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MBIA Inc. Reports First Quarter 2023 Financial Results

PURCHASE, N.Y.–(BUSINESS WIRE)–
MBIA Inc. (NYSE:MBI) today posted its first quarter 2023 financial results on its website at https://investor.mbia.com/investor-relations/financial-information/default.aspx. The financial results will also be furnished to the Securities and Exchange Commission (SEC) on a Current Report on Form 8-K available at sec.gov.

As previously announced, the Company will host a webcast and conference call for investors on Wednesday, May 10 at 8:00 a.m. (ET) to discuss its financial results and other issues related to the Company. The conference call webcast will be available on MBIA’s website at https://investor.mbia.com/investor-relations/events-and-presentations/default.aspx.

MBIA Inc., headquartered in Purchase, New York, is a holding company whose subsidiaries provide financial guarantee insurance for the public and structured finance markets. Please visit MBIA’s website at www.mbia.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230509006138/en/

MBIA Inc.

Greg Diamond, 914-765-3190

Managing Director

Head of Investor and Media Relations

[email protected]

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: Finance Banking Professional Services Other Professional Services Insurance

MEDIA:

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Integrated Rail and Resources Acquisition Corp. Announces Extension

WINTER PARK, Fla.–(BUSINESS WIRE)–
Pursuant to the Investment Management Trust Agreement between Integrated Rail and Resources Acquisition Corp. (“Company”) and American Stock Transfer & Trust Company, LLC, dated as of November 11, 2021, as amended on February 8, 2023 (the “Trust Agreement”), the Company received notice from the Company’s sponsor, DHIP Natural Resources Investments, LLC, at least five (5) days prior to May 15, 2023, that the Company intends to extend the time available in order to consummate a Business Combination with the Target Businesses from May 15, 2023 to June 15, 2023.

The Company is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. While the Company may pursue an initial business combination target in any business or industry, it intends to focus its search on natural resources, railroads and/or railroad logistics companies, or any combinations thereof.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended (“Securities Act”). This announcement is being issued in accordance with Rule 135 under the Securities Act.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230509005986/en/

William Lane

[email protected]

KEYWORDS: Florida United States North America

INDUSTRY KEYWORDS: Professional Services Rail Other Natural Resources Business Transport Natural Resources Finance

MEDIA:

Posted on May 9, 2023 9:41 pm

CBL Properties Declares Second Quarter Common Stock Dividend

CBL Properties Declares Second Quarter Common Stock Dividend

CHATTANOOGA, Tenn.–(BUSINESS WIRE)–
CBL Properties (NYSE:CBL) today announced that its Board of Directors has declared a cash dividend of $0.375 per common share for the quarter ending June 30, 2023. The dividend, which equates to an annual dividend payment of $1.50 per common share, is payable on June 30, 2023, to shareholders of record as of June 14, 2023.

About CBL Properties

Headquartered in Chattanooga, TN, CBL Properties owns and manages a national portfolio of market-dominant properties located in dynamic and growing communities. CBL’s owned and managed portfolio is comprised of 94 properties totaling 58.5 million square feet across 22 states, including 56 high-quality enclosed malls, outlet centers and lifestyle retail centers as well as more than 30 open-air centers and other assets. CBL seeks to continuously strengthen its company and portfolio through active management, aggressive leasing and profitable reinvestment in its properties. For more information visit cblproperties.com.

Information included herein contains “forward-looking statements” within the meaning of the federal securities laws. Such statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual events, financial and otherwise, may differ materially from the events and results discussed in the forward-looking statements. The reader is directed to the Company’s various filings with the Securities and Exchange Commission, including without limitation the Company’s Annual Report on Form 10-K and the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included therein, for a discussion of such risks and uncertainties.

CBL_Corp

View source version on businesswire.com: https://www.businesswire.com/news/home/20230509006076/en/

Investor Contact: Katie Reinsmidt, Executive Vice President & Chief Investment Officer, 423.490.8301, [email protected]

KEYWORDS: Tennessee United States North America

INDUSTRY KEYWORDS: Retail Restaurant/Bar Other Retail Department Stores Commercial Building & Real Estate Construction & Property Building Systems

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JBG SMITH Announces First Quarter 2023 Results

BETHESDA, Md.–(BUSINESS WIRE)–
JBG SMITH (NYSE: JBGS), a leading owner and developer of high-quality, mixed-use properties in the Washington, DC market, today filed its Form 10-Q for the quarter ended March 31, 2023 and reported its financial results.

Additional information regarding our results of operations, properties, and tenants can be found in our First Quarter 2023 Investor Package, which is posted in the Investor Relations section of our website at www.jbgsmith.com. We encourage investors to consider the information presented here with the information in that document.

First Quarter 2023 Highlights

• Net income, Funds From Operations (“FFO”) and Core FFO attributable to common shareholders were:

FIRST QUARTER COMPARISON
in millions, except per share amounts	Three Months Ended
	March 31, 2023					March 31, 2022
	Amount		Per Diluted Share			Amount		Per Diluted Share
Net income	$	21.2	$	0.19		$	–	$	–
FFO	$	33.0	$	0.29		$	51.3	$	0.40
Core FFO	$	37.2	$	0.33		$	42.7	$	0.34

• Annualized Net Operating Income (“NOI”) for the three months ended March 31, 2023 was $327.5 million, compared to $322.3 million for the three months ended December 31, 2022, at our share.
  • The slight increase in Annualized NOI was substantially attributable to (i) a decrease in bad debt, partially offset by higher real estate taxes and utilities in our commercial portfolio and (ii) higher rents across the multifamily portfolio.

• Same Store NOI (“SSNOI”) at our share decreased 0.7% year-over-year to $76.1 million for the three months ended March 31, 2023.
  • The decrease in SSNOI was substantially attributable to (i) increased abatement and higher utilities, partially offset by an increase in parking revenue in our commercial portfolio and (ii) higher occupancy and rents in our multifamily portfolio.

Operating Portfolio

• The operating commercial portfolio was 87.6% leased and 85.2% occupied as of March 31, 2023, compared to 88.5% and 85.1% as of December 31, 2022, at our share.

• The operating multifamily portfolio was 95.0% leased and 92.9% occupied as of March 31, 2023, compared to 94.5% and 93.6% as of December 31, 2022, at our share.

• Executed approximately 114,000 square feet of office leases at our share during the three months ended March 31, 2023, comprising approximately 20,000 square feet of first-generation leases and approximately 94,000 square feet of second-generation leases, which generated a 4.5% rental rate increase on a GAAP basis and a 0.3% rental rate increase on a cash basis.

Development Portfolio

Under-Construction

• As of March 31, 2023, we had two multifamily assets under construction consisting of 1,583 units at our share.

Development Pipeline

• As of March 31, 2023, we had 20 assets in the development pipeline consisting of 9.8 million square feet of estimated potential development density at our share.

Third-Party Asset Management and Real Estate Services Business

• For the three months ended March 31, 2023, revenue from third-party real estate services, including reimbursements, was $22.8 million. Excluding reimbursements and service revenue from our interests in real estate ventures, revenue from our third-party asset management and real estate services business was $10.6 million, primarily driven by $5.8 million of property and asset management fees, $2.0 million of development fees, $1.3 million of leasing fees and $1.1 million of other service revenue.

Balance Sheet

• As of March 31, 2023, our total enterprise value was approximately $4.1 billion, comprising 128.4 million common shares and units valued at $1.9 billion, and debt (net of premium / (discount) and deferred financing costs) at our share of $2.4 billion, less cash and cash equivalents at our share of $291.8 million.

