Market Newsdesk

PHILADELPHIA, March 08, 2023 (GLOBE NEWSWIRE) — Kaskela Law LLC announces that it is investigating Qualtrics International Inc. (NASDAQ: XM) (“Qualtrics”) on behalf of the Company’s shareholders.

Since March 2022, shares of Qualtrics’ common stock have declined in value from a trading price of over $29.00 per share to a current trading price of below $18.00 per share, a cumulative decline of over $11.00 per share, or 38% in value.

The investigation seeks to determine whether the decline in Qualtrics’ stock price may be attributable to the prior issuance of false and/or misleading statements and/or the failure to disclose material information to Qualtrics investors, in violation of the securities laws.

Qualtrics


shareholders are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484)


229 – 0750, or by email (



[email protected]



/



[email protected]



) or online at



https://kaskelalaw.com/cases/qualtrics/



, for additional information about this investigation and their legal rights and options.

Kaskela Law LLC represents investors in securities fraud, corporate governance, and merger & acquisition litigation on a contingent basis. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.

CONTACT:

KASKELA LAW LLC

D. Seamus Kaskela, Esq.
Adrienne Bell, Esq.
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(888) 715 – 1740
(484) 229 – 0750
www.kaskelalaw.com

This notice may constitute attorney advertising in certain jurisdictions.

Operations drive double-digit increases in key financial measures

Company to Host Conference Call Today at 9 a.m. ET

MIAMI, March 08, 2023 (GLOBE NEWSWIRE) — International Money Express, Inc. (NASDAQ: IMXI) (“Intermex” or the “Company”), one of the nation’s leading omnichannel money transfer services to Latin America, today reported strong growth for the fourth quarter and full year 2022. With double-digit increases in all of the Company’s full year key financial performance measures, the Company continues its track record of exceptional earnings growth as a public company.

Financial performance highlights for the fourth quarter of 2022 compared with the same period last year are:

• Revenues of $154.4 million, an increase of 21.4%;
• Net Income of $13.1 million, a decrease of 0.5%;
• Diluted EPS of $0.35 per share, an increase of 6.1%;
• Adjusted Net Income of $17.6 million, an increase of 10.4%;
• Adjusted Diluted EPS of $0.46 per share, an increase of 15.0%;  
• Adjusted EBITDA of $29.1 million, an increase of 22.4%; and
• Net Free Cash Generated of $13.7 million, an increase of 24.6%.

Full Year 2022 – Highlights compared with the prior-year

• Revenues of $546.8 million, an increase of 19.1%;
• Net Income of $57.3 million, an increase of 22.4%;
• Diluted EPS of $1.48, an increase of 23.3%;
• Adjusted Net Income of $69.9 million, an increase of 21.6%;
• Adjusted Diluted EPS of $1.81, an increase of 23.1%;
• Adjusted EBITDA of $105.2 million, an increase of 21.4%; and
• Net Free Cash Generated of $59.6 million, an increase of 25.2%.  

“Intermex finished 2022 on a high note, again achieving double-digit revenue growth during the fourth quarter and setting a single-day record for the total number of wire transfers we completed for our customers during the Christmas holiday season,” said Bob Lisy, the Company’s chairman, chief executive officer and president. “The outstanding full-year and fourth quarter operating performance underscores the competitive advantage Intermex maintains as one of the world’s leading, omnichannel remittance service providers.”

“We consistently outperform in our sector by staying laser focused on the fundamentals that drive our business,” Lisy said. “We are driving transaction growth with attractive margins through our growing network of retail locations and our digital app. Our unique, omni-channel strategy is resonating in our markets and creating tremendous value for the Company and its shareholders.”

Fourth Quarter 2022 Financial Results (all comparisons are to the Fourth Quarter 2021)

Total revenues for the Company were $154.4 million, up 21.4%. Contributing to the strong revenue growth was the record 13.7 million money transfer transactions, up 23.0%, driven by a 31.4% increase in unique, active customers to 3.7 million in the quarter. Also contributing to the record number of transactions was the 84% growth in digital transactions. Total transaction growth resulted in a 18.5% increase in the principal amount transferred to $5.8 billion. This principal translates to a 22.0% market share in the combined Mexico, Guatemala, El Salvador, and Honduras markets, up from 21.4% in the fourth quarter of 2021. The 2022 period also reflects the previously reported acquisition of La Nacional Corp. from November 1, 2022.

Net income was $13.1 million, down 0.5%. Diluted earnings per share increased 6.1% to $0.35. Net income and EPS reflect the increased revenues, improved efficiencies on service charges from agents and banks, lower amortization expense, and lower share count resulting from stock repurchases. These benefits were offset by increases in salaries, general and administrative expenses, interest expense, tax expense, and transaction charges related to the La Nacional acquisition.

Adjusted net income increased 10.4% to $17.6 million, and adjusted diluted earnings per share were $0.46, an increase of 15.0%, reflecting the items noted above in net income, adjusted for certain non-cash expenses, other charges, tax adjustments, non-cash stock expense, and the charges related to the La Nacional acquisition, all as detailed in the reconciliation tables below.

Adjusted EBITDA increased 22.4% to $29.1 million, primarily due to the same factors driving net income discussed above and the higher net effect of the adjusting items detailed in the reconciliation table below.

Adjusted and other non-GAAP measures discussed above and elsewhere in this press release are defined below under the heading, Non-GAAP Measures.

Full-Year 2022 Financial Results (all comparisons are to the full-year 2021)

Revenues increased by 19.1% to $546.8 million. Driving that growth was a 19.2% increase in net money transfer transactions, which includes a 100% increase in digital transactions. Principal amount sent increased 21.2% to $21.0 billion.  

The Company reported net income of $57.3 million, an increase of 22.4%. Diluted earnings per share were $1.48, an increase of 23.3%, attributable to the full-year effects of the same items noted above for the fourth quarter of 2022.

Adjusted net income totaled $69.9 million, an increase of 21.6%. Adjusted diluted earnings per share totaled $1.81, an increase of 23.1%, attributable to the the annualized net effect of the items noted above for the fourth quarter of 2022.

Adjusted EBITDA increased 21.4% to $105.2 million, attributable to the same items noted above for the fourth quarter of 2022 and the higher net effect of the adjusting items detailed in the reconciliation table below.

Other Items


The Company ended 2022 with $149.5 million in cash and $155.2 million in debt which includes $76.0 million from the Company’s revolving credit facility. Net Free Cash Generated was up 24.6% to $13.7 million in the fourth quarter of 2022, and was $59.6 million for the full year, an increase of 25.2% from the prior year.

The Company repurchased approximately 465,000 shares of its common stock for $10.0 million during the fourth quarter of 2022 at a weighted average price of $21.48 per share. Additionally, through the first quarter of 2023 to date, the company repurchased 243,000 shares for $5.7 million, leaving $2.5 million of the original $40 million authorization for its buyback program.

On March 3rd the Company’s board of directors authorized an additional $100 million for future share repurchases. The authorization does not obligate the Company to repurchase any particular amount of common stock during any period and the program may be modified or suspended at any time at the Company’s discretion. Stock repurchases may be made from time to time and the actual amount repurchased will depend on a variety of factors including market conditions, cash flow, and liquidity needs, regulatory and legal requirements, and other factors. The stock repurchases may be made in both open market and privately negotiated transactions and may include the use of derivative contracts, structured share repurchase agreements, and Rule 10b5-1 and Rule 10b-18 trading plans. Repurchases are expected to be funded from cash on hand. The Company had approximately 36.6 million shares of common stock outstanding as of December 31, 2022.

2023 Guidance


The Company is providing full-year and first quarter guidance, and expects:

Full year 2023, compared to the prior year:

• Revenue of $667.0 million to $688.5 million, an increase of 22% to 26%.
• Net Income of $66.5 million to $69.0 million, an increase of 16% to 20%.
• Adjusted EBITDA of $120.0 million to $124.5 million, an increase of 14% to 18%.

First quarter 2023, compared to the prior year quarter:

• Revenue of $140.9 million to $145.5 million, an increase of 23% to 27%.
• Net Income of $11.6 million to $11.7 million, a decrease of (1%) to flat.
• Adjusted EBITDA of $22.5 million to $22.8 million, an increase of 9% to 10%.

Non-GAAP Measures


Adjusted Net Income, Adjusted Earnings per Share, Adjusted EBITDA, Adjusted EBITDA Margin and Net Free Cash Generated, each a Non-GAAP financial measure, are the primary metrics used by management to evaluate the financial performance of our business. We present these Non-GAAP financial measures because we believe they are frequently used by analysts, investors, and other interested parties to evaluate companies in our industry. Further, we believe they help highlight trends in our operating results, because certain of such measures exclude, among other things, the effects of certain transactions that are outside the control of management, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the jurisdictions in which we operate and capital investments.

Adjusted Net Income is defined as Net Income adjusted to add back certain charges and expenses, such as non-cash amortization of intangibles resulting from business acquisition transactions, non-cash compensation costs, and other items outlined in the reconciliation tables below, as these charges and expenses are not considered a part of our core business operations and are not an indicator of ongoing future Company performance.

Adjusted Earnings per Share – Basic and Diluted is calculated by dividing Adjusted Net Income by GAAP weighted-average common shares outstanding (basic and diluted).

Adjusted EBITDA is defined as Net Income before depreciation and amortization, interest expense, income taxes, and also adjusted to add back certain charges and expenses, such as non-cash compensation costs and other items outlined in the reconciliation table below, as these charges and expenses are not considered a part of our core business operations and are not an indicator of ongoing future Company performance.

Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by Revenues.

Net Free Cash Generated is defined as Net Income before provision for credit losses and depreciation and amortization adjusted to add back certain non-cash charges and expenses, such as non-cash compensation costs, and reduced by cash used in investing activities and servicing of our debt obligations.

Adjusted Net Income, Adjusted Earnings per share, Adjusted EBITDA, Adjusted EBITDA Margin, and Net Free Cash Generated are non-GAAP financial measures and should not be considered as an alternative to operating income, net income, net income margin or earnings per share as a measure of operating performance or cash flows, or as a measure of liquidity. Non-GAAP financial measures are not necessarily calculated the same way by different companies and should not be considered a substitute for or superior to U.S. GAAP.

Reconciliations of Net Income, the Company’s closest GAAP measure, to Adjusted Net Income, Adjusted EBITDA, and Net Free Cash Generated, as well as a reconciliation of Earnings per share to Adjusted Earnings per share and Net Income Margin to Adjusted EBITDA Margin, are outlined in the tables below following the unaudited condensed consolidated financial statements. A quantitative reconciliation of projected Adjusted Net Income and Adjusted EBITDA to the most comparable GAAP measure is not available without unreasonable efforts because of the inherent difficulty in forecasting and quantifying the amounts necessary under GAAP guidance for operating or other adjusted items including, without limitation, costs and expenses related to acquisitions and other transactions, share-based compensation, tax effects of certain adjustments and losses related to legal contingencies or disposal of assets.

Investor and Analyst Conference Call / Presentation

Intermex will host a conference call and webcast presentation at 9:00 a.m. Eastern Time today. The conference call can be heard by dialing: 1-844-826-3033 (U.S.) or 1-412-317-5185 (outside the U.S.) ten minutes before the start of the call.

The conference call and accompanying slides will be available via webcast at https://investors.intermexonline.com. Registration for the event is required, so please register at least five minutes before the scheduled start time.

A webcast replay will be available approximately 2-4 hours after the conference call at https://investors.intermexonline.com/.

