Market Newsdesk

May 11, 2023 8:01 pm

News Corporation Reports Third Quarter Results for Fiscal 2023

News Corporation Reports Third Quarter Results for Fiscal 2023

FISCAL 2023 THIRD QUARTER KEY FINANCIAL HIGHLIGHTS

Revenues in the quarter were $2.45 billion, a 2% decrease compared to $2.49 billion in the prior year, reflecting a $98 million, or 4%, negative impact from foreign currency fluctuations. Adjusted Revenues were flat
Net income in the quarter was $59 million compared to $104 million in the prior year
Total Segment EBITDA in the quarter was $320 million compared to $358 million in the prior year
In the quarter, reported EPS were $0.09 compared to $0.14 in the prior year – Adjusted EPS were $0.09 compared to $0.16 in the prior year
At the Dow Jones segment, revenues from its professional information business grew 38% from the prior year, reflecting the OPIS and CMA acquisitions and continued double-digit revenue growth at Risk and Compliance. Total subscriptions to its consumer products crossed 5.1 million
Foxtel Group exceeded 3 million total streaming subscribers and achieved the lowest broadcast churn since Fiscal 2016
Advertising trends at the News Media segment improved sequentially, as advertising revenues for the quarter declined 5% but increased 2% on a constant currency basis from the prior year
HarperCollins saw improved trends from the first half with revenues flat in the quarter compared to the prior year period. Adjusted revenues were up 2%
The Company now expects to achieve at least $160 million in annualized savings from the previously announced headcount reductions, up from the prior estimate

NEW YORK–(BUSINESS WIRE)–
News Corporation (“News Corp” or the “Company”) (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) today reported financial results for the three months ended March 31, 2023.

Commenting on the results, Chief Executive Robert Thomson said:

“These results demonstrate the fundamental differences in the character of News Corp compared with other media companies. In a period in which advertising was clearly insipid in certain parts of the world, our core non-advertising revenue has been particularly robust, highlighted by a 38 percent increase in revenues at the Dow Jones professional information business.

Overall, our fiscal third quarter results demonstrated meaningful progress compared to the first half, with various macro and sectoral trends decidedly more positive. Revenues were over $2.4 billion, down only 2 percent from the prior year, but higher in constant currency, while our company-wide cost cutting program began to gain traction.

That cost reduction drive includes taking the difficult but necessary step of reducing headcount by an expected five percent, and we now anticipate that program will yield at least $160 million in annualized savings by the end of this calendar year.

We also want to highlight that today marks the 44th day in captivity for Wall Street Journal reporter Evan Gershkovich, who has been wrongfully, wilfully detained in Russia. We trust that justice and common sense will prevail, and that Evan will soon be released.”

THIRD QUARTER RESULTS

The Company reported fiscal 2023 third quarter total revenues of $2.45 billion, a 2% decrease compared to $2.49 billion in the prior year period. The decline was primarily due to a $98 million, or 4%, negative impact from foreign currency fluctuations and lower revenues at the Digital Real Estate Services segment due to continued challenging housing market conditions in the U.S. and Australia. The decline was partially offset by higher Dow Jones segment revenues, which includes the acquisitions of OPIS and Chemical Market Analytics (“CMA”), and higher revenues at the News Media and Subscription Video Services segments on a constant currency basis. Adjusted Revenues (which excludes the foreign currency impact, acquisitions and divestitures as defined in Note 2) were flat compared to the prior year.

Net income for the quarter was $59 million, a 43% decline compared to $104 million in the prior year, primarily due to lower Total Segment EBITDA, as discussed below, higher depreciation and amortization expense and higher losses from equity affiliates, partially offset by lower impairment charges.

The Company reported third quarter Total Segment EBITDA of $320 million, an 11% decline compared to $358 million in the prior year, primarily due to lower revenues, as discussed above, higher costs at the Dow Jones segment, and a $13 million, or 4%, negative impact from foreign currency fluctuations. The results this quarter also include $7 million of costs related to the professional fees incurred by the Special Committee and the Company in connection with evaluating the proposal from the Murdoch Family Trust, as well as the fees related to the potential sale of Move. Adjusted Total Segment EBITDA (as defined in Note 2) decreased 15%.

Net income per share attributable to News Corporation stockholders was $0.09 as compared to $0.14 in the prior year.

Adjusted EPS (as defined in Note 3) were $0.09 compared to $0.16 in the prior year.

SEGMENT REVIEW

	For the three months ended March 31,								For the nine months ended March 31,
		2023			2022		% Change			2023			2022		% Change
	(in millions)						Better/ (Worse)		(in millions)						Better/ (Worse)
Revenues:
Digital Real Estate Services	$	363		$	416		(13	)%	$	1,170		$	1,298		(10	)%
Subscription Video Services		477			494		(3	)%		1,441			1,502		(4	)%
Dow Jones		529			487		9	%		1,607			1,439		12	%
Book Publishing		515			515		—	%		1,533			1,678		(9	)%
News Media		563			580		(3	)%		1,695			1,794		(6	)%
Other		—			—		—	%		—			—		—	%
Total Revenues	$	2,447		$	2,492		(2	)%	$	7,446		$	7,711		(3	)%

Segment EBITDA:
Digital Real Estate Services	$	102		$	137		(26	)%	$	349		$	453		(23	)%
Subscription Video Services		68			79		(14	)%		269			279		(4	)%
Dow Jones		109			88		24	%		361			327		10	%
Book Publishing		61			67		(9	)%		151			259		(42	)%
News Media		34			39		(13	)%		111			184		(40	)%
Other		(54	)		(52	)	(4	)%		(162	)		(148	)	(9	)%
Total Segment EBITDA	$	320		$	358		(11	)%	$	1,079		$	1,354		(20	)%

Digital Real Estate Services

Revenues in the quarter decreased $53 million, or 13%, compared to the prior year, reflecting a $13 million, or 3%, negative impact from foreign currency fluctuations. Segment EBITDA in the quarter decreased $35 million, or 26%, compared to the prior year, primarily due to the lower revenues, a $5 million, or 4%, negative impact from foreign currency fluctuations and higher costs related to REA India, partially offset by lower costs at Move. Adjusted Revenues and Adjusted Segment EBITDA (as defined in Note 2) decreased 10% and 24%, respectively.

In the quarter, revenues at REA Group decreased $24 million, or 10%, to $222 million, driven by a $13 million, or 6%, negative impact from foreign currency fluctuations, lower Australian residential revenues due to the decline in national listings, most notably in Sydney and Melbourne, and lower financial services revenues due to declines in settlement activity. The decline was partially offset by price increases, increased penetration of Premiere Plus, increased depth penetration in the Australian residential business and higher revenues from REA India. Australian national residential buy listing volumes in the quarter declined 12% compared to the prior year, with listings in Sydney and Melbourne down 20% and 18%, respectively.

Move’s revenues in the quarter decreased $29 million, or 17%, to $141 million, primarily as a result of lower real estate revenues. Real estate revenues, which represented 79% of total Move revenues, decreased $33 million, or 23%, driven by the continued impact of the macroeconomic environment on the housing market, including higher household interest rates, which has led to lower lead and transaction volumes. Revenues from the referral model, which includes the ReadyConnect Concierge℠ product, and the traditional lead generation product decreased due to these factors, partially offset by improved lead optimization. The referral model generated 23% of total Move revenues in the quarter compared to 28% in the prior year. Based on Move’s internal data, average monthly unique users of Realtor.com^®’s web and mobile sites for the fiscal third quarter declined 24% year-over-year to 72 million. Lead volume declined 30%.

Subscription Video Services

Revenues of $477 million in the quarter decreased $17 million, or 3%, compared with the prior year, due to a $28 million, or 5%, negative impact from foreign currency fluctuations. Adjusted Revenues of $505 million increased 2% compared to the prior year. Higher revenues from Kayo and BINGE, driven by increases in both volume and pricing, were partially offset by the impact from fewer residential broadcast subscribers. Foxtel Group streaming subscription revenues represented approximately 26% of total circulation and subscription revenues in the quarter, as compared to 20% in the prior year.

As of March 31, 2023, Foxtel’s total closing paid subscribers were over 4.5 million, a 6% increase compared to the prior year, primarily due to the growth in streaming subscribers driven by BINGE and Kayo, partially offset by lower residential broadcast and commercial subscribers. Broadcast subscriber churn in the quarter improved to 12.3%, the lowest level since Fiscal 2016, from 14.3% in the prior year. Broadcast ARPU for the quarter increased 2% year-over-year to A$84 (US$57).

	As of March 31,
	2023	2022
	(in 000’s)
Broadcast Subscribers
Residential	1,369	1,522
Commercial	233	240
Streaming Subscribers (Total (Paid))
Kayo	1,332 (1,309 paid)	1,209 (1,151 paid)
BINGE	1,529 (1,484 paid)	1,305 (1,212 paid)
Foxtel Now	178 (171 paid)	215 (206 paid)

Total Subscribers (Total (Paid))	4,662 (4,585 paid)	4,509 (4,338 paid)

Segment EBITDA in the quarter decreased $11 million, or 14%, compared with the prior year, reflecting a $4 million, or 5%, negative impact from foreign currency fluctuations. The decline was primarily due to higher sports programming rights costs, driven mainly by contractual increases across AFL, NRL and Cricket Australia, partially offset by lower marketing spend for Kayo and BINGE and lower transmission costs. Adjusted Segment EBITDA decreased 9%.

Dow Jones

Revenues in the quarter increased $42 million, or 9%, compared to the prior year, which includes $27 million and $19 million contributions from the acquisitions of OPIS and CMA, respectively. Adjusted Revenues at the Dow Jones segment were flat compared to the prior year, as the growth in circulation and subscription revenues from continued growth in Risk & Compliance products and digital subscription gains was offset by lower advertising revenues. Digital revenues at Dow Jones in the quarter represented 79% of total revenues compared to 76% in the prior year.

Circulation and subscription revenues increased $49 million, or 13%, which includes the contributions from the acquisitions of OPIS and CMA. Circulation revenue declined 1%, primarily due to lower print volume and lower revenues from IBD, partially offset by the continued growth in digital-only subscriptions, primarily at The Wall Street Journal. Professional information business revenues grew 38%, primarily driven by the acquisitions of OPIS and CMA and growth in Risk & Compliance products. Revenues from the Risk & Compliance products grew 16%, which includes a 3% negative impact from foreign currency fluctuations. Digital circulation revenues accounted for 69% of circulation revenues for the quarter, compared to 68% in the prior year.

During the third quarter, total average subscriptions to Dow Jones’ consumer products reached over 5.1 million, a 6% increase compared to the prior year. Digital-only subscriptions to Dow Jones’ consumer products grew 10%. Total subscriptions to The Wall Street Journal grew 5% compared to the prior year, to nearly 3.9 million average subscriptions in the quarter. Digital-only subscriptions to The Wall Street Journal grew 9% to 3.3 million average subscriptions in the quarter, and represented 85% of total Wall Street Journal subscriptions.

	For the three months ended March 31,
	2023	2022	% Change
(in thousands, except %)			Better/(Worse)
The Wall Street Journal
Digital-only subscriptions	3,299	3,036	9 %
Total subscriptions	3,888	3,718	5 %
Barron’s Group
Digital-only subscriptions	969	810	20 %
Total subscriptions	1,128	1,008	12 %
Total Consumer
Digital-only subscriptions	4,347	3,941	10 %
Total subscriptions	5,117	4,848	6 %

Advertising revenues decreased $14 million, or 14%, primarily due to 17% and 8% declines in digital and print advertising revenues, respectively, driven primarily by continued weakness in the technology and finance categories. Digital advertising accounted for 59% of total advertising revenues in the quarter, compared to 62% in the prior year.

Segment EBITDA for the quarter increased $21 million, or 24%, which includes a $17 million combined contribution from the acquisitions of OPIS and CMA. The growth reflects the higher revenues discussed above and the absence of $15 million in transaction costs related to the acquisition of OPIS in the prior year, partially offset by $21 million of higher employee costs due to the acquisitions of OPIS and CMA and $6 million of higher marketing costs, partly due to the increase in the number of in-person conferences and events. Adjusted Segment EBITDA decreased 11%.

Book Publishing

Revenues in the quarter were flat with the prior year, as higher sales in Christian books were offset by the $11 million, or 2%, negative impact from foreign currency fluctuations. Key titles in the quarter included The Courage to Be Free by Ron DeSantis, Demon Copperhead by Barbara Kingsolver and Never, Never by Colleen Hoover and Tarryn Fisher. Adjusted Revenues increased 2%. Digital sales declined 3% compared to the prior year due to lower e-book sales. Digital sales represented 23% of Consumer revenues for the quarter and were in-line with the prior year. Backlist sales represented approximately 60% of total revenues in the quarter.

Segment EBITDA for the quarter decreased $6 million, or 9%, compared to the prior year, driven by ongoing supply chain, inventory and inflationary pressures on manufacturing, freight and distribution costs. The decline was partially offset by lower employee costs. These pressures are expected to continue to impact the business in the near term. Adjusted Segment EBITDA decreased 7%.

News Media

Revenues in the quarter decreased $17 million, or 3%, as compared to the prior year, driven by a $42 million, or 7%, negative impact from foreign currency fluctuations, partially offset by higher circulation and subscription and advertising revenues in constant currency. Within the segment, revenues at News Corp Australia and News UK decreased 5% and 4%, respectively, as both were impacted by negative foreign currency fluctuations. On a constant currency basis, revenues at News Corp Australia and News UK increased 1% and 6%, respectively. Adjusted Revenues for the segment increased 4% compared to the prior year.

Circulation and subscription revenues decreased $11 million, or 4%, compared to the prior year, primarily due to a $21 million, or 8%, negative impact from foreign currency fluctuations and lower print volume. The decline was partially offset by cover price increases and digital subscriber growth.