• As of March 31, 2023, we had $279.6 million of cash and cash equivalents ($291.8 million of cash and cash equivalents at our share), and $1.0 billion of capacity under our credit facility inclusive of our capacity under the term loan.

• Net Debt to annualized Adjusted EBITDA at our share for the three months ended March 31, 2023 was 7.8x, and our Net Debt / total enterprise value was 52.5% as of March 31, 2023.

Investing and Financing Activities

• In March 2023, we sold $201.5 million of assets, which included an 80.0% pari-passu interest in 4747 Bethesda Avenue and a development parcel.

• As previously announced, in January 2023, we entered into a $187.6 million loan facility, collateralized by The Wren and F1RST Residences. The loan has a seven-year term and a fixed interest rate of 5.13%. This loan is the initial advance under a Fannie Mae multifamily credit facility which provides flexibility for collateral substitutions, future advances tied to performance, ability to mix fixed and floating rates, and staggered maturities. Proceeds from the loan were used, in part, to repay the $131.5 million mortgage loan on 2121 Crystal Drive, which had a fixed interest rate of 5.51%.

• As previously announced, in February 2023, we acquired the remaining 0.3% ownership interest in The Wren, a multifamily asset that was owned by a consolidated real estate venture, for $0.6 million.

• We repurchased and retired 1.2 million common shares for $20.1 million, a weighted average purchase price per share of $16.66.

Subsequent to March 31, 2023:

• We repurchased and retired 2.8 common shares for $40.1 million, a weighted average purchase price per share of $14.16, pursuant to a repurchase plan under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended.

Dividends

• On May 4, 2023, our Board of Trustees declared a quarterly dividend of $0.225 per common share, payable on June 30, 2023 to shareholders of record as of June 23, 2023.

About JBG SMITH

JBG SMITH owns, operates, invests in, and develops mixed-use properties in high growth and high barrier-to-entry submarkets in and around Washington, DC. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, amenity-rich, walkable neighborhoods throughout the Washington, DC metropolitan area. Approximately two-thirds of JBG SMITH’s holdings are in the National Landing submarket in Northern Virginia, which is anchored by four key demand drivers: Amazon’s new headquarters; Virginia Tech’s under-construction $1 billion Innovation Campus; the submarket’s proximity to the Pentagon; and JBG SMITH’s deployment of next-generation public and private 5G digital infrastructure. JBG SMITH’s dynamic portfolio currently comprises 15.0 million square feet of high-growth office, multifamily, and retail assets at share, 98% of which are Metro-served. It also maintains a development pipeline encompassing 9.8 million square feet of mixed-use, primarily multifamily, development opportunities. JBG SMITH is committed to the operation and development of green, smart, and healthy buildings and plans to maintain carbon neutral operations annually. For more information on JBG SMITH please visit www.jbgsmith.com.

Forward-Looking Statements

Certain statements contained herein may constitute “forward-looking statements” as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Consequently, the future results, financial condition and business of JBG SMITH Properties (“JBG SMITH”, the “Company”, “we”, “us”, “our” or similar terms) may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as “approximate”, “hypothetical”, “potential”, “believes”, “expects”, “anticipates”, “estimates”, “intends”, “plans”, “would”, “may” or similar expressions in this earnings release. We also note the following forward-looking statements: changes to the amount and manner in which tenants use space; our annual dividend per share and dividend yield; whether in the case of our under-construction assets and assets in the development pipeline, estimated square feet, estimated number of units and estimated potential development density are accurate; expected timing, completion, modifications and delivery dates for the projects we are developing for Amazon; the ability of any or all of our demand drivers to materialize and their effect on economic impact, job growth, expansion of public transportation and related demand in the National Landing submarket; planned infrastructure and educational improvements related to Amazon’s additional headquarters and the Virginia Tech Innovation Campus; our development plans related to National Landing; whether we will be able to successfully shift the majority of our portfolio to multifamily; and whether the allocation of capital to our share repurchase plan has any impact on our share price.

Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict. These factors include, among others: adverse economic conditions in the Washington, DC metropolitan area, the timing of and costs associated with development and property improvements, financing commitments, and general competitive factors. For further discussion of factors that could materially affect the outcome of our forward-looking statements and other risks and uncertainties, see “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the Cautionary Statement Concerning Forward-Looking Statements in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2022 and other periodic reports the Company files with the Securities and Exchange Commission. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date hereof.

Pro Rata Information

We present certain financial information and metrics in this release “at JBG SMITH Share,” which refers to our ownership percentage of consolidated and unconsolidated assets in real estate ventures (collectively, “real estate ventures”) as applied to these financial measures and metrics. Financial information “at JBG SMITH Share” is calculated on an asset-by-asset basis by applying our percentage economic interest to each applicable line item of that asset’s financial information. “At JBG SMITH Share” information, which we also refer to as being “at share,” “our pro rata share” or “our share,” is not, and is not intended to be, a presentation in accordance with GAAP. Given that a substantial portion of our assets are held through real estate ventures, we believe this form of presentation, which presents our economic interests in the partially owned entities, provides investors valuable information regarding a significant component of our portfolio, its composition, performance and capitalization.

We do not control the unconsolidated real estate ventures and do not have a legal claim to our co-venturers’ share of assets, liabilities, revenue and expenses. The operating agreements of the unconsolidated real estate ventures generally allow each co-venturer to receive cash distributions to the extent there is available cash from operations. The amount of cash each investor receives is based upon specific provisions of each operating agreement and varies depending on certain factors including the amount of capital contributed by each investor and whether any investors are entitled to preferential distributions.

With respect to any such third-party arrangement, we would not be in a position to exercise sole decision-making authority regarding the property, real estate venture or other entity, and may, under certain circumstances, be exposed to economic risks not present were a third-party not involved. We and our respective co-venturers may each have the right to trigger a buy-sell or forced sale arrangement, which could cause us to sell our interest, or acquire our co-venturers’ interests, or to sell the underlying asset, either on unfavorable terms or at a time when we otherwise would not have initiated such a transaction. Our real estate ventures may be subject to debt, and the repayment or refinancing of such debt may require equity capital calls. To the extent our co-venturers do not meet their obligations to us or our real estate ventures or they act inconsistent with the interests of the real estate venture, we may be adversely affected. Because of these limitations, the non-GAAP “at JBG SMITH Share” financial information should not be considered in isolation or as a substitute for our financial statements as reported under GAAP.

Occupancy, non-GAAP financial measures, leverage metrics, operating assets and operating metrics presented in our investor package exclude our 10.0% subordinated interest in one commercial building, our 33.5% subordinated interest in four commercial buildings, and our 49.0% interest in three commercial buildings, as well as the associated non-recourse mortgage loans, held through unconsolidated real estate ventures, as our investment in each real estate venture is zero, we do not anticipate receiving any near-term cash flow distributions from the real estate ventures, and we have not guaranteed their obligations or otherwise committed to providing financial support.