Safe Harbor Compliance Statement for Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, which reflect our current views concerning certain events that are not historical facts but could affect our future performance, including but without limitation, statements regarding our plans, objectives, financial performance, business strategies, projected results of operations, and expectations for the Company. These statements may include and be identified by words or phrases such as, without limitation, “would,” “will,” “should,” “expects,” “believes,” “anticipates,” “continues,” “could,” “may,” “might,” “plans,” “possible,” “potential,” “predicts,” “projects,” “forecasts,” “intends,” “assumes,” “estimates,” “approximately,” “shall,” “our planning assumptions,” “future outlook,” “currently,” “target,” “guidance”, “remains”, and similar expressions (including the negative and plural forms of such words and phrases). Our forward-looking statements are based largely on information currently available to our management and our current expectations, assumptions, plans, estimates, judgments, projections about our business and our industry, and macroeconomic conditions, and are subject to various risks, uncertainties, estimates, contingencies, and other factors, many of which are beyond our control, that could cause actual results to differ from those expressed or implied by the forward-looking statements and could materially adversely affect our business, financial condition, results of operations, cash flows and liquidity. Such factors include, among others, our ability to successfully execute, manage and integrate key acquisitions and mergers; including the completed acquisition of Envios de Valores La Nacional Corp. and the pending acquisition of LAN Holdings, Corp.;economic factors such as inflation, the level of economic activity and labor market conditions, as well as rising interest rates, recession risks, the public health conditions, responses thereto and the economic and market effects thereof; competition in the markets in which we operate; volatility in foreign exchange rates that could affect the volume of consumer remittance activity and/or affect our foreign exchange related gains and losses; our ability to maintain favorable agent relationships; credit risks from our agents and the financial institutions with which we do business; bank failures, sustained financial market illiquidity or financial institution illiquidity; new technology or competitors such as digital platforms; cyber-attacks or disruptions to our information technology, computer network systems, data centers and phone apps; our ability to satisfy our debt obligations and remain in compliance with our credit facility requirements; customer confidence in our brand and in consumer money transfers generally; our ability to maintain compliance with applicable regulatory requirements; international political factors, political stability, tariffs, border taxes or restrictions on remittances or transfers; currency restrictions and volatility in countries in which we operate or plan to operate; consumer fraud and other risks relating to the authenticity of customers’ orders; changes in immigration laws and their enforcement; our ability to protect intellectual property rights; our ability to recruit and retain key personnel; and other factors, risks and uncertainties, including those described in the “Risk Factors” and other sections of periodic reports that we file with the Securities and Exchange Commission. Accordingly, we caution investors and all others not to place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date such statement is made and we undertake no obligation to update any of the forward-looking statements.

About International Money Express, Inc.

Founded in 1994, Intermex applies proprietary technology enabling consumers to send money from the United States and Canada to 18 countries in Latin America and the Caribbean, including Mexico and Guatemala, eight countries in Africa, two countries in Asia, and two countries in Europe, through a network of independent neighborhood agents and company-owned stores. The Company provides the digital movement of money through a network of agent retailers in the United States and Canada; through Company-operated stores; digitally through our mobile app; and via the Company’s website. Transactions are fulfilled and paid through thousands of retail and bank locations in Latin America, Africa, Asia, and Europe. Intermex is headquartered in Miami, Florida, with international offices in Puebla, Mexico, and Guatemala City, Guatemala. For more information about Intermex, please visit www.intermexonline.com.

Mike Gallentine
Vice President of Investor Relations 
[email protected] 
tel. 305-671-8005

Condensed Consolidated Balance Sheets
		December 31,
(in thousands of dollars)			2022			2021
ASSETS
Current assets:
Cash		$	149,493		$	132,474
Accounts receivable, net			129,808			67,317
Prepaid wires, net			90,386			56,766
Prepaid expenses and other current assets			12,749			6,988
Total current assets			382,436			263,545
Property and equipment, net			28,160			17,905
Goodwill			49,774			36,260
Intangible assets, net			19,826			15,392
Other assets			31,876			7,434
Total assets		$	512,072		$	340,536
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt, net		$	4,975		$	3,882
Accounts payable			25,686			23,151
Wire transfers and money orders payable, net			112,251			56,066
Accrued and other liabilities			41,855			33,760
Total current liabilities			184,767			116,859
Long-term liabilities:
Long-term debt, net			150,235			79,211
Lease liabilities, net			23,272			–
Deferred tax liability, net			3,892			1,426
Total long-term liabilities			177,399			80,637
Stockholders’ equity:
Total stockholders’ equity			149,906			143,040
Total liabilities and stockholders’ equity		$	512,072		$	340,536

Condensed Consolidated Statements of Income
		Three Months Ended December 31,						Year Ended December 31,
(in thousands of dollars, except for share data)			2022			2021			2022			2021			2020
		(Unaudited)
Revenues:
Wire transfer and money order fees, net		$	132,822		$	108,832		$	469,162		$	393,241		$	307,909
Foreign exchange gain, net			20,201			17,485			72,920			62,832			46,763
Other income			1,414			858			4,723			3,133			2,537
Total revenues			154,437			127,175			546,805			459,206			357,209
Operating expenses:
Service charges from agents and banks			102,087			84,806			364,804			307,458			238,597
Salaries and benefits			15,313			12,156			52,224			43,065			32,831
Other selling, general and administrative expenses			9,904			7,784			34,394			30,334			22,086
Transaction costs			2,531			1,006			3,005			1,006			–
Depreciation and amortization			2,758			2,449			9,470			9,491			10,828
Total operating expenses			132,593			108,201			463,897			391,354			304,342
Operating income			21,844			18,974			82,908			67,852			52,867
Interest expense			2,099			976			5,629			4,537			6,566
Income before income taxes			19,745			17,998			77,279			63,315			46,301
Income tax provision			6,678			4,866			19,948			16,472			12,517
Net income		$	13,067		$	13,132		$	57,331		$	46,843		$	33,784
Earnings per common share:
Basic		$	0.35		$	0.34		$	1.52		$	1.22		$	0.89
Diluted		$	0.35		$	0.33		$	1.48		$	1.20		$	0.88
Weighted-average common shares outstanding:
Basic			36,941,754			38,608,869			37,733,047			38,474,040			38,060,290
Diluted			37,788,404			39,236,948			38,625,390			39,103,450			38,358,171

Reconciliation from Net income to Adjusted Net income
	Three Months Ended December 31,								Year Ended December 31,
(in thousands of dollars, except for share data)		2022				2021				2022				2021				2020
	(Unaudited)								(Unaudited)
Net Income	$	13,067			$	13,132			$	57,331			$	46,843			$	33,784
Adjusted for:
Share-based compensation (a)		1,560				1,219				7,118				4,601				3,237
Offering costs (b)		–				–				–				–				509
TCPA settlement (c)		–				–				–				–				60
Loss on bank closure (d)		–				–				1,583				2,000				252
Transaction costs (e)		2,531				1,006				3,005				1,006				–
Other charges and expenses (f)		382				112				1,141				1,705				637
Amortization of intangibles (g)		1,186				1,263				4,102				5,052				6,841
Income tax benefit related to adjustments (h)		(1,176	)			(842	)			(4,376	)			(3,738	)			(2,981	)
Adjusted Net Income	$	17,550			$	15,890			$	69,904			$	57,469			$	42,339
Adjusted Earnings per share
Basic	$	0.48			$	0.41			$	1.85			$	1.49			$	1.11
Diluted	$	0.46			$	0.40			$	1.81			$	1.47			$	1.10
(a) Represents shared-based compensation relating to equity awards granted to employees and independent directors of the Company.
(b) Represents expenses incurred for professional and legal fees in connection with secondary offerings for the Company’s common stock.
(c) Represents legal fees for the settlement of a class action lawsuit related to the Telephone Consumer Protection Act.
(d) Represents losses related to the closure of financial institutions in Mexico.
(e) Represents primarily financial advisory, professional and legal fees related to business acquisition transactions.
(f) Represents primarily loss on disposal of fixed assets, including a write-off of software development expenditures in an amount of $1.0 million during the year ended December 31, 2021 and foreign currency (gains) losses.
(g) Represents the amortization of intangible assets that resulted from business combination transactions.
(h) Represents the current and deferred tax impact of the taxable adjustments to net income using the Company’s blended federal and state tax rate for each period. Relevant tax-deductible adjustments include all adjustments to Net Income.

Reconciliation from GAAP Basic Earnings per Share to Adjusted Basic Earnings per Share
		Three months ended December 31,								Year Ended December 31,
			2022				2021				2022				2021
		(Unaudited)								(Unaudited)
	GAAP Basic Earnings per Share	$	0.35			$	0.34			$	1.52			$	1.22
	Adjusted for:
	Share-based compensation		0.04				0.03				0.19				0.12
	Loss on bank closure		–				–				0.04				0.05
	Transaction costs		0.07				0.03				0.08				0.03
	Other charges and expenses		0.01			NM					0.03				0.04
	Amortization of intangibles		0.03				0.03				0.11				0.13
	Income tax benefit related to adjustments		(0.03	)			(0.02	)			(0.12	)			(0.10	)
	Non-GAAP Adjusted Basic Earnings per Share	$	0.48			$	0.41			$	1.85			$	1.49
	NM—Amount is not meaningful
	The table above may contain slight summation differences due to rounding

Reconciliation from GAAP Diluted Earnings per Share to Adjusted Diluted Earnings per Share
		Three months ended December 31,								Year Ended December 31,
			2022				2021				2022				2021
		(Unaudited)								(Unaudited)
	GAAP Diluted Earnings per Share	$	0.35			$	0.33			$	1.48			$	1.20
	Adjusted for:
	Share-based compensation		0.04				0.03				0.18				0.12
	Loss on bank closure		–				–				0.04				0.05
	Transaction costs		0.07				0.03				0.08				0.03
	Other charges and expenses		0.01			NM					0.03				0.04
	Amortization of intangibles		0.03				0.03				0.11				0.13
	Income tax benefit related to adjustments		(0.03	)			(0.02	)			(0.11	)			(0.10	)
	Non-GAAP Adjusted Diluted Earnings per Share	$	0.46			$	0.40			$	1.81			$	1.47
	NM—Amount is not meaningful
	The table above may contain slight summation differences due to rounding

Reconciliation from Net Income to Adjusted EBITDA
		Three Months Ended December 31,								Year Ended December 31,
(in thousands of dollars)			2022				2021				2022				2021
		(Unaudited)								(Unaudited)
Net income		$	13,067			$	13,132			$	57,331			$	46,843
Adjusted for:
Interest expense			2,099				976				5,629				4,537
Income tax provision			6,678				4,866				19,948				16,472
Depreciation and amortization			2,758				2,450				9,470				9,491
EBITDA			24,602				21,424				92,378				77,343
Share-based compensation (a)			1,560				1,219				7,118				4,601
Offering costs (b)			–				–				–				–
TCPA settlement (c)			–				–				–				–
Loss on bank closure (d)			–				–				1,583				2,000
Transaction costs (e)			2,531				1,006				3,005				1,006
Other charges and expenses (f)			383				112				1,141				1,705
Adjusted EBITDA		$	29,076			$	23,761			$	105,225			$	86,655
(a) Represents share-based compensation relating to equity awards granted to employees and independent directors of the Company.
(b) Represents expenses incurred for professional and legal fees in connection with secondary offerings of the Company’s common stock.
(c) Represents legal fees for the settlement of a class action lawsuit related to the Telephone Consumer Protection Act.
(d) Represents losses related to the closure of financial institutions in Mexico.
(e) Represents primarily financial advisory, professional and legal fees related to business acquisition transactions.
(f) Represents primarily loss on disposal of fixed assets, including a write-off of software development expenditures in an amount of $1.0 million during the year ended December 31, 2021 and foreign currency (gains) losses.