Advertising revenues decreased $11 million, or 5%, compared to the prior year, primarily due to a $15 million, or 7%, negative impact from foreign currency fluctuations, lower digital advertising at News Corp Australia, and lower print advertising at News UK. The decline was partially offset by growth in digital advertising at News UK and higher print advertising at News Corp Australia.

In the quarter, Segment EBITDA decreased $5 million, or 13%, compared to the prior year, driven by lower revenues, as discussed above, and reflects a $4 million, or 10%, negative impact from foreign currency fluctuations. The decline was also due to a $14 million negative impact from higher newsprint prices and approximately $13 million of higher costs related to TalkTV and other digital investments, primarily at News Corp Australia. The Segment EBITDA decline was partially offset by cost saving initiatives. Newsprint, production and distribution costs are expected to be higher in fiscal 2023 than the prior year due to supply chain and inflationary pressures, partially offset by the Company’s continued transition to digital products. Adjusted Segment EBITDA decreased 5%.

Digital revenues represented 36% of News Media segment revenues in the quarter, compared to 35% in the prior year, and represented 34% of the combined revenues of the newspaper mastheads. Digital subscribers and users across key properties within the News Media segment are summarized below:

Closing digital subscribers at News Corp Australia as of March 31, 2023 were 1,043,000 (937,000 for news mastheads), compared to 946,000 (876,000 for news mastheads) in the prior year (Source: Internal data)
The Times and Sunday Times closing digital subscribers, including the Times Literary Supplement, as of March 31, 2023 were 494,000, compared to 421,000 in the prior year (Source: Internal data)
The Sun’s digital offering reached 199 million global monthly unique users in March 2023, compared to 171 million in the prior year (Source: Google Analytics)
New York Post’s digital network reached 147 million unique users in March 2023, compared to 155 million in the prior year (Source: Google Analytics)

CASH FLOW

The following table presents a reconciliation of net cash provided by operating activities to free cash flow and free cash flow available to News Corporation:

	For the nine months ended March 31,
		2023			2022
	(in millions)
Net cash provided by operating activities	$	670		$	1,030
Less: Capital expenditures		(350	)		(315	)
Free cash flow		320			715
Less: REA Group free cash flow		(153	)		(184	)
Plus: Cash dividends received from REA Group		91			87
Free cash flow available to News Corporation	$	258		$	618

Net cash provided by operating activities of $670 million for the nine months ended March 31, 2023 was $360 million lower than $1,030 million in the prior year, primarily due to lower Total Segment EBITDA, as noted above, and higher working capital, partially offset by lower restructuring and tax payments.

Free cash flow in the nine months ended March 31, 2023 was $320 million compared to $715 million in the prior year. Free cash flow available to News Corporation in the nine months ended March 31, 2023 was $258 million compared to $618 million in the prior year period. The decrease in both free cash flow and free cash flow available to News Corporation was primarily due to lower cash provided by operating activities, as mentioned above, and higher capital expenditures. Foxtel’s capital expenditures for the nine months ended March 31, 2023 were $118 million compared to $125 million in the prior year.

Free cash flow and free cash flow available to News Corporation are non-GAAP financial measures. Free cash flow is defined as net cash provided by operating activities, less capital expenditures, and free cash flow available to News Corporation is defined as free cash flow, less REA Group free cash flow, plus cash dividends received from REA Group.

The Company believes free cash flow provides useful information to management and investors about the Company’s liquidity and cash flow trends. The Company believes free cash flow available to News Corporation, which adjusts free cash flow to exclude REA Group’s free cash flow and include dividends received from REA Group, provides management and investors with a measure of the amount of cash flow that is readily available to the Company, as REA Group is a separately listed public company in Australia and must declare a dividend in order for the Company to have access to its share of REA Group’s cash balance. The Company believes free cash flow available to News Corporation provides a more conservative view of the Company’s free cash flow because this presentation includes only that amount of cash the Company actually receives from REA Group, which has generally been lower than the Company’s unadjusted free cash flow. A limitation of both free cash flow and free cash flow available to News Corporation is that they do not represent the total increase or decrease in the cash balance for the period. Management compensates for the limitation of free cash flow and free cash flow available to News Corporation by also relying on the net change in cash and cash equivalents as presented in the Company’s consolidated statements of cash flows prepared in accordance with GAAP which incorporates all cash movements during the period.

COMPARISON OF NON-GAAP TO U.S. GAAP INFORMATION

Adjusted Revenues, Total Segment EBITDA, Adjusted Total Segment EBITDA, Adjusted Segment EBITDA, adjusted net income attributable to News Corporation stockholders, Adjusted EPS, constant currency revenues, free cash flow and free cash flow available to News Corporation are non-GAAP financial measures contained in this earnings release. The Company believes these measures are important tools for investors and analysts to use in assessing the Company’s underlying business performance and to provide for more meaningful comparisons of the Company’s operating performance between periods. These measures also allow investors and analysts to view the Company’s business from the same perspective as Company management. These non-GAAP measures may be different than similar measures used by other companies and should be considered in addition to, not as a substitute for, measures of financial performance calculated in accordance with GAAP. Reconciliations for the differences between non-GAAP measures used in this earnings release and comparable financial measures calculated in accordance with U.S. GAAP are included in Notes 1, 2, 3 and 4 and the reconciliation of net cash provided by operating activities to free cash flow and free cash flow available to News Corporation is included above.

Conference call

News Corporation’s earnings conference call can be heard live at 5:00 p.m. EDT on May 11, 2023. To listen to the call, please visit http://investors.newscorp.com.

Cautionary Statement Concerning Forward-Looking Statements

This document contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding trends and uncertainties affecting the Company’s business, results of operations and financial condition, the Company’s strategy and strategic initiatives, including potential acquisitions, investments and dispositions, the Company’s cost savings initiatives, including announced headcount reductions, and the outcome of contingencies such as litigation and investigations. These statements are based on management’s views and assumptions regarding future events and business performance as of the time the statements are made. Actual results may differ materially from these expectations due to the risks, uncertainties and other factors described in the Company’s filings with the Securities and Exchange Commission. More detailed information about factors that could affect future results is contained in our filings with the Securities and Exchange Commission. The “forward-looking statements” included in this document are made only as of the date of this document and we do not have and do not undertake any obligation to publicly update any “forward-looking statements” to reflect subsequent events or circumstances, and we expressly disclaim any such obligation, except as required by law or regulation.

About News Corporation

News Corp (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. The company comprises businesses across a range of media, including: digital real estate services, subscription video services in Australia, news and information services and book publishing. Headquartered in New York, News Corp operates primarily in the United States, Australia, and the United Kingdom, and its content and other products and services are distributed and consumed worldwide. More information is available at: www.newscorp.com.


NEWS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited; in millions, except per share amounts)

	For the three months ended March 31,						For the nine months ended March 31,
		2023			2022			2023			2022
Revenues:
Circulation and subscription	$	1,122		$	1,099		$	3,318		$	3,248
Advertising		393			418			1,263			1,342
Consumer		495			497			1,474			1,615
Real estate		272			316			896			988
Other		165			162			495			518
Total Revenues		2,447			2,492			7,446			7,711
Operating expenses		(1,286	)		(1,246	)		(3,853	)		(3,769	)
Selling, general and administrative		(841	)		(888	)		(2,514	)		(2,588	)
Depreciation and amortization		(183	)		(172	)		(536	)		(505	)
Impairment and restructuring charges		(25	)		(37	)		(65	)		(82	)
Equity losses of affiliates		(10	)		(4	)		(43	)		(10	)
Interest expense, net		(25	)		(25	)		(78	)		(68	)
Other, net		14			13			(10	)		143
Income before income tax expense		91			133			347			832
Income tax expense		(32	)		(29	)		(128	)		(199	)
Net income		59			104			219			633
Less: Net income attributable to noncontrolling interests		(9	)		(22	)		(62	)		(120	)
Net income attributable to News Corporation stockholders	$	50		$	82		$	157		$	513

Weighted average shares outstanding:
Basic		575			589			578			591
Diluted		578			592			580			594

Net income attributable to News Corporation stockholders per share:
Basic	$	0.09		$	0.14		$	0.27		$	0.87
Diluted	$	0.09		$	0.14		$	0.27		$	0.86

NEWS CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited; in millions)

	As of March 31, 2023			As of June 30, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	1,659		$	1,822
Receivables, net		1,540			1,502
Inventory, net		356			311
Other current assets		477			458
Total current assets		4,032			4,093

Non-current assets:
Investments		506			488
Property, plant and equipment, net		2,017			2,103
Operating lease right-of-use assets		1,022			891
Intangible assets, net		2,542			2,671
Goodwill		5,136			5,169
Deferred income tax assets		368			422
Other non-current assets		1,411			1,384
Total assets	$	17,034		$	17,221

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	407		$	411
Accrued expenses		1,164			1,236
Deferred revenue		623			604
Current borrowings		27			293
Other current liabilities		983			975
Total current liabilities		3,204			3,519

Non-current liabilities:
Borrowings		2,960			2,776
Retirement benefit obligations		156			155
Deferred income tax liabilities		172			198
Operating lease liabilities		1,093			947
Other non-current liabilities		465			483
Commitments and contingencies
Equity:
Class A common stock		4			4
Class B common stock		2			2
Additional paid-in capital		11,486			11,779
Accumulated deficit		(2,136	)		(2,293	)
Accumulated other comprehensive loss		(1,279	)		(1,270	)
Total News Corporation stockholders’ equity		8,077			8,222
Noncontrolling interests		907			921
Total equity		8,984			9,143
Total liabilities and equity	$	17,034		$	17,221

NEWS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited; in millions)

	For the nine months ended March 31,
		2023			2022
Operating activities:
Net income	$	219		$	633
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		536			505
Operating lease expense		82			95
Equity losses of affiliates		43			10
Cash distributions received from affiliates		7			20
Impairment charges		—			15
Other, net		10			(143	)
Deferred income taxes and taxes payable		27			69
Change in operating assets and liabilities, net of acquisitions:
Receivables and other assets		(236	)		(62	)
Inventories, net		(55	)		(82	)
Accounts payable and other liabilities		37			(30	)
Net cash provided by operating activities		670			1,030
Investing activities:
Capital expenditures		(350	)		(315	)
Acquisitions, net of cash acquired		(15	)		(1,167	)
Investments in equity affiliates and other		(105	)		(99	)
Proceeds from property, plant and equipment and other asset dispositions		51			(2	)
Other, net		(21	)		29
Net cash used in investing activities		(440	)		(1,554	)
Financing activities:
Borrowings		434			1,157
Repayment of borrowings		(506	)		(662	)
Repurchase of shares		(196	)		(125	)
Dividends paid		(116	)		(114	)
Other, net		2			(82	)
Net cash (used in) provided by financing activities		(382	)		174
Net change in cash and cash equivalents		(152	)		(350	)
Cash and cash equivalents, beginning of period		1,822			2,236
Exchange movement on opening cash balance		(11	)		(21	)
Cash and cash equivalents, end of period	$	1,659		$	1,865

NOTE 1 – TOTAL SEGMENT EBITDA

Segment EBITDA is defined as revenues less operating expenses and selling, general and administrative expenses. Segment EBITDA does not include: depreciation and amortization, impairment and restructuring charges, equity losses of affiliates, interest (expense) income, net, other, net and income tax (expense) benefit. Management believes that Segment EBITDA is an appropriate measure for evaluating the operating performance of the Company’s business segments because it is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of and allocate resources within the Company’s businesses. Segment EBITDA provides management, investors and equity analysts with a measure to analyze the operating performance of each of the Company’s business segments and its enterprise value against historical data and competitors’ data, although historical results may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences).

Total Segment EBITDA is a non-GAAP measure and should be considered in addition to, not as a substitute for, net income (loss), cash flow and other measures of financial performance reported in accordance with GAAP. In addition, this measure does not reflect cash available to fund requirements and excludes items, such as depreciation and amortization and impairment and restructuring charges, which are significant components in assessing the Company’s financial performance. The Company believes that the presentation of Total Segment EBITDA provides useful information regarding the Company’s operations and other factors that affect the Company’s reported results. Specifically, the Company believes that by excluding certain one-time or non-cash items such as impairment and restructuring charges and depreciation and amortization, as well as potential distortions between periods caused by factors such as financing and capital structures and changes in tax positions or regimes, the Company provides users of its consolidated financial statements with insight into both its core operations as well as the factors that affect reported results between periods but which the Company believes are not representative of its core business. As a result, users of the Company’s consolidated financial statements are better able to evaluate changes in the core operating results of the Company across different periods. The following tables reconcile net income to Total Segment EBITDA for the three and nine months ended March 31, 2023 and 2022:


	For the three months ended March 31,
		2023			2022		Change			% Change
	(in millions)
Net income	$	59		$	104		$	(45	)	(43	)%
Add:
Income tax expense		32			29			3		10	%
Other, net		(14	)		(13	)		(1	)	(8	)%
Interest expense, net		25			25			—		—	%
Equity losses of affiliates		10			4			6		**
Impairment and restructuring charges		25			37			(12	)	(32	)%
Depreciation and amortization		183			172			11		6	%
Total Segment EBITDA	$	320		$	358		$	(38	)	(11	)%
** – Not meaningful

	For the nine months ended March 31,
		2023		2022		Change			% Change
	(in millions)
Net income	$	219	$	633		$	(414	)	(65	)%
Add:
Income tax expense		128		199			(71	)	(36	)%
Other, net		10		(143	)		153		**
Interest expense, net		78		68			10		15	%
Equity losses of affiliates		43		10			33		**
Impairment and restructuring charges		65		82			(17	)	(21	)%
Depreciation and amortization		536		505			31		6	%
Total Segment EBITDA	$	1,079	$	1,354		$	(275	)	(20	)%
** – Not meaningful

NOTE 2 – ADJUSTED REVENUES, ADJUSTED TOTAL SEGMENT EBITDA AND ADJUSTED SEGMENT EBITDA

The Company uses revenues, Total Segment EBITDA and Segment EBITDA excluding the impact of acquisitions, divestitures, fees and costs, net of indemnification, related to the claims and investigations arising out of certain conduct at The News of the World (the “U.K. Newspaper Matters”), charges for other significant, non-ordinary course legal or regulatory matters (“litigation charges”) and foreign currency fluctuations (“Adjusted Revenues,” “Adjusted Total Segment EBITDA” and “Adjusted Segment EBITDA,” respectively) to evaluate the performance of the Company’s core business operations exclusive of certain items that impact the comparability of results from period to period such as the unpredictability and volatility of currency fluctuations. The Company calculates the impact of foreign currency fluctuations for businesses reporting in currencies other than the U.S. dollar by multiplying the results for each quarter in the current period by the difference between the average exchange rate for that quarter and the average exchange rate in effect during the corresponding quarter of the prior year and totaling the impact for all quarters in the current period.