Non-GAAP Financial Measures

This release includes non-GAAP financial measures. For these measures, we have provided an explanation of how these non-GAAP measures are calculated and why JBG SMITH’s management believes that the presentation of these measures provides useful information to investors regarding JBG SMITH’s financial condition and results of operations. Reconciliations of certain non-GAAP measures to the most directly comparable GAAP financial measure are included in this earnings release. Our presentation of non-GAAP financial measures may not be comparable to similar non-GAAP measures used by other companies. In addition to “at share” financial information, the following non-GAAP measures are included in this release:

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), EBITDA for Real Estate (“EBITDAre”) and “Adjusted EBITDA” are non-GAAP financial measures. EBITDA and EBITDAre are used by management as supplemental operating performance measures, which we believe help investors and lenders meaningfully evaluate and compare our operating performance from period-to-period by removing from our operating results the impact of our capital structure (primarily interest charges from our outstanding debt and the impact of our interest rate swaps) and certain non-cash expenses (primarily depreciation and amortization expense on our assets). EBITDAre is computed in accordance with the definition established by the National Association of Real Estate Investment Trusts (“Nareit”). Nareit defines EBITDAre as GAAP net income (loss) adjusted to exclude interest expense, income taxes, depreciation and amortization expense, gains and losses on sales of real estate and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, including our share of such adjustments of unconsolidated real estate ventures. These supplemental measures may help investors and lenders understand our ability to incur and service debt and to make capital expenditures. EBITDA and EBITDAre are not substitutes for net income (loss) (computed in accordance with GAAP) and may not be comparable to similarly titled measures used by other companies.

Adjusted EBITDA represents EBITDAre adjusted for items we believe are not representative of ongoing operating results, such as Transaction and Other Costs, impairment write-downs of right-of-use assets associated with leases in which we are a lessee,gain (loss) on the extinguishment of debt, earnings (losses) and distributions in excess of our investment in unconsolidated real estate ventures, lease liability adjustments, income from investments, business interruption insurance proceeds and share-based compensation expense related to the Formation Transaction and special equity awards. We believe that adjusting such items not considered part of our comparable operations, provides a meaningful measure to evaluate and compare our performance from period-to-period.

Because EBITDA, EBITDAre and Adjusted EBITDA have limitations as analytical tools, we use EBITDA, EBITDAre and Adjusted EBITDA to supplement GAAP financial measures. Additionally, we believe that users of these measures should consider EBITDA, EBITDAre and Adjusted EBITDA in conjunction with net income (loss) and other GAAP measures in understanding our operating results.

Funds from Operations (“FFO”), “Core FFO” and Funds Available for Distribution (“FAD”) are non-GAAP financial measures. FFO is computed in accordance with the definition established by Nareit in the Nareit FFO White Paper – 2018 Restatement. Nareit defines FFO as net income (loss) (computed in accordance with GAAP), excluding depreciation and amortization expense related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, including our share of such adjustments for unconsolidated real estate ventures.

Core FFO represents FFO adjusted to exclude items which we believe are not representative of ongoing operating results, such as Transaction and Other Costs, impairment write-downs of right-of-use assets associated with leases in which we are a lessee, gain (loss) on the extinguishment of debt, earnings (losses) and distributions in excess of our investment in unconsolidated real estate ventures, share-based compensation expense related to the Formation Transaction and special equity awards, lease liability adjustments, income from investments, business interruption insurance proceeds, amortization of the management contracts intangible and the mark-to-market of derivative instruments, including our share of such adjustments for unconsolidated real estate ventures.

FAD represents Core FFO less recurring tenant improvements, leasing commissions and other capital expenditures, net deferred rent activity, third-party lease liability assumption (payments) refunds, recurring share-based compensation expense, accretion of acquired below-market leases, net of amortization of acquired above-market leases, amortization of debt issuance costs and other non-cash income and charges, including our share of such adjustments for unconsolidated real estate ventures. FAD is presented solely as a supplemental disclosure that management believes provides useful information as it relates to our ability to fund dividends.

We believe FFO, Core FFO and FAD are meaningful non‑GAAP financial measures useful in comparing our levered operating performance from period-to-period and as compared to similar real estate companies because these non‑GAAP measures exclude real estate depreciation and amortization expense, which implicitly assumes that the value of real estate diminishes predictably over time rather than fluctuating based on market conditions, and other non-comparable income and expenses. FFO, Core FFO and FAD do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements and should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as a performance measure or cash flow as a liquidity measure. FFO, Core FFO and FAD may not be comparable to similarly titled measures used by other companies.

“Net Debt” is a non-GAAP financial measurement. Net Debt represents our total consolidated and unconsolidated indebtedness less cash and cash equivalents at our share. Net Debt is an important component in the calculations of Net Debt to Annualized Adjusted EBITDA and Net Debt / total enterprise value. We believe that Net Debt is a meaningful non-GAAP financial measure useful to investors because we review Net Debt as part of the management of our overall financial flexibility, capital structure and leverage. We may utilize a considerable portion of our cash and cash equivalents at any given time for purposes other than debt reduction. In addition, cash and cash equivalents at our share may not be solely controlled by us. The deduction of cash and cash equivalents at our share from consolidated and unconsolidated indebtedness in the calculation of Net Debt, therefore, should not be understood to mean that it is available exclusively for debt reduction at any given time.

Net Operating Income (“NOI”) and “Annualized NOI” are non-GAAP financial measures management uses to assess an asset’s performance. The most directly comparable GAAP measure is net income (loss) attributable to common shareholders. We use NOI internally as a performance measure and believe NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only property related revenue (which includes base rent, tenant reimbursements and other operating revenue, net of Free Rent and payments associated with assumed lease liabilities) less operating expenses and ground rent for operating leases, if applicable. NOI also excludes deferred rent, related party management fees, interest expense, and certain other non-cash adjustments, including the accretion of acquired below-market leases and the amortization of acquired above-market leases and below-market ground lease intangibles. Management uses NOI as a supplemental performance measure of our assets and believes it provides useful information to investors because it reflects only those revenue and expense items that are incurred at the asset level, excluding non-cash items. In addition, NOI is considered by many in the real estate industry to be a useful starting point for determining the value of a real estate asset or group of assets. However, because NOI excludes depreciation and amortization expense and captures neither the changes in the value of our assets that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our assets, all of which have real economic effect and could materially impact the financial performance of our assets, the utility of NOI as a measure of the operating performance of our assets is limited. NOI presented by us may not be comparable to NOI reported by other REITs that define these measures differently. We believe to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income (loss) attributable to common shareholders as presented in our financial statements. NOI should not be considered as an alternative to net income (loss) attributable to common shareholders as an indication of our performance or to cash flows as a measure of liquidity or our ability to make distributions. Annualized NOI, for all assets except Crystal City Marriott, represents NOI for the three months ended March 31, 2023 multiplied by four. Due to seasonality in the hospitality business, Annualized NOI for Crystal City Marriott represents the trailing 12‑month NOI as of March 31, 2023. Management believes Annualized NOI provides useful information in understanding our financial performance over a 12‑month period, however, investors and other users are cautioned against attributing undue certainty to our calculation of Annualized NOI. Actual NOI for any 12‑month period will depend on a number of factors beyond our ability to control or predict, including general capital markets and economic conditions, any bankruptcy, insolvency, default or other failure to pay rent by one or more of our tenants and the destruction of one or more of our assets due to terrorist attack, natural disaster or other casualty, among others. We do not undertake any obligation to update our calculation to reflect events or circumstances occurring after the date of this earnings release. There can be no assurance that the Annualized NOI shown will reflect our actual results of operations over any 12‑month period.

Definitions

“Development Pipeline” refers to assets that have the potential to commence construction subject to receipt of full entitlements, completion of design and market conditions where we (i) own land or control the land through a ground lease or (ii) are under a long-term conditional contract to purchase, or enter into, a leasehold interest with respect to land.