Reconciliation from Net Income Margin to Adjusted EBITDA Margin
		Three Months Ended December 31,						Year Ended December 31,
		2022			2021			2022			2021
		(Unaudited)						(Unaudited)
	Net Income Margin	8.5	%		10.3	%		10.5	%		10.2	%
	Adjusted for:
	Interest expense	1.4	%		0.8	%		1.0	%		1.0	%
	Income tax provision	4.3	%		3.8	%		3.6	%		3.6	%
	Depreciation and amortization	1.8	%		1.9	%		1.7	%		2.1	%
	EBITDA	15.9	%		16.8	%		16.9	%		16.8	%
	Share-based compensation	1.0	%		1.0	%		1.3	%		1.0	%
	Loss on bank closure	0.0	%		0.0	%		0.3	%		0.4	%
	Transaction costs	1.6	%		0.8	%		0.5	%		0.2	%
	Other charges and expenses	0.2	%		0.1	%		0.2	%		0.4	%
	Adjusted EBITDA Margin	18.8	%		18.7	%		19.3	%		18.9	%
	The table above may contain slight summation differences due to rounding

Reconciliation of Net Income to Net Free Cash Generated
					For the three months ended December 31,								For the year-ended December 31,
(in thousands of dollars)						2022				2021				2022				2021				2020
					(Unaudited)												(Unaudited)
Net income for the period					$	13,067			$	13,132			$	57,331			$	46,843			$	33,784
Depreciation and amortization						2,758				2,450				9,470				9,491				10,828
Stock compensation expense						1,560				1,219				7,118				4,601				3,237
Provision for credit losses						550				529				2,572				1,537				1,801
Cash used in investing activities						(3,149	)			(5,250	)			(12,529	)			(10,773	)			(4,062	)
Term loan pay downs						(1,094	)			(1,094	)			(4,375	)			(4,103	)			(7,661	)
Net free cash generated during the period					$	13,692			$	10,986			$	59,587			$	47,596			$	37,927

SAN DIEGO, March 08, 2023 (GLOBE NEWSWIRE) — aTyr Pharma, Inc. (Nasdaq: LIFE), a biotherapeutics company engaged in the discovery and development of first-in-class medicines from its proprietary tRNA synthetase platform, today announced that the company will present at two upcoming investor conferences scheduled to take place in March 2023.

Details of the presentations appear below:

Conference: 35^th Annual Roth Conference
Date: Tuesday, March 14, 2023
Time: 10:00am PDT
Location: Dana Point, CA
Format: Fireside Chat

Conference: Oppenheimer 33^rd Annual Healthcare Conference
Date: Wednesday, March 15, 2023
Time: 10:00am EDT
Location: Virtual
Format: Corporate Presentation

In addition to the presentations, company management will be available to participate in one-on-one meetings with investors who are registered attendees of the conferences. A webcast and replay of the Corporate Presentation will be available on the Investor’s section of the company’s website at www.atyrpharma.com. For more information, please contact [email protected].

Abo
ut aTyr

aTyr is a biotherapeutics company engaged in the discovery and development of first-in-class medicines from its proprietary tRNA synthetase platform. aTyr’s research and development efforts are concentrated on a newly discovered area of biology, the extracellular functionality and signaling pathways of tRNA synthetases. aTyr has built a global intellectual property estate directed to a potential pipeline of protein compositions derived from 20 tRNA synthetase genes and their extracellular targets. aTyr’s primary focus is efzofitimod, a clinical-stage product candidate which binds to the neuropilin-2 receptor and is designed to downregulate immune engagement in fibrotic lung disease. For more information, please visit www.atyrpharma.com.

Contact:

Ashlee Dunston
Director, Investor Relations and Corporate Communications
[email protected]

– Data from Phase 1a Portion of ADVANCED-1 Trial of TARA-002 for the Treatment of Non-Muscle Invasive Bladder Cancer Expected in 2Q23 –

– Start up Activities for Phase 2 Trial of TARA-002 in Lymphatic Malformations Underway; Trial Initiation Expected 2H23 –

– Cash, Cash Equivalents and Investments of $102.3M as of December 31, 2022 Expected to Fund Operations and Data Milestones into 2025 –   

NEW YORK, March 08, 2023 (GLOBE NEWSWIRE) — Protara Therapeutics, Inc. (Nasdaq: TARA), a clinical-stage company developing transformative therapies for the treatment of cancer and rare diseases, today announced financial results for the full year and fourth quarter ended December 31, 2022, and provided a business update.

“With key data and milestones expected from our clinical programs for TARA-002, including data from the Phase 1a portion of the ADVANCED-1 trial in non-muscle invasive bladder cancer (NMIBC) in the second quarter of 2023, we believe this year will be a particularly exciting time for Protara,” said Jesse Shefferman, Chief Executive Officer of Protara Therapeutics. “We look forward to leveraging data from the ADVANCED-1 trial to inform the design of further clinical studies in our NIMBC program. For our program in lymphatic malformations (LMs), a highly underserved pediatric population for which we believe TARA-002 could serve as a meaningful intervention, we have begun Phase 2 clinical trial start up activities and anticipate initiating the trial in the second half of this year. We believe we are well positioned to successfully execute on our pipeline programs and look forward to providing updates in due course.”

Recent Highlights

TARA-002 in NMIBC

• In December 2022, the Company’s Phase 1 ADVANCED-1 clinical trial of TARA-002, Protara’s investigational cell-based immunopotentiator for the treatment of NMIBC, was featured in a Trials in Progress poster at the Annual Meeting of the Society of Urologic Oncology.
• The Company expects to report data from the Phase 1a portion of the trial in the second quarter of 2023 and move rapidly into the Phase 1b expansion portion of the trial, which will evaluate safety and efficacy in patients with carcinoma in situ (CIS).

TARA-002 in LMs

• The Company has initiated study start up activities for a Phase 2 clinical trial of TARA-002 in pediatric patients with macrocystic and mixed-cystic LMs.

IV Choline Chloride in Intestinal Failure Associated Liver Disease (IFALD)

• Protara’s prospective study to enhance understanding of the incidence of IFALD in patients dependent on parenteral nutrition is ongoing with results expected in the third quarter of 2023.
• The Company plans to leverage results from the prospective study, as well as its completed retrospective study, to inform next steps for the IV Choline Chloride development program.

Corporate Updates

• In January 2023, Protara announced the appointment of Patrick Fabbio as Chief Financial Officer. Mr. Fabbio brings to Protara more than 30 years of experience at various life science and pharmaceutical companies and most recently served as President and Chief Financial Officer at NYSE-listed Rafael Holdings, Inc.

Fourth Quarter and Full Year 2022 Financial Results

• As of December 31, 2022, cash, cash equivalents and marketable debt securities totaled $102.3 million. The Company expects its cash, cash equivalents, and marketable debt securities will be sufficient to fund its planned operations and data milestones into 2025.
• Research and development expenses for the fourth quarter of 2022 increased to $5.0 million from $4.1 million for the prior year period, and for the full year decreased to $16.8 million compared to $21.1 million for 2021. The fourth quarter increase was primarily due to an increase in non-clinical studies performed in the quarter versus the comparable period. The full year decrease was primarily due to a reduction in clinical manufacturing expenses.
• General and administrative expenses for the fourth quarter of 2022 decreased to $5.0 million from $6.2 million for the prior year period, and for the full year decreased to $20.7 million compared to $26.4 million for 2021. The fourth quarter and full year decreases were primarily due to a reduction in stock based compensation expense and market development activities.
• For the fourth quarter of 2022, Protara reported a net loss of $39.0 million, or $3.46 per share, compared with a net loss of $10.2 million, or $0.91 per share, for the same period in 2021. Net loss in the fourth quarter of 2022 included a non-cash goodwill impairment charge of $29.5 million associated with the accounting for the reverse merger transaction in January of 2020. Net loss for the year ended December 31, 2022 was $66.0 million, or $5.86 per share, compared with a net loss of $47.3 million, or $4.21 per share, for the year ended December 31, 2021. Net loss for the fourth quarter included approximately $1.4 million of stock-based compensation expenses. Net loss for the year ended December 31, 2022 included approximately $6.7 million of stock-based compensation expenses.

About TARA-002

TARA-002 is an investigational cell therapy in development for the treatment of NMIBC and LMs for which it has been granted Rare Pediatric Disease Designation by the U.S. Food and Drug Administration. TARA-002 was developed from the same master cell bank of genetically distinct group A Streptococcus pyogenes as OK-432, a broad immunopotentiator marketed as Picibanil^® in Japan and Taiwan by Chugai Pharmaceutical Co., Ltd. Protara has successfully demonstrated manufacturing comparability between TARA-002 and OK-432.

When TARA-002 is administered, it is hypothesized that innate and adaptive immune cells within the cyst or tumor are activated and produce a strong immune cascade. Neutrophils, monocytes and lymphocytes infiltrate the abnormal cells and various cytokines, including interleukins IL-2, IL-6, IL-8, IL-10, IL-12, interferon (IFN)-gamma, tumor necrosis factor (TNF)-alpha, granulocyte colony-stimulating factor, and granulocyte-macrophage colony-stimulating factor are secreted by immune cells to induce a strong local inflammatory reaction and destroy the abnormal cells.

About Non-Muscle Invasive Bladder Cancer (NMIBC)

Bladder cancer is the 6th most common cancer in the United States, with NMIBC representing approximately 80% of bladder cancer diagnoses. Approximately 65,000 patients are diagnosed with NMIBC in the United States each year. NMIBC is cancer found in the tissue that lines the inner surface of the bladder that has not spread into the bladder muscle.

About Lymphatic Malformations (LMs)

LMs are rare, congenital malformations of lymphatic vessels resulting in the failure of these structures to connect or drain into the venous system. Most LMs are present in the head and neck region and are diagnosed in early childhood during the period of active lymphatic growth, with more than 50% detected at birth and 90% diagnosed before the age of 3 years. The most common morbidities and serious manifestations of the disease include compression of the upper aerodigestive tract, including airway obstruction requiring intubation and possible tracheostomy dependence; intralesional bleeding; impingement on critical structures, including nerves, vessels, lymphatics; recurrent infection, and cosmetic and other functional disabilities.

About IV Choline Chloride and Intestinal Failure-associated Liver Disease (IFALD)

IV Choline Chloride is an investigational, intravenous (IV) phospholipid substrate replacement therapy initially in development for patients receiving parenteral nutrition (PN) who have IFALD. Choline is a known important substrate for phospholipids that are critical for healthy liver function. Because PN patients cannot sufficiently absorb adequate levels of choline and no available PN formulations contain sufficient amounts of choline to correct this deficiency, PN patients often experience a prolonged progression to hepatic failure and death, with the only known intervention being a dual small bowel/liver transplant. If approved, IV Choline Chloride would be the first approved therapy for IFALD. It has been granted Orphan Drug Designations (ODDs) by the FDA for the treatment of IFALD and the prevention of choline deficiency in PN patients.

About Protara
Therapeutics, Inc.

Protara is committed to advancing transformative therapies for people with cancer and rare diseases. Protara’s portfolio includes its lead program, TARA-002, an investigational cell-based therapy being developed for the treatment of non-muscle invasive bladder cancer and lymphatic malformations, and IV Choline Chloride, an investigational phospholipid substrate replacement therapy for the treatment of intestinal failure-associated liver disease. For more information, visit www.protaratx.com.

Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical facts are “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Protara may, in some cases, use terms such as “predicts,” “believes,” “potential,” “proposed,” “continue,” “designed,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should” or other words or expressions referencing future events, conditions or circumstances that convey uncertainty of future events or outcomes to identify these forward-looking statements. Such forward-looking statements include but are not limited to, statements regarding Protara’s intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: Protara’s business strategy, including its development plans for its product candidates and plans regarding the timing or outcome of existing or future clinical trials; statements related to expectations regarding interactions with the FDA; Protara’s financial position; statements regarding the anticipated safety or efficacy of Protara’s product candidates; and Protara’s outlook for the remainder of the year. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that contribute to the uncertain nature of the forward-looking statements include: risks that Protara’s financial guidance may not be as expected, as well as risks and uncertainties associated with: Protara’s development programs, including the initiation and completion of non-clinical studies and clinical trials and the timing of required filings with the FDA and other regulatory agencies; general market conditions; changes in the competitive landscape; changes in Protara’s strategic and commercial plans; Protara’s ability to obtain sufficient financing to fund its strategic plans and commercialization efforts; having to use cash in ways or on timing other than expected; the impact of the COVID-19 pandemic on Protara’s business and the global economy as well as the impact on Protara’s contract research organizations, study sites or other clinical partners; the impact of market volatility on cash reserves; the loss of key members of management; the impact of general U.S. and foreign, economic, industry, market, regulatory or political conditions; and the risks and uncertainties associated with Protara’s business and financial condition in general, including the risks and uncertainties described more fully under the caption “Risk Factors” and elsewhere in Protara’s filings and reports with the United States Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management’s assumptions and estimates as of such date. Protara undertakes no obligation to update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events or otherwise, except as required by law.

Protara Therapeutics, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)

		December 31,
		2022				2021
Assets
Current assets:
Cash and cash equivalents		$	24,127			$	35,724
Marketable debt securities			60,243				55,505
Prepaid expenses and other current assets			1,776				1,883
Total current assets			86,146				93,112
Restricted cash, non-current			745				745
Marketable debt securities, non-current			17,886				39,467
Property and equipment, net			1,592				1,719
Operating lease right-of-use asset			6,277				7,171
Goodwill			–				29,517
Other assets			644				865
Total assets		$	113,290			$	172,596
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	1,586			$	954
Accrued expenses			3,237				2,489
Operating lease liability			917				855
Total current liabilities			5,740				4,298
Operating lease liability, non-current			5,467				6,384
Total liabilities			11,207				10,682
Commitments and contingencies
Stockholders’ Equity
Preferred stock, $0.001 par value, authorized 10,000,000 shares:
Series 1 convertible preferred stock, 8,028 shares authorized at December 31, 2022 and 2021, respectively 8,027 shares issued and outstanding as of December 31, 2022 and 2021, respectively.			–				–
Common stock, $0.001 par value, authorized 100,000,000 shares:
Common stock, 11,267,389 and 11,235,731 shares issued and outstanding as of December 31, 2022 and 2021, respectively.			11				11
Additional paid in capital			262,724				256,126
Accumulated deficit			(159,964	)			(94,012	)
Accumulated other comprehensive income (loss)			(688	)			(211	)
Total stockholders’ equity			102,083				161,914
Total liabilities and stockholders’ equity		$	113,290			$	172,596

Protara Therapeutics, Inc.

Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except share and per share data)

	(Unaudited)								(Audited)
	Three months ended								Years Ended December 31,
		12/31/2022				12/31/2021			2022				2021
Operating expenses:
Research and development	$	4,989			$	4,068			$	16,808			$	21,088
General and administrative		5,003				6,220				20,737				26,401
Loss on impairment of goodwill		29,517				–				29,517				–
Total operating expenses		39,509				10,288				67,062				47,489
Loss from operations		(39,509	)			(10,288	)			(67,062	)			(47,489	)
Interest and investment income		543				59				1,110				237
Net loss		38,966				(10,229				(65,952	)			(47,252	)
Net loss per share attributable to common stockholders, basic and diluted	$	(3.46	)		$	(0.91	)		$	(5.86	)		$	(4.21	)
Weighted average shares outstanding, basic and diluted		11,267,389				11,235,731				11,259,615				11,232,576
Other comprehensive income (loss):
Net unrealized (loss) gain on marketable debt securities		442				(172	)			(477	)			(211	)
Other comprehensive income (loss)		442				(172	)			(477	)			(211	)
Comprehensive Loss	$	(38,524	)		$	(10,401	)		$	(66,429	)		$	(47,463	)

Company Contact:

Justine O’Malley
Protara Therapeutics
[email protected]
646-817-2836

 

SAN DIEGO, March 08, 2023 (GLOBE NEWSWIRE) — Maravai LifeSciences, Inc. (NASDAQ: MRVI), a global provider of life science reagents and services to researchers and biotech innovators, is scheduled to participate in the following investor conferences during the month of March.

On March 15, 2023, at 2:00 p.m. PST, Kevin Herde, Chief Financial Officer, and Deborah Barbara, Vice President, Strategy and Business Development will participate in a fireside chat at the Barclays Global Healthcare Conference being held in Miami, Florida.

On March 21, 2023, at 9:45 a.m. PST, Carl Hull, Chairman of the Board and Interim CEO will participate in a fireside chat at the KeyBanc Capital Markets Life Sciences and MedTech Investor Forum being held virtually.

A live webcast of the presentations will be available to all interested parties on the Maravai LifeSciences Investor Relations website, under News & Events. An archived version of the webcasts will also be available on the Maravai website following the completion of each event.

About Maravai

Maravai is a leading life sciences company providing critical products to enable the development of drug therapies, diagnostics, and novel vaccines and to support research on human diseases. Maravai’s companies are leaders in providing products and services in the fields of nucleic acid synthesis and biologics safety testing to many of the world’s leading biopharmaceutical, vaccine, diagnostics, and cell and gene therapies companies.

For more information about Maravai LifeSciences, visit www.maravai.com.

Contact Information:

Media Contact:
Sara Michelmore
MacDougall Advisors
+1 781-235-3060
[email protected]

Investor Contact:
Deb Hart
Maravai LifeSciences
+1 858-988-5917
[email protected]

WOBURN, Mass., March 08, 2023 (GLOBE NEWSWIRE) — Replimune Group, Inc. (NASDAQ: REPL), a clinical stage biotechnology company pioneering the development of a novel portfolio of tumor-directed oncolytic immunotherapies, today announced that members from the Replimune management team will present and host investor meetings at the following two conferences:

Barclays Global Healthcare Conference
Date: Wednesday, March 15, 2023
Fireside Chat Time: 2:05 pm EDT
Location: The Loews Miami Beach Hotel, Miami, FL

Jefferies Biotech on the Bay Summit
Location: 1 Hotel South Beach, Miami, FL
In-person 1×1 investor meetings only

About Replimune

Replimune Group, Inc., headquartered in Woburn, MA, was founded in 2015 with the mission to transform cancer treatment by pioneering the development of novel tumor-directed oncolytic immunotherapies. Replimune’s proprietary RPx platform is based on a potent HSV-1 backbone with payloads added to maximize immunogenic cell death and the induction of a systemic anti-tumor immune response. The RPx platform has a unique dual local and systemic mechanism of action (MOA) consisting of direct selective virus-mediated killing of the tumor resulting in the release of tumor derived antigens and altering of the tumor microenvironment (TME) to ignite a strong and durable systemic response. This MOA is expected to be synergistic with most established and experimental cancer treatment modalities, and, with an attractive safety profile the RPx platform has the versatility to be developed alone or combined with a variety of other treatment options. For more information, please visit www.replimune.com.

Investor Inquiries

Chris Brinzey
ICR Westwicke
339.970.2843
[email protected]

Media Inquiries

Lissette Steele
Verge Scientific Communications
202.930.4762 x 409
[email protected]

TUSTIN, Calif., March 08, 2023 (GLOBE NEWSWIRE) — Nogin (NASDAQ: NOGN), a leading provider of innovative Commerce-as-a-Service (“CaaS”) technology and services, today announced V1 of Nogin Intelligent Commerce. Building on Vx of Intelligent Commerce released in October 2022, V1 offers powerful new features including first-of-its-kind AI-powered customer segmentation, algorithmic merchandising, and automated campaign optimization to enable marketers and merchandisers to maximize the lift from their promotions and marketing spend.

“With the V1 release of Nogin Intelligent Commerce, our customers gain access to cutting-edge enterprise ecommerce technologies,” said Geoffrey Van Haeren, Co-Founder and Chief Technologist of Nogin. “For brands using or considering Shopify Plus, Intelligent Commerce supercharges their ecommerce operations, adding a market-leading customer data platform with machine-learning capabilities and algorithmic merchandising capabilities. With Nogin, online store owners looking to take their sales performance to the next level and maximize their returns on marketing investments can do so without needing to replatform or sink costs into R&D efforts.”

Built for brands selling direct-to-consumer and through online channels, Nogin Intelligent Commerce leverages over 10 years of anonymized big data assets and delivers a powerful customer data platform to brands that wouldn’t otherwise have the historical data to take advantage of this enterprise technology. With the V1 release, Nogin provides next-generation ecommerce tools to small and mid-sized brands to ensure they can stay competitive with the largest online retailers, without the time, expense, risk and distraction of moving to a traditional enterprise platform.

New features announced today include:

• AI-powered customer segmentation: Build and optimize customer segments by leveraging over 10 years of anonymized data mined from Nogin’s CaaS technology.
• Algorithmic merchandising: Automatically extend native merchandising capabilities with sophisticated features predicting both shopper behavior and inventory constraints.
• Smart promotion optimization: Maximize campaign potential with channel-sensitive, self-optimizing A/B testing and campaign optimization features and automatically create coupons and other infrastructure required for testing.

These new capabilities are available now as part of Nogin Intelligent Commerce. For more information about Nogin, please visit www.nogin.com.

About Nogin


Nogin
(Nasdaq: NOGN, NOGNW), the Intelligent Commerce company, provides the world’s leading enterprise-class ecommerce technology and services for brand leaders that need to deliver superior growth with predictable costs and an exceptional online experience. The Nogin Intelligent Commerce technology is a cloud-based ecommerce environment purpose-built for brands selling direct-to-consumer (D2C) and through online channel partners. Nogin frees its customers to focus on their brands while running as much or as little of the infrastructure as they choose. Founded in 2010, Nogin optimizes the entire ecommerce lifecycle for D2C brands, such as bebe, Brookstone, Hurley, and Kenneth Cole, achieving average growth of more than 40% in annual gross merchandise value (GMV) in the first year. To learn more, visitwww.nogin.com or follow us onLinkedIn and on Twitter at @Nogincommerce.

Contacts:

Media Contact:

BOCA Communications for Nogin
[email protected]

Nogin Investor Relations Contact:

Cody Slach and Tom Colton
Gateway Investor Relations
949-574-3860
[email protected]

FREMONT, Calif., March 08, 2023 (GLOBE NEWSWIRE) — Actelis Networks, Inc. (NASDAQ:ASNS) (“Actelis” or the “Company”) a market leader in cyber-hardened, rapid deployment networking solutions for wide area IoT applications, today announced the appointment of Tzachy Givaty as Regional Vice President for Asia-Pacific (“APAC”) to lead the company’s business development and channel partner expansion efforts in the region.

Givaty has a proven record of achievement over the past 20 years in the areas of sales management, business development & key partners/alliances management roles within global cybersecurity, mobile & IoT solutions and enterprise SaaS-based software solutions companies.

Prior to joining Actelis, Givaty was Vice President of Sales and Partnerships at First Point Mobile Guard, where he was responsible for building a worldwide sales team and distribution channel partner structure. Givaty successfully developed new territories in the APAC region and the Middle East, rapidly expanding the company’s presence over a three-year period.