The calculation of Adjusted Revenues, Adjusted Total Segment EBITDA and Adjusted Segment EBITDA may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what type of events warrant adjustment. Adjusted Revenues, Adjusted Total Segment EBITDA and Adjusted Segment EBITDA are not measures of performance under generally accepted accounting principles and should not be construed as substitutes for amounts determined under GAAP as measures of performance. However, management uses these measures in comparing the Company’s historical performance and believes that they provide meaningful and comparable information to investors to assist in their analysis of our performance relative to prior periods and our competitors.

The following tables reconcile reported revenues and reported Total Segment EBITDA to Adjusted Revenues and Adjusted Total Segment EBITDA for the three and nine months ended March 31, 2023 and 2022:


	Revenues								Total Segment EBITDA
	For the three months ended March 31,								For the three months ended March 31,
		2023			2022	Difference				2023			2022	Difference
	(in millions)								(in millions)
As reported	$	2,447		$	2,492	$	(45	)	$	320		$	358	$	(38	)
Impact of acquisitions		(51	)		—		(51	)		(16	)		15		(31	)
Impact of divestitures		—			—		—			—			—		—
Impact of foreign currency fluctuations		98			—		98			13			—		13
Net impact of U.K. Newspaper Matters		—			—		—			4			3		1
As adjusted	$	2,494		$	2,492	$	2		$	321		$	376	$	(55	)

	Revenues									Total Segment EBITDA
	For the nine months ended March 31,									For the nine months ended March 31,
		2023			2022		Difference				2023			2022	Difference
	(in millions)									(in millions)
As reported	$	7,446		$	7,711		$	(265	)	$	1,079		$	1,354	$	(275	)
Impact of acquisitions		(177	)		—			(177	)		(47	)		15		(62	)
Impact of divestitures		—			(1	)		1			—			5		(5	)
Impact of foreign currency fluctuations		422			—			422			66			—		66
Net impact of U.K. Newspaper Matters		—			—			—			13			9		4
As adjusted	$	7,691		$	7,710		$	(19	)	$	1,111		$	1,383	$	(272	)

Foreign Exchange Rates

Average foreign exchange rates used in the calculation of the impact of foreign currency fluctuations for each of the three month periods during the nine months ended March 31, 2023 and 2022 are as follows:

	Fiscal Year 2023
	Q1	Q2	Q3
U.S. Dollar per Australian Dollar	$0.68	$0.66	$0.68
U.S. Dollar per British Pound Sterling	$1.17	$1.17	$1.22

	Fiscal Year 2022
	Q1	Q2	Q3
U.S. Dollar per Australian Dollar	$0.74	$0.73	$0.72
U.S. Dollar per British Pound Sterling	$1.38	$1.35	$1.34

Adjusted Revenues and Adjusted Segment EBITDA by segment for the three and nine months ended March 31, 2023 and 2022 are as follows:


	For the three months ended March 31,
		2023			2022		% Change
	(in millions)						Better/(Worse)
Adjusted Revenues:
Digital Real Estate Services	$	374		$	416		(10	)%
Subscription Video Services		505			494		2	%
Dow Jones		487			487		—	%
Book Publishing		524			515		2	%
News Media		604			580		4	%
Other		—			—		—	%
Adjusted Total Revenues	$	2,494		$	2,492		—	%

Adjusted Segment EBITDA:
Digital Real Estate Services	$	104		$	137		(24	)%
Subscription Video Services		72			79		(9	)%
Dow Jones		92			103		(11	)%
Book Publishing		62			67		(7	)%
News Media		37			39		(5	)%
Other		(46	)		(49	)	6	%
Adjusted Total Segment EBITDA	$	321		$	376		(15	)%

	For the nine months ended March 31,
		2023			2022		% Change
	(in millions)						Better/(Worse)
Adjusted Revenues:
Digital Real Estate Services	$	1,220		$	1,297		(6	)%
Subscription Video Services		1,561			1,502		4	%
Dow Jones		1,474			1,439		2	%
Book Publishing		1,580			1,678		(6	)%
News Media		1,856			1,794		3	%
Other		—			—		—	%
Adjusted Total Revenues	$	7,691		$	7,710		—	%

Adjusted Segment EBITDA:
Digital Real Estate Services	$	376		$	458		(18	)%
Subscription Video Services		292			279		5	%
Dow Jones		307			342		(10	)%
Book Publishing		156			259		(40	)%
News Media		119			184		(35	)%
Other		(139	)		(139	)	—	%
Adjusted Total Segment EBITDA	$	1,111		$	1,383		(20	)%

The following tables reconcile reported revenues and Segment EBITDA by segment to Adjusted Revenues and Adjusted Segment EBITDA by segment for the three and nine months ended March 31, 2023 and 2022:


	For the three months ended March 31, 2023
	As Reported			Impact of Acquisitions			Impact of Divestitures		Impact of Foreign Currency Fluctuations		Net Impact of U.K. Newspaper Matters		As Adjusted
	(in millions)
Revenues:
Digital Real Estate Services	$	363		$	(2	)	$	—	$	13	$	—	$	374
Subscription Video Services		477			—			—		28		—		505
Dow Jones		529			(46	)		—		4		—		487
Book Publishing		515			(2	)		—		11		—		524
News Media		563			(1	)		—		42		—		604
Other		—			—			—		—		—		—
Total Revenues	$	2,447		$	(51	)	$	—	$	98	$	—	$	2,494

Segment EBITDA:
Digital Real Estate Services	$	102		$	(3	)	$	—	$	5	$	—	$	104
Subscription Video Services		68			—			—		4		—		72
Dow Jones		109			(17	)		—		—		—		92
Book Publishing		61			1			—		—		—		62
News Media		34			(1	)		—		4		—		37
Other		(54	)		4			—		—		4		(46	)
Total Segment EBITDA	$	320		$	(16	)	$	—	$	13	$	4	$	321

	For the nine months ended March 31, 2023
	As Reported			Impact of Acquisitions			Impact of Divestitures		Impact of Foreign Currency Fluctuations		Net Impact of U.K. Newspaper Matters		As Adjusted
	(in millions)
Revenues:
Digital Real Estate Services	$	1,170		$	(9	)	$	—	$	59	$	—	$	1,220
Subscription Video Services		1,441			—			—		120		—		1,561
Dow Jones		1,607			(152	)		—		19		—		1,474
Book Publishing		1,533			(8	)		—		55		—		1,580
News Media		1,695			(8	)		—		169		—		1,856
Other		—			—			—		—		—		—
Total Revenues	$	7,446		$	(177	)	$	—	$	422	$	—	$	7,691

Segment EBITDA:
Digital Real Estate Services	$	349		$	—		$	—	$	27	$	—	$	376
Subscription Video Services		269			—			—		23		—		292
Dow Jones		361			(54	)		—		—		—		307
Book Publishing		151			—			—		5		—		156
News Media		111			(3	)		—		11		—		119
Other		(162	)		10			—		—		13		(139	)
Total Segment EBITDA	$	1,079		$	(47	)	$	—	$	66	$	13	$	1,111

	For the three months ended March 31, 2022
	As Reported			Impact of Acquisitions		Impact of Divestitures		Impact of Foreign Currency Fluctuations		Net Impact of U.K. Newspaper Matters		As Adjusted
	(in millions)
Revenues:
Digital Real Estate Services	$	416		$	—	$	—	$	—	$	—	$	416
Subscription Video Services		494			—		—		—		—		494
Dow Jones		487			—		—		—		—		487
Book Publishing		515			—		—		—		—		515
News Media		580			—		—		—		—		580
Other		—			—		—		—		—		—
Total Revenues	$	2,492		$	—	$	—	$	—	$	—	$	2,492

Segment EBITDA:
Digital Real Estate Services	$	137		$	—	$	—	$	—	$	—	$	137
Subscription Video Services		79			—		—		—		—		79
Dow Jones		88			15		—		—		—		103
Book Publishing		67			—		—		—		—		67
News Media		39			—		—		—		—		39
Other		(52	)		—		—		—		3		(49	)
Total Segment EBITDA	$	358		$	15	$	—	$	—	$	3	$	376

	For the nine months ended March 31, 2022
	As Reported			Impact of Acquisitions		Impact of Divestitures			Impact of Foreign Currency Fluctuations		Net Impact of U.K. Newspaper Matters		As Adjusted
	(in millions)
Revenues:
Digital Real Estate Services	$	1,298		$	—	$	(1	)	$	—	$	—	$	1,297
Subscription Video Services		1,502			—		—			—		—		1,502
Dow Jones		1,439			—		—			—		—		1,439
Book Publishing		1,678			—		—			—		—		1,678
News Media		1,794			—		—			—		—		1,794
Other		—			—		—			—		—		—
Total Revenues	$	7,711		$	—	$	(1	)	$	—	$	—	$	7,710

Segment EBITDA:
Digital Real Estate Services	$	453		$	—	$	5		$	—	$	—	$	458
Subscription Video Services		279			—		—			—		—		279
Dow Jones		327			15		—			—		—		342
Book Publishing		259			—		—			—		—		259
News Media		184			—		—			—		—		184
Other		(148	)		—		—			—		9		(139	)
Total Segment EBITDA	$	1,354		$	15	$	5		$	—	$	9	$	1,383

NOTE 3 – ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO NEWS CORPORATION STOCKHOLDERS AND ADJUSTED EPS

The Company uses net income (loss) attributable to News Corporation stockholders and diluted earnings per share (“EPS”) excluding expenses related to U.K. Newspaper Matters, litigation charges, impairment and restructuring charges and “Other, net”, net of tax, recognized by the Company or its equity method investees, as well as the settlement of certain pre-Separation tax matters (“adjusted net income (loss) attributable to News Corporation stockholders” and “adjusted EPS,” respectively), to evaluate the performance of the Company’s operations exclusive of certain items that impact the comparability of results from period to period, as well as certain non-operational items. The calculation of adjusted net income (loss) attributable to News Corporation stockholders and adjusted EPS may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what type of events warrant adjustment. Adjusted net income (loss) attributable to News Corporation stockholders and adjusted EPS are not measures of performance under generally accepted accounting principles and should not be construed as substitutes for consolidated net income (loss) attributable to News Corporation stockholders and net income (loss) per share as determined under GAAP as a measure of performance. However, management uses these measures in comparing the Company’s historical performance and believes that they provide meaningful and comparable information to investors to assist in their analysis of our performance relative to prior periods and our competitors.

The following tables reconcile reported net income attributable to News Corporation stockholders and reported diluted EPS to adjusted net income attributable to News Corporation stockholders and adjusted EPS for the three and nine months ended March 31, 2023 and 2022:


	For the three months ended March 31, 2023						For the three months ended March 31, 2022
(in millions, except per share data)	Net income attributable to stockholders			EPS			Net income attributable to stockholders			EPS
Net income	$	59					$	104
Less: Net income attributable to noncontrolling interests		(9	)					(22	)
Net income attributable to News Corporation stockholders	$	50		$	0.09		$	82		$	0.14
U.K. Newspaper Matters		4			0.01			3			0.01
Impairment and restructuring charges ^(a)		25			0.04			37			0.05
Other, net		(14	)		(0.03	)		(13	)		(0.02	)
Tax impact on items above		(12	)		(0.02	)		(17	)		(0.03	)
Impact of noncontrolling interest on items above		—			—			4			0.01
As adjusted	$	53		$	0.09		$	96		$	0.16

(a)		During the three months ended March 31, 2022, the Company recognized a non-cash impairment charge of $15 million related to the write-down of fixed assets associated with the shutdown and sale of certain U.S. printing facilities at the Dow Jones segment.

	For the nine months ended March 31, 2023						For the nine months ended March 31, 2022
(in millions, except per share data)	Net income attributable to stockholders			EPS			Net income attributable to stockholders			EPS
Net income	$	219					$	633
Less: Net income attributable to noncontrolling interests		(62	)					(120	)
Net income attributable to News Corporation stockholders	$	157		$	0.27		$	513		$	0.86
U.K. Newspaper Matters		13			0.02			9			0.02
Impairment and restructuring charges ^(a)		65			0.11			82			0.14
Equity losses of affiliates ^(b)		—			—			3			0.01
Other, net		10			0.02			(143	)		(0.24	)
Tax impact on items above		(39	)		(0.07	)		(15	)		(0.03	)
Impact of noncontrolling interest on items above		(1	)		—			45			0.07
As adjusted	$	205		$	0.35		$	494		$	0.83

(a)		During the nine months ended March 31, 2022, the Company recognized a non-cash impairment charge of $15 million related to the write-down of fixed assets associated with the shutdown and sale of certain U.S. printing facilities at the Dow Jones segment.
(b)		During the nine months ended March 31, 2022, the Company recognized a non-cash impairment charge related to an equity method investment.

