and vehicle frames.

Net sales to the powersports market were $24.1 million in the first quarter of 2023, an increase of 6.7% versus the prior-year period. The increase in sales was the result of an increase in volumes from new project wins and share gains from both new and existing customers.

Agriculture

MEC is an integral partner in the supply chain of the world’s leading agriculture OEMs manufacturing thousands of parts including fenders, hoods, supports, frames, platforms, frame structures, doors and tubular products such as exhaust, engine components, cooling system components, handrails and full electro-mechanical assemblies.

Net sales to the agriculture market were $14.5 million during the first quarter of 2023, a decrease of 5.2% versus the prior-year period. The decrease in sales was driven mostly by a decline in small-ag equipment demand.

Military

MEC holds the International Traffic in Arms Regulations (ITAR) certification and produces components for the United States military. Products include exhaust, engine components, cooling, fuel, suspension, structural systems and chemical agent resistant coating (CARC) painting capabilities.

Net sales to the military market were $8.6 million in the first quarter of 2023, an increase of 65.7% versus the prior-year period. Contributions from new programs, new vehicle introductions and demand associated with the conflict in Ukraine contributed to the year-over-year sales growth.

Other

MEC also produces a wide variety of components and assemblies for customers in the power generation, industrial equipment, mining, forestry, communications, and medical markets.

Net sales to other end markets for the first quarter of 2023 were $9.9 million, a decrease of 22.0% year-over-year. Sales in this market primarily relate to MEC Outdoors, tooling and additional miscellaneous markets.

STRATEGIC UPDATE

During the first quarter, MEC continued the rigorous implementation of its MEC Business Excellence (MBX) initiative, a value-creation framework designed to drive sustained operational and commercial excellence execution across all aspects of the organization. Upon full implementation, MEC expects MBX to drive improved margin capture, free cash generation and profitability over a multi-year period. For the full-year 2023, MEC expects to deliver between 40-70 basis points of manufacturing margin benefit related to MBX.

Drive a High-Performance Culture. The Company is focused on effectuating cultural change across its organization by implementing performance-based metrics, daily lean management and other process-oriented strategies. Through these efforts, the Company intends to create a high-performance culture capable of driving improved performance, asset utilization and cost optimization. During the first quarter, the Company finalized the implementation and alignment of processes and best-practices across the enterprise to drive strategic execution.

Drive Operational Excellence. The Company is focused on leveraging technologies and capabilities to increase productivity and reduce costs across the value chain. The Company intends to achieve this objective through the implementation of lean initiatives such as value stream mapping, sales, inventory and operations (SIOP) planning, and further optimization of its supply chain and procurement strategies. During the first quarter, the Company held a number of kaizen events to drive continuous improvement in plant operations and commercial pricing processes.

Drive Commercial Expansion. The Company is focused on driving commercial growth through an integrated, solutions-oriented approach that leverages its full suite of design, prototyping and aftermarket services; an expansion of its fabrication capabilities beyond steel, within an emphasis on lightweight aluminum, plastics and composites; diversification within high-growth energy transition markets; further market penetration within existing end-markets; and the implementation of value-based pricing. For example, during the first quarter, MEC continued to grow its share of wallet in products supporting thermal management of electric vehicle (EV) batteries. In addition, the company continued to expand market share within the EV category within its commercial vehicle market to meet consumer demand as OEMs launch new EV platforms. MEC continues to increase engagement in the EV markets and will continue to collaborate with new and potential customers to bring products to market.

Drive Human Resource Optimization. The Company remains focused on the recruitment and retention of skilled, experienced employees to support the growth of its business. This component of the MBX value creation framework is designed to provide competitive, performance-based incentives; develop high-potential candidates for internal development and advancement; ensure business continuity through multi-tiered succession planning; and to ensure a stable recruiting pipeline. During the first quarter, the Company announced the appointment of Rachele Lehr as Chief Human Resources Officer to spearhead the Company’s strategic human resource efforts.

BALANCE SHEET UPDATE

As of March 31, 2023, MEC had net debt outstanding of $83.8 million and total cash and availability on its senior secured revolving credit facility of $196.3¹million. At the end of the first quarter, the ratio of net debt to trailing twelve-month Adjusted EBITDA was 1.4x, consistent with its long-term net leverage target of at or below 2.5x.

FINANCIAL GUIDANCE

The Company issued financial guidance for the full year 2023. All guidance is current as of the time provided and is subject to change.

FY 2022

FY 2023

(in Millions)

Actual

Forecast

Net Sales

$539.4

$540 – $580

Adjusted EBITDA

$60.8

$62 – $71

Capital Expenditures

$58.6

$20 – $25

_____________

¹This amount is reduced to approximately $114.7 million after taking into account the $81.6 million of outstanding borrowings under the credit facility as of March 31, 2023.

The underlying assumptions behind the Company’s financial guidance have not changed. The Company continues to expect net sales for 2023 to reflect raw material pass-through costs of between negative 4% to negative 5% of total net sales for the year, as compared to positive 5% to 6% of net sales for the full year 2022. The Company’s Adjusted EBITDA guidance reflects scrap income of between $7 million and $9 million, compared to $13 million in the full year 2022. Full-year 2023 Adjusted EBITDA guidance also reflects $4 million to $6 million of under-absorbed overhead costs associated with the ramp-up of production at the Company’s Hazel Park, Michigan manufacturing facility. The Company expects that the unfavorable impact from the ramp-up of production at Hazel Park will be partially offset by a 40 to 70 basis point improvement in manufacturing margins resulting from the MBX initiatives, which will directly benefit Adjusted EBITDA.

FIRST QUARTER 2023 RESULTS CONFERENCE CALL

The Company will host a conference call on Wednesday, May 3, 2023 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time).

For a live webcast of the conference call and to access the accompanying investor presentation, please visit www.mecinc.com and click on the link to the live webcast on the Investors page.

For telephone access to the conference, call (833) 470-1428 within the United States, or call (833) 950-0062 within Canada and please use the Access Code: 993353.

FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements that reflect plans, estimates and beliefs. Such statements involve risk and uncertainties. Actual results may differ materially from those contemplated by these forward-looking statements as a result of various factors. Important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements include, but are not limited to: macroeconomic conditions, including inflation, rising interest rates and recessionary concerns, as well as ongoing supply chain challenges, labor availability and cost pressures, and the COVID-19 pandemic, have had, and may continue to have, a negative impact on our business, financial condition, cash flows and results of operations (including future uncertain impacts); risks relating to developments in the industries in which our customers operate; risks related to scheduling production accurately and maximizing efficiency; our ability to realize net sales represented by our awarded business; failure to compete successfully in our markets; our ability to maintain our manufacturing, engineering and technological expertise; the loss of any of our large customers or the loss of their respective market shares; risks related to entering new markets; our ability to recruit and retain our key executive officers, managers and trade-skilled personnel; volatility in the prices or availability of raw materials critical to our business; manufacturing risks, including delays and technical problems, issues with third-party suppliers, environmental risks and applicable statutory and regulatory requirements; our ability to successfully identify or integrate acquisitions; our ability to develop new and innovative processes and gain customer acceptance of such processes; risks related to our information technology systems and infrastructure; geopolitical and economic developments, including foreign trade relations and associated tariffs; results of legal disputes, including product liability, intellectual property infringement and other claims; risks associated with our capital-intensive industry; risks related to our treatment as an S Corporation prior to the consummation of our initial public offering; risks related to our employee stock ownership plan’s treatment as a tax-qualified retirement plan; and other factors described in “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022, as such may be amended or supplemented in our subsequently filed Quarterly Reports on Form 10-Q. This discussion should be read in conjunction with our audited consolidated financial statements included in the Company’s previously filed Annual Report on Form 10-K for the year ended December 31, 2022. We undertake no obligation to update or revise any forward-looking statements after the date on which any such statement is made, whether as a result of new information, future events or otherwise, except as required by federal securities laws.

ABOUT MAYVILLE ENGINEERING COMPANY

Founded in 1945, Mayville Engineering Company (MEC) is a leading U.S.-based, vertically integrated, value-added manufacturing partner providing a full suite of manufacturing solutions from concept to production, including design, prototyping and tooling, fabrication, coating, assembly and aftermarket components. Our customers operate in diverse end markets, including heavy- and medium-duty commercial vehicles, construction & access equipment, powersports, agriculture, military and other end markets. Along with process engineering and development services, MEC maintains an extensive manufacturing infrastructure with 20 facilities across seven states. These facilities make it possible to offer conventional and CNC (computer numerical control) stamping, shearing, fiber laser cutting, forming, drilling, tapping, grinding, tube bending, machining, welding, assembly and logistic services. MEC also possesses a broad range of finishing capabilities including shot blasting, e-coating, powder coating, wet spray and military grade chemical agent resistant coating (CARC) painting.

NON-GAAP FINANCIAL MEASURES

This press release contains financial information calculated in a manner other than in accordance with U.S generally accepted accounting principles (“GAAP”).

The non-GAAP measures used in this press release are EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin.

EBITDA represents net income before interest expense, provision for income taxes, depreciation, and amortization. EBITDA Margin represents EBITDA as a percentage of net sales for each period. Adjusted EBITDA represents EBITDA before stock-based compensation expense, Hazel Park transition and legal costs due to the former fitness customer and impairment charges on long-lived assets and gain on contracts specifically purchased to meet obligations under the agreement with our former fitness customer. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of net sales for each period. We present EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin as management uses these measures as key performance indicators, and we believe they are measures frequently used by securities analysts, investors and other parties to evaluate companies in our industry. These metrics are supplemental measures of our operating performance that are neither required by, nor presented in accordance with, GAAP. These measures should not be considered as an alternative to net income, or any other performance measure derived in accordance with GAAP as an indicator of our operating performance. These measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP.