“Tzachy truly understands how to develop new markets, and help clients solve their networking and cyber-security issues, which is in perfect alignment with our mission at Actelis,” said Yaron Altit, Executive Vice President International Sales for Actelis. “His vast international experience working with governments, service providers and channel partners fits perfectly with Actelis’ global expansion plans.”

“I am excited to join Actelis knowing the critical role of reliable IoT networking and network security in the rapidly growing IoT markets. More and more mission-critical IoT networks are deployed for smart city, energy, transportation, governmental projects and more – requiring Actelis’ solutions,” said Givaty. “I’m looking forward to introducing Actelis to key system integrators and service providers to help them break down the barriers to fast and secure cross-technology IoT applications.”

About Actelis Networks, Inc.

Actelis Networks, Inc. (NASDAQ: ASNS) is a market leader in cyber-hardened, rapid-deployment networking solutions for wide-area IoT applications including federal, state and local government, ITS, military, utility, rail, telecom and campus applications. Actelis’ unique portfolio of hybrid fiber-copper, environmentally hardened aggregation switches, high density Ethernet devices, advanced management software and cyber-protection capabilities, unlocks the hidden value of essential networks, delivering safer connectivity for rapid, cost-effective deployment. For more information, please visit www.actelis.com.

Forward-looking Statements

This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company’s filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Media Contact:

Sean Renn
Global VP Marketing & Communications
[email protected]

Investor Relations Contact:

Matt Glover and Ralf Esper
Gateway Investor Relations
+1 949-574-3860
[email protected]

 

RESTON, Va., March 08, 2023 (GLOBE NEWSWIRE) — Lightbridge Corporation (Nasdaq: LTBR), an advanced nuclear fuel technology company, today announced that it has received a Notice of Allowance from the Canadian Intellectual Property Office for a key patent that covers a fuel assembly design for Canada Deuterium Uranium (CANDU) heavy water reactors with a mixed grid arrangement of Lightbridge metallic fuel rods.

Seth Grae, President & Chief Executive Officer of Lightbridge Corporation, commented, “This is an important expansion of Lightbridge’s intellectual property around our fuel assembly design being utilized in CANDU reactors. CANDU-type reactors represent an important market for Lightbridge Fuel™. Our ongoing fuel development, including future testing and feasibility studies, will help prioritize commercial deployment to the types of reactors that can utilize Lightbridge Fuel the soonest and with the greatest commercial value.”

About Lightbridge Corporation

Lightbridge Corporation (NASDAQ: LTBR) is focused on developing advanced nuclear fuel technology essential for delivering abundant, zero-emission, clean energy and providing energy security to the world. The Company is developing Lightbridge Fuel™, a proprietary next-generation nuclear fuel technology for existing light water reactors and pressurized heavy water reactors, significantly enhancing reactor safety, economics, and proliferation resistance. The Company is also developing Lightbridge Fuel for new Small Modular Reactors (SMRs) to bring the same benefits plus load-following with renewables on a zero-carbon electric grid. Lightbridge has secured a long-term strategic partnership with Idaho National Laboratory (INL), the United States’ lead nuclear energy research and development laboratory, in collaboration with the U.S. Department of Energy (DOE). DOE’s Gateway for Accelerated Innovation in Nuclear (GAIN) program has twice awarded Lightbridge to support the development of Lightbridge Fuel. An extensive worldwide patent portfolio backs Lightbridge’s innovative fuel technology. Lightbridge is included in the Russell Microcap® Index. For more information, please visit www.ltbridge.com.

To receive Lightbridge Corporation updates via e-mail, subscribe at

https://www.ltbridge.com/investors/news-events/email-alerts

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For an introductory video on Lightbridge, please visit


www.ltbridge.com


or click


here


to watch the video.

Forward Looking Statements

With the exception of historical matters, the matters discussed herein are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the timing and outcome of research and development activities, other steps to commercialize Lightbridge Fuel™ and future governmental support and funding for nuclear energy. These statements are based on current expectations on the date of this news release and involve a number of risks and uncertainties that may cause actual results to differ significantly from such estimates. The risks include, but are not limited to: the Company’s ability to commercialize its nuclear fuel technology; the degree of market adoption of the Company’s product and service offerings; the Company’s ability to fund general corporate overhead and outside research and development costs; market competition; our ability to attract and retain qualified employees; dependence on strategic partners; demand for fuel for nuclear reactors, including small modular reactors; the Company’s ability to manage its business effectively in a rapidly evolving market; the availability of nuclear test reactors and the risks associated with unexpected changes in the Company’s fuel development timeline; the increased costs associated with metallization of our nuclear fuel; public perception of nuclear energy generally; changes in the political environment; risks associated with the further spread of COVID-19, including the ultimate impact of COVID-19 on people, economies, and the Company’s ability to access capital markets; war in Europe; changes in the laws, rules and regulations governing the Company’s business; development and utilization of, and challenges to, our intellectual property; risks associated with potential shareholder activism; potential and contingent liabilities; as well as other factors described in Lightbridge’s filings with the Securities and Exchange Commission. Lightbridge does not assume any obligation to update or revise any such forward-looking statements, whether as the result of new developments or otherwise, except as required by law. Readers are cautioned not to put undue reliance on forward-looking statements.

A further description of risks and uncertainties can be found in Lightbridge’s Annual Report on Form 10-K for the fiscal year ended December 31st, 2021 and in its other filings with the Securities and Exchange Commission, including in the sections thereof captioned “Risk Factors” and “Forward-Looking Statements”, all of which are available at http://www.sec.gov/ and www.ltbridge.com.

Investor Relations Contact:

Matthew Abenante, IRC
Director of Investor Relations
Tel: +1 (347) 947-2093
[email protected]

Net revenues totaled $500.0 million for the fiscal year

Net loss totaled ($59.7) million, or ($1.90) per diluted share, for fiscal year;

excluding certain items, non-GAAP net income totaled $7.6 million, or $0.24 per diluted share

Balance sheet remains strong, with cash and cash equivalents of $46.6 million and no debt

Management provides guidance for fiscal year ending February 3, 2024

FORT WAYNE, Ind., March 08, 2023 (GLOBE NEWSWIRE) — Vera Bradley, Inc. (Nasdaq: VRA) (or the “Company”) today announced its financial results for the fourth quarter and fiscal year ended January 28, 2023 (“Fiscal 2023”).

In this release, Vera Bradley, Inc. or “the Company” refers to the entire enterprise and includes both the Vera Bradley and Pura Vida brands. “Vera Bradley” on a stand-alone basis refers only to the Vera Bradley brand.

Fourth Quarter and Fiscal Year Comments

Jackie Ardrey, Chief Executive Officer of the Company, noted, “We focused on driving revenues in the fourth quarter through targeted, strategic promotions on seasonal, giftable, and key items. As a result, total Company fourth quarter revenues outperformed our guidance, although gross margins remained under pressure. Diligent expense control enabled us to deliver fourth quarter non-GAAP diluted EPS of $0.16, which was nearly flat with last year.

“In the fourth quarter, sales trends at both Vera Bradley and Pura Vida improved over prior quarters, with Vera Bradley total sales down just 1% and Pura Vida sales down less than 5% on a year-over-year basis. For the fourth consecutive quarter, the Vera Bradley Indirect Channel experienced year-over-year revenue growth. Targeted customer retention efforts led to increased Vera Bradley e-commerce revenues, while Full-Line and Factory store revenues continued to be negatively affected by traffic levels, although trends improved throughout the quarter.”

Ardrey continued, “At Pura Vida, e-commerce trends improved over previous quarters due to strategic promotions; however, overall challenges continued to persist in our social and digital media effectiveness coupled with rising digital media costs. And, we experienced a year-over-year sales decline in our wholesale channel. On the plus side, Pura Vida Full-Line retail stores continued to perform ahead of our expectations, and they drove improved e-commerce traffic and revenues in their markets.

“We also took the opportunity in the fourth quarter to reset and appropriately position the Pura Vida business for the future, by recording goodwill and tradename impairments and necessary inventory write-offs.

“We ended the fiscal year with consolidated revenues of $500 million. During the year, we began to see stabilization in our supply chain, diligently controlled our expenses, and carefully managed our cash. During the fourth quarter, we meaningfully reduced our year-end inventory levels from the third quarter.”

Ardrey added, “Although Fiscal 2023 had its challenges, we took actions and laid the groundwork to position the Company for the future.

“On a corporate basis:

• In mid-2022, we collaboratively identified $25 million in annualized cost-reduction initiatives and efficiency processes. The expense savings were derived across various areas of the Company, including payroll reductions, retail store efficiencies, marketing expenses, information technology contracts and projects, professional services, and logistics and operational costs. Many of the savings were realized in Fiscal 2023.
• In January 2023, we further streamlined our corporate structure by eliminating the positions of Vera Bradley Brand President, Chief Creative Officer, and Chief Revenue Officer, and by adding the position of Chief Marketing Officer, designed to drive additional annual cost savings of approximately $2 million, add more focus on marketing and merchandising, and position the Company to deliver steady top- and bottom-line growth. These decisions were made in order to right-size our leadership team and cost structure for the size of our business, to address the continuing challenging macro environment, and to best position us to achieve our long-term strategic plans.
• Subsequent to the end of Fiscal 2023, in January 2023, we acquired the remaining 25% interest in Pura Vida from founders Griffin Thall and Paul Goodman for $10 million.
• We continued to make investments in customer data science, business analytics, and pricing optimization, allowing us to collect and analyze data and make fact-based decisions to more efficiently run our business.

“At the Vera Bradley brand:

• We expanded our robust product innovation pipeline, including launching our Featherweight Collection; continued another year of iconic product collaborations, including with Disney, Harry Potter, and Crocs; and expanded our cozy, sleep, and outerwear collections.
• We continued to strengthen and rationalize our store base. We opened five new Factory stores and closed 19 underperforming Full-Line stores and one Factory store, ending the fiscal year with 51 Full-Line and 79 Factory locations. We also continued to expand options for customers to shop, like enhancing our presence in third-party marketplaces and adding boutiques in select high-traffic airports.

“At the Pura Vida brand:

• We entered into several high-profile product collaborations, with brands such as Hello Kitty, Disney, and Harry Potter, and expanded our product offerings by launching our demi-fine collection and expanding our assortment of engravable jewelry, all designed to bring new customers to our brand.
• We focused on building a more diverse, innovative, effective, and performance-based marketing program to drive Pura Vida e-commerce sales. We began the process of implementing a comprehensive customer data platform to build a single, coherent, complete view of each Pura Vida customer so that we can better target and personalize marketing and become less reliant on third-party marketing. This project is scheduled for completion this spring. We continued to engage our micro influencers, significantly expanded our TikTok presence, launched impactful ads on connected TV, optimized SMS, and aggressively explored other methods to effectively reach our customers.
• We opened three new Pura Vida Full-Line stores during the year, bringing our Full-Line store count to four, which collectively are exceeding our expectations. These four stores are playing a role in driving new customer acquisition as we continue to diversify our marketing platforms, and they demonstrate the power a retail presence can have in driving digital sales, omni-channel loyalty, and spending.”

Summary of Financial Performance for the Fourth Quarter

Consolidated net revenues totaled $147.1 million for the current year fourth quarter compared to $149.6 million in the prior year fourth quarter.