NOTE 4 – CONSTANT CURRENCY REVENUES

The Company believes that the presentation of revenues excluding the impact of foreign currency fluctuations (“constant currency revenues”) provides useful information regarding the performance of the Company’s core business operations exclusive of distortions between periods caused by the unpredictability and volatility of currency fluctuations. The Company calculates the impact of foreign currency fluctuations for businesses reporting in currencies other than the U.S. dollar as described in Note 2.

Constant currency revenues are not measures of performance under generally accepted accounting principles and should not be construed as substitutes for revenues as determined under GAAP as measures of performance. However, management uses these measures in comparing the Company’s historical performance and believes that they provide meaningful and comparable information to investors to assist in their analysis of our performance relative to prior periods and our competitors.

The following tables reconcile reported revenues to constant currency revenues for the three and nine months ended March 31, 2023:


	Q3 Fiscal 2022		Q3 Fiscal 2023		FX impact			Q3 Fiscal 2023 constant currency		% Change – reported		% Change – constant currency
	($ in millions)									Better/(Worse)
Consolidated results:
Circulation and subscription	$	1,099	$	1,122	$	(50	)	$	1,172	2	%	7	%
Advertising		418		393		(19	)		412	(6	)%	(1	)%
Consumer		497		495		(11	)		506	—	%	2	%
Real estate		316		272		(9	)		281	(14	)%	(11	)%
Other		162		165		(9	)		174	2	%	7	%
Total revenues	$	2,492	$	2,447	$	(98	)	$	2,545	(2	)%	2	%

Digital Real Estate Services:
Circulation and subscription	$	3	$	3	$	—		$	3	—	%	—	%
Advertising		33		35		(1	)	$	36	6	%	9	%
Real estate		316		272		(9	)	$	281	(14	)%	(11	)%
Other		64		53		(3	)	$	56	(17	)%	(13	)%
Total Digital Real Estate Services segment revenues	$	416	$	363	$	(13	)	$	376	(13	)%	(10	)%

REA Group revenues	$	246	$	222	$	(13	)	$	235	(10	)%	(4	)%

Subscription Video Services:
Circulation and subscription	$	434	$	419	$	(25	)	$	444	(3	)%	2	%
Advertising		51		49		(3	)	$	52	(4	)%	2	%
Other		9		9		—		$	9	—	%	—	%
Total Subscription Video Services segment revenues	$	494	$	477	$	(28	)	$	505	(3	)%	2	%

	Q3 Fiscal 2022		Q3 Fiscal 2023		FX impact			Q3 Fiscal 2023 constant currency		% Change – reported		% Change – constant currency
	($ in millions)									Better/(Worse)
Dow Jones:
Circulation and subscription	$	377	$	426	$	(4	)	$	430	13	%	14	%
Advertising		102		88		—		$	88	(14	)%	(14	)%
Other		8		15		—		$	15	88	%	88	%
Total Dow Jones segment revenues	$	487	$	529	$	(4	)	$	533	9	%	9	%

Book Publishing:
Consumer		497		495		(11	)	$	506	—	%	2	%
Other		18		20		—		$	20	11	%	11	%
Total Book Publishing segment revenues	$	515	$	515	$	(11	)	$	526	—	%	2	%

News Media:
Circulation and subscription	$	285	$	274	$	(21	)	$	295	(4	)%	4	%
Advertising		232		221		(15	)	$	236	(5	)%	2	%
Other		63		68		(6	)	$	74	8	%	17	%
Total News Media segment revenues	$	580	$	563	$	(42	)	$	605	(3	)%	4	%

News UK
Circulation and subscription	$	144	$	135	$	(14	)	$	149	(6	)%	3	%
Advertising		72		72		(6	)	$	78	—	%	8	%
Other		28		28		(3	)	$	31	—	%	11	%
Total News UK revenues	$	244	$	235	$	(23	)	$	258	(4	)%	6	%

News Corp Australia
Circulation and subscription	$	119	$	112	$	(7	)	$	119	(6	)%	—	%
Advertising		105		99		(6	)	$	105	(6	)%	—	%
Other		31		31		(2	)	$	33	—	%	6	%
Total News Corp Australia revenues	$	255	$	242	$	(15	)	$	257	(5	)%	1	%

	Q3 YTD Fiscal 2022		Q3 YTD Fiscal 2023		FX impact			Q3 YTD Fiscal 2023 constant currency		% Change – reported		% Change – constant currency
	($ in millions)									Better/(Worse)
Consolidated results:
Circulation and subscription	$	3,248	$	3,318	$	(207	)	$	3,525	2	%	9	%
Advertising		1,342		1,263		(80	)		1,343	(6	)%	—	%
Consumer		1,615		1,474		(55	)		1,529	(9	)%	(5	)%
Real estate		988		896		(43	)		939	(9	)%	(5	)%
Other		518		495		(37	)		532	(4	)%	3	%
Total revenues	$	7,711	$	7,446	$	(422	)	$	7,868	(3	)%	2	%

Digital Real Estate Services:
Circulation and subscription	$	9	$	9	$	—		$	9	—	%	—	%
Advertising		99		103		(3	)	$	106	4	%	7	%
Real estate		988		896		(43	)	$	939	(9	)%	(5	)%
Other		202		162		(13	)	$	175	(20	)%	(13	)%
Total Digital Real Estate Services segment revenues	$	1,298	$	1,170	$	(59	)	$	1,229	(10	)%	(5	)%

REA Group revenues	$	779	$	714	$	(59	)	$	773	(8	)%	(1	)%

Subscription Video Services:
Circulation and subscription	$	1,307	$	1,249	$	(104	)	$	1,353	(4	)%	4	%
Advertising		165		160		(13	)	$	173	(3	)%	5	%
Other		30		32		(3	)	$	35	7	%	17	%
Total Subscription Video Services segment revenues	$	1,502	$	1,441	$	(120	)	$	1,561	(4	)%	4	%

Dow Jones:
Circulation and subscription	$	1,082	$	1,257	$	(19	)	$	1,276	16	%	18	%
Advertising		333		313		—		$	313	(6	)%	(6	)%
Other		24		37		—		$	37	54	%	54	%
Total Dow Jones segment revenues	$	1,439	$	1,607	$	(19	)	$	1,626	12	%	13	%

Book Publishing:
Consumer		1,615		1,474		(55	)	$	1,529	(9	)%	(5	)%
Other		63		59		—		$	59	(6	)%	(6	)%
Total Book Publishing segment revenues	$	1,678	$	1,533	$	(55	)	$	1,588	(9	)%	(5	)%

	Q3 YTD Fiscal 2022		Q3 YTD Fiscal 2023		FX impact			Q3 YTD Fiscal 2023 constant currency		% Change – reported		% Change – constant currency
	($ in millions)									Better/(Worse)
News Media:
Circulation and subscription	$	850	$	803	$	(84	)	$	887	(6	)%	4	%
Advertising		745		687		(64	)	$	751	(8	)%	1	%
Other		199		205		(21	)	$	226	3	%	14	%
Total News Media segment revenues	$	1,794	$	1,695	$	(169	)	$	1,864	(6	)%	4	%

News UK
Circulation and subscription	$	428	$	398	$	(57	)	$	455	(7	)%	6	%
Advertising		235		216		(25	)	$	241	(8	)%	3	%
Other		88		80		(11	)	$	91	(9	)%	3	%
Total News UK revenues	$	751	$	694	$	(93	)	$	787	(8	)%	5	%

News Corp Australia
Circulation and subscription	$	354	$	331	$	(27	)	$	358	(6	)%	1	%
Advertising		337		316		(26	)	$	342	(6	)%	1	%
Other		105		102		(8	)	$	110	(3	)%	5	%
Total News Corp Australia revenues	$	796	$	749	$	(61	)	$	810	(6	)%	2	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20230511005750/en/

Investor Relations

Michael Florin

212-416-3363

[email protected]

Leslie Kim

212-416-4529

[email protected]

Corporate Communications

Jim Kennedy

212-416-4064

[email protected]

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: Digital Marketing Publishing TV and Radio Advertising Communications Online Books Entertainment

MEDIA:

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May 11, 2023 8:00 pm

Eagle Point Credit Company Inc. Announces Third Quarter 2023 Regular and Supplemental Common Distributions and Preferred Distributions

Eagle Point Credit Company Inc. Announces Third Quarter 2023 Regular and Supplemental Common Distributions and Preferred Distributions

GREENWICH, Conn.–(BUSINESS WIRE)–
Eagle Point Credit Company Inc. (the “Company”) (NYSE: ECC, ECCC, ECC PRD, ECCV, ECCW, ECCX) today is pleased to announce the declaration of distributions on shares of the Company’s common stock.

The Company has declared three separate monthly regular distributions of $0.14 per share on its common stock, payable on each of July 31, 2023, August 31, 2023 and September 29, 2023 to stockholders of record as of July 11, 2023, August 11, 2023 and September 11, 2023, respectively. Additionally, the Company is pleased to announce the declaration of a monthly supplemental distribution of $0.02 per share, payable on each of July 31, 2023, August 31, 2023 and September 29, 2023 to stockholders of record as of July 11, 2023, August 11, 2023 and September 11, 2023, respectively.

The following schedule applies to the distributions:

Distribution	Amount per common share	Record Date	Payable Date
Regular	$0.14	July 11, 2023	July 31, 2023
Supplemental	$0.02	July 11, 2023	July 31, 2023
Regular	$0.14	August 11, 2023	August 31, 2023
Supplemental	$0.02	August 11, 2023	August 31, 2023
Regular	$0.14	September 11, 2023	September 29, 2023
Supplemental	$0.02	September 11, 2023	September 29, 2023

Distributions on common stock are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Company’s stockholders on Form 1099 after the end of the 2023 calendar year.

The declared supplemental distributions relate to the excess of the Company’s estimated taxable income for the tax year ended November 30, 2022 over the aggregate amount distributed to common stockholders for the same time period. For the remainder of 2023, in addition to monthly regular distributions, based on the Company’s current projection, the Company expects to also declare monthly supplemental distributions, though the amounts of such distributions may vary.¹

The Company is also pleased to announce the declaration of distributions on shares of the Company’s 6.50% Series C Term Preferred Stock due 2031 (the “Series C Term Preferred Stock”) and the Company’s 6.75% Series D Preferred Stock (the “Series D Preferred Stock”) as follows:

Preferred Stock Type	Amount per Share of Preferred Stock	Record Dates	Payable Dates
6.50% Series C Term Preferred Stock due 2031	$0.135417	July 11, 2023, August 11, 2023, September 11, 2023	July 31, 2023, August 31, 2023, September 29, 2023
6.75% Series D Preferred Stock	$0.140625	July 11, 2023, August 11, 2023, September 11, 2023	July 31, 2023, August 31, 2023, September 29, 2023

The distributions on the Series C Term Preferred Stock reflect an annual distribution rate of 6.50% of the $25 liquidation preference per share of the Series C Term Preferred Stock. The distributions on the Series D Preferred Stock reflect an annual distribution rate of 6.75% of the $25 liquidation preference per share of the Series D Preferred Stock.

ABOUT EAGLE POINT CREDIT COMPANY

The Company is a non-diversified, closed-end management investment company. The Company’s primary investment objective is to generate high current income, with a secondary objective to generate capital appreciation, primarily by investing in equity and junior debt tranches of collateralized loan obligations. The Company is externally managed and advised by Eagle Point Credit Management LLC.

The Company makes certain unaudited portfolio information available each month on its website in addition to making certain other unaudited financial information available on its website (www.eaglepointcreditcompany.com). This information includes (1) an estimated range of the Company’s net investment income (“NII”) and realized capital gains or losses per share of common stock for each calendar quarter end, generally made available within the first fifteen days after the applicable calendar month end, (2) an estimated range of the Company’s net asset value (“NAV”) per share of common stock for the prior month end and certain additional portfolio-level information, generally made available within the first fifteen days after the applicable calendar month end, and (3) during the latter part of each month, an updated estimate of NAV, if applicable, and, with respect to each calendar quarter end, an updated estimate of the Company’s NII and realized capital gains or losses per share for the applicable quarter, if available.

FORWARD-LOOKING STATEMENTS

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the Company’s filings with the U.S. Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

¹ The ability of the Company to declare and pay distributions is subject to a number of factors, including the Company’s results of operations. All or a portion of any distribution paid by the Company may consist of a return of capital.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230511005826/en/

Investor and Media Relations:

ICR

203-340-8510

[email protected]

www.eaglepointcreditcompany.com

KEYWORDS: Connecticut United States North America

INDUSTRY KEYWORDS: Banking Asset Management Professional Services Finance

MEDIA:

May 11, 2023 7:58 pm

Discover Financial Services to Present at Bernstein’s 39th Annual Strategic Decisions Conference

Discover Financial Services to Present at Bernstein’s 39^th Annual Strategic Decisions Conference

RIVERWOODS, Ill.–(BUSINESS WIRE)–
Roger Hochschild, Chief Executive Officer and President at Discover, will present at the Bernstein’s 39^th Annual Strategic Decisions Conference (SDC) on Friday, June 2, 2023, at 8:00 a.m. ET.

A link to the live webcast will be posted on the day of the conference to Discover’s Investor Relations website at http://investorrelations.discover.com. A replay will be available for 90 days after the conference at the same website address.