Our calculation of EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin may not be comparable to the similarly named measures reported by other companies. Potential differences between our measures of EBITDA and Adjusted EBITDA compared to other similar companies’ measures of EBITDA and Adjusted EBITDA may include differences in capital structure and tax positions.

Please reference our reconciliation of net income, the most directly comparable measure calculated in accordance with GAAP, to EBITDA, Adjusted EBITDA and the calculation of EBITDA Margin and Adjusted EBITDA Margin included in this press release.

Mayville Engineering Company, Inc.

Consolidated Balance Sheet

(in thousands, except share amounts)

(unaudited)

March 31,

December 31,

2023

2022

ASSETS

Cash and cash equivalents

$

126

$

127

Receivables, net of allowances for doubtful accounts of $572 at March 31, 2023

and $545 at December 31, 2022

74,239

58,001

Inventories, net

68,948

71,708

Tooling in progress

8,039

7,938

Prepaid expenses and other current assets

3,470

3,529

Total current assets

154,822

141,303

Property, plant and equipment, net

142,956

145,771

Assets held for sale

81

83

Goodwill

71,535

71,535

Intangible assets, net

42,071

43,809

Operating lease assets

34,787

36,073

Other long-term assets

1,749

2,007

Total assets

$

448,001

$

440,581

LIABILITIES AND SHAREHOLDERS’ EQUITY

Accounts payable

$

52,376

$

53,735

Current portion of operating lease obligation

4,894

4,857

Accrued liabilities:

Salaries, wages, and payroll taxes

7,320

7,288

Profit sharing and bonus

1,137

6,860

Current portion of deferred compensation

17,802

18,062

Other current liabilities

12,645

11,646

Total current liabilities

96,174

102,448

Bank revolving credit notes

81,576

72,236

Operating lease obligation, less current maturities

30,648

31,891

Deferred compensation, less current portion

3,229

3,132

Deferred income tax liability

12,136

11,818

Other long-term liabilities

895

1,189

Total liabilities

$

224,658

$

222,714

Commitments and contingencies

Common shares, no par value, 75,000,000 authorized, 21,779,959 shares issued at

March 31, 2023 and 21,645,193 at December 31, 2022

—

—

Additional paid-in-capital

202,011

200,945

Retained earnings

28,845

26,274

Treasury shares at cost, 1,357,929 shares at March 31, 2023 and 1,472,447 at

December 31, 2022

(7,513

)

(9,352

)

Total shareholders’ equity

223,343

217,867

Total

$

448,001

$

440,581

Mayville Engineering Company, Inc.

Consolidated Statement of Net Income

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

(unaudited)

Three Months Ended

March 31,

2023

2022

Net sales

$

142,645

$

136,252

Cost of sales

126,268

121,370

Amortization of intangible assets

1,738

1,738

Profit sharing, bonuses, and deferred compensation

3,003

2,548

Employee stock ownership plan expense

—

490

Other selling, general and administrative expenses

6,966

5,725

Impairment of long-lived assets and gain on contracts

—

(1,183

)

Income from operations

4,670

5,564

Interest expense

(1,658

)

(567

)

Income before taxes

3,012

4,997

Income tax expense

441

1,175

Net income and comprehensive income

$

2,571

$

3,822

Earnings per share:

Basic

$

0.13

$

0.19

Diluted

$

0.12

$

0.19

Weighted average shares outstanding:

Basic

20,315,338

20,398,933

Diluted

20,749,948

20,549,326

Mayville Engineering Company, Inc.

Consolidated Statement of Cash Flows

(in thousands)

(unaudited)

Three Months Ended

March 31,

2023

2022

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$

2,571

$

3,822

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

Depreciation

6,142

5,468

Amortization

1,738

1,738

Allowance for doubtful accounts

27

106

Inventory excess and obsolescence reserve

11

174

Stock-based compensation expense

1,066

1,257

Gain on disposal of property, plant and equipment

(138)

(62)

Impairment of long-lived assets and gain on contracts

—

(1,183)

Deferred compensation

(163)

(2,176)

Non-cash lease expense

1,286

1,266

Other non-cash adjustments

83

77

Changes in operating assets and liabilities – net of effects of acquisition:

Accounts receivable

(16,265)

(17,088)

Inventories

2,749

(2,317)

Tooling in progress

(100)

(1,246)

Prepaids and other current assets

110

(216)

Accounts payable

(2,290)

10,526

Deferred income taxes

441

1,155

Operating lease obligations

(1,206)

(1,160)

Accrued liabilities

(2,105)

(566)

Net cash used in operating activities

(6,043)

(425)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment

(2,408)

(12,979)

Proceeds from sale of property, plant and equipment

153

359

Net cash used in investing activities

(2,255)

(12,620)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from bank revolving credit notes

119,700

118,156

Payments on bank revolving credit notes

(110,360)

(102,436)

Repayments of other long-term debt

(286)

(272)

Purchase of treasury stock

(661)

(2,323)

Payments on finance leases

(96)

(78)

Net cash provided by financing activities

8,297

13,047

Net increase (decrease) in cash and cash equivalents

(1)

2

Cash and cash equivalents at beginning of period

127

118

Cash and cash equivalents at end of period

$

126

$

120

Mayville Engineering Company, Inc.

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

(in thousands)

(unaudited)

Three Months Ended

March 31,

2023

2022

Net income and comprehensive income

$

2,571

$

3,822

Interest expense

1,658

567

Provision for income taxes

441

1,175

Depreciation and amortization

7,880

7,207

EBITDA

12,550

12,771

Stock-based compensation expense

1,066

1,257

Hazel Park transition and legal costs due to former fitness customer

224

1,927

Impairment of long-lived assets and gain on contracts

—

(1,183

)

Adjusted EBITDA

$

13,840

$

14,772

Net sales

$

142,645

$

136,252

EBITDA Margin

8.8

%

9.4

%

Adjusted EBITDA Margin

9.7

%

10.8

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20230502005410/en/

INVESTOR CONTACT

Stefan Neely or Noel Ryan

(615) 844-6248

[email protected]

KEYWORDS: Wisconsin United States North America Canada

INDUSTRY KEYWORDS: Machine Tools, Metalworking & Metallurgy Engineering Chemicals/Plastics Automotive Manufacturing Manufacturing Other Manufacturing

MEDIA:

Posted on May 2, 2023 4:36 pm
Western Union Reports First Quarter 2023 Results

Western Union Reports First Quarter 2023 Results

Q1 GAAP revenue of $1.04 billion, down 10% on a reported basis, or 1% on an adjusted basis

GAAP EPS of $0.40, a decrease of 46% year-over-year; Adjusted EPS of $0.43, a decrease of 16% year-over-year

GAAP operating margin of 19.7%, a decrease of 80 bps year-over-year; Adjusted operating margin of 20.5%, a decrease of 130 bps year-over-year

New branded digital go-to-market strategy continued momentum in Q1 with new customers up 14% and transactions up 7% globally, while U.S. outbound new customers were up 21% and transactions were up 11% ¹

DENVER–(BUSINESS WIRE)–
The Western Union Company (the “Company”) (NYSE: WU) today reported first quarter 2023 results.

The Company’s first quarter revenue of $1.04 billion declined 10% on a reported basis, or 1% on a constant currency basis excluding the contribution from Business Solutions, compared to the prior year period. The suspension of operations in Russia and Belarus negatively impacted revenue by approximately three percentage points, while Argentina inflation benefited revenue by approximately two percentage points. Softness in the retail money transfer business as well as the impact of promotional pricing activities related to the Company’s new branded digital go-to-market strategy was partially offset by Other, which includes the Company’s bill payments businesses and retail money order.

GAAP EPS in the first quarter was $0.40 compared to $0.74 in the prior year period. The year-over-year decrease in GAAP EPS was primarily due to the partial recognition of the Business Solutions gain in the prior year period.

Adjusted EPS in the first quarter was $0.43 compared to $0.51 in the prior year period. The year-over-year decline in adjusted EPS was driven by lower operating profit due to a $0.09 contribution from Business Solutions, Russia, and Belarus in the prior year period, partially offset by lower share count.

“I am pleased to say we exceeded our expectations in the first quarter,” said Devin McGranahan, President and Chief Executive Officer of Western Union. “This was achieved through momentum created by our ‘Evolve 2025’ strategic initiatives, strength in our Middle East business, and the Company’s remaining business performing in-line with our expectations.”

McGranahan added, “While revenue remained below our long-term aspirations for the Company, we were pleased to see a significant improvement in trajectory relative to the fourth quarter in many key markets around the world. We are particularly pleased with the ongoing momentum in our digital business with 14% growth in our new branded digital customer base, which accelerated global branded digital transaction growth to 7%. We remain focused on driving our ‘Evolve 2025’ strategy to become the leading provider of branded accessible financial services serving aspiring populations around the world.”

____________________

Note: for a full reconciliation between GAAP and non-GAAP metrics, please see the “Non-GAAP Measures” section of this press release.

¹ New branded digital customer growth excludes the impact of Russia and Belarus

Q1 Business Results

C2C revenues declined 6% on a reported basis, or 5% constant currency, while transactions declined 6% compared to the prior year period. The suspension of operations in Russia and Belarus negatively impacted C2C revenue and transactions by three percentage points and six percentage points, respectively. Regionally, softness in Europe & CIS, North America, and APAC was partially offset by continued strength in LACA and strength in MEASA led by Iraq.

Branded digital revenue declined 7% on a reported basis, or 6% constant currency, and represented 22% and 29% of total C2C revenues and transactions, respectively. Transactions grew 7% in the quarter driven by the Company’s new go-to-market strategy. The Company expects that revenue will be adversely impacted in the near term related to its new go-to-market strategy, which includes promotional pricing activities. The suspension of operations in Russia and Belarus negatively impacted both branded digital revenue and transactions by 2 percentage points in the quarter.