“Estimated Potential Development Density” reflects management’s estimate of developable gross square feet based on our current business plans with respect to real estate owned or controlled as of March 31, 2023. Our current business plans may contemplate development of less than the maximum potential development density for individual assets. As market conditions change, our business plans, and therefore, the Estimated Potential Development Density, could change accordingly. Given timing, zoning requirements and other factors, we make no assurance that Estimated Potential Development Density amounts will become actual density to the extent we complete development of assets for which we have made such estimates.

“First-generation” is a lease on space that had been vacant for at least nine months or a lease on newly delivered space.

“Formation Transaction” refers collectively to the spin-off on July 17, 2017 of substantially all of the assets and liabilities of Vornado Realty Trust’s Washington, DC segment, which operated as Vornado / Charles E. Smith, and the acquisition of the management business and certain assets and liabilities of The JBG Companies.

“Free Rent” means the amount of base rent and tenant reimbursements that are abated according to the applicable lease agreement(s).

“GAAP” means accounting principles generally accepted in the United States of America.

“In-Service” refers to commercial or multifamily operating assets that are at or above 90% leased or have been operating and collecting rent for more than 12 months as of March 31, 2023.

“Non-Same Store” refers to all operating assets excluded from the same store pool.

“Same Store” refers to the pool of assets that were in-service for the entirety of both periods being compared, except for assets for which significant redevelopment, renovation, or repositioning occurred during either of the periods being compared.

“Second-generation” is a lease on space that had been vacant for less than nine months.

“Transaction and Other Costs” include pursuit costs related to completed, potential and pursued transactions, demolition costs, severance and other costs.

“Under-Construction” refers to assets that were under construction during the three months ended March 31, 2023.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
in thousands	March 31, 2023				December 31, 2022
ASSETS
Real estate, at cost:
Land and improvements	$	1,267,022			$	1,302,569
Buildings and improvements		4,157,110				4,310,821
Construction in progress, including land		619,111				544,692
		6,043,243				6,158,082
Less: accumulated depreciation		(1,355,655	)			(1,335,000	)
Real estate, net		4,687,588				4,823,082
Cash and cash equivalents		279,553				241,098
Restricted cash		42,339				32,975
Tenant and other receivables		46,241				56,304
Deferred rent receivable		159,287				170,824
Investments in unconsolidated real estate ventures		312,651				299,881
Intangible assets, net		149,243				162,246
Other assets, net		158,118				117,028
TOTAL ASSETS	$	5,835,020			$	5,903,438
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Liabilities:
Mortgage loans, net	$	1,802,051			$	1,890,174
Revolving credit facility		—				—
Unsecured term loans, net		547,256				547,072
Accounts payable and accrued expenses		124,268				138,060
Other liabilities, net		164,627				132,710
Total liabilities		2,638,202				2,708,016
Commitments and contingencies
Redeemable noncontrolling interests		457,778				481,310
Total equity		2,739,040				2,714,112
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY	$	5,835,020			$	5,903,438
_________________
Note: For complete financial statements, please refer to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
in thousands, except per share data		Three Months Ended March 31,
		2023				2022
REVENUE
Property rental		$	124,033			$	131,598
Third-party real estate services, including reimbursements			22,784				23,970
Other revenue			6,145				6,397
Total revenue			152,962				161,965
EXPENSES
Depreciation and amortization			53,431				58,062
Property operating			35,612				40,644
Real estate taxes			15,224				18,186
General and administrative:
Corporate and other			16,123				15,815
Third-party real estate services			23,823				27,049
Share-based compensation related to Formation Transaction and special equity awards			351				2,244
Transaction and other costs			2,472				899
Total expenses			147,036				162,899
OTHER INCOME (EXPENSE)
Income from unconsolidated real estate ventures, net			433				3,145
Interest and other income, net			4,077				14,246
Interest expense			(26,842	)			(16,278	)
Gain (loss) on the sale of real estate, net			40,700				(136	)
Loss on the extinguishment of debt			—				(591	)
Total other income (expense)			18,368				386
INCOME (LOSS) BEFORE INCOME TAX BENEFIT			24,294				(548	)
Income tax benefit			16				471
NET INCOME (LOSS)			24,310				(77	)
Net income attributable to redeemable noncontrolling interests			(3,363	)			(10	)
Net loss attributable to noncontrolling interests			224				55
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS		$	21,171			$	(32	)
EARNINGS (LOSS) PER COMMON SHARE – BASIC AND DILUTED		$	0.19			$	—
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING – BASIC AND DILUTED			114,052				126,682
_________________
Note: For complete financial statements, please refer to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023.

EBITDA, EBITDAre AND ADJUSTED EBITDA RECONCILIATIONS (NON-GAAP) (Unaudited)
dollars in thousands		Three Months Ended March 31,
		2023				2022
EBITDA, EBITDAre and Adjusted EBITDA
Net income (loss)		$	24,310			$	(77	)
Depreciation and amortization expense			53,431				58,062
Interest expense			26,842				16,278
Income tax benefit			(16	)			(471	)
Unconsolidated real estate ventures allocated share of above adjustments			3,664				9,829
EBITDA attributable to noncontrolling interests			30				(26	)
EBITDA		$	108,261			$	83,595
(Gain) loss on the sale of real estate, net			(40,700	)			136
Gain on the sale of unconsolidated real estate assets			—				(5,243	)
EBITDAre		$	67,561			$	78,488
Transaction and other costs, net of noncontrolling interests (1)			2,472				865
Income from investments, net			(1,861	)			(14,071	)
Loss on the extinguishment of debt			—				591
Share-based compensation related to Formation Transaction and special equity awards			351				2,244
Earnings and distributions in excess of our investment in unconsolidated real estate venture			(167	)			(441	)
Unconsolidated real estate ventures allocated share of above adjustments			2				204
Adjusted EBITDA		$	68,358			$	67,880
Net Debt to Annualized Adjusted EBITDA (2)			7.8	x			9.6	x
		March 31, 2023				March 31, 2022
Net Debt (at JBG SMITH Share)
Consolidated indebtedness (3)		$	2,344,304			$	2,464,640
Unconsolidated indebtedness (3)			87,832				362,861
Total consolidated and unconsolidated indebtedness			2,432,136				2,827,501
Less: cash and cash equivalents			291,799				207,568
Net Debt (at JBG SMITH Share)		$	2,140,337			$	2,619,933

_________________
Note: All EBITDA measures as shown above are attributable to common limited partnership units (“OP Units”) and certain fully-vested incentive equity awards that are convertible into OP Units.
(1)		Includes pursuit costs related to completed, potential and pursued transactions, demolition costs, severance and other costs.
(2)		Quarterly Adjusted EBITDA is annualized by multiplying by four.
(3)		Net of premium/discount and deferred financing costs.