About Discover

Discover Financial Services (NYSE: DFS) is a digital banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover® card, America’s cash rewards pioneer, and offers private student loans, personal loans, home loans, checking and savings accounts and certificates of deposit through its banking business. It operates the Discover Global Network® comprised of Discover Network, with millions of merchants and cash access locations; PULSE®, one of the nation’s leading ATM/debit networks; and Diners Club International®, a global payments network with acceptance around the world. For more information, visit www.discover.com/company.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230511005931/en/

Investor Contact:

Eric Wasserstrom

Investor Relations

224-405-4555

[email protected]

Media Contact:

Matthew Towson

Public Relations

224-405-5649

[email protected]

KEYWORDS: Illinois United States North America

INDUSTRY KEYWORDS: Banking Professional Services Finance

MEDIA:

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May 11, 2023 7:56 pm

Eagle Point Income Company Inc. Announces Third Quarter 2023 Common and Preferred Distributions

Eagle Point Income Company Inc. Announces Third Quarter 2023 Common and Preferred Distributions

GREENWICH, Conn.–(BUSINESS WIRE)–
Eagle Point Income Company Inc. (the “Company”) (NYSE: EIC, EICA) today is pleased to announce the declaration of distributions on shares of the Company’s common stock.

The Company has declared three separate distributions of $0.16 per share on its common stock payable on each of July 31, 2023, August 31, 2023 and September 29, 2023 to stockholders of record as of July 11, 2023, August 11, 2023 and September 11, 2023, respectively.

The following schedule applies to the distributions:

Record Date	Payable Date	Amount per common share
July 11, 2023	July 31, 2023	$0.16
August 11, 2023	August 31, 2023	$0.16
September 11, 2023	September 29, 2023	$0.16

The Company is also pleased to announce the declaration of distributions on shares of the Company’s 5.00% Series A Term Preferred Stock due 2026 (the “Series A Term Preferred Stock”). The following schedule applies to the distributions:

Record Date	Payable Date	Amount per share of Series A Term Preferred Stock
July 11, 2023	July 31, 2023	$0.104167
August 11, 2023	August 31, 2023	$0.104167
September 11, 2023	September 29, 2023	$0.104167

The distributions on the Series A Term Preferred Stock reflect an annual distribution rate of 5.00% of the $25 liquidation preference per share of the Series A Term Preferred Stock.

ABOUT EAGLE POINT INCOME COMPANY

The Company is a diversified, closed-end management investment company. The Company’s primary investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in junior debt tranches of collateralized loan obligations (“CLOs”). In addition, the Company may invest up to 35% of its total assets (at the time of investment) in CLO equity securities. The Company is externally managed and advised by Eagle Point Income Management LLC (“Investment Adviser”).

The Company makes certain unaudited portfolio information available each month on its website in addition to making certain other unaudited financial information available on its website (www.eaglepointincome.com). This information includes (1) an estimated range of the Company’s net investment income (“NII”) and realized capital gains or losses per share of common stock for each calendar quarter end, generally made available within the first fifteen days after the applicable calendar month end, (2) an estimated range of the Company’s net asset value (“NAV”) per share of common stock for the prior month end and certain additional portfolio-level information, generally made available within the first fifteen days after the applicable calendar month end, and (3) during the latter part of each month, an updated estimate of NAV, if applicable, and, with respect to each calendar quarter end, an updated estimate of the Company’s NII and realized capital gains or losses per share for the applicable quarter, if available.

FORWARD-LOOKING STATEMENTS

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the prospectus and the Company’s other filings with the U.S. Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230511005832/en/

Investor and Media Relations:

ICR

203-340-8510

[email protected]

www.eaglepointincome.com

KEYWORDS: Connecticut United States North America

INDUSTRY KEYWORDS: Banking Asset Management Professional Services Finance

MEDIA:

May 11, 2023 7:55 pm

Markforged Announces First Quarter 2023 Results

WALTHAM, Mass.–(BUSINESS WIRE)–
Markforged Holding Corporation (NYSE: MKFG) (the “Company”), the company strengthening manufacturing resiliency by enabling industrial production at the point of need, today announced its results from the first quarter ended March 31, 2023.

Financial Highlights

Revenue increased by 10%, to $24.1 million, in the first quarter of 2023 from $21.9 million in the first quarter of 2022.
Gross profit remained stable generating $11.6 million in the first quarters of 2023 and 2022.
Non-GAAP gross profit was $11.9 million in the first quarter of 2023 compared to $11.7 million in the first quarter of 2022.
Gross margin was 48% in the first quarter of 2023 compared to 53% in the first quarter of 2022.
Non-GAAP gross margin was 49% in the first quarter of 2023 compared to 54% in the first quarter of 2022.
Net loss was $19.0 million in the first quarter of 2023, compared to net profit of $4.2 million in the first quarter of 2022.
Non-GAAP net loss was a loss of $13.3 million in the first quarter of 2023, compared to a loss of $14.9 million in the first quarter of 2022.
Cash, cash equivalents, and short-term investments were $151.4 million as of March 31, 2023.

Reconciliations of the non-GAAP financial measures provided in this press release to their most directly comparable GAAP financial measures are provided in the financial tables included at the end of this press release. An explanation of these measures and how they are calculated is also included under the heading “Non-GAAP Financial Measures.”

“We have started the year strong with another record first quarter revenues and the largest pipeline in our company’s history. Demand for the Digital Forge grew across all geographies in Q1, as an increasing number of manufacturers are choosing our metal and composite solutions to solve mission-critical metal applications at the point of need,” said Shai Terem, President and CEO of Markforged. “We believe our Q1 results are a reflection of strong execution of our strategy and an early indicator of the meaningful opportunity for Markforged in the coming quarters as we remain laser focused on margin expansion and driving profitable growth.”

Business Highlights

Robust Growth Globally. Demand for the Digital Forge grew across all geographies in Q1, which was led by 26% year-over-year growth in Markforged’s EMEA region. The company was also encouraged by the strong pipeline buildup in the Americas, which is the company’s biggest region by revenue.
Demand For FX20 Grows. As manufacturers seek production-grade solutions for their factory floors, revenue for the FX20 continues to exceed the company’s expectations and the pipeline of new orders continues to grow. Thanks to the diligent work by Markforged’s engineering and operations teams, the costs to produce the FX20 are declining, which is helping to drive sequential gross margin expansion.
Continuing To Build Operational Efficiencies. Markforged remains laser focused on margin expansion and driving profitable growth. GAAP Gross margins expanded sequentially, exceeding 48% in the first quarter of 2023 and 49% on a non-GAAP basis, compared to 47% by both measures in the fourth quarter of 2022. Net cash used in operating activities for the first quarter improved year-over-year, with a decline of $3.7 million, or approximately 20%, compared to the first quarter of 2022. The company believes the strength of its current balance sheet is sufficient to reach profitability by the end of 2024.
Moved Into New HQ. The end of Q1 marked the opening of Markforged’s new Global HQ in Massachusetts, bringing Engineering, Operations and Product together under one roof with Sales, Marketing and other functions. The new HQ, located at 60 Tower Road, Waltham, boasts customized state-of-the-art R&D labs, along with operations and customer experience labs and an enhanced customer product demo room. The excitement and energy derived from this modernized space and closer, in-person, collaboration is expected to drive even more operational efficiencies over time.

Guidance

Markforged is reiterating its full year 2023 guidance given continued macro uncertainties. Revenues are expected to be within the range of $101.0 million – $110.0 million. Markforged expects fiscal year 2023 non-GAAP gross margin to remain in the range of 47% – 49% and the company is confident that gross margins will continue to improve toward historical levels, longer-term. The company continues to expect the cost disciplines it exerts over operating expenses to result in a decline in 2023 operating expenses as a percentage of revenue, compared to 2022. Non-GAAP operating loss is expected to be in the range of $55.0 million – $58.0 million for the year, a loss in the range of $0.27 – $0.29 per share.

Conference Call and Webcast Information

The Company will host a webcast and conference call at 5:00 p.m. ET today, Thursday, May 11, to discuss the results.

Participants may access the earnings press release, related materials and the audio webcast by visiting the investors section of the Company’s website at https://investors.markforged.com/

To participate in the call, please dial 1-877-407-9039 or 1-201-689-8470 ten minutes before the scheduled start.

For those unable to listen to the live conference call, a replay will be available on the Company’s website and telephonically till Thursday May 25, 2023, 11:59 PM ET by dialing 1-844-512-2921 or 1-412-317-6671, passcode 13737741.

About Markforged

Markforged (NYSE:MKFG) is enabling more resilient and flexible supply chains by bringing industrial 3D printing right to the factory floor. Our additive manufacturing platform The Digital Forge allows manufacturers to create strong, accurate parts in both metal and advanced composites. With over 10,000 customers in 70+ countries, we’re bringing on-demand industrial production to the point of need. We are headquartered in Waltham, Mass where we design the hardware, software and advanced materials that makes The Digital Forge reliable and easy to use. To learn more, visit www.markforged.com.

Non-GAAP Financial Measures

In addition to our financial results determined in accordance with U.S. generally accepted accounting principles (“GAAP”), we believe that non-GAAP gross margin, non-GAAP operating profit (loss), and non-GAAP earnings per share, each a non-GAAP financial measure, is useful in evaluating the performance of our business.

These non-GAAP measures have limitations as an analytical tool. We do not, nor do we suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors should also note that the non-GAAP financial measures we use may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies, including other companies in our industry.

We recommend that you review the reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures provided in the financial statement tables included below in this press release, and that you not rely on any single financial measure to evaluate our business. Additionally, to the extent that forward-looking non-GAAP financial measures are provided, they are presented on a non-GAAP basis without reconciliations of such forward-looking non-GAAP measures due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations.

Investors should note that beginning with the second quarter of 2022, we have modified the presentation of “non-recurring costs” included in non-GAAP gross margin, non-GAAP operating profit (loss), non-GAAP net profit (loss) and non-GAAP earnings per share metrics to include certain non-recurring litigation costs. Beginning with the fourth quarter of 2022, we modified the presentation to remove the impact of the amortization of our intangible assets. We use these metrics to provide an understanding of the results of our core business performance and believe these litigation and amortization costs are not indicative of the performance of our core business’ operations. This change increases “non-recurring costs” by $0.6 million in the first quarter of 2022. The exclusion of amortization does not impact non-GAAP net profit (loss) for the quarter ended March 31, 2022. To conform to the current period’s presentation, we have included non-recurring litigation costs as “non-recurring costs” when presenting the foregoing non-GAAP figures for the year to date period.

The following are the non-GAAP financial measures referenced in this press release and presented in the tables below:

Non-GAAP gross margin is defined as GAAP operating profit (loss), less stock-based compensation expense, amortization, and certain non-recurring costs, divided by revenue.
Non-GAAP operating profit (loss) is defined as GAAP operating profit (loss) less stock-based compensation expense, amortization, and certain non-recurring costs.
Non-GAAP net profit (loss) is defined as GAAP net profit (loss) less stock-based compensation expense, net change in fair value of warrant liabilities and contingent earnout liabilities, amortization, and certain non-recurring costs.
Non-GAAP earnings per share is defined as GAAP net profit (loss) less stock-based compensation expense, net change in fair value of warrant liabilities and contingent earnout liabilities, amortization, and certain non-recurring costs, divided by diluted weighted average shares outstanding for the period.

Special Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that are based on beliefs and assumptions and on information currently available. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “strategy,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “opportunity” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although Markforged believes that it has a reasonable basis for each forward-looking statement contained in this press release, Markforged cautions you that these statements are based on a combination of facts and factors currently known by it and its projections of the future, about which it cannot be certain. Forward-looking statements in this press release include, but are not limited to, future growth rate, revenue, gross profit margin and earnings guidance; the impact of infrastructure investments; timing for achieving profitability; our ability to fulfill orders for our products in a timely fashion in the future; expected growth of the size of and opportunity to increase our addressable market; the timing of launches and the rate and extent of adoption of our products, including, but not limited to, our most recently introduced products; market trends in the manufacturing industry; the effects of macroeconomic factors; and the benefits to consumers, functionality and applications of Markforged’s products. Markforged cannot assure you that the forward-looking statements in this press release will prove to be accurate. These forward looking statements are subject to a number of risks and uncertainties, including, among others, general economic, political and business conditions; the ability of Markforged to maintain its listing on the New York Stock Exchange; the effect of COVID-19 on Markforged’s business and financial results; the outcome of any legal proceedings against Markforged; and those factors discussed under the header “Risk Factors” in Markforged’s most recent periodic and other filings with the SEC. Furthermore, if the forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that Markforged will achieve its objectives and plans in any specified time frame, or at all. The forward-looking statements in this press release represent Markforged’s views as of the date of this press release. Markforged anticipates that subsequent events and developments will cause its views to change. However, while Markforged may elect to update these forward-looking statements at some point in the future, Markforged has no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing Markforged’s views as of any date subsequent to the date of this press release.