Q1 Financial Results

GAAP operating margin in the quarter was 19.7%, compared to 20.5% in the prior year period. The adjusted operating margin was 20.5% compared to 21.8% in the prior year period. The decrease in the adjusted operating margin was primarily due to increased technology investment driven by the Company’s ‘Evolve 2025’ strategy and lower revenue.

The GAAP effective tax rate in the quarter was 16.1%, compared to 19.0% in the prior year period, with the decrease primarily due to the effects of the sale of Business Solutions offset by discrete expenses in the current period. The adjusted effective tax rate was 13.5% in the quarter, compared to 13.0% in the prior year period, with the increase primarily due to discrete expenses in the current period.

Cash flow from operating activities was $137 million compared to $200 million in the prior year period due to timing of payments related to expenses incurred in previous periods. The Company returned $88 million to shareholders in the first quarter through dividends.

2023 Outlook

Today, the Company reaffirmed its 2023 adjusted full year financial outlook provided on February 7, 2023. The outlook assumes no material changes in macroeconomic conditions, including changes in foreign currencies or Argentina inflation.

The 2023 outlook is as follows:

GAAP

Adjusted

Revenue¹

(9%) to (7%)

(4%) to (2%)

Operating Margin

18% to 20%

19% to 21%

EPS

$1.53 to $1.63

$1.55 to $1.65

¹ Adjusted revenue is constant currency excluding the impact of Argentina inflation and proforma for the planned sale of Business Solutions

Non-GAAP Measures

Western Union presents a number of non-GAAP financial measures because management believes that these metrics provide meaningful supplemental information in addition to the GAAP metrics and provide comparability and consistency to prior periods. Constant currency results assume foreign revenues are translated from foreign currencies to the U.S. dollar, net of the effect of foreign currency hedges, at rates consistent with those in the prior year.

Reconciliations of non-GAAP to comparable GAAP measures are available in the accompanying schedules and in the “Investor Relations” section of the Company’s website at https://ir.westernunion.com.

GAAP figures reflect an expected partial year of Business Solutions ownership, including contractual payments to the buyers, representing profits between the first and third closings. Adjusted constant currency revenue growth metrics exclude contributions from Business Solutions. Adjusted operating profit metrics exclude the following items, as applicable: contributions from Business Solutions, operating expense redeployment program costs, acquisition and divestiture costs, Russia and Belarus exit costs, and Business Solutions exit costs. Adjusted effective tax rate and adjusted earnings per share metrics exclude the following items and the related taxes, as applicable: Business Solutions gain, operating expense redeployment program costs, acquisition and divestiture costs, Russia and Belarus exit costs, Business Solutions exit costs, and the reversal of significant uncertain tax positions.

Additional Statistics

Additional key statistics for the quarter and historical trends can be found in the supplemental tables included with this press release. All amounts included in the supplemental tables to this press release are rounded to the nearest tenth of a million, except as otherwise noted. As a result, the percentage changes and margins disclosed herein may not recalculate precisely using the rounded amounts provided.

Environmental, Social, and Governance (ESG)

Western Union is committed to making a positive impact. For more details on how Western Union is addressing some of the most pressing issues facing society, our shared environment, and our Company, please view our latest ESG report: https://corporate.westernunion.com/esg.

Investor and Analyst Conference Call and Presentation

The Company will host a conference call and webcast at 4:30 p.m. ET today.

The webcast and presentation will be available at https://ir.westernunion.com. Registration for the event is required, so please register at least fifteen minutes prior to the scheduled start time. A webcast replay will be available shortly after the event.

To listen to the conference call via telephone in the U.S., dial +1 (719) 359-4580 fifteen minutes prior to the start of the call, followed by the meeting ID, which is 920 8368 6498 and the passcode, which is 123540. To listen to the conference call via telephone outside the U.S., dial the country number from the international directory, followed by the meeting ID, which is 920 8368 6498 and the passcode, which is 123540.

Safe Harbor Compliance Statement for Forward-Looking Statements

This press release contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict. Actual outcomes and results may differ materially from those expressed in, or implied by, our forward-looking statements. Words such as “expects,” “intends,” “targets,” “anticipates,” “believes,” “estimates,” “guides,” “provides guidance,” “provides outlook,” “projects,” “designed to,” and other similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would,” “could,” and “might” are intended to identify such forward-looking statements. Readers of this press release of The Western Union Company (the “Company,” “Western Union,” “we,” “our,” or “us”) should not rely solely on the forward-looking statements and should consider all uncertainties and risks discussed in the Risk Factors section and throughout the Annual Report on Form 10-K for the year ended December 31, 2022. The statements are only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement.

Possible events or factors that could cause results or performance to differ materially from those expressed in our forward-looking statements include the following: (i) events related to our business and industry, such as: changes in general economic conditions and economic conditions in the regions and industries in which we operate, including global economic downturns and trade disruptions, or significantly slower growth or declines in the money transfer, payment service, and other markets in which we operate, including downturns or declines related to interruptions in migration patterns or other events, such as public health emergencies, epidemics, or pandemics, such as COVID-19, civil unrest, war, terrorism, natural disasters, or non-performance by our banks, lenders, insurers, or other financial services providers; failure to compete effectively in the money transfer and payment service industry, including among other things, with respect to price or customer experience, with global and niche or corridor money transfer providers, banks and other money transfer and payment service providers, including digital, mobile and internet-based services, card associations, and card-based payment providers, and with digital currencies and related exchanges and protocols, and other innovations in technology and business models; geopolitical tensions, political conditions and related actions, including trade restrictions and government sanctions, which may adversely affect our business and economic conditions as a whole, including interruptions of United States or other government relations with countries in which we have or are implementing significant business relationships with agents, clients, or other partners; deterioration in customer confidence in our business, or in money transfer and payment service providers generally; failure to maintain our agent network and business relationships under terms consistent with or more advantageous to us than those currently in place; our ability to adopt new technology and develop and gain market acceptance of new and enhanced services in response to changing industry and consumer needs or trends; mergers, acquisitions, and the integration of acquired businesses and technologies into our Company, divestitures, and the failure to realize anticipated financial benefits from these transactions, and events requiring us to write down our goodwill; decisions to change our business mix; changes in, and failure to manage effectively, exposure to foreign exchange rates, including the impact of the regulation of foreign exchange spreads on money transfers and payment transactions; changes in tax laws, or their interpretation, any subsequent regulation, and unfavorable resolution of tax contingencies; any material breach of security, including cybersecurity, or safeguards of or interruptions in any of our systems or those of our vendors or other third parties; cessation of or defects in various services provided to us by third-party vendors; our ability to realize the anticipated benefits from restructuring-related initiatives, which may include decisions to downsize or to transition operating activities from one location to another, and to minimize any disruptions in our workforce that may result from those initiatives; our ability to attract and retain qualified key employees and to manage our workforce successfully; failure to manage credit and fraud risks presented by our agents, clients, and consumers; adverse rating actions by credit rating agencies; our ability to protect our trademarks, patents, copyrights, and other intellectual property rights, and to defend ourselves against potential intellectual property infringement claims; material changes in the market value or liquidity of securities that we hold; restrictions imposed by our debt obligations; (ii) events related to our regulatory and litigation environment, such as: liabilities or loss of business resulting from a failure by us, our agents, or their subagents to comply with laws and regulations and regulatory or judicial interpretations thereof, including laws and regulations designed to protect consumers, or detect and prevent money laundering, terrorist financing, fraud, and other illicit activity; increased costs or loss of business due to regulatory initiatives and changes in laws, regulations and industry practices and standards, including changes in interpretations, in the United States and abroad, affecting us, our agents or their subagents, or the banks with which we or our agents maintain bank accounts needed to provide our services, including related to anti-money laundering regulations, anti-fraud measures, our licensing arrangements, customer due diligence, agent and subagent due diligence, registration and monitoring requirements, consumer protection requirements, remittances, immigration, and sustainability reporting including climate-related reporting; liabilities, increased costs or loss of business and unanticipated developments resulting from governmental investigations and consent agreements with or enforcement actions by regulators; liabilities resulting from litigation, including class-action lawsuits and similar matters, and regulatory enforcement actions, including costs, expenses, settlements, and judgments; failure to comply with regulations and evolving industry standards regarding consumer privacy, data use, the transfer of personal data between jurisdictions, and information security, including with respect to the General Data Protection Regulation in the European Union and the California Consumer Privacy Act; failure to comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as regulations issued pursuant to it and the actions of the Consumer Financial Protection Bureau and similar legislation and regulations enacted by other governmental authorities in the United States and abroad related to consumer protection and derivative transactions; effects of unclaimed property laws or their interpretation or the enforcement thereof; failure to maintain sufficient amounts or types of regulatory capital or other restrictions on the use of our working capital to meet the changing requirements of our regulators worldwide; changes in accounting standards, rules and interpretations, or industry standards affecting our business; and (iii) other events, such as catastrophic events and management’s ability to identify and manage these and other risks.

About Western Union

The Western Union Company (NYSE: WU) is committed to helping people around the world who aspire to build financial futures for themselves, their loved ones and their communities. Our leading cross-border, cross-currency money movement, payments and digital financial services empower consumers, businesses, financial institutions and governments—across more than 200 countries and territories and nearly 130 currencies—to connect with billions of bank accounts, millions of digital wallets and cards, and a global footprint of hundreds of thousands of retail locations. Our goal is to offer accessible financial services that help people and communities prosper. For more information, visit www.westernunion.com.