For the current year fourth quarter, Vera Bradley, Inc.’s consolidated net loss totaled ($28.2) million, or ($0.91) per diluted share. These results included $33.1 million of net after tax charges, comprised of $22.4 million of goodwill and intangible asset impairment charges; $6.7 million of net inventory and purchase order-related adjustments; $2.4 million of severance, retention, and stock-based retirement compensation charges; $0.8 million related to new CEO sign-on bonus and relocation expenses; $0.5 million for the amortization of definite-lived intangible assets; and $0.3 million of consulting and professional fees primarily associated with strategic initiatives. On a non-GAAP basis, Vera Bradley, Inc.’s consolidated fourth quarter net income totaled $5.0 million, or $0.16 per diluted share.

For the prior year fourth quarter, Vera Bradley, Inc. consolidated net income totaled $5.2 million, or $0.15 per diluted share. These results included $0.5 million of net after tax charges primarily related to intangible asset amortization. On a non-GAAP basis, excluding these charges, Vera Bradley, Inc.’s prior year consolidated fourth quarter net income totaled $5.7 million, or $0.17 per diluted share.

Summary of Financial Performance for the Fiscal Year

Consolidated net revenues totaled $500.0 million for Fiscal 2023 compared to $540.5 million for Fiscal 2022.

For the current fiscal year, Vera Bradley, Inc.’s consolidated net loss totaled ($59.7) million, or ($1.90) per diluted share. These results included $67.4 million of net after tax charges, comprised of $40.6 million of goodwill and intangible asset impairment charges; $12.2 million of net inventory and purchase order-related adjustments; $7.4 million of severance, retention, and stock-based retirement compensation charges; $3.3 million of consulting and professional fees primarily associated with cost savings initiatives, the CEO search, and strategic initiatives; $1.8 million for the amortization of definite-lived intangible assets; $1.0 million of store and right-of-use asset impairment charges; $0.8 million related to the new CEO sign-on bonus and relocation expenses; and $0.3 million of goodMRKT exit costs. On a non-GAAP basis, Vera Bradley, Inc.’s consolidated net income totaled $7.6 million, or $0.24 per diluted share.

For the prior fiscal year, Vera Bradley, Inc.’s consolidated net income totaled $17.8 million, or $0.52 per diluted share. These results included $1.8 million of net after tax charges primarily related to intangible asset amortization. On a non-GAAP basis, excluding these charges, Vera Bradley, Inc.’s prior year consolidated net income totaled $19.7 million, or $0.57 per diluted share.

Looking Ahead

Ardrey noted, “We are committed to returning Vera Bradley and Pura Vida to profitable growth and generating strong cash flow as a Company, which I believe will deliver value to our shareholders over the long term. Since joining the Company in November, I am more convinced than ever that both brands have enormous potential, and I am very excited about the future of Vera Bradley, Inc. We have a portfolio of two iconic, lifestyle brands; multi-generational customers with remarkable loyalty and devotion; impressive brand recognition; a solid balance sheet; and an extraordinary culture. We have some heavy lifting to do in fiscal 2024, but I am confident that we will emerge a stronger Company.”

Ardrey continued, “At both brands, we are embarking on Project Restoration and will focus on four key pillars – Consumer, Brand, Product, and Channel – to drive this long-term profitable growth.

“At Vera Bradley:

• Consumer: We will focus on restoring brand relevancy, targeting casual and feminine 35 to 54 year old women who value both fashion and function.
• Brand: We will strategically market our distinctive and unique position as a feminine, fashionable brand that connects with consumers on a deep, emotional level.
• Product: We will refocus on core categories and items we are “best at,” by innovating and expanding within our core products. We will elevate our colorful feminine heritage, keeping it distinctive but more trend relevant through updated print and design. We also will innovate into strategic adjacent lifestyle item introductions that make sense for our customers.
• Channel: We will accelerate our digital-first focus and online presence, build a balanced footprint that more clearly differentiates Full-Line from Factory stores, and target and/or strengthen relationships with strategically-aligned wholesale partners.

“At Pura Vida:

• Consumer: We will sharpen our focus on the care-free 18 to 24 collegiate girl, who both those younger and older aspire to be.
• Brand: We will recenter our brand ethos on “living life to the fullest,” with marketing authentically sharing real moments, places, and faces.
• Product: We will focus on delivering unique, fun, playful designs that are affordable and accessible with a dominant emphasis on bracelets and jewelry, as well as other strategic, adjacent categories.
• Channel: We will have a strong focus on restoring e-commerce growth; strategic growth of wholesale by pursuing larger, more strategic partnerships and expanding larger existing accounts; and refining our existing store model.”

“To support growth and development of our two brands, on a corporate basis, we will continue to make strategic investments in the right talent to help drive the transformation and diligently manage our supply chain, gross margin, SG&A expenses, and cash flow,” Ardrey concluded.

Non-GAAP Numbers

The current year non-GAAP fourth quarter income statement numbers referenced below exclude the previously outlined charges for goodwill and intangible asset impairment; net inventory and purchase order-related adjustments; severance, retention, and stock-based retirement compensation; new CEO sign-on bonus and relocation; amortization of definite-lived intangible assets; and consulting and professional fees primarily associated with strategic initiatives. The current year non-GAAP fiscal year income statement numbers also exclude the previously outlined charges for cost savings initiatives and the CEO search, store and right-of-use asset impairment charges, and goodMRKT exit costs. The prior year non-GAAP fourth quarter and fiscal year income statement numbers referenced below exclude the previously outlined intangible asset amortization and store impairment charges.

Fourth Quarter Details

Current year fourth quarter Vera Bradley Direct segment revenues totaled $99.5 million, a 4.6% decrease from $104.4 million in the prior year fourth quarter. Comparable sales decreased 4.5% from the prior year. The Company permanently closed 19 Full-Line stores and one Factory store and opened five Factory stores in the last twelve months.

Vera Bradley Indirect segment revenues totaled $16.7 million, a 28.5% increase over $13.0 million in the prior year fourth quarter. The increase was broad-based with both specialty and key accounts posting year-over-year sales gains.

Pura Vida segment revenues totaled $30.9 million, a 4.2% decrease from $32.2 million in the prior year fourth quarter. The decline was primarily related to lower wholesale sales, partially offset by new store openings.

Fourth quarter consolidated gross profit totaled $60.0 million, or 40.8% of net revenues, compared to $76.1 million, or 50.9% of net revenues, in the prior year fourth quarter. On a non-GAAP basis, current year consolidated gross profit totaled $71.3 million, or 48.5% of net revenues. The current year gross profit rate primarily was negatively affected by higher inbound and outbound freight expense and increased promotional activity, partially offset by price increases.

Consolidated SG&A expense totaled $70.0 million, or 47.6% of net revenues, compared to $67.9 million, or 45.4% of net revenues, in the prior year fourth quarter. On a non-GAAP basis, consolidated SG&A expense totaled $64.4 million, or 43.8% of net revenues, compared to $67.1 million, or 44.8% of net revenues, in the prior year fourth quarter. Vera Bradley’s SG&A current year expenses were lower than the prior year primarily due to cost reduction initiatives and a reduction in variable-related expenses due to the lower sales volume.

The Company’s fourth quarter consolidated operating loss totaled ($49.8) million, or (33.8%) of net revenues, compared to operating income of $8.3 million, or 5.5% of net revenues, in the prior year fourth quarter. On a non-GAAP basis, fourth quarter consolidated operating income totaled $7.0 million, or 4.8% of net revenues, compared to $9.1 million, or 6.1% of net revenues, in the prior year.

By segment:

• Vera Bradley Direct fourth quarter operating income was $18.5 million, or 18.6% of Direct net revenues, compared to $21.7 million, or 20.7% of Direct net revenues, in the prior year. On a non-GAAP basis, current year Direct fourth quarter operating income was $19.8 million, or 19.9% of Direct net revenues, compared to $21.7 million, or 20.8% of Direct net revenues, in the prior year.
• Vera Bradley Indirect fourth quarter operating income was $4.6 million, or 27.3% of Indirect net revenues, compared to $2.9 million, or 22.5% of Indirect net revenues, in the prior year. On a non-GAAP basis, current year Indirect fourth quarter operating income was $5.3 million, or 32.0% of Indirect net revenues.
• Pura Vida’s current year fourth quarter operating loss was ($49.8) million, or (161.2%) of Pura Vida net revenues, compared to operating income of $2.0 million, or 6.2% of Pura Vida net revenues, in the prior year. On a non-GAAP basis, Pura Vida’s current year fourth quarter operating income was $0.4 million, or 1.3% of Pura Vida net revenues, compared to $2.8 million, or 8.6% of Pura Vida net revenues, in the prior year.

Details for the Fiscal Year

Vera Bradley Direct segment revenues for the current fiscal year totaled $328.2 million, 7.5% decrease from $354.9 million in the prior year. Comparable sales declined 9.5% for the fiscal year.

Vera Bradley Indirect segment revenues for the fiscal year totaled $73.3 million, an 11.1% increase over $66.0 million in the prior year, primarily reflecting an increase in certain key account orders.

Current year Pura Vida segment revenues totaled $98.4 million, a 17.7% decrease from $119.6 million in the prior year. Pura Vida’s e-commerce revenues continue to be negatively impacted by the shift in social and digital media effectiveness and rising digital media costs, and a decline in sales to wholesale accounts.

Consolidated gross profit for the current fiscal year totaled $238.9 million, or 47.8% of net revenues, compared to $287.9 million, or 53.3% of net revenues, last year. On a non-GAAP basis, gross profit for the current fiscal year totaled $257.2 million, or 51.4% of net revenues. The current year gross profit rate primarily was negatively affected by higher inbound and outbound freight expense and increased promotional activity, partially offset by price increases.

For the fiscal year, consolidated SG&A expense totaled $265.0 million, or 53.0% of net revenues, compared to $262.0 million, or 48.5% of net revenues, in the prior year. On a non-GAAP basis, SG&A expense totaled $245.3 million, or 49.1% of net revenues, in the current year, compared to $258.8 million, or 47.9% of net revenues, in the prior year. Vera Bradley’s SG&A current year expenses were lower than the prior year primarily due to cost reduction initiatives and a reduction in variable-related expenses due to the lower sales volume.

For the fiscal year, the Company’s consolidated operating loss totaled ($94.9) million, or (19.0%) of net revenues, compared to operating income of $26.9 million, or 5.0% of net revenues, in the prior year. On a non-GAAP basis, the Company’s consolidated operating income was $12.3 million, or 2.5% of net revenues, compared to $30.1 million, or 5.6% of net revenues, in the prior year.

By segment:

• Vera Bradley Direct operating income was $51.1 million, or 15.6% of Direct net revenues, compared to $73.5 million, or 20.7% of Direct net revenues, in the prior year. On a non-GAAP basis, Direct operating income was $58.3 million, or 17.8% of Direct net revenues, for the current year, compared to $73.6 million, or 20.7% of Direct net revenues, in the prior year.
• Vera Bradley Indirect operating income was $23.0 million, or 31.3% of Indirect net revenues, compared to $20.3 million, or 30.8% of Indirect net revenues, in the prior year. On a non-GAAP basis, current year Indirect operating income totaled $24.7 million, or 33.7% of Indirect net revenues.
• Pura Vida’s operating loss was ($78.6) million, or (79.9%) of Pura Vida net revenues, compared to operating income of $9.5 million, or 8.0% of Pura Vida net revenues, in the prior year. On a non-GAAP basis, Pura Vida’s operating income was $4.7 million, or 4.8% of Pura Vida net revenues, compared to $12.6 million, or 10.5% of Pura Vida net revenues, in the prior year.

Balance Sheet

Net capital spending for the fiscal year totaled $8.2 million compared to $5.5 million in the prior year.

Cash and cash equivalents as of January 28, 2023 totaled $46.6 million compared to $88.4 million at the prior fiscal year end. The Company had no borrowings on its $75 million ABL credit facility at fiscal year end.