MARKFORGED HOLDING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
As of March 31, 2023 and December 31, 2022
(In thousands, except share data and par value amounts) (Unaudited)

	March 31, 2023			December 31, 2022
Assets
Current assets
Cash and cash equivalents	$	90,674		$	124,242
Short-term investments		60,756			43,690
Accounts receivable, net of allowance for expected credit losses ($768 and $971, respectively)		26,115			29,294
Inventory		29,272			26,409
Prepaid expenses		2,336			2,847
Other current assets		3,362			3,334
Total current assets		212,515			229,816
Property and equipment, net		19,122			18,298
Goodwill		31,190			31,116
Intangible assets		17,426			17,626
Right-of-use assets		44,591			45,955
Other assets		3,043			3,130
Total assets	$	327,887		$	345,941
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	10,515		$	14,425
Accrued expenses		11,459			9,663
Deferred revenue		9,174			8,854
Operating lease liabilities		7,979			8,022
Total current liabilities		39,127			40,964
Long-term deferred revenue		5,834			5,358
Deferred rent		—			—
Contingent earnout liability		1,607			2,415
Long-term operating lease liabilities		39,391			40,608
Other liabilities		3,867			4,042
Total liabilities		89,826			93,387
Commitments and contingencies
Stockholders’ equity
Common stock, $0.0001 par value; 1,000,000,000 shares authorized at March 31, 2023 and December 31, 2022; 195,643,620 and 194,560,946 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively		19			19
Additional paid-in capital		356,982			352,564
Accumulated deficit		(120,116	)		(101,097	)
Accumulated other comprehensive income		1,176			1,068
Total stockholders’ equity		238,061			252,554
Total liabilities and stockholders’ equity	$	327,887		$	345,941

MARKFORGED HOLDING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended March 31, 2023 and 2022
(In thousands, except share data and per share data) (Unaudited)

	Three Months Ended March 31,
		2023			2022
Revenue	$	24,090		$	21,859
Cost of revenue		12,508			10,253
Gross profit		11,582			11,606
Operating expenses
Sales and marketing		10,576			10,448
Research and development		10,380			10,567
General and administrative		12,128			11,743
Total operating expenses		33,084			32,758
Loss from operations		(21,502	)		(21,152	)
Change in fair value of warrant liabilities		189			693
Change in fair value of contingent earnout liability		808			24,896
Other expense		(204	)		(219	)
Interest income		1,691			20
Profit (loss) before income taxes		(19,018	)		4,238
Income tax benefit		1			(1	)
Net (loss) profit	$	(19,019	)	$	4,239
Weighted average shares outstanding – basic		195,369,245			186,383,312
Weighted average shares outstanding – diluted		195,369,245			191,100,683
Net profit (loss) per share – basic	$	(0.10	)	$	0.02
Net profit (loss) per share – diluted		(0.10	)		0.02


MARKFORGED HOLDING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS)
For the Three Months Ended March 31, 2023 and 2022
(In thousands) (Unaudited)

	Three Months Ended March 31,
		2023			2022
Net (loss) profit	$	(19,019	)	$	4,239
Other comprehensive income, net of taxes:
Unrealized (loss) on available-for-sale marketable securities, net		(50	)		—
Foreign currency translation adjustment		158			—
Total comprehensive (loss) income	$	(18,911	)	$	4,239


MARKFORGED HOLDING CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
For the Three Months Ended March 31, 2023 and 2022
(In thousands) (Unaudited)

	Three Months Ended March 31,
		2023			2022
Net profit (loss) and comprehensive income (loss)	$	(19,019	)	$	4,239
Stock compensation expense		4,356			5,422
Change in fair value of warrant liabilities		(189	)		(693	)
Change in fair value of contingent earnout liability		(808	)		(24,896	)
Amortization		277			—
Non-recurring costs¹		2,081			1,047
Non-GAAP net loss ²	$	(13,302	)	$	(14,881	)

¹ Non-recurring costs primarily relate to litigation expenses.

²Stock-based compensation expense, amortization, and non-recurring costs were included in the following GAAP consolidated statement of operations categories:

	Three Months Ended March 31,
	2023		2022
Cost of revenue	$	301	$	115

Sales and marketing		520		848
Research and development		1,147		1,419
General and administrative		4,746		4,087
Total operating expense		6,413		6,354
Total adjustments	$	6,714	$	6,469


MARKFORGED HOLDING CORPORATION
DISAGGREGATED REVENUE BY NATURE OF PRODUCTS AND SERVICES
(In thousands) (Unaudited)
	Three Months Ended March 31,
(in thousands)	2023		2022
Hardware	$	15,195	$	14,517
Consumables		6,455		5,456
Services		2,440		1,886
Total Revenue	$	24,090	$	21,859


MARKFORGED HOLDING CORPORATION
DISAGGREGATED REVENUE BY GEOGRAPHIC LOCATION
(In thousands) (Unaudited)
	Three Months Ended March 31,
(in thousands)	2023		2022
Americas	$	10,458	$	10,097
EMEA	$	8,492	$	6,719
APAC	$	5,140	$	5,043
Total Revenue	$	24,090	$	21,859

View source version on businesswire.com: https://www.businesswire.com/news/home/20230511005722/en/

Media

Sam Manning, Public Relations Manager

[email protected]

Investors

Austin Bohlig, Director of Investor Relations

[email protected]

KEYWORDS: Massachusetts United States North America

INDUSTRY KEYWORDS: Other Manufacturing Technology Engineering Chemicals/Plastics Other Technology Manufacturing Machine Tools, Metalworking & Metallurgy Retail Supply Chain Management

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May 11, 2023 7:53 pm

Ares Dynamic Credit Allocation Fund Declares a Monthly Distribution of $0.1125 Per Share

Ares Dynamic Credit Allocation Fund Declares a Monthly Distribution of $0.1125 Per Share

NEW YORK–(BUSINESS WIRE)–
Ares Dynamic Credit Allocation Fund, Inc. (the “Fund”) (NYSE: ARDC) announced today the declaration of its distribution for the month of May 2023 of $0.1125 per common share, payable as noted below.

The following dates apply to the declared distribution:

Ex-Date: May 19, 2023

Record Date: May 22, 2023

Payable Date: May 31, 2023

Per Share Amount: $0.1125

Based on the Fund’s current share price of $12.11 (as of its close on May 10, 2023), the distribution represents an annualized distribution rate of approximately 11.15% (calculated by annualizing the distribution amount and dividing it by the current price). Information regarding the distribution rate is included for informational purposes only and is not necessarily indicative of future results, the achievement of which cannot be assured. The distribution rate should not be considered the yield or total return on an investment in the Fund.

The timing and amount of future distributions, if any, are at the discretion of the Fund. As required by Section 19(a) of the Investment Company Act of 1940, a notice will be distributed to the Fund’s stockholders in the event that a portion of a monthly distribution is derived from sources other than undistributed net investment income, such as from short-term capital gain, long-term capital gain, or return of capital. Such notices will also be posted on the Fund’s website at www.arespublicfunds.com.

The amounts and sources of distributions reported are only estimates and are not provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment performance during the remainder of its fiscal year and may be subject to change based on tax regulations. The final determination of the source of these distributions will be made after the Fund’s fiscal year end. If necessary, the Fund may elect to pay an adjusting distribution in December that includes any additional income and net realized capital gains in excess of the monthly distributions for that year to satisfy the minimum distribution requirements of the Internal Revenue Code. In January or February of each year, investors will be sent a Form 1099‑DIV for the previous calendar year that will define how to report these distributions for federal income tax purposes.

This press release is not intended to, and does not constitute, an offer to purchase or sell shares of ARDC.

About Ares Dynamic Credit Allocation Fund, Inc.

Ares Dynamic Credit Allocation Fund, Inc. (“ARDC”) is a closed-end management company that is externally managed by Ares Capital Management II LLC, a subsidiary of Ares Management Corporation. ARDC seeks to provide an attractive level of total return primarily through current income and, secondarily, through capital appreciation. ARDC invests in a broad, dynamically-managed portfolio of credit investments. There can be no assurance that ARDC will achieve its investment objective. ARDC’s net asset value may be accessed through its NASDAQ ticker symbol, XADCX. Additional information is available at www.arespublicfunds.com.

Forward-Looking Statements

Statements included herein may constitute “forward-looking statements” within the meaning of the U.S. securities laws, and may relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and others beyond the Fund’s control. Ares Dynamic Credit Allocation Fund undertakes no duty to update any forward-looking statements made herein.

This document is not an offer to sell securities and is not soliciting an offer to buy securities in any jurisdiction where the offer or sale is not permitted. An investor should consider the Fund’s investment objective, risks, charges and expenses carefully before investing.

Ares Dynamic Credit Allocation Fund is a closed-end fund, which does not engage in a continuous offering of its shares. Since its initial public offering, the Fund has traded on the New York Stock Exchange under the symbol ARDC.Investors wishing to purchase or sell shares may do so by placing orders through a broker dealer or other intermediary.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230511005680/en/

Ares Dynamic Credit Allocation Fund, Inc.

John Stilmar

[email protected]

(678) 538-1983

or

Destra Capital Advisors LLC

[email protected]

(877) 855-3434

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: Other Professional Services Professional Services Finance

MEDIA:

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Posted on May 11, 2023 7:51 pm
Loop Media Reports Fiscal Second Quarter 2023 Financial Results

Loop Media Reports Fiscal Second Quarter 2023 Financial Results

Q1 Revenue up 11% YoY to $5.4 Million; Quarterly Active Units up 22% QoQ

LOS ANGELES–(BUSINESS WIRE)–
Loop Media, Inc. (“Loop Media” or “Loop” or the “Company”) (NYSE American: LPTV), a leading multichannel streaming platform that provides curated music video and branded entertainment channels for businesses, is reporting financial and operating results for its fiscal second quarter ended March 31, 2023.

Fiscal Q2 2023 vs. Fiscal Q2 2022 Highlights (unless otherwise noted)

Revenue increased approximately 11% to $5.4 million.

Gross profit increased to $1.6 million, with gross margin of 29.4%.

Net loss was $9.8 million or $(0.17) per share, compared to a loss of $5.0 million or $(0.11) per share.

Adjusted EBITDA (a non-GAAP financial measure defined below) was $(5.6) million compared to $(3.0) million.

As of March 31, 2023, the Company had 32,734 quarterly active units (QAUs) operating on its platform, an increase of 22% compared to FQ1 2023.

Management Commentary

“While we did achieve quarterly growth year-on-year, the sequential high level revenue growth we have seen over the past four quarters pulled back during this second quarter due to the challenging macroeconomic environment coupled with the toughest advertising quarter of the year due to seasonality. To counteract that, our various advertising and marketing initiatives resulted in a 22% sequential increase in quarterly active units in Fiscal 2023 Q2 over Q1, as we continue to perform well in the distribution of players and increase our platform footprint, which we believe will bode well when the market recovers and ad dollars return more robustly,” said Jon Niermann, CEO of Loop Media. “Our ability to scale distribution and continue to convert those dollars into meaningful growth of our Loop Player footprint is a testament to our execution, while we navigate a continued challenging macroeconomic environment in the industry.”

“In addition, we are being extra diligent to scrutinize costs, reduce spending and create efficiencies where we can to strengthen the bottom line. We’ve already pinpointed significant cost reductions by the end of Q3 that we believe will help achieve this goal while also building our margins. We believe this can happen without jeopardizing future growth while we work our way aggressively towards becoming positive cashflow,” Niermann added.

“We’re now ready and able to deploy our direct sales initiative designed to accelerate Loop’s ad revenue growth directly from marketers and their agencies. This is expected to apply positive pressure to Loop’s inventory, increasing sell-through while growing CPMs. We believe a healthy mix of direct + programmatic ad revenue is coming at the right time given Loop’s size and leadership position in the CTV for Business and DOOH marketplace,” said Bob Gruters, CRO of Loop.

Fiscal Second Quarter 2023 Financial Results

In the fiscal second quarter, revenue increased approximately 11% to $5.4 million compared to $4.9 million in the year-ago period. The increase was primarily driven by significantly more Loop Players deployed into the market and the benefit from Loop’s Partner Platform business launched in May 2022.

Gross profit in the fiscal second quarter of 2023 increased slightly to $1.6 million compared to $1.4 million for the same period in fiscal 2022. Gross margin was 29.4% compared to 28.0% in the prior period. The slight increase was primarily driven by new contracts with reduced average content costs. When compared to the prior quarter, fiscal Q2, gross margin decreased primarily due to lower revenue and recurring content costs.

Total sales, general, and administrative (“SG&A”) expenses (excluding stock-based compensation and depreciation and amortization) in the fiscal second quarter of 2023 were $7.8 million compared to $4.7 million for the same period in fiscal 2022. The increase in SG&A was primarily due to greater marketing, customer acquisition and increased headcount.

Net loss in the fiscal second quarter of 2023 was $9.8 million or $(0.17 per share, compared to a loss of $5.0 million or $(0.11) per share for the same period in fiscal 2022.

Adjusted EBITDA in the fiscal second quarter of 2023 was $(5.6) million compared to $(3.0 million for the same period in fiscal 2022.

On March 31, 2023, cash and cash equivalents were $4.7 million compared to $7.8 million on December 31, 2022. The decrease was primarily driven by marketing spend and non-recurring expenses related to licensed content. As of March 31, 2023, the Company had total debt of $9.1 million compared to $9.2 million at December 31, 2022.

Conference Call

The Company will conduct a conference call today, May 11, 2023, at 5:00 p.m. Eastern Daylight Time to discuss financial and operating results for its second quarter ended March 31, 2022.

Loop’s management will host the conference call, followed by a question and answer period.

Date: May 11, 2023

Time: 5:00 p.m. Eastern Standard Time

Participant registration link: here

The conference call will also be available for replay on the investor relations section of the Company’s website at www.loop.tv/investors.

About Loop Media, Inc.

Loop Media, Inc. (“Loop Media”) (NYSE American: LPTV) is a leading digital out of home (DOOH) TV and digital signage platform optimized for businesses, streaming more than 200 free music video, news, sports and entertainment channels through its Loop TV service. Loop Media is the leading company in the U.S. licensed to stream music videos to businesses through its proprietary Loop Player.

Loop Media’s digital video content reaches millions of viewers in DOOH locations including bars/restaurants, office buildings, retail businesses, college campuses, airports and on free ad-supported TV platforms like Roku and at local gas stations on GSTV terminals in the United States.

Loop is fueled by one of the largest and most important video libraries that includes music videos, movie trailers and live performances. Loop Media’s non-music channels cover a multitude of genres and moods and include movie trailers, sports highlights, lifestyle and travel videos, viral videos and more. Loop Media’s streaming services generate revenue from advertising, sponsorships, integrated marketing and branded content and from subscriptions.