WU-G

THE WESTERN UNION COMPANY

KEY STATISTICS

(Unaudited)

Notes*

1Q22

2Q22

3Q22

4Q22

FY2022

1Q23

Consolidated Metrics

Revenues (GAAP) – YoY % change
(4)

%

(12)

%

(15)

%

(15)

%

(12)

%

(10)

%

Adjusted revenues (non-GAAP) – YoY % change
(a)

(1)

%

(4)

%

(6)

%

(6)

%

(4)

%

(1)

%

Operating margin (GAAP)

20.5

%

23.2

%

21.3

%

13.9

%

19.8

%

19.7

%

Adjusted operating margin (non-GAAP)
(b)

21.8

%

23.3

%

20.6

%

15.8

%

20.4

%

20.5

%

Adjusted EBITDA margin (non-GAAP)
(b)

26.2

%

27.5

%

24.9

%

20.2

%

24.7

%

25.1

%

Consumer-to-Consumer (C2C) Segment Metrics

Revenues (GAAP) – YoY % change

(5)

%

(9)

%

(11)

%

(11)

%

(9)

%

(6)

%

Adjusted revenues (non-GAAP) – YoY % change
(f)

(3)

%

(6)

%

(8)

%

(9)

%

(6)

%

(5)

%

Transactions (in millions)

69.7

68.2

66.9

69.3

274.1

65.3

Transactions – YoY % change

(4)

%

(13)

%

(12)

%

(12)

%

(10)

%

(6)

%

Cross-border principal, as reported – YoY % change

(3)

%

(12)

%

(13)

%

(12)

%

(10)

%

(3)

%

Cross-border principal (constant currency) – YoY % change
(g)

(1)

%

(9)

%

(9)

%

(9)

%

(7)

%

(1)

%

Operating margin

20.7

%

22.0

%

19.7

%

14.1

%

19.2

%

18.9

%

Branded Digital revenues (GAAP) – YoY % change
(gg)

4

%

(1)

%

(8)

%

(8)

%

(3)

%

(7)

%

Branded Digital foreign currency translation impact
(i)

1

%

2

%

3

%

2

%

2

%

1

%

Adjusted Branded Digital revenues (non-GAAP) – YoY % change
(gg)

5

%

1

%

(5)

%

(6)

%

(1)

%

(6)

%

Branded Digital transactions – YoY % change
(gg)

0

%

(3)

%

(1)

%

2

%

0

%

7

%

C2C Segment Regional Metrics – YoY % change

NA region revenues (GAAP)
(aa), (bb)

(1)

%

(2)

%

(5)

%

(7)

%

(4)

%

(8)

%

NA region foreign currency translation impact
(i)

0

%

0

%

0

%

0

%

0

%

0

%

Adjusted NA region revenues (non-GAAP)
(aa), (bb)

(1)

%

(2)

%

(5)

%

(7)

%

(4)

%

(8)

%

NA region transactions
(aa), (bb)

(6)

%

(6)

%

(5)

%

(2)

%

(5)

%

1

%

EU & CIS region revenues (GAAP)
(aa), (cc)

(14)

%

(21)

%

(23)

%

(23)

%

(20)

%

(16)

%

EU & CIS region foreign currency translation impact
(i)

4

%

5

%

7

%

6

%

5

%

3

%

Adjusted EU & CIS region revenues (non-GAAP)
(aa), (cc)

(10)

%

(16)

%

(16)

%

(17)

%

(15)

%

(13)

%

EU & CIS region transactions
(aa), (cc)

(7)

%

(30)

%

(32)

%

(31)

%

(25)

%

(23)

%

MEASA region revenues (GAAP)
(aa), (dd)

2

%

(4)

%

(5)

%

(9)

%

(4)

%

5

%

MEASA region foreign currency translation impact
(i)

1

%

1

%

2

%

2

%

2

%

1

%

Adjusted MEASA region revenues (non-GAAP)
(aa), (dd)

3

%

(3)

%

(3)

%

(7)

%

(2)

%

6

%

MEASA region transactions
(aa), (dd)

5

%

(3)

%

(1)

%

(5)

%

(1)

%

(3)

%

LACA region revenues (GAAP)
(aa), (ee)

2

%

2

%

0

%

11

%

4

%

15

%

LACA region foreign currency translation impact
(i)

3

%

2

%

4

%

2

%

3

%

2

%

Adjusted LACA region revenues (non-GAAP)
(aa), (ee)

5

%

4

%

4

%

13

%

7

%

17

%

LACA region transactions
(aa), (ee)

2

%

4

%

3

%

8

%

5

%

9

%

APAC region revenues (GAAP)
(aa), (ff)

(6)

%

(10)

%

(16)

%

(20)

%

(13)

%

(8)

%

APAC region foreign currency translation impact
(i)

3

%

4

%

5

%

6

%

4

%

3

%

Adjusted APAC region revenues (non-GAAP)
(aa), (ff)

(3)

%

(6)

%

(11)

%

(14)

%

(9)

%

(5)

%

APAC region transactions
(aa), (ff)

(13)

%

(11)

%

(11)

%

(12)

%

(12)

%

(2)

%

% of C2C Revenue

NA region revenues
(aa), (bb)

39

%

40

%

40

%

39

%

40

%

38

%

EU & CIS region revenues
(aa), (cc)

29

%

28

%

28

%

27

%

28

%

26

%

MEASA region revenues
(aa), (dd)

17

%

16

%

16

%

16

%

16

%

19

%

LACA region revenues
(aa), (ee)

9

%

10

%

10

%

12

%

10

%

11

%

APAC region revenues
(aa), (ff)

6

%

6

%

6

%

6

%

6

%

6

%

Branded Digital revenues
(aa), (gg)

22

%

22

%

21

%

21

%

22

%

22

%

Other (primarily bill payments businesses in Argentina and the United States and money orders)

Revenues (GAAP) – YoY % change
8

%

19

%

0

%

20

%

12

%

23

%

Operating margin
31.7

%

40.1

%

33.4

%

35.5

%

35.4

%

38.6

%

% of Total Company Revenue (GAAP)

Consumer-to-Consumer segment revenues
86

%

90

%

90

%

90

%

89

%

91

%

Business Solutions segment revenues
8

%

3

%

4

%

3

%

5

%

1

%

Other revenues
6

%

7

%

6

%

7

%

6

%

8

%

____________________

* See the “Notes to Key Statistics” section of the press release for the applicable Note references and the reconciliation of non-GAAP financial measures, unless already reconciled herein.

THE WESTERN UNION COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(in millions, except per share amounts)

Three Months Ended

March 31,

2023

2022

% Change

Revenues $
1,036.9

$
1,155.7

(10)

%

Expenses:

Cost of services
629.5

655.1

(4)

%

Selling, general, and administrative
202.7

263.1

(23)

%

Total expenses
832.2

918.2

(9)

%

Operating income
204.7

237.5

(14)

%

Other income/(expense):

Gain on divestiture of business ^(a)
—

151.4

(b)

Interest income
3.2

0.6

(b)

Interest expense
(25.0

)

(24.8

)

1

%

Other expense, net
(1.9

)

(2.5

)

(19)

%

Total other income/(expense), net
(23.7

)

124.7

(b)

Income before income taxes
181.0

362.2

(50)

%

Provision for income taxes
29.2

68.9

(58)

%

Net income $
151.8

$
293.3

(48)

%

Earnings per share:

Basic $
0.41

$
0.75

(45)

%

Diluted $
0.40

$
0.74

(46)

%

Weighted-average shares outstanding:

Basic
374.4

393.1

Diluted
375.5

394.5

____________________

(a)

On March 1, 2022 and December 31, 2022, the Company completed the first and second closes, respectively, of the sale of its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC (collectively, the “Buyer”), and received cash consideration of $887.2 million, net of cash divested, subject to the remaining close and regulatory capital adjustments. The first closing excluded the operations in the European Union and the United Kingdom and the second closing included the United Kingdom operations. The third closing is expected to occur in the second quarter of 2023 and includes the European Union operations.

(b)

Calculation not meaningful.

THE WESTERN UNION COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in millions, except per share amounts)

March 31,

December 31,

2023

2022

Assets

Cash and cash equivalents $
1,228.6

$
1,285.9

Settlement assets
3,386.8

3,486.8

Property and equipment, net of accumulated depreciation of $522.7 and $512.8, respectively
103.1

109.6

Goodwill
2,034.6

2,034.6

Other intangible assets, net of accumulated amortization of $637.2 and $616.3, respectively
440.2

457.9

Other assets
790.4

859.9

Assets held for sale ^(a)
249.8

261.6

Total assets $
8,233.5

$
8,496.3

Liabilities and stockholders’ equity

Liabilities:

Accounts payable and accrued liabilities $
409.4

$
464.0

Settlement obligations
3,386.8

3,486.8

Income taxes payable
742.2

725.3

Deferred tax liability, net
162.7

158.5

Borrowings
2,462.7

2,616.8

Other liabilities
346.2

384.6

Liabilities associated with assets held for sale ^(a)
170.7

182.5

Total liabilities
7,680.7

8,018.5

Stockholders’ equity:

Preferred stock, $1.00 par value; 10 shares authorized; no shares issued
—

—

Common stock, $0.01 par value; 2,000 shares authorized; 374.4 shares and 373.5 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively
3.7

3.7

Capital surplus
1,004.1

995.9

Accumulated deficit
(296.8

)

(353.9

)

Accumulated other comprehensive loss
(158.2

)

(167.9

)

Total stockholders’ equity
552.8

477.8

Total liabilities and stockholders’ equity $
8,233.5

$
8,496.3

____________________

(a)

Includes balances associated with the Company’s Business Solutions business, which were held for sale as of March 31, 2023 and December 31, 2022, respectively.