Total fiscal year-end inventory was $142.3 million, compared to $144.9 million at last fiscal year end. Total current year inventory was lower than the prior year primarily due to inventory adjustments associated with excess and discounted inventory, partially offset by incremental logistics costs burdening overall inventory.

During the fourth quarter, the Company repurchased approximately $0.8 million of its common stock (approximately 187,000 shares at an average price of $4.20), bringing the Company’s Fiscal 2023 purchases to $18.1 million (approximately 2.8 million shares at an average price of $6.40). The Company’s $50.0 million share repurchase authorization expires in December 2024. Since Fiscal 2015, the Company has repurchased $132.9 million, or approximately 12.1 million shares, of its common stock.

Forward Outlook

Management is providing estimates for the fiscal year ending February 3, 2024 (“Fiscal 2024”) based on current macroeconomic trends and expectations. Ardrey noted, “We anticipate the Fiscal 2024 macroeconomic environment to continue to be unpredictable and that this year will be a rebuilding year for both of our brands. We expect to take advantage of gross margin improvement opportunities and manage our expense structure diligently.”

The Company is not providing detailed guidance for the first fiscal quarter of 2024 but expects revenues and diluted loss per share to be approximately in line with the prior year. Ardrey stated, “In the first quarter, we will work to stabilize the business. We hope to see momentum build as the year progresses.”

Excluding net revenues, all forward-looking guidance numbers referenced below are non-GAAP. The prior year income statement numbers exclude the previously disclosed charges for goodwill and intangible asset impairment; net inventory and purchase order-related adjustments; severance, retention, and stock-based retirement compensation; consulting and professional fees primarily associated with cost savings initiatives, the CEO search, and strategic initiatives; amortization of definite-lived intangible assets; store and right-of-use asset impairment charges; new CEO sign-on bonus and relocation; and goodMRKT exit costs. Current year guidance excludes any similar charges.

For Fiscal 2024, the Company’s expectations are as follows:

• Consolidated net revenues of $490 to $510 million. Net revenues totaled $500.0 million in Fiscal 2023. Both Vera Bradley and Pura Vida revenues are expected to be approximately flat on a year-over-year basis.
• A consolidated gross profit percentage of 52.6% to 53.6% compared to 51.4% in Fiscal 2023. The expected year-over-year increase is primarily related to reduced inbound freight expense, partially offset by deleveraged overhead costs related to reduced inventory purchases.
• Consolidated SG&A expense of $241 to $251 million compared to $245.3 million in Fiscal 2023. Year-over-year changes in SG&A expense primarily are being driven by restoring short-term and long-term incentive compensation to normal levels, offset by Company-wide cost reduction initiatives.
• Consolidated operating income of $17.3 to $21.7 million compared to $12.3 million in Fiscal 2023.
• Free cash flow of between $25 and $30 million compared to a cash usage of $21.7 million in Fiscal 2023.
• Consolidated diluted EPS of $0.40 to $0.50 based on diluted weighted-average shares outstanding of 31.0 million and an effective tax rate of approximately 28%. Diluted EPS totaled $0.24 last year.
• Net capital spending of approximately $5 million compared to $8.2 million in the prior year, reflecting investments associated with new Vera Bradley Factory stores and technology and logistics enhancements.

Disclosure Regarding Non-GAAP Measures

The Company’s management does not, nor does it suggest that investors should, consider the supplemental non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Further, the non-GAAP measures utilized by the Company may be unique to the Company, as they may be different from non-GAAP measures used by other companies.

The Company believes that the non-GAAP measures presented in this earnings release, including (cash usage) free cash flow; cost of sales; gross profit; selling, general, and administrative expenses; impairment of goodwill and intangible assets; operating (loss) income; net (loss) income; net (loss) income attributable and available to Vera Bradley, Inc.; and diluted net (loss) income per share available to Vera Bradley, Inc. common shareholders, along with the associated percentages of net revenues, are helpful to investors because they allow for a more direct comparison of the Company’s year-over-year performance and are consistent with management’s evaluation of business performance. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures can be found in the Company’s supplemental schedules included in this earnings release.

Call Information

A conference call to discuss results for the fourth quarter and fiscal year is scheduled for today, Wednesday, March 8, 2023, at 9:30 a.m. Eastern Time. A broadcast of the call will be available via Vera Bradley’s Investor Relations section of its website, www.verabradley.com. Alternatively, interested parties may dial into the call at (888) 204-4368, and enter the access code 3761893. A replay will be available shortly after the conclusion of the call and remain available through March 22, 2023. To access the recording, listeners should dial (844) 512-2921, and enter the access code 3761893.

About Vera Bradley, Inc.

Vera Bradley, Inc. operates two unique lifestyle brands – Vera Bradley and Pura Vida. Vera Bradley and Pura Vida are complementary businesses, both with devoted, emotionally-connected, and multi-generational female customer bases; alignment as casual, comfortable, affordable, and fun brands; positioning as “gifting” and socially-connected brands; strong, entrepreneurial cultures; a keen focus on community, charity, and social consciousness; multi-channel distribution strategies; and talented leadership teams aligned and committed to the long-term success of their brands.

Vera Bradley, based in Fort Wayne, Indiana, is a leading designer of women’s handbags, luggage and other travel items, fashion and home accessories, and unique gifts. Founded in 1982 by friends Barbara Bradley Baekgaard and Patricia R. Miller, the brand is known for its innovative designs, iconic patterns, and brilliant colors that inspire and connect women unlike any other brand in the global marketplace.

In July 2019, Vera Bradley, Inc. acquired a 75% interest in Creative Genius, Inc., which also operates under the name Pura Vida Bracelets (“Pura Vida”). Pura Vida, based in La Jolla, California, is a digitally native, highly-engaging lifestyle brand founded in 2010 by friends Paul Goodman and Griffin Thall. Pura Vida has a differentiated and expanding offering of bracelets, jewelry, and other lifestyle accessories. The Company acquired the remaining 25% of Pura Vida in January 2023, subsequent to the end of Fiscal 2023.

The Company has three reportable segments: Vera Bradley Direct (“VB Direct”), Vera Bradley Indirect (“VB Indirect”), and Pura Vida. The VB Direct business consists of sales of Vera Bradley products through Vera Bradley Full-Line and Factory stores in the United States, www.verabradley.com, www.verabradley.ca, Vera Bradley’s online outlet site, and the Vera Bradley annual outlet sale in Fort Wayne, Indiana. The VB Indirect business consists of sales of Vera Bradley products to approximately 1,700 specialty retail locations throughout the United States, as well as select department stores, national accounts, third party e-commerce sites, and third-party inventory liquidators, and royalties recognized through licensing agreements related to the Vera Bradley brand. The Pura Vida segment consists of sales of Pura Vida products through the Pura Vida websites, www.puravidabracelets.com, www.puravidabracelets.eu, and www.puravidabracelets.ca; through the distribution of its products to wholesale retailers and department stores; and through its Pura Vida retail stores.

Website Information

We routinely post important information for investors on our website www.verabradley.com in the “Investor Relations” section. We intend to use this webpage as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our webpage is not incorporated by reference into, and is not a part of, this document.

Investors and other interested parties may also access the Company’s most recent Corporate Responsibility and Sustainability Report outlining its ESG (Environmental, Social, and Governance) initiatives at https://verabradley.com/pages/corporate-responsibility.

Vera Bradley Safe Harbor Statement

Certain statements in this release are “forward-looking statements” made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company’s current expectations or beliefs concerning future events and are subject to various risks and uncertainties that may cause actual results to differ materially from those that we expected, including: possible adverse changes in general economic conditions and their impact on consumer confidence and spending; possible inability to predict and respond in a timely manner to changes in consumer demand; possible loss of key management or design associates or inability to attract and retain the talent required for our business; possible inability to maintain and enhance our brands; possible inability to successfully implement the Company’s long-term strategic plans; possible inability to successfully open new stores, close targeted stores, and/or operate current stores as planned; incremental tariffs or adverse changes in the cost of raw materials and labor used to manufacture our products; possible adverse effects resulting from a significant disruption in our distribution facilities; or business disruption caused by pandemics. Risks, uncertainties, and assumptions also include the possibility that Pura Vida acquisition benefits may not materialize as expected and that Pura Vida’s business may not perform as expected. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended January 29, 2022. We undertake no obligation to publicly update or revise any forward-looking statement. Financial schedules are attached to this release.

CONTACTS:
Investors:
Julia Bentley, VP of Investor Relations and Communications
[email protected]
(260) 207-5116

Media:
[email protected]
877-708-VERA (8372)

Vera Bradley, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
	January 28, 2023				January 29, 2022
Assets
Current assets:
Cash and cash equivalents	$	46,595			$	88,436
Accounts receivable, net		22,105				20,681
Inventories		142,275				144,881
Income taxes receivable		1,311				9,391
Prepaid expenses and other current assets		14,276				15,928
Total current assets		226,562				279,317
Operating right-of-use assets		77,954				79,873
Property, plant, and equipment, net		58,674				59,941
Intangible assets, net		15,918				44,223
Goodwill		–				44,254
Deferred income taxes		21,542				3,857
Other assets		3,851				6,081
Total assets	$	404,501			$	517,546
Liabilities, Redeemable Noncontrolling Interest, and Shareholders’ Equity
Current liabilities:
Accounts payable	$	20,350			$	30,492
Accrued employment costs		14,312				12,463
Short-term operating lease liabilities		19,714				18,699
Other accrued liabilities		12,723				16,422
Income taxes payable		558				–
Total current liabilities		67,657				78,076
Long-term operating lease liabilities		74,664				80,861
Other long-term liabilities		90				195
Total liabilities		142,411				159,132
Redeemable noncontrolling interest		10,712				30,974
Shareholders’ equity:
Additional paid-in-capital		109,718				107,907
Retained earnings		274,629				334,364
Accumulated other comprehensive loss		(105	)			(29	)
Treasury stock		(132,864	)			(114,802	)
Total shareholders’ equity of Vera Bradley, Inc.		251,378				327,440
Total liabilities, redeemable noncontrolling interest, and shareholders’ equity	$	404,501			$	517,546

Vera Bradley, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
	Thirteen Weeks Ended							Fifty-Two Weeks Ended
	January 28, 2023				January 29, 2022			January 28, 2023				January 29, 2022
Net revenues	$	147,091			$	149,576		$	499,961			$	540,453
Cost of sales		87,054				73,436			261,017				252,510
Gross profit		60,037				76,140			238,944				287,943
Selling, general, and administrative expenses		70,001				67,910			265,016				261,993
Impairment of goodwill and intangible assets		39,918				–			69,256				–
Other income, net		107				40			457				961
Operating (loss) income		(49,775	)			8,270			(94,871	)			26,911
Interest expense, net		38				41			153				263
(Loss) income before income taxes		(49,813	)			8,229			(95,024	)			26,648
Income tax (benefit) expense		(9,211	)			2,576			(15,640	)			6,430
Net (loss) income		(40,602	)			5,653			(79,384	)			20,218
Less: Net (loss) income attributable to redeemable noncontrolling interest		(12,441	)			498			(19,649	)			2,380
Net (loss) income attributable to Vera Bradley, Inc.	$	(28,161	)		$	5,155		$	(59,735	)		$	17,838
Basic weighted-average shares outstanding		30,850				33,583			31,503				33,785
Diluted weighted-average shares outstanding		30,850				34,272			31,503				34,437
Basic net (loss) income per share available to Vera Bradley, Inc. common shareholders	$	(0.91	)		$	0.15		$	(1.90	)		$	0.53
Diluted net (loss) income per share available to Vera Bradley, Inc. common shareholders	$	(0.91	)		$	0.15		$	(1.90	)		$	0.52