FFO, CORE FFO AND FAD RECONCILIATIONS (NON-GAAP) (Unaudited)
in thousands, except per share data	Three Months Ended March 31,
	2023				2022
FFO and Core FFO
Net income (loss) attributable to common shareholders	$	21,171			$	(32	)
Net income attributable to redeemable noncontrolling interests		3,363				10
Net loss attributable to noncontrolling interests		(224	)			(55	)
Net income (loss)		24,310				(77	)
(Gain) loss on the sale of real estate, net of tax		(40,700	)			136
Gain on the sale of unconsolidated real estate assets		—				(5,243	)
Real estate depreciation and amortization		51,611				55,517
Pro rata share of real estate depreciation and amortization from unconsolidated real estate ventures		2,760				6,870
FFO attributable to noncontrolling interests		224				(26	)
FFO Attributable to OP Units	$	38,205			$	57,177
FFO attributable to redeemable noncontrolling interests		(5,203	)			(5,877	)
FFO Attributable to Common Shareholders	$	33,002			$	51,300
FFO attributable to OP Units	$	38,205			$	57,177
Transaction and other costs, net of tax and noncontrolling interests (1)		2,373				843
Income from investments, net		(1,405	)			(10,538	)
Loss (gain) from mark-to-market on derivative instruments, net of noncontrolling interests		2,541				(3,367	)
Loss on the extinguishment of debt		—				591
Earnings and distributions in excess of our investment in unconsolidated real estate venture		(167	)			(441	)
Share-based compensation related to Formation Transaction and special equity awards		351				2,244
Amortization of management contracts intangible, net of tax		1,106				1,105
Unconsolidated real estate ventures allocated share of above adjustments		36				(48	)
Core FFO Attributable to OP Units	$	43,040			$	47,566
Core FFO attributable to redeemable noncontrolling interests		(5,862	)			(4,889	)
Core FFO Attributable to Common Shareholders	$	37,178			$	42,677
FFO per common share – diluted	$	0.29			$	0.40
Core FFO per common share – diluted	$	0.33			$	0.34
Weighted average shares – diluted (FFO and Core FFO)		114,062				126,688
See footnotes under table below.

FFO, CORE FFO AND FAD RECONCILIATIONS (NON-GAAP) (Unaudited)
in thousands, except per share data		Three Months Ended March 31,
		2023				2022
FAD
Core FFO attributable to OP Units		$	43,040			$	47,566
Recurring capital expenditures and Second-generation tenant improvements and leasing commissions (2)			(7,794	)			(13,702	)
Straight-line and other rent adjustments (3)			(8,377	)			(1,791	)
Third-party lease liability assumption (payments) refunds			95				—
Share-based compensation expense			9,348				10,493
Amortization of debt issuance costs			1,307				1,176
Unconsolidated real estate ventures allocated share of above adjustments			402				(648	)
Non-real estate depreciation and amortization			355				1,068
FAD available to OP Units (A)		$	38,376			$	44,162
Distributions to common shareholders and unitholders(B)		$	29,619			$	32,603
FAD Payout Ratio (B÷A) (4)			77.2	%			73.8	%
Capital Expenditures
Maintenance and recurring capital expenditures		$	2,973			$	4,820
Share of maintenance and recurring capital expenditures from unconsolidated real estate ventures			—				82
Second-generation tenant improvements and leasing commissions			4,742				8,594
Share of Second-generation tenant improvements and leasing commissions from unconsolidated real estate ventures			79				206
Recurring capital expenditures and Second-generation tenant improvements and leasing commissions			7,794				13,702
Non-recurring capital expenditures			9,693				12,810
Share of non-recurring capital expenditures from unconsolidated real estate ventures			2				12
First-generation tenant improvements and leasing commissions			3,125				4,450
Share of First-generation tenant improvements and leasing commissions from unconsolidated real estate ventures			313				473
Non-recurring capital expenditures			13,133				17,745
Total JBG SMITH Share of Capital Expenditures		$	20,927			$	31,447

_________________
(1)		Includes pursuit costs related to completed, potential and pursued transactions, demolition costs, severance and other costs.
(2)		Includes amounts, at JBG SMITH Share, related to unconsolidated real estate ventures.
(3)		Includes straight-line rent, above/below market lease amortization and lease incentive amortization.
(4)		The quarterly FAD payout ratio is not necessarily indicative of an amount for the full year due to fluctuation in the timing of capital expenditures, the commencement of new leases and the seasonality of our operations.

NOI RECONCILIATIONS (NON-GAAP) (Unaudited)
dollars in thousands		Three Months Ended March 31,
		2023				2022
Net income (loss) attributable to common shareholders		$	21,171			$	(32	)
Add:
Depreciation and amortization expense			53,431				58,062
General and administrative expense:
Corporate and other			16,123				15,815
Third-party real estate services			23,823				27,049
Share-based compensation related to Formation Transaction and special equity awards			351				2,244
Transaction and other costs			2,472				899
Interest expense			26,842				16,278
Loss on the extinguishment of debt			—				591
Income tax benefit			(16	)			(471	)
Net income attributable to redeemable noncontrolling interests			3,363				10
Net loss attributable to noncontrolling interests			(224	)			(55	)
Less:
Third-party real estate services, including reimbursements revenue			22,784				23,970
Other revenue			1,726				2,196
Income from unconsolidated real estate ventures, net			433				3,145
Interest and other income, net			4,077				14,246
Gain (loss) on the sale of real estate, net			40,700				(136	)
Consolidated NOI			77,616				76,969
NOI attributable to unconsolidated real estate ventures at our share			4,429				6,967
Non-cash rent adjustments (1)			(8,377	)			(1,791	)
Other adjustments (2)			6,845				8,760
Total adjustments			2,897				13,936
NOI		$	80,513			$	90,905
Less: out-of-service NOI loss (3)			(710	)			(1,448	)
Operating Portfolio NOI		$	81,223			$	92,353
Non-Same Store NOI (4)			5,114				15,716
Same Store NOI (5)		$	76,109			$	76,637
Change in Same Store NOI			(0.7	)%
Number of properties in Same Store pool			49

_________________
(1)		Adjustment to exclude straight-line rent, above/below market lease amortization and lease incentive amortization.
(2)		Adjustment to include other revenue and payments associated with assumed lease liabilities related to operating properties and to exclude commercial lease termination revenue and allocated corporate general and administrative expenses to operating properties.
(3)		Includes the results of our Under-Construction assets and assets in the Development Pipeline.
(4)		Includes the results of properties that were not In-Service for the entirety of both periods being compared, including disposed properties, and properties for which significant redevelopment, renovation or repositioning occurred during either of the periods being compared.
(5)		Includes the results of the properties that are owned, operated and In-Service for the entirety of both periods being compared.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230509005929/en/

Barbat Rodgers

Senior Vice President, Investor Relations

(240) 333‑3805

[email protected]

KEYWORDS: Maryland United States North America

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

MEDIA:

Posted on May 9, 2023 9:38 pm

EzFill Achieves Another Monthly Record for Gallons Delivered

MIAMI, FL, May 09, 2023 (GLOBE NEWSWIRE) — EzFill Holdings, Inc. (“EzFill” or the “Company”) (NASDAQ: EZFL), a pioneer and emerging leader in the mobile fuel industry, announced that it delivered approximately 500,000 gallons during the month of April, achieving yet another monthly record.

The success was achieved in part through the Company adding an additional 36 new fleet accounts year to date, as well as marketing campaigns causing an increase in consumer and marine deliveries.

Yehuda Levy, co-founder and interim CEO says “Our subscribers are leveraging the EzFill platform to fuel their fleets, personal vehicles, and watercraft. We feel that the EzFill brand is becoming a household name in our local markets as end users are becoming accustomed to having automotive and marine fuel delivered directly to their places of business, driveways and docks.”

EzFill continued its momentum into April, landing new fleet accounts and continuing to grow in all markets: Miami-Dade, Broward, Palm Beach, Tampa, Jacksonville, and Orlando. The Company has been developing new and exciting technology features to support the growth of our consumer and B2B business, as well as improve overall operational efiiciencies. The Company expects to announce planned new features for the EzFill app and platform very soon. EzFill continues with its expansion in Marine fueling by offering services to the marinas’ fuel tanks and privately owned boats where the owners can simply place an order for fuel directly through the EzFill app. 