THE WESTERN UNION COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in millions)

Three Months Ended

March 31,

2023

2022

Cash flows from operating activities

Net income $
151.8

$
293.3

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

Depreciation
10.2

11.3

Amortization
36.4

35.5

Gain on divestiture of business, excluding transaction costs
—

(155.8

)

Other non-cash items, net
19.3

22.9

Increase/(decrease) in cash, excluding the effects of divestitures, resulting from changes in:

Other assets
(28.1

)

(93.2

)

Accounts payable and accrued liabilities
(62.2

)

36.0

Income taxes payable
17.2

56.2

Other liabilities
(7.3

)

(6.2

)

Net cash provided by operating activities
137.3

200.0

Cash flows from investing activities

Payments for capitalized contract costs
(31.0

)

(6.9

)

Payments for internal use software
(19.6

)

(12.6

)

Purchases of property and equipment
(6.8

)

(10.3

)

Purchases of settlement investments
(124.7

)

(178.4

)

Proceeds from the sale of settlement investments
22.2

71.6

Maturities of settlement investments
22.4

37.4

Purchases of non-settlement investments
—

(250.0

)

Proceeds from the sale of non-settlement investments
100.0

—

Proceeds from divestiture, net of cash divested
—

896.1

Other investing activities
1.1

(5.9

)

Net cash provided by/(used in) investing activities
(36.4

)

541.0

Cash flows from financing activities

Cash dividends and dividend equivalents paid
(88.1

)

(91.8

)

Common stock repurchased
(5.1

)

(154.4

)

Net repayments of commercial paper
(155.0

)

(175.0

)

Principal payments on borrowings
—

(300.0

)

Proceeds from exercise of options
0.3

8.9

Net change in settlement obligations
109.1

(80.4

)

Other financing activities
(0.2

)

—

Net cash used in financing activities
(139.0

)

(792.7

)

Net change in cash and cash equivalents, including settlement, and restricted cash
(38.1

)

(51.7

)

Cash and cash equivalents, including settlement, and restricted cash at beginning of period
2,040.7

2,110.9

Cash and cash equivalents, including settlement, and restricted cash at end of period $
2,002.6

$
2,059.2

March 31,

2023

2022

Reconciliation of balance sheet cash and cash equivalents to cash flows:

Cash and cash equivalents on balance sheet $
1,228.6

$
1,295.8

Settlement cash and cash equivalents
737.1

685.7

Restricted cash in Other assets
36.9

24.6

Cash and cash equivalents included in Assets held for sale
—

53.1

Cash and cash equivalents, including settlement, and restricted cash at end of period $
2,002.6

$
2,059.2

THE WESTERN UNION COMPANY

SUMMARY SEGMENT DATA

(Unaudited)

(in millions, unless indicated otherwise)

Three Months Ended

March 31,

2023

2022

% Change

Revenues:

Consumer-to-Consumer $
938.3

$
999.0

(6)

%

Business Solutions ^(a)
15.4

89.1

(83)

%

Other ^(b)
83.2

67.6

23

%

Total consolidated revenues $
1,036.9

$
1,155.7

(10)

%

Segment operating income:

Consumer-to-Consumer $
177.8

$
207.2

(14)

%

Business Solutions ^(a)
1.9

27.5

(93)

%

Other ^(b)
32.1

21.5

50

%

Total segment operating income
211.8

256.2

(17)

%

Russia/Belarus exit costs ^(c)
—

(11.0

)

(e)

Business Solutions exit costs ^(c)
—

(7.7

)

(e)

Operating expense redeployment program costs ^(d)
(7.1

)

—

(e)

Total consolidated operating income $
204.7

$
237.5

(14)

%

Segment operating income margin

Consumer-to-Consumer
18.9

%

20.7

%

(1.8)

%

Business Solutions ^(a)
12.7

%

30.8

%

(18.1)

%

Other ^(b)
38.6

%

31.7

%

6.9

%

____________________

(a)

On August 4, 2021, the Company entered into an agreement to sell its Business Solutions business to the Buyer. The sale will be completed in three closings, the first of which occurred on March 1, 2022. The second occurred on December 31, 2022 and the third is expected in the second quarter of 2023. The remaining operations of the Business Solutions business continue to be included in Revenues and Operating income until closing. During the period between the first and third closings, the Company is required to pay the Buyer a measure of profit from these operations, while owned by the Company, adjusted for other charges, as contractually agreed, which was included in Other expense, net in the Condensed Consolidated Statements of Income.

(b)

Other primarily includes the Company’s bill payment services which facilitate payments from consumers to businesses and other organizations and the Company’s money order services.

(c)

Represents the exit costs incurred in connection with the suspension of operations in Russia and Belarus and the divestiture of the Business Solutions business.

(d)

Represents severance, expenses associated with streamlining the Company’s organizational and legal structure, and other expenses associated with the Company’s program to redeploy expenses in its cost base through optimizations in vendor management, real estate, marketing, and people strategy, as previously announced in October 2022.

(e)

Calculation not meaningful.

THE WESTERN UNION COMPANY

NOTES TO KEY STATISTICS

(Unaudited)

(in millions, unless indicated otherwise)

Western Union’s management believes the non-GAAP financial measures presented within this press release and related tables provide meaningful supplemental information regarding the Company’s results to assist management, investors, analysts, and others in understanding the Company’s financial results and to better analyze operating, profitability, and other financial performance trends in the Company’s underlying business because they provide consistency and comparability to prior periods or eliminate currency volatility, increasing the comparability of the Company’s underlying results and trends.

A non-GAAP financial measure should not be considered in isolation or as a substitute for the most comparable GAAP financial measure. A non-GAAP financial measure reflects an additional way of viewing aspects of the Company’s operations that, when viewed with the Company’s GAAP results and the reconciliation to the corresponding GAAP financial measure, provides a more complete understanding of the Company’s business. Users of the financial statements are encouraged to review the Company’s financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is included below, where not previously reconciled above.

Notes

1Q22

2Q22

3Q22

4Q22

FY2022

1Q23

Consolidated Metrics

(a)
Revenues (GAAP)

$
1,155.7

$
1,138.3

$
1,089.6

$
1,091.9

$
4,475.5

$
1,036.9

Foreign currency translation impact
(i)

33.2

42.1

60.8

49.4

185.5

35.2

Revenues, constant currency (non-GAAP)

1,188.9

1,180.4

1,150.4

1,141.3

4,661.0

1,072.1

Less Business Solutions revenues, constant currency (non-GAAP)
(i), (l)

(91.9

)

(40.1

)

(50.4

)

(34.0

)

(216.4

)

(16.0

)

Adjusted revenues (non-GAAP)

$
1,097.0

$
1,140.3

$
1,100.0

$
1,107.3

$
4,444.6

$
1,056.1

Prior year revenues (GAAP)

$
1,210.0

$
1,289.7

$
1,286.3

$
1,284.8

$
5,070.8

$
1,155.7

Less prior year revenues from Business Solutions (GAAP)
(l)

(96.5

)

(99.3

)

(116.8

)

(109.2

)

(421.8

)

(89.1

)

Adjusted prior year revenues (non-GAAP)

$
1,113.5

$
1,190.4

$
1,169.5

$
1,175.6

$
4,649.0

$
1,066.6

Revenues (GAAP) – YoY % change

(4)

%

(12)

%

(15)

%

(15)

%

(12)

%

(10)

%

Revenues, constant currency (non-GAAP) – YoY% change

(2)

%

(8)

%

(11)

%

(11)

%

(8)

%

(7)

%

Adjusted revenues (non-GAAP) – YoY % change

(1)

%

(4)

%

(6)

%

(6)

%

(4)

%

(1)

%

(b)
Operating income (GAAP)

$
237.5

$
264.0

$
231.8

$
151.6

$
884.9

$
204.7

Acquisition and divestiture costs
(k)

3.3

0.9

0.4

1.6

6.2

—

Russia/Belarus exit costs
(m)

11.0

0.2

(0.6

)

(0.6

)

10.0

—

Business Solutions exit costs
(m)

7.7

—

—

—

7.7

—

Operating expense redeployment program costs
(o)

N/A

N/A

N/A

21.8

21.8

7.1

Less Business Solutions operating income
(l)

(26.5

)

(7.9

)

(15.6

)

(6.6

)

(56.6

)

(1.9

)

Adjusted operating income (non-GAAP)

$
233.0

$
257.2

$
216.0

$
167.8

$
874.0

$
209.9

Depreciation and amortization

46.8

45.9

44.7

46.4

183.8

46.6

Adjusted EBITDA (non-GAAP)
(j)
$
279.8

$
303.1

$
260.7

$
214.2

$
1,057.8

$
256.5

Operating margin (GAAP)

20.5

%

23.2

%

21.3

%

13.9

%

19.8

%

19.7

%

Adjusted operating margin (non-GAAP)

21.8

%

23.3

%

20.6

%

15.8

%

20.4

%

20.5

%

Adjusted EBITDA margin (non-GAAP)

26.2

%

27.5

%

24.9

%

20.2

%

24.7

%

25.1

%

(c)
Net income (GAAP)

$
293.3

$
194.0

$
173.9

$
249.4

$
910.6

$
151.8

Acquisition and divestiture costs
(k)

3.3

0.9

0.4

1.6

6.2

—

Business Solutions gain
(l)

(151.4

)

—

—

(96.9

)

(248.3

)

—

Business Solutions exit costs
(m)

7.7

—

—

—

7.7

—

Russia/Belarus exit costs
(m)

11.0

0.2

(0.6

)

(0.6

)

10.0

—

Operating expense redeployment program costs
(o)

N/A

N/A

N/A

21.8

21.8

7.1

Income tax benefit from reversal of significant uncertain tax positions
(n)

N/A

N/A

(13.2

)

(68.5

)

(81.7

)

—

Income tax expense from other adjustments
(k), (l), (m), (o)