To learn more about Loop Media products and applications, please visit us online at Loop.tv

Follow us on social:

Instagram: @loopforbusiness

Twitter: @loopforbusiness

LinkedIn: https://www.linkedin.com/company/looptv/

Safe Harbor Statement and Disclaimer

This news release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, Loop Media’s expected 2023 results, ability to compete in the highly competitive markets in which it operates, statements regarding Loop Media’s ability to develop talent and attract future talent, the success of strategic actions Loop Media is taking, and the impact of strategic transactions. Forward-looking statements give our current expectations, opinion, belief or forecasts of future events and performance. A statement identified by the use of forward-looking words including “will,” “may,” “expects,” “projects,” “anticipates,” “plans,” “believes,” “estimate,” “should,” and certain of the other foregoing statements may be deemed forward-looking statements. Although Loop Media believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. Loop Media takes no obligation to update or correct its own forward-looking statements, except as required by law, or those prepared by third parties that are not paid for by Loop Media. Loop Media’s SEC filings are available at www.sec.gov.

Non-GAAP Measures

Loop Media uses non-GAAP financial measures, including adjusted EBITDA and quarterly active units or QAUs, as supplemental measures of the performance of the Company’s business. Use of these financial measures has limitations, and you should not consider them in isolation or use them as substitutes for analysis of Loop Media’s financial results under generally accepted accounting principles in the United States of America (“U.S. GAAP”). The tables below provide a reconciliation of adjusted EBITDA to the most nearly comparable measure under U.S. GAAP.

The Company defines an “active unit” as (i) an ad-supported Loop Player (or DOOH location using our ad-supported service through our “Loop for Business” application or using a DOOH venue-owned computer screening our content) that is online, playing content, and has checked into the Loop analytics system at least once in the 90-day period or (ii) a DOOH location customer using our paid subscription service at any time during the 90-day period. The Company uses “QAU” to refer to the number of such active units during such period.

LOOP MEDIA, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three months ended March 31, Six months ended March 31,

2023

2022

2023

2022

Revenue $
5,393,231
$
4,879,839
$
20,219,062
$
7,875,873

Cost of revenue

Cost of revenue – Advertising and Legacy and other revenue
3,177,607

3,169,059

11,635,240

4,302,981

Cost of revenue – depreciation and amortization
630,543

346,158

1,312,710

657,213

Total cost of revenue
3,808,150

3,515,217

12,947,950

4,960,194

Gross profit
1,585,081

1,364,622

7,271,112

2,915,679

Gross margin %
29.4%

28.0%

36.0%

37.0%

Operating expenses

Sales, general and administrative
7,769,314

4,686,326

15,727,448

9,014,197

Stock-based compensation
2,475,807

1,173,106

4,266,614

2,722,512

Depreciation and amortization
235,009

32,399

422,725

64,802

Total operating expenses
10,480,130

5,891,831

20,416,787

11,801,511

Loss from operations
(8,895,049)

(4,527,209)

(13,145,675)

(8,885,832)

Other income (expense)

Interest income
—

—

—

200

Interest expense
(919,444)

(494,389)

(1,927,027)

(998,506)

Gain (Loss) on extinguishment of debt, net
—

—

—

490,051

Change in fair value of derivatives
—

47,568

—

146,313

Other income
(2,624)

—

(2,624)

—

Total other income (expense)
(922,068)

(446,821)

(1,929,651)

(361,942)

Loss before income taxes
(9,817,117)

(4,974,030)

(15,075,326)

(9,247,774)

Income tax (expense)/benefit
—

(800)

(1,230)

(1,051)

Net loss $
(9,817,117)
$
(4,974,830)
$
(15,076,556)
$
(9,248,825)

Basic and diluted net loss per common share $
(0.17)
$
(0.11)
$
(0.27)
$
(0.21)

Weighted average number of basic and diluted common shares outstanding
56,381,209

45,531,995

56,381,209

45,005,276

LOOP MEDIA, INC.

EBITDA RECONCILIATION

(UNAUDITED)

Three months ended March 31, Six months ended March 31,

2023

2022

2023

2022

GAAP net loss $
(9,817,117)
$
(4,974,830)
$
(15,076,556)
$
(9,248,825)

Adjustments to reconcile to EBITDA:

Interest expense
919,444

494,389

1,927,027

998,506

Interest income
—

—

—

(200)

Depreciation and amortization expense*
865,552

378,557

1,735,435

722,015

Income tax expense (benefit)
—

800

1,230

1,051

EBITDA $
(8,032,121)
$
(4,101,084)
$
(11,412,864)
$
(7,527,453)

* Includes amortization of content assets and for cost of revenue and operating expenses.

LOOP MEDIA, INC.

ADJUSTED EBITDA RECONCILIATION

(UNAUDITED)

Three months ended March 31, Six months ended March 31,

2023

2022

2023

2022

GAAP net loss $
(9,817,117)
$
(4,974,830)
$
(15,076,556)
$
(9,248,825)

Adjustments to reconcile to Adjusted EBITDA:

Interest expense
919,444

494,389

1,927,027

998,506

Interest income
—

—

—

(200)

Depreciation and amortization expense*
865,552

378,557

1,735,435

722,015

Income tax expense (benefit)
—

800

1,230

1,051

Stock-based compensation**
2,475,807

1,173,106

4,266,614

2,722,512

Gain on extinguishment of debt
—

—

—

(490,051)

Change in fair value of derivative
—

(47,568)

—

(146,313)

Adjusted EBITDA $
(5,556,314)
$
(2,975,546)
$
(7,146,250)
$
(5,441,305)

* Includes amortization of content assets and for cost of revenue and operating expenses.

** Includes options, Resticted Stock Units (“RSUs”) and warrants.

LOOP MEDIA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

March 31, 2023 September 30, 2022

ASSETS (UNAUDITED)

Current assets

Cash $
4,650,763
$
14,071,914

Accounts receivable, net
5,694,321

12,590,970

Prepaid expenses and other current assets
918,175

1,496,566

Deferred offering costs
232,845

—

Content assets – current
2,700,232

745,633

Total current assets
14,196,336

28,905,083

Non-current assets

Deposits
64,090

63,889

Content assets – non current
1,111,580

678,659

Property and equipment, net
2,701,130

1,633,169

Operating lease right-of-use assets
17,185

76,696

Intangible assets, net
534,111

590,333

Total non-current assets
4,428,096

3,042,746

Total assets $
18,624,432
$
31,947,829

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable $
6,883,215
$
7,453,801

Accrued liabilities
3,413,038

5,620,873

Accrued royalties and revenue share
3,184,604

4,559,088

Payable on acquisition
—

250,125

License content liabilities – current
1,282,655

1,092,819

Deferred Income
—

140,764

Lease liability – current
18,483

75,529

Non-revolving line of credit
1,809,594

—

Total current liabilities
16,591,589

19,192,999

Non-current liabilities

Non-revolving line of credit
—

1,494,469

Non-revolving line of credit, related party
3,088,753

2,575,753

Revolving line of credit
4,185,069

3,030,516

Total non-current liabilities
7,273,822

7,100,738

Total liabilities
23,865,411

26,293,737

Commitments and contingencies
—

—

Stockholders’ equity

Common Stock, $0.0001 par value, 105,555,556 shares authorized, 56,381,209 and 56,381,209 shares issued and outstanding as of March 31, 2023, and September 30, 2022, respectively
5,638

5,638

Additional paid in capital
106,151,803

101,970,318

Accumulated deficit
(111,398,420)

(96,321,864)

Total stockholders’ equity
(5,240,979)

5,654,092

Total liabilities and stockholders’ equity $
18,624,432
$
31,947,829

LOOP MEDIA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

Six months ended March 31,

2023

2022

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss $
(15,076,556)
$
(9,248,825)

Adjustments to reconcile net loss to net cash used in operating activities:

Amortization of debt discount
1,244,329

713,197

Depreciation and amortization expense
422,725

64,802

Amortization of content assets
1,312,710

657,213

Amortization of right-of-use assets
59,511

78,114

Bad debt expense
—

20,000

Gain on extinguishment of debt, net
—

(490,051)

Change in fair value of derivative
—

(146,313)

Stock-based compensation
4,266,614

2,722,512

Payment in kind for interest stock issuance
—

88,500

Change in operating assets and liabilities:

Accounts receivable
6,896,649

(3,075,632)

Prepaid income tax
—

(1,842)

Inventory
10,252

160,965

Prepaid expenses
568,138

(11,720)

Deposit
(201)

(29,590)

Accounts payable
(1,181,952)

871,866

Accrued liabilities
(2,207,835)

1,033,139

Accrued royalties and revenue share
(1,374,484)

1,964,214

Licensed content liability
(3,457,477)

(853,500)

Operating lease liabilities
(57,046)

(80,877)

Deferred income
(140,764)

(34,392)

NET CASH USED IN OPERATING ACTIVITIES
(8,715,387)

(5,598,220)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property and equipment
(1,046,876)

—

NET CASH USED IN INVESTING ACTIVITIES
(1,046,876)

—

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issuance of common stock
—

1,250,000

Proceeds from credit facility
—

1,500,000

Proceeds from line of credit
28,087,249

—

Payments from line of credit
(27,326,600)

—

Debt issuance costs
(22,300)

—

Issuance costs for stock uplist
(86,330)

—

Deferred offering costs
(61,983)

(123,498)

Payment of acquisition related consideration
(250,125)

—

Repayment of stockholder loans
—

(552,832)

Short swing profit recovery
1,201

NET CASH PROVIDED BY FINANCING ACTIVITIES
341,112

2,073,670

Change in cash and cash equivalents
(9,421,151)

(3,524,550)

Cash, beginning of period
14,071,914

4,162,548

Cash, end of period $
4,650,763
$
637,998

SUPPLEMENTAL DISCLOSURES OF CASH FLOW STATEMENTS

Cash paid for interest $
665,309
$
101,186

Cash paid for income taxes $
1,230
$
1,051

SUPPLEMENTAL DISCLOSURES OF NON CASH INVESTING AND FINANCING ACTIVITIES

Payment in kind common stock payment $
—
$
88,496

Conversion of Preferred Class B stock to common stock $
—
$
1,980

Unpaid deferred offering costs $
170,862
$
247,023

Unpaid additions to property and equipment $
387,588
$
—

Investment in licensed content and internally developed content $
52,916
$
—

View source version on businesswire.com: https://www.businesswire.com/news/home/20230511005611/en/

Loop Media Investor Contact

James Cerna, Head of Capital Markets

[email protected]

Loop Media Press Contact

Samara Cooperberg, Associate Vice President

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Entertainment Technology General Entertainment TV and Radio Music Audio/Video

MEDIA:

Posted on May 11, 2023 7:48 pm
J.Jill, Inc. Completes Refinancing of ABL Credit Facility

J.Jill, Inc. Completes Refinancing of ABL Credit Facility

QUINCY, Mass.–(BUSINESS WIRE)–
J.Jill, Inc. (NYSE:JILL) (“J.Jill” or the “Company”) today announced that it has successfully completed the refinancing of its Asset-Based Revolving Credit Facility (ABL), which was previously set to expire in May 2024. The new facility comes in the form of the sixth amendment to the ABL Credit Agreement with CIT, a division of First Citizens Bank, as the administrative and collateral agent. The facility is comprised of a $40 million revolving credit facility maturing in May 2028.

Mark Webb, Chief Financial and Operating Officer of J.Jill, Inc., stated, “With this latest refinancing, we have successfully strengthened our balance sheet through extending the maturities for both our ABL and Term Loan facilities, and increased the financial flexibility we have to deliver total shareholder return.”

“CIT has had a successful relationship with J. Jill for more than a decade and again worked closely with leadership to understand their current needs,” said Chris Esposito, managing director and group head for CIT’s Asset-Based Lending business. “We were pleased to deliver financing to support their ongoing operations and future growth.”

About J.Jill, Inc.

J.Jill is a national lifestyle brand that provides apparel, footwear and accessories designed to help its customers move through a full life with ease. The brand represents an easy, thoughtful, and inspired style that celebrates the totality of all women and designs its products with its core brand ethos in mind: keep it simple and make it matter. J.Jill offers a high touch customer experience through over 200 stores nationwide and a robust ecommerce platform. J.Jill is headquartered outside Boston. For more information, please visit www.jjill.com or http://investors.jjill.com. The information included on our websites is not incorporated by reference herein.

About First Citizens Bank

First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in Raleigh, N.C., and now celebrating the 125th anniversary of its founding, First Citizens has built a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens offers an array of general banking services including a network of more than 550 branches in 23 states and commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast. Parent company First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $200 billion in assets. First Citizens Bank, Member FDIC. Discover more at firstcitizens.com.

Forward-Looking Statements

This press release contains, and oral statements made from time to time by our representatives may contain, “forward-looking statements.” All statements that address activities, events or developments that we intend, expect or believe may occur in the future are forward-looking statements, including, among others, statements under “Outlook” and other statements identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects,” “goal,” “target” (although not all forward-looking statements contain these identifying words) and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements are based on our current expectations and assumptions regarding capital market conditions, our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are inherently subject to a number of risks, uncertainties, potentially inaccurate assumptions and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, regional, national or global political, economic, business, competitive, market and regulatory conditions, including risks regarding: (1) our ability to successfully expand and increase sales, including by opening new retail stores on a profitable basis, to maintain and enhance a strong brand image, and to optimize our omnichannel operations; (2) changes in consumer confidence, preference and spending, and our ability to adapt to such changes; (3) the competitive environment we operate in; (4) post-pandemic changes in consumer behavior and the timeline of overall economic recovery; and (5) other factors that may be described in our filings with the Securities and Exchange Commission (the “SEC”), including the factors set forth under “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 28, 2023. You are encouraged to read our filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. We caution investors, potential investors and others not to place considerable reliance on the forward-looking statements in this press release and in the oral statements made by our representatives. Any such forward-looking statement speaks only as of the date on which it is made. J.Jill undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230511005817/en/

Investor Relations:

Caitlin Churchill

ICR, Inc.

[email protected]

203-682-8200

Business and Financial Media:

Ariel Kouvaras

Sloane & Company

[email protected]

973-897-6241

Brand Media:

Meredith Schwenk

J.Jill, Inc.