About EzFill

EzFill is a leader in the fast-growing mobile fuel industry, with the largest market share in its home state of Florida. Its mission is to disrupt the gas station fueling model by providing consumers and businesses with the convenience, safety, and touch-free benefits of on-demand fueling services brought directly to their locations. For commercial and specialty customers, at-site delivery during downtimes enables operators to begin their daily operations with fully fueled vehicles. For more information, visit www.ezfl.com.

With the number of gas stations in the U.S. continuing to decline, corporate giants such as Shell, Exxon, GM, Bridgestone, Enterprise, and Mitsubishi have recognized the increasing shift in consumer behavior and are investing in the fast growing on-demand mobile fueling industry. As the only company to provide fuel delivery in three vertical segments – consumer, commercial, and specialty including marine, we believe EzFill is well positioned to capitalize on the growing demand for convenient and cost-efficient mobile fueling options.

Forward Looking Statements

This press release contains “forward-looking statements” Forward-looking statements reflect our current view about future events. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” or the negative of these terms and similar expressions, as they relate to us or our management, identify forward-looking statements. Such statements, include, but are not limited to, statements contained in this press release relating to our business strategy, our future operating results and liquidity and capital resources outlook. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward–looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, our ability to raise capital to fund continuing operations; our ability to protect our intellectual property rights; the impact of any infringement actions or other litigation brought against us; competition from other providers and products; our ability to develop and commercialize products and services; changes in government regulation; our ability to complete capital raising transactions; and other factors relating to our industry, our operations and results of operations. Actual results may differ significantly from those anticipated, believed, estimated, expected, intended or planned.

Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We cannot guarantee future results, levels of activity, performance or achievements. The Company assumes no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.

Investor and Media Contact:
Tradigital Investor Relations
John McNamara
[email protected]

Posted on May 9, 2023 9:36 pm

SciPlay Reports First Quarter 2023 Results

SciPlay Reports First Quarter 2023 Results

Achieved Record Revenue with Growth of 18% Year-Over-Year Resulting in Strong Cash Flows

Continuing to Outpace the Social Casino Market

Completed $60 Million⁽¹⁾ of Share Purchase Authorization Returning Capital to Shareholders; Board Authorizes New $60 Million Share Repurchase Program

LAS VEGAS–(BUSINESS WIRE)–SciPlay Corporation (NASDAQ: SCPL) (“SciPlay” or the “Company”) today reported results for the first quarter ended March 31, 2023.

SciPlay entered 2023 with strong momentum and continued to outpace the social casino market and gained share. Revenue grew 18% year-over-year, achieving another quarterly record primarily due to increased social casino payer engagement and record high average monthly paying users, all translating to strong cash flows. The increases in Net income and AEBITDA⁽²⁾ outpaced Revenue growth at 31% and 21%, respectively. We also returned $60 million of capital to shareholdersthrough the repurchase of our shares of Class A common stock, since the initiation of the program on May 9, 2022 and through May 9, 2023, completing the share purchase program authorization.

Josh Wilson, Chief Executive Officer of SciPlay, commented, “SciPlay continued its industry-leading performance in the first quarter of 2023, outpacing the social casino market for the fifth consecutive quarter. We continue to benefit from the investments that we’ve made in key growth drivers of our business and into the development of proprietary tools and systems. Our strong operating platform and industry-best team’s innovation are providing our players with engaging entertainment experiences, resulting in more payers and increasing monetization per player. We are off to a great start in the first quarter and look forward to continuing on our path of sustainable and profitable growth.”

Daniel O’Quinn, Interim Chief Financial Officer of SciPlay, added, “SciPlay posted strong financial results in the first quarter of 2023, reflecting progress on our key objectives: delivering great entertainment experiences to our players, investing in our game franchises, growing market share in social casino and prudently allocating capital. We are pleased to report the completion of our $60 million share repurchase program in about one year’s time. Our Board has approved a new $60 million share repurchase authorization, which we will implement in a similar manner as the recently completed program.”

(1) This amount is as of May 9, 2023.

(2) The financial measure “AEBITDA” is a non-GAAP financial measure defined below under “Non-GAAP Financial Measures” and is reconciled to the most directly comparable GAAP measure in the accompanying supplemental tables at the end of this release.

SUMMARY RESULTS

	Three Months Ended
($ in millions)	March 31,
	2023				2022
Revenue	$	186.4			$	158.0
Net income		41.8				32.0
Net income margin		22.4	%			20.3	%
Net cash provided by operating activities		41.7				36.6
Capital expenditures		3.8				2.0
Non-GAAP Financial Measures(1)
Adjusted EBITDA (“AEBITDA”)	$	53.5			$	44.2
AEBITDA margin		28.7	%			28.0	%
	As of March 31,				As of December 31,
Balance Sheet Measures	2023				2022
Cash and cash equivalents	$	357.5			$	330.1
Available liquidity(2)		507.5				480.1
(1) The financial measures “AEBITDA” and “AEBITDA margin” are non-GAAP financial measures defined below under “Non-GAAP Financial Measures” and are reconciled to the most directly comparable GAAP measures in the accompanying supplemental tables at the end of this release.
(2) Available liquidity is calculated as cash and cash equivalents plus the undrawn capacity on our revolver.

Key Performance Indicators

(in millions, except Average Revenue Per Daily Active Users (“ARPDAU”), Average Monthly Revenue Per Paying User (“AMRPPU”), Average Monthly Paying Users (“MPUs”) and percentages; KPIs include only in-app purchases)
	Three Months Ended
	March 31,				Increase /
	2023		2022		(Decrease)
Mobile Penetration	91%		90%		1.0pp
Average Monthly Active Users	6.1		6.3		(0.2)
Average Daily Active Users	2.3		2.3		—
ARPDAU	$0.89		$0.74		$0.15
Average MPUs (in thousands)	625		560		65
AMRPPU	$97.43		$92.45		$4.98
Payer Conversion Rate	10.3%		8.9%		1.4pp
pp = percentage points.

First Quarter 2023 Financial Highlights

• Revenue growth was 18% year-over-year to $186.4 million, a new quarterly record, primarily due to increased social casino payer engagement and record high average monthly paying users.
• Net income growth was 31% year-over-year to $41.8 million compared to $32.0 million in the prior year period, primarily due to the increase in revenue. Net income margin was 22.4% for the quarter, increasing by 2.1 percentage points year-over-year.
• AEBITDA, a non-GAAP financial measure defined at the end of this release, grew 21% to $53.5 million compared to $44.2 million in the prior year period. The increase in AEBITDA was primarily due to higher revenue. AEBITDA margin, a non-GAAP financial measure defined at the end of this release, was 28.7% for the quarter, increasing by 0.7 percentage points year-over-year.
• Net cash provided by operating activities was $41.7 million, a $5.1 million increase over the prior year period, primarily due to an increase in revenue, partially offset by an unfavorable change in working capital due to the timing of payments from our platform providers.
• Cash and cash equivalents increased by $27.4 million to $357.5 million from the fourth quarter of 2022. Total available liquidity, which includes our undrawn revolver, was $507.5 million.
• Returned $60.0 million of capital to shareholders through the repurchase of approximately 4.1 million shares of Class A common stock since the initiation of the program on May 9, 2022 and through May 9, 2023, completing the share purchase program authorization. Our Board has approved a new $60.0 million share repurchase authorization, which we will implement in a manner similar to the implementation of the recently completed program.