38.7

2.0

3.0

14.7

58.4

3.7

Adjusted net income (non-GAAP)

$
202.6

$
197.1

$
163.5

$
121.5

$
684.7

$
162.6

(d)
Effective tax rate (GAAP)

19

%

18

%

10

%

(15)

%

10

%

16

%

Reversal of significant uncertain tax positions
(n)

N/A

N/A

7

%

32

%

8

%

0

%

Other adjustments
(k), (l), (m), (o)

(6)

%

(1)

%

(2)

%

(2)

%

(3)

%

(2)

%

Adjusted effective tax rate (non-GAAP)

13

%

17

%

15

%

15

%

15

%

14

%

(e)
Diluted earnings per share (GAAP) ($- dollars)

$
0.74

$
0.50

$
0.45

$
0.65

$
2.34

$
0.40

Pretax impacts from the following:

Acquisition and divestiture costs
(k)

0.01

—

—

—

0.01

—

Business Solutions gain
(l)

(0.38

)

—

—

(0.25

)

(0.64

)

—

Business Solutions exit costs
(m)

0.02

—

—

—

0.02

—

Russia/Belarus exit costs
(m)

0.02

—

—

—

0.03

—

Operating expense redeployment program costs
(o)

N/A

N/A

N/A

0.06

0.06

0.02

Income tax expense/(benefit) impacts from the following:

Reversal of significant uncertain tax positions
(n)

N/A

N/A

(0.03

)

(0.18

)

(0.21

)

—

Other adjustments
(k), (l), (m), (o)

0.10

0.01

—

0.04

0.15

0.01

Adjusted diluted earnings per share (non-GAAP) ($- dollars)

$
0.51

$
0.51

$
0.42

$
0.32

$
1.76

$
0.43

C2C Segment Metrics

(f)
Revenues (GAAP)

$
999.0

$
1,026.9

$
982.4

$
985.2

$
3,993.5

$
938.3

Foreign currency translation impact
(i)

20.8

28.1

37.1

30.9

116.9

13.8

Revenues, constant currency (non-GAAP)

$
1,019.8

$
1,055.0

$
1,019.5

$
1,016.1

$
4,110.4

$
952.1

Prior year revenues (GAAP)

$
1,050.9

$
1,127.1

$
1,104.5

$
1,111.5

$
4,394.0

$
999.0

Revenues (GAAP) – YoY % change

(5)

%

(9)

%

(11)

%

(11)

%

(9)

%

(6)

%

Adjusted revenues (non-GAAP) – YoY % change

(3)

%

(6)

%

(8)

%

(9)

%

(6)

%

(5)

%

(g)
Cross-border principal, as reported ($- billions)

$
23.8

$
23.4

$
23.0

$
23.4

$
93.6

$
23.0

Foreign currency translation impact
(i)

0.5

0.9

1.1

0.8

3.3

0.5

Cross-border principal, constant currency ($- billions)

$
24.3

$
24.3

$
24.1

$
24.2

$
96.9

$
23.5

Prior year cross-border principal, as reported ($- billions)

$
24.5

$
26.6

$
26.5

$
26.5

$
104.1

$
23.8

Cross-border principal, as reported – YoY % change

(3)

%

(12)

%

(13)

%

(12)

%

(10)

%

(3)

%

Cross-border principal, constant currency – YoY % change

(1)

%

(9)

%

(9)

%

(9)

%

(7)

%

(1)

%

Business Solutions Segment Metrics

(h)
Revenues (GAAP)

$
89.1

$
35.7

$
42.6

$
29.5

$
196.9

$
15.4

Foreign currency translation impact
(i)

2.8

4.4

7.8

4.5

19.5

0.6

Revenues, constant currency (non-GAAP)

$
91.9

$
40.1

$
50.4

$
34.0

$
216.4

$
16.0

Prior year revenues (GAAP)

$
96.5

$
99.3

$
116.8

$
109.2

$
421.8

$
89.1

Revenues (GAAP) – YoY % change

(8)

%

(64)

%

(63)

%

(73)

%

(53)

%

(83)

%

Adjusted revenues (non-GAAP) – YoY % change

(5)

%

(60)

%

(57)

%

(69)

%

(49)

%

(82)

%

2023 Consolidated Outlook Metrics

Notes
Range

Revenues (GAAP) – YoY % change

(9)

%

(7)

%

Foreign currency translation impact
(i)

1

%

1

%

Impact from Business Solutions
(l)

4

%

4

%

Revenues, constant currency, excluding Business Solutions (non-GAAP) – YoY % change

(4)

%

(2)

%

Range

Operating margin (GAAP)

18

%

20

%

Operating expense redeployment program costs
(o)

1

%

1

%

Impact from acquisition and divestiture costs
(k)

0

%

0

%

Impact from Business Solutions
(l)

0

%

0

%

Operating margin, adjusted (non-GAAP)

19

%

21

%

Range

Earnings per share (GAAP) ($- dollars)

$
1.53

$
1.63

Gain on the sale of Business Solutions
(l)

(0.06

)

(0.06

)

Operating expense redeployment program costs
(o)

0.08

0.08

Income taxes associated with these adjustments
(l), (o)

—

—

Earnings per share, adjusted (non-GAAP) ($- dollars)

$
1.55

$
1.65

Non-GAAP related notes:

(i)

Represents the impact from the fluctuation in exchange rates between all foreign currency denominated amounts and the United States dollar. Constant currency results exclude any benefit or loss caused by foreign exchange fluctuations between foreign currencies and the United States dollar, net of foreign currency hedges, which would not have occurred if there had been a constant exchange rate.

(j)

Earnings before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) results from taking operating income and adjusting for depreciation and amortization expenses. EBITDA results provide an additional performance measurement calculation which helps neutralize the operating income effect of assets acquired in prior periods.

(k)

Represents the impact from expenses incurred in connection with the Company’s acquisition and divestiture activity, including for the review and closing of these transactions.

(l)

During 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC (collectively, the “Buyer”) and received cash consideration of $887.2 million, net of cash divested, subject to the remaining close and regulatory capital adjustments. The sale will be completed in three closings, the first of which occurred on March 1, 2022 with the entirety of the cash consideration collected at that time and allocated to the closings on a relative fair value basis. The first closing excluded the operations in the European Union and the United Kingdom and resulted in a gain of $151.4 million. The second closing, which includes the United Kingdom operations, occurred on December 31, 2022 and resulted in a gain of $96.9 million. The third closing, which includes the European Union operations, is currently expected in the second quarter of 2023, pending regulatory approvals. Revenues have been adjusted to exclude the carved out financial information for the Business Solutions business to compare the year-over-year changes and trends in the Company’s continuing businesses, excluding the effects of this divestiture. While the sale of the Company’s Business Solutions business does not qualify for or represent discontinued operations, the Company has also adjusted operating income, beginning in the first quarter of 2022 and concurrent with the sale, to exclude the carved out direct profit of the Business Solutions business. The operations of the Business Solutions business to be sold in the third closing will continue to be included in Revenues and Operating income after the second closing. However, between the first and third closings, the Company is required to pay the Buyer a measure of the profits from these operations, while owned by the Company, adjusted for other charges, and this expense is recognized in Other expense, net. Therefore, the Company believes that providing this information enhances investors’ understanding of the profitability of the Company’s remaining businesses. The Company has also excluded the gain on the sale, net of related taxes, from its results.

(m)

Represents the exit costs incurred in connection with the Company’s suspension of its operations in Russia and Belarus and the divestiture of the Business Solutions business, primarily related to severance and non-cash impairments of property and equipment, an operating lease right-of-use asset, and other intangible assets. While certain of the expenses are identifiable to the Company’s segments, the expenses are not included in the measurement of segment operating income provided to the Chief Operating Decision Maker for purposes of performance assessment and resource allocation. These expenses have been excluded from the Company’s operating income, the effective tax rate, and diluted earnings per share, net of related taxes.

(n)

Represents non-cash reversals of significant uncertain tax positions. While the Company continues to reverse its uncertain tax positions upon settlements with taxing authorities, the lapse of the applicable statute of limitations, and other events, the Company has excluded certain reversals of uncertain tax positions in the third and fourth quarter of 2022 because of the significance of these reversals on its reported results.

(o)

Represents severance, expenses associated with streamlining the Company’s organizational and legal structure, and other expenses associated with the Company’s program to redeploy expenses in its cost base through optimizations in vendor management, real estate, marketing, and people strategy as previously announced in October 2022. Previous expenses incurred under the program included non-cash impairments of operating lease right-of-use assets and property and equipment. The expenses are not included in the measurement of segment operating income provided to the Chief Operating Decision Maker for purposes of performance assessment and resource allocation.

Other notes:

(aa)

Geographic split for transactions and revenue, including transactions initiated digitally, as earlier defined, is determined entirely based upon the region where the money transfer is initiated.

(bb)

Represents the North America (United States and Canada) (“NA”) region of the Company’s Consumer-to-Consumer segment.

(cc)

Represents the Europe and the Commonwealth of Independent States (“EU & CIS”) region of the Company’s Consumer-to-Consumer segment.

(dd)

Represents the Middle East, Africa, and South Asia (“MEASA”) region of the Company’s Consumer-to-Consumer segment, including India and certain South Asian countries, which consist of Bangladesh, Bhutan, Maldives, Nepal, and Sri Lanka.

(ee)

Represents the Latin America and the Caribbean (“LACA”) region of the Company’s Consumer-to-Consumer segment, including Mexico.

(ff)

Represents the East Asia and Oceania (“APAC”) region of the Company’s Consumer-to-Consumer segment.

(gg)

Represents transactions conducted and funded through websites and mobile applications marketed under the Company’s brands (“Branded Digital”).