[email protected]

617-376-4399

KEYWORDS: Massachusetts United States North America

INDUSTRY KEYWORDS: Jewelry Online Retail Fashion Retail Footwear

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Posted on May 11, 2023 7:47 pm
Apollo Senior Floating Rate Fund Inc. Declares May 2023 Monthly Distribution of $0.118 Per Share

NEW YORK, May 11, 2023 (GLOBE NEWSWIRE) — (NYSE: AFT) – Apollo Senior Floating Rate Fund Inc. (the “Fund”) today announced the declaration of its distribution for the month of May 2023 of $0.118 per common share, payable on the date noted below.

The following dates apply to the declared distribution:

Ex-Date: May 22, 2023
Record Date: May 23, 2023
Payment Date: May 31, 2023
Per Share Amount: $0.118

Apollo Contact Information:

Product Literature

877-864-4834

Investors

Elizabeth Besen
Investor Relations Manager
Apollo Global Management, Inc.
212-822-0625
[email protected]

Forward-Looking Statements

This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, discussions related to the Fund’s expectations regarding the performance of its business, its liquidity and capital resources and the other non-historical statements in the discussion and analysis. These forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words “believe,” “anticipate,” “estimate,” “expect,” “intend” and similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are subject to certain risks, uncertainties and assumptions, including risks relating to our dependence on certain key personnel, our ability to raise new Private Equity or Capital Markets funds, market conditions, generally, our ability to manage our rapid growth, fund performance, changes in our regulatory environment and tax status, the variability of our revenue, net income and cash flow, our use of leverage to finance our businesses and investments by our funds and litigation risks, among others.

Posted on May 11, 2023 7:45 pm
FOXO Technologies™ Announces First Quarter 2023 Financial Results

FOXO Technologies™ Announces First Quarter 2023 Financial Results

MINNEAPOLIS–(BUSINESS WIRE)–
FOXO Technologies Inc. (NYSEAM: FOXO) (“FOXO” or the “Company”), a leader in commercializing epigenetic biomarkers of health and aging, today reported financial results for the first quarter ended March 31, 2023.

“The first quarter was a strong start to the year, and I am very pleased by our continued execution in support of our strategic goals,” said Tyler Danielson, interim CEO and Chief Technology Officer of FOXO. “We recently announced the launch of our direct-to-consumer FOXO Longevity Report™ beta, which represents the next stage in FOXO’s evolution and expands on our successes in the insurance market. We believe this significant milestone will serve to improve the scale of our customer engagement platform while expanding into additional use cases for our technology. Additionally, we are taking proactive steps to simplify our capital structure and raise additional financing to accelerate our growth initiatives.”

About FOXO Technologies Inc.

FOXO is a biotechnology company dedicated to improving human health and longevity through the development of cutting-edge technology and product solutions for various industries, including life insurance. FOXO’s epigenetic technology applies AI to DNA methylation to identify molecular biomarkers of human health and aging. FOXO is committed to leveraging the latest advancements in science and technology to help people live better, longer lives. For more information about FOXO, visit www.foxotechnologies.com.

Forward-Looking Statements

This press release contains certain forward-looking statements for purposes of the “safe harbor” provisions under the United States Private Securities Litigation Reform Act of 1995. Any statements other than statements of historical fact contained herein, including statements as to future results of operations and financial position, planned products and services, business strategy and plans, objectives of management for future operations of FOXO, market size and growth opportunities, competitive position and technological and market trends, are forward-looking statements. Such forward-looking statements include, but not limited to, expectations, hopes, beliefs, intentions, plans, prospects, financial results or strategies regarding FOXO and the future held by the management team of FOXO, the future financial condition and performance of FOXO and the products and markets and expected future performance and market opportunities of FOXO. These forward-looking statements generally are identified by the words “anticipate,” “believe,” “could,” “expect,” “estimate,” “future,” “intend,” “strategy,” “may,” “might,” “strategy,” “opportunity,” “plan,” project,” “possible,” “potential,” “project,” “predict,” “scales,” “representative of,” “valuation,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) the risk of changes in the competitive and highly regulated industries in which FOXO operates, variations in operating performance across competitors or changes in laws and regulations affecting FOXO’s business, (ii) the ability to implement FOXO’s business plans, forecasts, and other expectations, (iii) the ability to obtain financing, (iv) the ability to maintain its NYSE American listing, (v) the risk that FOXO has a history of losses and may not achieve or maintain profitability in the future, (vi) potential inability of FOXO to establish or maintain relationships required to advance its goals or to achieve its commercialization and development plans, (vii) the enforceability of FOXO’s intellectual property, including its patents and the potential infringement on the intellectual property rights of others, and (viii) the risk of downturns and a changing regulatory landscape in the highly competitive biotechnology industry or in the markets or industries in which FOXO operates, including the highly regulated insurance industry. The foregoing list of factors is not exhaustive. Readers should carefully consider the foregoing factors and the other risks and uncertainties discussed in FOXO’s most recent reports on Forms 10-K and 10-Q, particularly the “Risk Factors” sections of those reports, and in other documents FOXO has filed, or will file, with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and FOXO assumes no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Explanatory Notes on Use of Non-GAAP Measures

To supplement our financial information presented in accordance with U.S. GAAP, management periodically uses certain “non-GAAP financial measures,” as such term is defined under the rules of the SEC, to clarify and enhance understanding of past performance and prospects for the future. Generally, a non-GAAP financial measure is a numerical measure of a company’s operating performance, financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. For example, non-GAAP measures may exclude the impact of certain items such as acquisitions, divestitures, gains, losses and impairments, or items outside of management’s control. Management believes that the following non-GAAP financial measure provides investors and analysts useful insight into our financial position and operating performance. Any non-GAAP measure provided should be viewed in addition to, and not as an alternative to, the most directly comparable measure determined in accordance with U.S. GAAP. Further, the calculation of these non-GAAP financial measures may differ from the calculation of similarly titled financial measures presented by other companies and therefore may not be comparable among companies.

We use Adjusted EBITDA to evaluate our operating performance. Adjusted EBITDA does not represent and should not be considered an alternative to net income as determined by U.S. GAAP, and our calculations thereof may not be comparable to those reported by other companies. We believe Adjusted EBITDA is an important measure of operating performance and provides useful information to investors because it highlights trends in our business that may not otherwise be apparent when relying solely on U.S. GAAP measures and because it eliminates items that have less bearing on our operating performance. Adjusted EBITDA, as presented herein, is a supplemental measure of our performance that is not required by, or presented in accordance with, U.S. GAAP. We use non-GAAP financial measures as supplements to our U.S. GAAP results in order to provide a more complete understanding of the factors and trends affecting our business. Adjusted EBITDA is a measure of operating performance that is not defined by U.S. GAAP and should not be considered a substitute for net (loss) income as determined in accordance with U.S. GAAP.

We reconcile our non-GAAP financial measure to our net loss, which is its most directly comparable financial measure calculated and presented in accordance with U.S. GAAP. Our management uses Adjusted EBITDA as a financial measure to evaluate the profitability and efficiency of our business model. Adjusted EBITDA is not presented in accordance with U.S. GAAP. Adjusted EBITDA includes adjustments for provision for income taxes, as applicable, interest income and expense, depreciation and amortization, stock-based compensation, and certain other infrequent and/or unpredictable non-cash charges or benefits, such as impairment, changes in fair value of convertible debentures, changes in fair value of warrant liabilities, and expenses related to the forward purchase agreement.

FOXO TECHNOLOGIES INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share data)

March 31,

December 31,

2023

2022

(unaudited)

Assets

Current assets

Cash and cash equivalents

$

2,155

$

5,515

Supplies

1,302

1,313

Prepaid expenses

2,117

2,686

Prepaid consulting fees

595

2,676

Other current assets

107

114

Total current assets

6,276

12,304

Intangible assets

1,863

2,043

Reinsurance recoverables

–

18,573

Cloud computing arrangements

1,483

2,225

Other assets

251

263

Total assets

$

9,873

$

35,408

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable

$

2,977

$

3,466

Related party payable

500

500

Senior PIK Notes

3,368

1,409

Accrued severance

1,212

1,045

Accrued and other liabilities

528

493

Total current liabilities

8,585

6,913

Warrant liability

311

311

Senior PIK Notes

–

1,730

Policy reserves

–

18,573

Other liabilities

1,007

1,173

Total liabilities

9,903

28,700

Commitments and contingencies (Note 13)

Stockholders’ equity (deficit)

Preferred stock, $0.0001 par value; 10,000,000 shares authorized, none issued or outstanding as of March 31, 2023 and December 31, 2022

–

–

Class A common stock, $0.0001 par value, 500,000,000 shares authorized, 29,558,830 and 29,669,830 issued, and 27,418,069 and 27,529,069 outstanding as of March 31, 2023 and December 31, 2022, respectively

3

3

Treasury stock, at cost, 2,140,761 as of March 31, 2023 and December 31, 2022

–

–

Additional paid-in capital

154,837

153,936

Accumulated deficit

(154,870

)

(147,231

)

Total stockholders’ equity (deficit)

(30

)

6,708

Total liabilities and stockholders’ equity (deficit)

$

9,873

$

35,408

FOXO TECHNOLOGIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share data)

Three Months Ended

March 31,

2023

2022

Total revenue

$

13

$

40

Operating expenses:

Research and development

309

601

Management contingent share plan

764

–

Selling, general and administrative

6,332

4,002

Total operating expenses

7,405

4,603

Loss from operations

(7,392

)

(4,563

)

Non-cash change in fair value of convertible debentures

–

(7,432

)

Interest expense

(225

)

(322

)

Other expense

(22

)

(50

)

Total non-operating expense

(247

)

(7,804

)

Loss before income taxes

(7,639

)

(12,367

)

Provision for income taxes

–

–

Net loss

$

(7,639

)

$

(12,367

)

Net loss per Class A common stock, basic and diluted

$

(0.33

)

$

(2.12

)

FOXO TECHNOLOGIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

(Dollars in thousands)

FOXO Technologies Operating Company FOXO Technologies Inc.

Series A

Preferred Stock

Common Stock

(Class A)

Common Stock

(Class B)

Common Stock

(Class A)
Treasury Stock Additional Paid-in-Capital Accumulated Deficit Total

Shares Amount Shares Amount Shares Amount Shares Amount Shares

Balance, December 31, 2021
8,000,000
$
21,854

30,208
$
–

2,000,000
$
–

–

$
–

–

$
4,902
$
(51,976

)
$
(25,220

)

Net loss
–

–

–

–

–

–

–

–

–

–

(12,367

)

(12,367

)

Lease contributions
–

–

–

–

–

–

–

–

–

136

–

136

Stock based compensation
–

–

–

–

–

–

–

–

–

251

–

251

Issuance of shares for exercised stock options
–

–

14,946

–

–

–

–

–

–

–

–

–

Balance, March 31, 2022
8,000,000
$
21,854

45,154
$
–

2,000,000
$
–

–

$
–

–

$
5,289
$
(64,343

)
$
(37,200

)

Balance, December 31, 2022
–
$
–

–
$
–

–
$
–

29,669,830

$
3

(2,140,761

)
$
153,936
$
(147,231

)
$
6,708

Net loss
–

–

–

–

–

–

–

–

–

–

(7,639

)

(7,639

)

Stock based compensation
–

–

–

–

–

–

(111,000

)

–

–

901

–

901

Balance, March 31, 2023
–
$
–

–
$
–

–
$
–

29,558,830

$
3

(2,140,761

)
$
154,837
$
(154,870

)
$
(30

)

FOXO TECHNOLOGIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

Three Months Ended

March 31,

2023

2022

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss

$

(7,639

)

$

(12,367

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

929

31

Stock-based compensation

901

231

Amortization of consulting fees paid in common stock

1,725

–

Change in fair value of convertible debentures

–

7,432

PIK interest

135

–

Amortization of debt issuance costs

94

–

Contributions in the form of rent payments

–

136

Recognition of prepaid offering costs upon election of fair value option

–

107

Other

6

–

Changes in operating assets and liabilities:

Supplies

11

57

Prepaid expenses and consulting fees

925

(132

)

Other current assets

7

–

Cloud computing arrangements

–

(621

)

Accounts payable

(489

)

(2,209

)

Accrued and other liabilities

35

149

Net cash used in operating activities

(3,360

)

(7,186

)

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property and equipment

–

(39

)

Development of internal use software

–

(519

)

Net cash used in investing activities

–

(558

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from issuance of convertible debentures

–

22,500

Deferred offering costs

–

(19

)

Net cash provided by financing activities

–

22,481

Net increase (decrease) in cash and cash equivalents

(3,360

)

14,737

Cash and cash equivalents at beginning of period

5,515

6,856

Cash and cash equivalents at end of period

$

2,155

$

21,593

FOXO TECHNOLOGIES INC. AND SUBSIDIARIES

Reconciliation of net loss to adjusted EBTIDA (unaudited)

(Dollars in thousands)

For the three months ended March 31,

2023

2022

Net loss

$

(7,639

)

$

(12,367

)

Add: Depreciation and amortization

929

31

Add: Interest expense

225

322

Add: Stock-based compensation ⁽¹⁾

2,626

231

Add: Non-cash change in fair value of convertible debentures

–

7,432

Adjusted EBITDA

$

(3,859

)

$

(4,351

)

(1)

Includes expense recognized related to the shares issued to the consulting agreement. See Note 6 of the unaudited consolidated financial statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230511005708/en/

Investor Relations

Matthew Hausch, Cody Slach

Gateway Group, Inc.

(949) 574-3860

[email protected]

KEYWORDS: Minnesota United States North America

INDUSTRY KEYWORDS: Biotechnology Technology Professional Services Health Health Technology Health Insurance Research Artificial Intelligence Genetics Insurance Science

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