First Quarter Key Performance Highlights

• Jackpot Party Casino®achieved its third consecutive quarterly record revenue.
• Quick Hit Slots®achieved its fifth consecutive quarterly record revenue.
• Payer conversion rate increased by 1.4 percentage points from the prior year period to 10.3% due to consistent payer interaction with the games by our players as a result of our continually enhancing player analytics and the introduction of new content and features into our games.
• Average Monthly Paying Users (MPU) increased to 625 thousand compared to 560 thousand in the prior year period, a new record.
• Average Monthly Revenue Per Paying User (AMRPPU) was $97.43, maintaining elevated levels with twelve consecutive quarters above $90.
• Average Revenue Per Daily Active User (ARPDAU) was up 20% to a record $0.89, compared to $0.74 in the prior year period.

About SciPlay

SciPlay Corporation (NASDAQ: SCPL) is a leading developer and publisher of digital games on mobile and web platforms. SciPlay currently offers social casino games Jackpot Party® Casino, Gold Fish® Casino, Quick Hit® Slots, 88 Fortunes® Slots, MONOPOLY® Slots, and Hot Shot Casino®, casual games Bingo Showdown®, Solitaire Pets™Adventure, and Backgammon Live and a variety of hyper-casual games such as Rob Master 3D™, Deep Clean Inc.™ and Oh God™. All of SciPlay’s games are offered and played on multiple platforms, including Apple, Google, Facebook, and Amazon. In addition to developing original games, SciPlay has access to a library of more than 1,500 real-world slot and table games provided by Light & Wonder, Inc. and its Subsidiaries. For more information, please visit https://www.SciPlay.com.

You can access our filings with the Securities Exchange Commission (“SEC”) through the SEC website at www.sec.gov or through our website, and we strongly encourage you to do so. We routinely post information that may be important to investors on our website at http://investors.sciplay.com/, and we use our website as a means of disclosing material information to the public in a broad, non-exclusionary manner for purposes of the SEC’s Regulation Fair Disclosure (Reg FD). The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this or any other document, and shall not be deemed “filed” under the Securities Exchange Act of 1934, as amended.

All ® and © notices signify marks registered in the United States by SciPlay Games, LLC and/or LNW Gaming, Inc., and or their respective affiliates.

© 2023 SciPlay Corporation. All Rights Reserved.

Forward-Looking Statements

Throughout this press release, we make “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results or strategies and can often be identified by the use of terminology such as “may,” “will,” “estimate,” “intend,” “plan,” “continue,” “believe,” “expect,” “anticipate,” “target,” “should,” “could,” “potential,” “opportunity,” “goal,” or similar terminology. These statements are based upon management’s current expectations, assumptions and estimates and are not guarantees of timing, future results or performance. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. Actual results may differ materially from those contemplated in these statements due to a variety of risks and uncertainties and other factors, including, among other things:

• the effects of the COVID-19 pandemic and any resulting social, political, economic and financial complications;

• our ability to attract and retain players;

• expectations of growth in total consumer spending on social gaming, including social casino gaming;

• our reliance on third-party platforms and our ability to track data on those platforms;

• our ability to continue to launch and enhance games that attract and retain a significant number of paying players;

• our ability to expand in international markets;

• our reliance on a small percentage of our players for nearly all of our revenue;

• our ability to adapt to, and offer games that keep pace with, changing technology and evolving industry standards;

• competition;

• our dependence on the optional purchases of coins, chips and bingo cards (collectively referred to as “coins, chips and cards”) to supplement the availability of periodically offered free coins, chips and cards;

• our ability to access additional financing and restrictions and covenants in debt agreements, including those that could result in acceleration of the maturity of our indebtedness;

• the discontinuation or replacement of the London Interbank Offer Rate, which may adversely affect interest rates;

• fluctuations in our results due to seasonality and other factors;

• dependence on skilled employees with creative and technical backgrounds;

• U.S. and international economic and industry conditions, including increases in benchmark interest rates and the effects of inflation;

• public perception of our response to environmental, social and governance issues;

• changes in, or the elimination of, our share repurchase program;

• our ability to use the intellectual property rights of Light & Wonder, Inc. (“Light & Wonder”, “L&W” and “Parent”) and other third parties, including the third-party intellectual property rights licensed to Light & Wonder, under our intellectual property license agreement with our Parent;

• protection of our proprietary information and intellectual property, inability to license third-party intellectual property and the intellectual property rights of others;

• security and integrity of our games and systems;

• security breaches, cyber-attacks or other privacy or data security incidents, challenges or disruptions;

• reliance on or failures in information technology and other systems;

• loss of revenue due to unauthorized methods of playing our games;

• the impact of legal and regulatory restrictions on our business, including significant opposition in some jurisdictions to interactive social gaming, including social casino gaming, and how such opposition could lead these jurisdictions to adopt legislation or impose a regulatory framework to govern interactive social gaming or social casino gaming specifically, and how this could result in a prohibition on interactive social gaming or social casino gaming altogether, restrict our ability to advertise our games, or substantially increase our costs to comply with these regulations;

• laws and government regulations, both foreign and domestic, including those relating to our Parent and to data privacy and security, including with respect to the collection, storage, use, transmission, sharing and protection of personal information and other consumer data, and those laws and regulations that affect companies conducting business on the internet, including ours;

• the continuing evolution of the scope of data privacy and security regulations, and our belief that the adoption of increasingly restrictive regulations in this area is likely within the U.S. and other jurisdictions;

• risks related to foreign operations, including the complexity of foreign laws, regulations and markets; the uncertainty of enforcement of remedies in foreign jurisdictions; the effect of currency exchange rate fluctuations; the impact of foreign labor laws and disputes; the ability to attract and retain key personnel in foreign jurisdictions; the economic, tax and regulatory policies of local governments; and compliance with applicable anti-money laundering, anti-bribery and anti-corruption laws;

• influence of certain stockholders, including decisions that may conflict with the interests of other stockholders;

• our ability to achieve some or all of the anticipated benefits of being a standalone public company;

• our dependence on distributions from SciPlay Parent Company, LLC to pay our taxes and expenses, including substantial payments we will be required to make under the Tax Receivable Agreement (the “TRA”);

• failure to establish and maintain adequate internal control over financial reporting;

• stock price volatility;

• litigation and other liabilities relating to our business, including litigation and liabilities relating to consumer protection, gambling-related matters, employee matters, alleged service and system malfunctions, alleged intellectual property infringement and claims relating to our contracts, licenses and strategic investments;

• our ability to complete acquisitions and integrate businesses successfully;

• our ability to pursue and execute new business initiatives;

• our expectations of future growth that will place significant demands on our management and operations;

• natural events and health crises that disrupt our operations or those of our providers or suppliers;

• changes in tax laws or tax rulings, or the examination of our tax positions;

• levels of insurance coverage against claims; and

• our dependence on certain key providers.

Additional information regarding risks and uncertainties and other factors that could cause actual results to differ materially from those contemplated in forward-looking statements is included from time to time in our filings with the SEC, including the Company’s current reports on Form 8-K, quarterly reports on Form 10-Q and annual reports on Form 10-K, including the latest annual report filed with the SEC on March 1, 2023 (“2022 Form 10-K”) (including under the headings “Forward Looking Statements” and “Risk Factors”). Forward-looking statements speak only as of the date they are made and, except for our ongoing obligations under the U.S. federal securities laws, we undertake no and expressly disclaim any obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.