Vera Bradley, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
	Fifty-Two Weeks Ended
	January 28, 2023			January 29, 2022
Cash flows from operating activities
Net (loss) income	$	(79,384)		$	20,218
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation of property, plant, and equipment	8,854			9,315
Amortization of operating right-of-use assets	21,543			20,521
Goodwill and intangible asset impairment	69,256			–
Other impairment charges	1,351			85
Amortization of intangible assets	3,303			3,073
Provision for doubtful accounts	(77)			101
Stock-based compensation	3,241			4,930
Deferred income taxes	(17,685)			(327)
Other non-cash charges (gain), net	6			(37)
Changes in assets and liabilities:
Accounts receivable	(1,347)			6,761
Inventories	2,606			(3,465)
Prepaid expenses and other assets	3,882			2,215
Accounts payable	(10,223)			3,210
Income taxes	8,638			(2,340)
Operating lease liabilities, net	(25,398)			(25,961)
Accrued and other liabilities	(1,987)			1,562
Net cash (used in) provided by operating activities	(13,421)			39,861
Cash flows from investing activities
Purchases of property, plant, and equipment	(8,239)			(5,489)
Proceeds from maturities and sales of investments	–			1,290
Proceeds from disposal of property, plant, and equipment	–			45
Net cash used in investing activities	(8,239)			(4,154)
Cash flows from financing activities
Tax withholdings for equity compensation	(1,430)			(2,456)
Repurchase of common stock	(18,062)			(7,742)
Distributions to redeemable noncontrolling interest	(613)			(1,215)
Net cash used in financing activities	(20,105)			(11,413)
Effect of exchange rate changes on cash and cash equivalents	(76)			(33)
Net (decrease) increase in cash and cash equivalents	$	(41,841)		$	24,261
Cash and cash equivalents, beginning of period	88,436			64,175
Cash and cash equivalents, end of period	$	46,595		$	88,436

Vera Bradley, Inc.
Fourth Quarter Fiscal 2023
GAAP to Non-GAAP Reconciliation Thirteen Weeks Ended January 28, 2023
(in thousands, except per share amounts)
(unaudited)
	Thirteen Weeks Ended
	As Reported				Other Items				Non-GAAP (Excluding Items)
Gross profit (loss)	$	60,037			$	(11,261	)	1	$	71,298
Selling, general, and administrative expenses		70,001				5,620		2		64,381
Impairment of goodwill and intangible assets		39,918				39,918				–
Operating (loss) income		(49,775	)			(56,799	)			7,024
(Loss) income		(49,813	)			(56,799	)			6,986
Income tax (benefit) expense		(9,211	)			(11,114	)	3		1,903
Net (loss) income		(40,602	)			(45,685	)			5,083
Less: Net (loss) income attributable to redeemable noncontrolling interest		(12,441	)			(12,541	)			100
Net (loss) income attributable to Vera Bradley, Inc.		(28,161	)			(33,144	)			4,983
Diluted net (loss) income per share available to Vera Bradley, Inc. common shareholders	$	(0.91	)		$	(1.07	)		$	0.16
Vera Bradley Direct segment operating income (loss)	$	18,490			$	(1,293	)	4	$	19,783
Vera Bradley Indirect segment operating income (loss)	$	4,556			$	(785	)	5	$	5,341
Pura Vida segment operating (loss) income	$	(49,760	)		$	(50,163	)	6	$	403
Unallocated corporate expenses	$	(23,061	)		$	(4,558	)	7	$	(18,503	)
1Items include $10,554 for inventory adjustments related to excess inventory, the exit of certain technology products, and discounted inventory, as well as $707 for certain PO cancellation fees
2Items include $3,062 for severance charges, including the acceleration of certain cash retention payments; $1,036 for CEO sign-on bonus and relocation expenses; $998 for the amortization of definite-lived intangible assets; $316 for consulting fees associated with strategic initiatives, as well as certain professional fees and certain fixture obsolescence; and $208 for former CEO November and December salary retention payments and stock-based compensation associated with retirement
3Related to the tax impact of the charges mentioned above, as well as goodwill and intangible asset impairment charges
4Related to $754 for an allocation of certain inventory adjustments and $539 for certain PO cancellation fees
5Related to $617 for an allocation of certain inventory adjustments and $168 for certain PO cancellation fees
6Items include $39,918 for goodwill and intangible asset impairment charges; $9,183 for inventory adjustments related to excess and discounted inventory; $998 for the amortization of definite-lived intangible assets; and $64 related to certain professional fees
7Items include $3,062 for severance charges, including the acceleration of certain cash retention payments; $1,036 for CEO sign-on bonus and relocation expenses; $252 for consulting fees associated with strategic initiatives, as well as certain professional fees and certain fixture obsolescence; and $208 for former CEO November and December salary retention payments and stock-based compensation associated with retirement

Vera Bradley, Inc.
Fourth Quarter Fiscal 2022
GAAP to Non-GAAP Reconciliation Thirteen Weeks Ended January 29, 2022
(in thousands, except per share amounts)
(unaudited)
	Thirteen Weeks Ended
	As Reported				Other Items				Non-GAAP (Excluding Items)
Gross profit	$	76,140			$	–			$	76,140
Selling, general, and administrative expenses		67,910				853		1		67,057
Operating income (loss)		8,270				(853	)			9,123
Income (loss) before income taxes		8,229				(853	)			9,082
Income tax expense (benefit)		2,576				(127	)	2		2,703
Net income (loss)		5,653				(726	)			6,379
Less: Net income (loss) attributable to redeemable noncontrolling interest		498				(192	)			690
Net income (loss) attributable to Vera Bradley, Inc.		5,155				(534	)			5,689
Diluted net income (loss) per share available to Vera Bradley, Inc. common shareholders	$	0.15			$	(0.02	)		$	0.17
Vera Bradley Direct segment operating income (loss)	$	21,653			$	(85	)	3	$	21,738
Vera Bradley Indirect segment operating income	$	2,920			$	–			$	2,920
Pura Vida segment operating income (loss)	$	1,991			$	(768	)	4	$	2,759
Unallocated corporate expenses	$	(18,294	)		$	–			$	(18,294	)
1Items include $768 for the amortization of definite-lived intangible assets and $85 for store impairment charges
2Related to the tax impact of the charges mentioned above
3Related to store impairment charges
4Related to the amortization of definite-lived intangible assets

Vera Bradley, Inc.
GAAP to Non-GAAP Reconciliation Fifty-Two Weeks Ended January 28, 2023
(in thousands, except per share amounts)
(unaudited)
	Fifty-Two Weeks Ended
	As Reported				Other Items				Non-GAAP (Excluding Items)
Gross profit (loss)	$	238,944			$	(18,261	)	1	$	257,205
Selling, general, and administrative expenses		265,016				19,677		2		245,339
Impairment of goodwill and intangible assets		69,256				69,256				–
Operating (loss) income		(94,871	)			(107,194	)			12,323
(Loss) income before income taxes		(95,024	)			(107,194	)			12,170
Income tax (benefit) expense		(15,640	)			(19,012	)	3		3,372
Net (loss) income		(79,384	)			(88,182	)			8,798
Less: Net (loss) income attributable to redeemable noncontrolling interest		(19,649	)			(20,826	)			1,177
Net (loss) income attributable to Vera Bradley, Inc.		(59,735	)			(67,356	)			7,621
Diluted net (loss) income per share available to Vera Bradley, Inc. common shareholders	$	(1.90	)		$	(2.14	)		$	0.24
Vera Bradley Direct segment operating income (loss)	$	51,097			$	(7,241	)	4	$	58,338
Vera Bradley Indirect segment operating income (loss)	$	22,965			$	(1,728	)	5	$	24,693
Pura Vida segment operating (loss) income	$	(78,591	)		$	(83,306	)	6	$	4,715
Unallocated corporate expenses	$	(90,342	)		$	(14,919	)	7	$	(75,423	)
1Items include $16,696 for inventory adjustments associated with excess inventory, the exit of certain technology products and the goodMRKT brand, and discounted inventory; and $1,565 for PO cancellation fees
2Items include $9,182 for severance charges, including the acceleration of certain cash retention payments; $4,354 for consulting fees associated with cost savings and strategic initiatives, CEO search, certain professional fees and certain fixture obsolescence; $3,303 for the amortization of definite-lived intangible assets; $1,351 for store and right-of-use asset impairment charges; $1,036 for CEO sign-on bonus and relocation expenses; $371 for former CEO November and December salary retention payments and stock-based compensation associated with retirement; and $80 for goodMRKT brand exit costs
3Related to the tax impact of the charges mentioned above, as well as goodwill and intangible asset impairment charges
4Items include $6,165 for an allocation of certain inventory adjustments and PO cancellation fees; $759 for store impairment charges; $302 for goodMRKT brand exit costs; and $15 for severance charges
5Items include $1,728 for an allocation of certain inventory adjustments and PO cancellation fees
6Related to $69,256 of goodwill and intangible asset impairment charges; $10,146 for certain inventory adjustments; $3,303 for the amortization of definite-lived intangible assets; $422 for severance charges; and $179 for certain professional fees
7Related to $8,745 for severance charges, including the acceleration of certain cash retention payments; $4,175 for consulting fees associated with cost savings and strategic initiatives, CEO search, as well as certain professional fees and certain fixture obsolescence; $1,036 for CEO sign-on bonus and relocation expenses; $592 for a right-of-use asset impairment charge; and $371 for former CEO November and December salary retention payments and stock-based compensation associated with retirement

Vera Bradley, Inc.
GAAP to Non-GAAP Reconciliation Fifty-Two Weeks Ended January 29, 2022
(in thousands, except per share amounts)
(unaudited)
	Fifty-Two Weeks Ended
	As Reported				Other Items				Non-GAAP (Excluding Items)
Gross profit	$	287,943			$	–			$	287,943
Selling, general, and administrative expenses		261,993				3,158		1		258,835
Operating income (loss)		26,911				(3,158	)			30,069
Income (loss) before income taxes		26,648				(3,158	)			29,806
Income tax expense (benefit)		6,430				(554	)	2		6,984
Net income (loss)		20,218				(2,604	)			22,822
Less: Net income (loss) attributable to redeemable noncontrolling interest		2,380				(768	)			3,148
Net income (loss) attributable to Vera Bradley, Inc.		17,838				(1,836	)			19,674
Diluted net income (loss) per share available to Vera Bradley, Inc. common shareholders	$	0.52			$	(0.05	)		$	0.57
Vera Bradley Direct segment operating income (loss)	$	73,506			$	(85	)	3	$	73,591
Vera Bradley Indirect segment operating income	$	20,323			$	–			$	20,323
Pura Vida segment operating income (loss)	$	9,519			$	(3,073	)	4	$	12,592
Unallocated corporate expenses	$	(76,437	)		$	–			$	(76,437	)
1Items include $3,073 for the amortization of definite-lived intangible assets and $85 for store impairment charges
2Related to the tax impact of the charges mentioned above
3Related to store impairment charges
4Related to the amortization of definite-lived intangible assets

Vera Bradley, Inc.
Free Cash Flow Reconciliation
(in thousands)
(unaudited)
	Fifty-Two Weeks Ended
	January 28, 2023				January 29, 2022
Net cash (used in) provided by operating activities	$	(13,421	)		$	39,861
Purchases of property, plant, and equipment		(8,239	)			(5,489	)
(Cash usage) Free cash flow	$	(21,660	)		$	34,372