View source version on businesswire.com: https://www.businesswire.com/news/home/20230502005482/en/

Media Relations:

Claire Treacy

[email protected]

Investor Relations:

Tom Hadley

[email protected]

KEYWORDS: Colorado United States North America

INDUSTRY KEYWORDS: Professional Services Technology Other Technology Finance Fintech Banking

MEDIA:

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Posted on May 2, 2023 4:36 pm
CVG Reports First Quarter 2023 Results

Record quarterly revenues of $263 million, up 7.5% year-over-year

EPS of $0.26, adjusted EBITDA of $19.8 million or 7.5% of revenue

Strategy execution and operational excellence driving improvement in results

NEW ALBANY, Ohio, May 02, 2023 (GLOBE NEWSWIRE) — CVG (NASDAQ: CVGI), a diversified industrial products and services company, today announced financial results for its first quarter ended March 31, 2023.

First Quarter
2023
Highlights
(Compared with prior-year period, where comparisons are noted)

Revenues of $262.7 million, up 7.5% due to improved demand, price realization and new business win revenue.

Operating income of $14.6 million, up 74%; adjusted operating income of $15.4 million, up 62%. Improved operating income was driven by improved pricing and cost management.

Net income of $8.7 million, or $0.26 per diluted share. Adjusted net income of $9.2 million, or $0.28 per diluted share.

Adjusted EBITDA of $19.8 million, up 47% with an adjusted EBITDA margin of 7.5%, tracking towards the Company’s long-term profitability targets.

Net new business wins in the quarter were approximately $85 million. The majority of new business awards were within the Electrical Systems segment.

Cost reduction program is on track to deliver at least $30 million of cost reduction in 2023 through footprint and organizational streamlining, and a global slate of 350+ projects.

Harold Bevis, President and Chief Executive Officer of CVG, said, “In the first quarter, we delivered record revenue and new business wins on multiple new vehicle platforms. Our profits improved due to new and existing business volumes, improved pricing, and lowered costs. Our balance sheet improvement efforts also delivered with improved working capital efficiency and reduced leverage.”

“Our first quarter performance is evidence that our growth, profitability and free cash flow initiatives are working. We plan to continue these efforts during the remainder of this fiscal year. We are underway with a measured program to expand our capacity in concert with ramping up of production for our new business wins. We will continue to manage capacity as sales growth and new business programs ramp up. We are also using these opportunities to reorganize our production footprint into low-cost-countries as well as modernizing our operational processes. We are pleased with our first quarter results and we believe that CVG is firmly on track to deliver improved performance in fiscal 2023 compared to last year.”

“We believe our first quarter margin performance is sustainable for fiscal 2023 given the current vehicle production outlook. We expect that our current revenue run rate, combined with new wins that are still ramping up, puts us on track to deliver our 2027 revenue target of $1.5 billion. Additionally, our continued focus on inflation management, cost reduction, price maintenance and the accretive margin profile of our new business wins, gives us confidence as we work toward achieving a 9% EBITDA margin target by 2027.”

Andy Cheung, Chief Financial Officer, added, “The continued pace of new business awards is driving an exciting period of growth for CVG. Our focus on price and cost has allowed us to deliver significant margin expansion. As our revenues grow in the coming years, CVG expects continued improvement in operating leverage driving EBITDA margins higher. We continue to invest as needed in growth-based working capital and low-cost production capacity to support our business transformation. We expect free cash flow to drive our net leverage ratio lower by the end of 2023.”

First Quarter Financial Results

(amounts in millions except per share data and percentages)

First Quarter

2023 2022 Change

Revenues $ 262.7 $ 244.4 7.5 %

Gross profit $ 35.2 $ 25.4 38.6 %

Gross margin 13.4 % 10.4 %

Adjusted gross profit¹ $ 35.9 $ 26.3 36.5 %

Adjusted gross margin¹ 13.7 % 10.8 %

Operating income $ 14.6 $ 8.4 73.8 %

Operating margin 5.6 % 3.4 %

Adjusted operating income¹ $ 15.4 $ 9.5 62.1 %

Adjusted operating margin¹ 5.9 % 3.9 %

Net income $ 8.7 $ 4.0 117.5 %

Adjusted net income¹ $ 9.2 $ 5.3 73.6 %

Earnings per share, diluted $ 0.26 $ 0.12 116.7 %

Adjusted earnings per share, diluted¹ $ 0.28 $ 0.16 75.0 %

Adjusted EBITDA¹ $ 19.8 $ 13.5 46.7 %

Adjusted EBITDA margin¹ 7.5 % 5.5 %

¹See Appendix A for GAAP to Non-GAAP reconciliation

Consolidated Results

First Quarter 2023 Results

First quarter 2023 revenues were $262.7 million compared to $244.4 million in the prior year period, an increase of 7.5%. The increase in revenues was primarily driven by increased pricing to offset material cost increases and increased sales volume, offset by sales volume decreases in the Industrial Automation segment. Foreign currency translation also unfavorably impacted first quarter of 2023 revenues by $3.6 million, or 1.5%.

Operating income for the first quarter 2023 was $14.6 million compared to operating income of $8.4 million in the prior year period. The increase was driven by higher margins, partially offset by higher SG&A. The first quarter of 2023 adjusted operating income was $15.4 million.

Interest associated with debt and other expenses was $2.9 million and $2.0 million for the first quarter ended March 31, 2023 and 2022, respectively.

Net income was $8.7 million, or $0.26 per diluted share, for the first quarter 2023 compared to net income of $4.0 million, or $0.12 per diluted share, in the prior year period.

At March 31, 2023, the Company had $11.0 million outstanding borrowings on its US revolving credit facility and $4.4 million outstanding under the newly established China credit facility. The Company had $41.5 million of cash and total $146.5 million of availability from the US and China revolving credit facilities, resulting in liquidity of $188.0 million as of March 31, 2023.

First Quarter 2023 Segment Results

Vehicle Solutions Segment

Revenues were $160.6 million compared to $140.2 million for the prior year period, an increase of 14.6% primarily resulting from increased sales volume and increased pricing to offset material cost increases.

Operating income for the first quarter 2023 was $13.4 million compared to operating income of $6.3 million in the prior year period, an increase of 112.0%. Adjusted operating income increased 106.6%, to $13.5 million, primarily attributable to increased pricing, lower freight costs and overhead reduction.

Electrical Systems Segment

Revenues were $54.7 million compared to $39.9 million in the prior year period, an increase of 37.3% due to volume, increased pricing to offset material cost pass-through and new business wins.

Operating income was $6.1 million compared to operating income of $1.8 million in the prior year period. The increase in operating income is primarily attributable to volume, increased pricing and manufacturing efficiencies.

Aftermarket & Accessories Segment

Revenues were $37.6 million compared to $30.2 million in the prior year period, an increase of 24.5% due to increased sales volume and increased pricing to offset material cost pass-through.

Operating income was $5.6 million compared to operating income of $2.6 million in the prior year period. The increase in operating income is primarily attributable to increased pricing offsetting moderating cost inflation.

Industrial Automation Segment

Revenues were $9.7 million compared to $34.1 million in the prior year period, a decrease of 71.4%.

Operating loss was $0.9 million compared to operating income of $3.7 million in the prior year period. The decrease in operating income is primarily attributable to volume reduction and restructuring expenses. Adjusted operating loss was $0.2 million.

2023 Demand Outlook

According to ACT Research, 2023 North American Class 8 truck production levels are expected to be at 312,000 units and Class 5-7 production are expected to be at 242,000 units. Estimates from FTR for 2023 are 320,000 units, slightly higher than ACT Research for Class 8 truck builds. The 2022 actual Class 8 truck builds according to the ACT Research was 315,128 units.

The global commercial and automotive vehicle wire harness market is growing at approximately 4.5%.   The global electric truck market expected to grow approximately 15% CAGR.   Half of all Class 4-8 truck sales are estimated to be battery-powered EV by 2035. (ACT Feb 22)

According to Interact Analysis, the Global Off-Highway vehicle market is expected to increase approximately 4% to 6.2 million units in 2023 from 5.9 million units in 2022. Beyond 2023, the Off-Highway vehicle market is expected to grow in the 4-5% range. We expect our legacy business growth rates to be in line with this outlook.

Industry forecasts are expecting at least 4% growth in 2023 for North American aftermarket truck parts. Compounded annual growth of at least 4% is forecasted for 2023-2027.

GAAP to Non-GAAP Reconciliation

A reconciliation of GAAP to non-GAAP financial measures referenced in this release is included as Appendix A to this release.

Conference Call

A conference call to discuss this press release is scheduled for Wednesday, May 3, 2023, at 10:00 a.m. ET. Management intends to reference the Q1 2023 Earnings Call Presentation during the conference call. To participate, dial (888) 886-7786 using conference code 74688048. International participants dial (416) 764-8658 using conference code 74688048.

This call is being webcast and can be accessed through the “Investors” section of CVG’s website at ir.cvgrp.com, where it will be archived for one year.

A telephonic replay of the conference call will be available for a period of two weeks following the call. To access the replay, dial (877) 674-7070 using access code 688048 and international callers can dial (416) 764-8692 using access code 688048.