This press release may contain references to industry market data and certain industry forecasts. Industry market data and industry forecasts are obtained from publicly available information and industry publications. Industry publications generally state that the information contained therein has been obtained from sources believed to be reliable, but that the accuracy and completeness of that information is not guaranteed. Although we believe industry information to be accurate, it is not independently verified by us and we do not make any representation as to the accuracy of that information. In general, we believe there is less publicly available information concerning international social gaming industries than the same industries in the U.S. Some data is also based on our good faith estimates, which are derived from our review of internal surveys or data, as well as the independent sources referenced above. Assumptions and estimates of our and our industry’s future performance are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described under “Risk Factors” in Part II, Item 1A of our Quarterly Reports on Form 10-Q and Part I, Item 1A “Risk Factors” in our 2022 Form 10-K. These and other factors could cause future performance to differ materially from our assumptions and estimates.

Due to rounding, certain numbers presented herein may not precisely recalculate.

SCIPLAY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in millions, except per share amounts)
	Three Months Ended
	March 31,
	2023				2022
Revenue	$	186.4			$	158.0
Operating expenses:
Cost of revenue(1)		57.7				48.2
Sales and marketing(1)		46.9				40.0
General and administrative(1)		22.1				16.7
Research and development(1)		12.7				11.5
Depreciation and amortization		5.9				4.7
Restructuring and other		1.4				2.2
Operating income		39.7				34.7
Other income (expense), net		6.0				(0.5	)
Net income before income taxes		45.7				34.2
Income tax expense		3.9				2.2
Net income		41.8				32.0
Less: Net income attributable to the noncontrolling interest		36.3				27.6
Net income attributable to SciPlay	$	5.5			$	4.4
Basic and diluted net income attributable to SciPlay per share:
Basic	$	0.25			$	0.18
Diluted	$	0.24			$	0.18
Weighted average number of shares of Class A common stock used in per share calculation:
Basic shares		22.0				24.6
Diluted shares		23.0				24.8
(1) Excludes depreciation and amortization.

SCIPLAY CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in millions, except par value)
	As of
	March 31, 2023				December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	357.5			$	330.1
Accounts receivable, net		64.2				51.0
Prepaid expenses and other current assets		7.3				8.0
Total current assets		429.0				389.1
Property and equipment, net		3.6				3.0
Operating lease right-of-use assets		4.2				4.8
Goodwill		216.1				217.6
Intangible assets and software, net		79.6				74.8
Deferred income taxes		72.3				74.5
Other assets		1.7				1.9
Total assets	$	806.5			$	765.7
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	20.7			$	18.4
Accrued liabilities		37.9				35.2
Due to affiliate		4.0				3.8
Total current liabilities		62.6				57.4
Operating lease liabilities		2.4				3.1
Liabilities under TRA		60.2				60.2
Other long-term liabilities		26.0				29.4
Total stockholders’ equity(1)		655.3				615.6
Total liabilities and stockholders’ equity	$	806.5			$	765.7
(1) Includes $540.6 million and $506.4 million in noncontrolling interest as of March 31, 2023 and December 31, 2022, respectively.

SCIPLAY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in millions)
	Three Months Ended
	March 31,
	2023				2022
Net cash provided by operating activities	$	41.7			$	36.6
Net cash used in investing activities		(3.8	)			(108.2	)
Net cash used in financing activities		(10.2	)			(0.7	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(0.3	)			(0.1	)
Increase (decrease) in cash, cash equivalents and restricted cash		27.4				(72.4	)
Cash, cash equivalents and restricted cash, beginning of period		330.1				364.4
Cash, cash equivalents and restricted cash, end of period	$	357.5			$	292.0
Supplemental cash flow information:
Cash paid for income taxes	$	0.4			$	0.5
Supplemental non-cash transactions:
Non-cash additions to intangible assets related to license agreements	$	7.1			$	—

SCIPLAY CORPORATION RECONCILIATION OF NET INCOME ATTRIBUTABLE TO SCIPLAY TO AEBITDA (Unaudited, in millions)
	Three Months Ended
	March 31,
	2023				2022
Net income attributable to SciPlay	$	5.5			$	4.4
Net income attributable to noncontrolling interest		36.3				27.6
Net income		41.8				32.0
Restructuring and other(1)		1.4				2.2
Depreciation and amortization		5.9				4.7
Income tax expense		3.9				2.2
Stock-based compensation		6.5				2.6
Other (income) expense, net		(6.0	)			0.5
AEBITDA	$	53.5			$	44.2
Revenue	$	186.4			$	158.0
Net income margin (Net income/Revenue)		22.4	%			20.3	%
AEBITDA margin (AEBITDA/Revenue)		28.7	%			28.0	%
(1) Refer to AEBITDA definition for a description of items included in restructuring and other.

RECONCILIATION OF NET INCOME MARGIN TO AEBITDA MARGIN
	Three Months Ended
	March 31,
	2023			2022
Net income margin (Net income/Revenue)	22.4	%		20.3	%
Restructuring and other	0.7	%		1.4	%
Depreciation and amortization	3.2	%		3.0	%
Income tax expense	2.1	%		1.4	%
Stock-based compensation	3.5	%		1.6	%
Other (income) expense, net	(3.2	)%		0.3	%
AEBITDA margin (AEBITDA/Revenue)	28.7	%		28.0	%

Non-GAAP Financial Measures

Adjusted EBITDA, or AEBITDA, as used herein, is a non-GAAP financial measure that is presented as supplemental disclosure and is reconciled to net income attributable to SciPlay as the most directly comparable GAAP measure as set forth in the above table. We define AEBITDA to include net income attributable to SciPlay before: (1) net income attributable to noncontrolling interest; (2) interest expense; (3) income tax expense; (4) depreciation and amortization; (5) restructuring and other, which includes charges or expenses attributable to: (a) employee severance; (b) management changes; (c) restructuring and integration; (d) M&A and other, which includes: (i) M&A transaction costs; (ii) purchase accounting adjustments (including contingent acquisition consideration); (iii) unusual items (including legal settlements related to major litigation) and (iv) other non-cash items; and (e) cost-savings initiatives; (6) stock-based compensation; (7) loss or gain on debt financing transactions; and (8) other expense or income including foreign currency (gains) and losses. We also use AEBITDA margin, a non-GAAP measure, which we calculate as AEBITDA as a percentage of revenue.

Our management uses AEBITDA and AEBITDA margin to, among other things: (i) monitor and evaluate the performance of our business operations; (ii) facilitate our management’s internal comparisons of our historical operating performance and (iii) analyze and evaluate financial and strategic planning decisions regarding future operating investments and operating budgets. In addition, our management uses AEBITDA and AEBITDA margin to facilitate management’s external comparisons of our results to the historical operating performance of other companies that may have different capital structures and debt levels. Our management believes that AEBITDA and AEBITDA margin are useful as they provide investors with information regarding our financial condition and operating performance that is an integral part of our management’s reporting and planning processes. In particular, our management believes that AEBITDA is helpful because this non-GAAP financial measure eliminates the effects of restructuring, transaction, integration or other items that management believes have less bearing on our ongoing underlying operating performance. Management believes AEBITDA margin is useful as it provides investors with information regarding the underlying operating performance and margin generated by our business operations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230509005775/en/

Media Relations

Andrea Schneider +1 917-769-6060

Director, Global Communications

[email protected]

Investor Relations

Robert Weiner +1 904-495-8227

Vice President, Investor Relations

[email protected]

KEYWORDS: Nevada United States North America

INDUSTRY KEYWORDS: Technology Electronic Games Casino/Gaming Entertainment Online Communications Mobile Entertainment Software Internet Social Media

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