Company Contact

Andy Cheung
Chief Financial Officer
CVG
[email protected]

Investor Relations Contact

Ross Collins or Stephen Poe
Alpha IR Group
[email protected]

About CVG

At CVG, we deliver real solutions to complex design, engineering and manufacturing problems across a range of global industries by innovating, constantly adding value, and treating our customer’s bottom line as if it were our own. Information about the Company and its products is available on the internet at www.cvgrp.com.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as “believe”, “anticipate”, “plan”, “expect”, “intend”, “will”, “should”, “could”, “would”, “project”, “continue”, “likely”, and similar expressions. In particular, this press release may contain forward-looking statements about the Company’s expectations for future periods with respect to its plans to improve financial results, the future of the Company’s end markets, including the short-term and long-term impact of the COVID-19 pandemic on our business, changes in the Class 8 and Class 5-7 North America truck build rates, performance of the global construction equipment business, the Company’s prospects in the wire harness, warehouse automation and electric vehicle markets, the Company’s initiatives to address customer needs, organic growth, the Company’s strategic plans and plans to focus on certain segments, competition faced by the Company, volatility in and disruption to the global economic environment and the Company’s financial position or other financial information. These statements are based on certain assumptions that the Company has made in light of its experience as well as its perspective on historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including those included in the Company’s filings with the SEC. There can be no assurance that statements made in this press release relating to future events will be achieved. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by such cautionary statements.

COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended
March 31, 2023
and
2022

(Unaudited)

(Amounts in thousands, except per share amounts)

Three Months Ended March 31,

2023 2022

Revenues $ 262,709 $ 244,374

Cost of revenues 227,500 218,991

Gross profit 35,209 25,383

Selling, general and administrative expenses 20,565 16,999

Operating income 14,644 8,384

Other (income) expense (202 ) 1,041

Interest expense 2,890 1,961

Income before provision for income taxes 11,956 5,382

Provision for income taxes 3,256 1,400

Net income $ 8,700 $ 3,982

Earnings per Common Share:

Basic $ 0.26 $ 0.12

Diluted $ 0.26 $ 0.12

Weighted average shares outstanding:

Basic 32,868 32,065

Diluted 33,182 32,685

COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Amounts in thousands, except per share amounts)

ASSETS March 31, 2023 December 31, 2022

Current assets:

Cash $ 41,484 $ 31,825

Accounts receivable, net 171,878 152,626

Inventories 139,553 142,542

Other current assets 20,112 12,582

Total current assets 373,027 339,575

Property, plant and equipment, net 68,939 67,805

Intangible assets, net 13,791 14,620

Deferred income taxes, net 10,996 12,275

Other assets, net 31,087 35,993

Total assets $ 497,840 $ 470,268

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable $ 119,057 $ 122,091

Accrued liabilities and other 47,340 42,809

Current portion of long-term debt and short-term debt 16,399 10,938

Total current liabilities 182,796 175,838

Long-term debt 149,221 141,499

Pension and other post-retirement benefits 8,470 8,428

Other long-term liabilities 23,564 24,463

Total liabilities 364,051 350,228

Stockholders’ equity:

Preferred stock — —

Common stock 330 328

Treasury stock (15,278 ) (14,514 )

Additional paid-in capital 263,142 261,371

Retained deficit (86,895 ) (95,595 )

Accumulated other comprehensive loss (27,510 ) (31,550 )

Total stockholders’ equity 133,789 120,040

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 497,840 $ 470,268

COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES

BUSINESS SEGMENT FINANCIAL INFORMATION

(Unaudited)

(Amounts in thousands)

Three Months Ended March 31,

Vehicle
Solutions Electrical
Systems Aftermarket &
Accessories Industrial
Automation Corporate /
Other Total

2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022

Revenues $ 160,584 $ 140,157 $ 54,749 $ 39,876 $ 37,629 $ 30,215 $ 9,747 $ 34,126 $ — $ — $ 262,709 $ 244,374

Gross profit 19,471 12,907 8,297 3,401 7,227 4,086 214 4,991 — (2 ) 35,209 25,383

Selling, general & administrative expenses 6,077 6,588 2,227 1,640 1,650 1,465 1,076 1,324 9,535 5,982 20,565 16,999

Operating income $ 13,394 $ 6,319 $ 6,070 $ 1,761 $ 5,577 $ 2,621 $ (862 ) $ 3,667 $ (9,535 ) $ (5,984 ) $ 14,644 $ 8,384

COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES

Appendix A: Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited)

(Amounts in thousands, except per share amounts and percentages)

Three Months Ended

March 31, 2023 March 31, 2022

Gross profit $ 35,209 $ 25,383

Restructuring 690 906

Adjusted gross profit $ 35,899 $ 26,289

% of revenues 13.7 % 10.8 %

Three Months Ended

March 31, 2023 March 31, 2022

Operating income $ 14,644 $ 8,384

Restructuring 713 989

Deferred consideration purchase accounting — 78

Total operating income (loss) adjustments 713 1,067

Adjusted operating income $ 15,357 $ 9,451

% of revenues 5.8 % 3.9 %

Three Months Ended

March 31, 2023 March 31, 2022

Net income $ 8,700 $ 3,982

Operating income adjustments 713 1,067

Hryvnia fair value adjustments on forward exchange contracts — 675

Adjusted provision for income taxes¹ (178 ) (436 )

Adjusted net income $ 9,235 $ 5,288

Diluted EPS $ 0.26 $ 0.12

Adjustments to diluted EPS $ 0.02 $ 0.04

Adjusted diluted EPS $ 0.28 $ 0.16

¹ Reported Tax (Benefit) Provision adjusted for tax effect of special charges at 25%

Three Months Ended

March 31, 2023 March 31, 2022

Net income $ 8,700 $ 3,982

Interest expense 2,890 1,961

Provision for income taxes 3,256 1,400

Depreciation expense 3,430 3,575

Amortization expense 832 857

EBITDA $ 19,108 $ 11,775

% of revenues 7.3 % 4.8 %

EBITDA adjustments

Restructuring $ 713 $ 989

Hryvnia fair value adjustments on forward exchange contracts — 675

Deferred consideration purchase accounting — 78

Adjusted EBITDA $ 19,821 $ 13,517

% of revenues 7.5 % 5.5 %

COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES

Appendix B: Segment Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited)

(Amounts in thousands, except percentages)

Three Months Ended March 31, 2023

Vehicle
Solutions Electrical
Systems Aftermarket & Accessories Industrial Automation Corporate/
Other Total

Operating income $ 13,394 $ 6,070 $ 5,577 $ (862 ) $ (9,535 ) $ 14,644

Restructuring 83 8 — 622 — 713

Adjusted operating income $ 13,477 $ 6,078 $ 5,577 $ (240 ) $ (9,535 ) $ 15,357

% of revenues 8.4 % 11.1 % 14.8 % (2.5)        % 5.8 %

Three Months Ended March 31, 2022

Vehicle
Solutions Electrical
Systems Aftermarket & Accessories Industrial Automation Corporate/
Other Total

Operating income $ 6,319 $ 1,761 $ 2,621 $ 3,667 $ (5,984 ) $ 8,384

Restructuring 204 — 435 350 — 989

Deferred consideration purchase accounting — — — 78 — 78

Adjusted operating income $ 6,523 $ 1,761 $ 3,056 $ 4,095 $ (5,984 ) $ 9,451

% of revenues 4.7 % 4.4 % 10.1 % 12.0 % 3.9 %

Use of Non-GAAP Measures

This earnings release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). In general, the non-GAAP measures exclude items that (i) management believes reflect the Company’s multi-year corporate activities; or (ii) relate to activities or actions that may have occurred over multiple or in prior periods without predictable trends. Management uses these non-GAAP financial measures internally to evaluate the Company’s performance, engage in financial and operational planning and to determine incentive compensation.

Management provides these non-GAAP financial measures to investors as supplemental metrics to assist readers in assessing the effects of items and events on the Company’s financial and operating results and in comparing the Company’s performance to that of its competitors and to comparable reporting periods. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. The financial results calculated in accordance with GAAP and reconciliations to those financial statements set forth above should be carefully evaluated.

Posted on May 2, 2023 4:35 pm
Startek Sets First Quarter 2023 Conference Call for Thursday, May 11, 2023 at 5:00 p.m. ET

Startek Sets First Quarter 2023 Conference Call for Thursday, May 11, 2023 at 5:00 p.m. ET

DENVER–(BUSINESS WIRE)–
Startek, Inc. (NYSE: SRT) (“Startek” or the “Company”), a global customer experience (CX) solutions provider, will hold a conference call on Thursday, May 11, 2023 at 5:00 p.m. ET to discuss its financial results for the first quarter ended March 31, 2023. The company will report its results in a press release prior to the conference call.

Startek management will host the call, followed by a question-and-answer period.

Date: Thursday, May 11, 2023

Time: 5:00 p.m. ET

Toll-free dial-in number: 1-844-826-3035

International dial-in number: 1-412-317-5195

Conference ID: 10178216

Please call the conference telephone number 10-15 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 1-949-574-3860.

The conference call will be broadcast live and available for replay here. In addition, a supplemental presentation will be available to download on the day of the call within the investor section of the Company’s website at www.startek.com.

A telephonic replay of the conference call will also be available after 8 p.m. ET on the same day through May 18, 2023.

Toll-free replay number: 1-844-512-2921

International replay number: 1-412-317-6671

Replay ID: 10178216

About Startek®

For more than 35 years, Startek has delivered customer experience (CX) excellence for the world’s leading brands. Spread across 12 countries, our 38,000 associates create memorable, personalized experiences in both voice and non-voice channels. Our clients span from fortune 500s to fast-growing startups in a diverse range of industries including cable, media and telecom; travel and hospitality; retail and e-commerce and banking and financial services.

By creating closer connections, Startek delivers value for our clients, opportunity for our people and sustainable growth for our shareholders.

To learn more visit www.startek.com and follow us on LinkedIn @Startek.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230502005899/en/

Investor Relations

Cody Cree

Gateway Group, Inc.

1-949-574-3860

[email protected]

Media Relations

Neha Iyer

Startek

[email protected]

KEYWORDS: Colorado United States North America

INDUSTRY KEYWORDS: Data Management Other Retail Technology Electronic Commerce Marketing Communications Other Technology Telecommunications Retail Software Networks

MEDIA:

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